Through the years, goals will change, and strategies will shift, as personal needs differ in various phases of life. However, the need for regular saving and investing spans many life stages. Here are some common goals and possible portfolios strategies for four life stages. Though each person’s requirements may differ, these examples will help lay a common foundation.

Age 25-35: Young Adulthood

Many Americans begin regular saving and investing in their mid-to-late 20s or early 30s. Goals may range from the immediate need to buy a home to the establishment of an education fund for the kids, and even retirement funding, although it might seem like decades away.

In young adulthood, the time horizon is long, and it’s a good time to let funds grow. There is a longer period in which to recover from unpredictable market fluctuations, and a higher risk tolerance is common with savings and investments. Historically, stocks have outpaced other investments, as well as inflation, over the long term. It’s a good time to consider stock funds that seek growth. Another consideration in portfolio planning is an automatic reinvestment plan, to take advantage of market ups and downs. For diversification, bonds or a stock and bond fund may be a good option. Remember to utilize tax deductions offered by Individual Retirement Accounts (IRAs) (if eligible), as well as the long-term tax-deferred growth offered by employer-sponsored retirement plans.

Age 35-55: Asset Building Years

Regular investing becomes even more important as goals come into sharper focus. Education funding may become a high priority, and a vacation home or other major purchases (the dream boat) may be within reach. Retirement seems closer.

It’s a good time to consider repositioning funds in the portfolio for a better balance of growth and income investments. While there is still time to benefit from growth provided by stock funds, income-producing bonds or stock and bond funds become valuable, as kids approach college-age.

Many individuals reach their peak earning years in their mid-40s, and this gives rise to tax considerations. Now may be the time to look at tax-free bond funds, since continued tax-deferred investments for retirement are becoming more critical.

Age 55-65: Asset Conservation

Children may no longer be part of the day-to-day financial equation, but there may be new “dependents” to consider. Aging parents may need increased assistance, both physically and financially. Larger financial gifts to children and even grandchildren may be a high priority. In addition, there may be a need to guard and increase retirement funds. Reducing tax obligations and overall debt becomes more important as retirement approaches.

With a shorter investment horizon, it’s time to reconsider heavily investing in stock funds and possibly diversifying into more bond funds. A more conservative investment vehicle provides a way to preserve accumulated assets. Tax-free bond funds can help reduce the tax bite as peak earning years continue.

 Age 65 and Over: Retirement Years

Tax reduction and protection from inflation are key in retirement. An ample income stream is critical as employment income disappears and is replaced, only in part, by Social Security or other pension funds.

Growth stock funds may become a smaller player in a portfolio, as a greater emphasis on income-generating stock and bond funds, and tax-free bond funds protect from taxation. However, to stay ahead of inflation, some exposure to growth stocks could be an important strategy.

At All Stages. . .

When investing, bear in mind that investment return and principal value will fluctuate due to changing market conditions. When shares are sold, they may be worth more or less than their original cost.

Diversification and regular investing are important at any stage of the life cycle, but the real key to success is planning. Review goals and determine if the current strategy is geared to meet them. Regular professional financial advice can keep a portfolio moving in the right direction, toward the fulfillment of your personal financial goals and the secure, comfortable future you desire.

Aging is inevitable, but how we age is, to a significant degree, within our control. For adults between the ages of 35 and 55, contemplating the years leading up to retirement offers a unique opportunity. It's a chance to not only plan for financial security but also to invest in long-term health and well-being.

In essence, it’s time to define and act upon what constitutes "healthy aging."

The Basics of Healthy Aging

Healthy aging doesn't only mean freedom from disease or disability, though that's a part of it. It also encompasses the holistic well-being of individuals – physically, mentally, and socially. This means optimizing opportunities for good health, so older adults can lead active lives and be a vibrant part of their communities.

Key Components of Healthy Aging

Balanced Nutrition: The foundation of good health at any age begins with what you eat. A diet rich in whole foods, such as fruits, vegetables, lean proteins, and whole grains can help stave off chronic diseases. Equally important is ensuring you're getting enough essential nutrients, like calcium and vitamin D.

Regular Physical Activity: Whether it's walking, swimming, or practicing yoga, staying active helps maintain muscle mass, bone density, flexibility and cardiovascular health. Moreover, it boosts mood and can aid in warding off mental health issues like depression.

Mental and Cognitive Health: Keeping the brain active and engaged is critical. This can be achieved through reading, puzzles, taking up new hobbies, or even engaging in continuous learning. Social connections and interactions, be it with friends, family, or community, also play a vital role in cognitive wellness.

Regular Health Screenings: Periodic check-ups, even if you feel fine, are crucial. They can detect potential problems early when they're most treatable. This includes screenings for blood pressure, cholesterol, bone density, and specific cancers, among others.

Avoiding Harmful Habits: This may seem obvious, but it bears repeating, refrain from smoking, limit alcohol consumption, and avoid recreational drugs. Each of these can have detrimental long-term effects on your health.

Maintaining a Healthy Weight: Being overweight can lead to a slew of health issues, including diabetes, heart disease, and certain cancers. If weight loss is needed, it's essential to approach it in a sustainable and healthy manner.

Managing Stress: Chronic stress can have both immediate and long-term effects on health. Finding ways to manage it, whether through meditation, exercise, therapy, or hobbies, can significantly improve overall well-being.

The Outcome of Healthy Aging

When key components of healthy aging are addressed, the golden years can truly shine. Healthy aging means more than just living longer, it means living better. Living better means the ability to enjoy leisure activities, spending quality time with loved ones, traveling, and simply enjoying the peace of retirement.

Furthermore, healthy aging translates to decreased healthcare costs, lesser dependence on medications, and a reduced need for long-term care. It gives older adults the autonomy they desire and the quality of life they deserve.

It's a good time to cultivate habits that nourish both the body and the mind, to ensure the journey into retirement and beyond is filled with vitality, joy, and purpose. Healthy aging isn't just about adding years to life – it's about adding life to your years!

Have you considered whether your financial house is in order? Now that we are into the new year, it’s a good time to take inventory and spruce it up. Review the following helpful hints to update your financial home!

1. Clean the "attic."

That's the spot where you have stored items such as old, unused credit cards, bank accounts under $100, or savings bonds you forgot to cash in. Close them out or cash them in.

2. Refurnish your credit "room."

This can include refinancing your mortgage while mortgage rates remain low, transferring credit card balances to lower rate alternatives and utilizing a home equity line that offers a low rate and tax deductibility of interest. You will appreciate the new “look” you create. It can be especially pleasing to empty the "room" of some credit commitments by paying them off completely, thus giving your overall budget more breathing space.

3. Consider a complete renovation.

Is it time to rebalance your investment portfolio? You may be at a stage of life that requires different investment tactics. Another area to review is your life insurance. The plan you established years ago may need updating to meet your current needs.

4. Look at future "housing" needs.

What accommodations have you made for your retirement? One of the best mechanisms in today's changing world of taxes may be the 401(k), which can provide you with current reduction of taxable income, an excellent savings plan, and tax-deferral on earnings.

5. Solidify your foundation.

Now may be a good time to review your life insurance policies. Setting up an annual review with your insurance professional can be instrumental in ensuring the adequacy of your coverage.

6. Protect your home.

Update your homeowner's policy and make a video of your home--both inside and out--as well as your valuables. Save it in a safe place and add to it as the need arises.

7. Dust off your tax records.

The time when you will need them is fast approaching. You may also want to speak with your tax advisor regarding changes you need to make to brighten your tax picture before filing your return.

8. Establish a regular maintenance program.

If you haven't done so previously, set up a budget. Make "paying yourself first"-- putting a set amount into your savings and investments every month--a priority. Analyze your current spending habits and plan ahead for large bills and expenses. It is always more relaxing to live in a clean and orderly home. By taking these eight steps, your financial home will become an inviting, enjoyable corner of your life!

Employer-sponsored retirement plans, such as 401(k) or 403(b) plans, have become an essential part of the benefits package offered by companies to attract and retain employees. One of the key features of these plans is the employer's matching contribution, which can vary from company to company.

A relatively small number of employers offer generous matching contributions, exceeding the standard dollar-for-dollar match, to enhance their recruitment efforts and compensate for discontinuing defined benefit pension plans.

Let’s examine how these rich matching contributions can boost employee savings and support recruitment and retention efforts.

Attracting and Retaining Top Talent

In today's competitive job market, companies are constantly seeking ways to attract and retain top talent. Offering a generous employer match for retirement savings plans is one such strategy.

Employees who feel that their employer is invested in their long-term financial well-being are more likely to stay loyal to the company. Moreover, candidates comparing job offers may be swayed by a more attractive retirement savings match, making it a valuable recruiting tool.

The Decline of the DB Pension Plans

Many companies have phased out traditional defined benefit pension plans, which guarantee employees a specific income upon retirement. These plans have become less popular due to the financial risks and costs associated with maintaining them.

By offering a richer matching contribution for their defined contribution plans (e.g., 401(k) or 403(b) plans), employers can help offset the loss of the guaranteed income provided by pension plans, ensuring that their employees can still build substantial retirement savings.

Fostering Financial Security

Employers who are concerned about their employees' ability to retire comfortably may choose to provide a more generous match to help workers build their retirement savings faster. A rich matching contribution can significantly accelerate the growth of an employee's retirement savings, reducing the risk of financial insecurity in retirement.

This not only benefits the employees but also helps to establish a positive company culture where workers feel supported and valued.

What Employers Can Do

While relatively few employers offer rich matching contributions for their employees' retirement savings plans, those that do so reap numerous benefits. By demonstrating a commitment to their employees' long-term financial well-being, companies can foster loyalty and trust, which ultimately contribute to a more successful and prosperous organization.

As the job market continues to evolve, employers may want to consider exploring richer matching contributions as a means to gain a competitive edge in attracting and retaining top talent.

The holidays are a time for celebration, indulgence, and connecting with loved ones. But now that it’s the new year, it’s a good time to recommit to healthy eating. Being intentional with good choices helps to maintain health and energy levels, potentially avoiding costly consequences down the road. Financial budgeting and planning principles can also apply to eating and drinking. Consider the following strategies:

1. Audit Your Holiday Health Habits

Just as it’s good to review financial portfolios periodically, start the new year by conducting a personal “health audit.” Take stock of food and beverage choices at the end of 2024.

• Celebrate successes: Acknowledge and celebrate good choices and the impact they will have on health now and in the future.
• Learn from missteps: Look at excesses as a learning experience. What’s done is done but consider simple changes to plan differently next time. Keep reading!
• Rebalance the portfolio: Start the new year with a focus on resetting healthy habits, much like rebalancing investments after a large expenditure.

2. Create a “Health Budget”

Just as it’s not wise to spend money before knowing the budget, the same financial principles can apply to eating and drinking.

• Set limits: Decide ahead of time how many indulgent meals or treats to enjoy each week.
• Prioritize “spending:” Save indulgences for truly special occasions or unique and rare dishes.
• Monitor intake: Track food and drink choices, just like tracking expenses. Apps can make this easy and can highlight patterns that might need adjusting.

3. Evaluate the “Return on Investment”

Think of every food or drink choice as an investment in overall well-being. Some options deliver a higher “ROI” than others.

• High-value choices: Lean proteins, fresh vegetables, whole grains, and nutrient-dense snacks offer sustained energy and health benefits. These have a higher return on health than other choices.
• Low-value temptations: Sugary cocktails, processed snacks, and heavy desserts can provide short-term satisfaction but may cause sluggishness, aches and bloat.
• Strategic splurges: If there is a special event with a particularly attractive menu, then choose quality over quantity. A small portion of something delicious and decadent is much more satisfying than a large serving of something mediocre.

4. Avoid the “Buy Now, Pay Later” Mentality

In finance, deferring costs often comes with hidden consequences – interest, fees, or long-term debt. The same is true for overindulging in unhealthy food and drinks.

• Recognize hidden costs: Overeating or drinking excessively can lead to weight gain, energy crashes, and even long-term health issues like high blood pressure or diabetes.
• Minimize the “debt:” Balance indulgent meals with lighter, nutrient-dense ones. If a heavy dinner is on the calendar, eat lighter ahead of the event. And then plan for moderation.
• Hydrate wisely: Limit sugary drinks and alcohol, which are like high-interest credit cards that impact health – they can dehydrate, add empty calories, and impact sleep quality as well.

5. Think Long-Term, Not Short-Term

In finance, successful investing is about delayed gratification and long-term planning. This same mindset works for health too!

• Plan ahead: Eat a healthy snack before parties to curb the temptation to overindulge. Just as shopping on an empty stomach isn’t wise, the same holds true for showing up to a buffet ravenous.
• Balance indulgence with activity: Consider exercise as a “health savings account.” Go for a walk before or after big meals, and plan activities to burn extra calories.
• Protect future health: Every healthy choice is an investment in feeling good tomorrow and maintaining long-term vitality.

Invest in Yourself

The holidays should be enjoyed! An occasional indulgence won’t ruin consistently smart choices – or the bank account. Starting now with healthy choices makes it easier to stay on track and meet health goals in the new year. What better way to start the new year than by feeling energized and confident!

The start of a new year is the perfect time to revisit your financial goals and refine your strategies. By taking intentional and thoughtful steps, you can strengthen your financial foundation and set yourself up for lasting success. Here are five key strategies to consider, along with the reasons they’re worth implementing.

1. Create a Well-Defined Budget

A comprehensive budget is a cornerstone of effective financial planning. Begin by reviewing your income, fixed expenses (such as rent or utilities), and discretionary spending (like dining out or entertainment). Use budgeting tools or spreadsheets to track and analyze your spending habits.

Why this matters:

• Offers a clear view of your financial situation.
• Helps identify areas to cut costs and increase savings.
• Encourages mindful spending and reduces the risk of accumulating debt.

2. Build a Reliable Emergency Fund

An emergency fund acts as a financial safety net for unexpected events, such as medical bills or car repairs. Aim to save three to six months’ worth of essential living expenses.

Why this matters:

• Protects against financial stress during unforeseen circumstances.
• Reduces the need to rely on high-interest credit options.
• Promotes overall financial security and peace of mind.

3. Focus on Debt Reduction

Paying down high-interest debt is essential for improving financial health. Strategies like the debt snowball (paying off smaller debts first) or the debt avalanche (targeting high-interest debt) can help you tackle balances systematically.

Why this matters:

• Lowers the total cost of debt by reducing interest payments.
• Boosts your credit score and financial flexibility.
• Frees up resources for savings and other financial goals.

4. Invest in Your Future

Investing is crucial for building long-term wealth. Consider options like employer-sponsored retirement plans, IRAs, or diversified investment accounts. Take advantage of employer match programs and choose investments that align with your goals and risk tolerance.

Why this matters:

• Allows your money to grow through compounding over time.
• Supports long-term objectives like retirement or homeownership.
• Provides a hedge against inflation and rising costs.

5. Review Your Insurance Coverage

Insurance is a vital component of financial protection. Regularly assess your health, life, home, and auto insurance policies to ensure they meet your current needs without overpaying for unnecessary coverage.

Why this matters:

• Offers financial protection against unexpected events.
• Ensures your family’s financial security in case of emergencies.
• Helps optimize costs by eliminating redundant or excessive coverage.

It’s Your Financial Journey

Adopting these financial strategies can help you start the new year on solid financial footing. By creating a budget, building an emergency fund, reducing debt, investing wisely, and ensuring appropriate insurance coverage, you’ll be better equipped to achieve your goals. Take action today and make this year a turning point in your financial journey.

Creating an estate plan is a vital step in securing your financial legacy, and if you’re doing it for the first time with a spouse or partner, you’ll quickly face an important decision: Should you set up a Joint Revocable Trust or create separate Individual Revocable Trusts? Understanding the difference between the two can be the key to ensuring your estate plan aligns with your goals, values, and family circumstances.

The choice between a joint or individual trust depends on various factors, such as your estate planning objectives, your family dynamics, and your concerns about asset protection. Let’s take a deeper dive into these considerations and explore the pros and cons of each trust type to help you make an informed decision.

Do You Need a Trust?

Before diving into the specifics of joint and individual trusts, it’s essential to determine whether you need a trust at all. Here are some common reasons why setting up a trust can be beneficial:

• Avoiding Probate: Trusts help your estate bypass the probate process, allowing assets to be distributed quickly and privately, saving time and legal costs.
• Protecting and Controlling Asset Distribution: A trust gives you control over how and when your assets are distributed, providing protection from creditors, lawsuits, or mismanagement by beneficiaries.
• Planning Flexibility: Trusts can accommodate various goals, such as providing for children or beneficiaries with special needs or managing a family business after your death.
• Tax Efficiency: Depending on how a trust is structured, it can minimize estate and gift taxes, leaving more wealth for your beneficiaries.

The following focuses on revocable trusts, which can be updated or revoked by the grantor during their lifetime. This flexibility makes revocable trusts ideal for many people, as they allow for adjustments if circumstances change.

Individual Trusts vs. Joint Trusts: What’s the Difference?

When a couple sets up their estate plan, they have two main trust options:

• Individual Trusts: Each spouse or partner creates their own trust, managing their assets independently and determining how they want their assets distributed upon death. Both parties maintain control over their respective trust and its assets.
• Joint Trust: A single trust created and managed jointly by both spouses or partners, combining their assets into one legal entity. Both parties share control over the trust and align their estate planning goals.

Factors to Consider When Deciding Between Individual and Joint Trusts

When choosing which type of trust to set up, here are some key considerations to keep in mind:

1. Estate Planning and Legacy Goals
   • Do you and your partner have a unified approach to your estate plan, or do you each have different goals for your assets and beneficiaries?
   • If you have different ideas on how assets should be distributed, individual trusts allow each person to tailor their estate plan to suit their preferences.
2. Family Dynamics and Blended Families
   • Do you or your partner have children from previous marriages or relationships? In blended families, individual trusts can help ensure that children from prior relationships receive their intended inheritance without conflicts arising between family members.
3. Concerns About Divorce or Separation
   • If you’re concerned about the possibility of divorce, individual trusts offer more protection, as assets in separate trusts are easier to divide without complicated legal battles.
4. Asset Protection
   • If either partner faces significant legal or financial risks (such as owning a business or being at higher risk for lawsuits), individual trusts can provide asset protection by keeping certain assets separate.
5. Marriage Status
   • For unmarried couples, a joint trust could complicate tax and ownership issues. Separate individual trusts might offer a clearer division of assets and reduce tax-reporting complexities.

Pros and Cons of Individual Trusts

Strengths of Individual Trusts:

1. Separate Control Over Assets: Each spouse or partner maintains full control over their own trust, allowing for independent decision-making about how their assets are managed and distributed. This is especially beneficial for couples with complex family dynamics or differing goals.
2. Simpler Administration Upon Death: When one partner passes, individual trusts make it easier to administer their respective assets without needing to disentangle them from a joint trust.
3. Greater Flexibility for Gifting Strategies: Individual trusts can simplify financial strategies, such as gifting assets between spouses or transferring assets to protect one spouse’s eligibility for benefits like Medicaid.
4. More Protection from Legal Risks: In case one spouse is exposed to legal or financial risks, assets in separate trusts may be shielded from potential claims or creditors.

Weaknesses of Individual Trusts:

1. More Complex During Life: Managing two trusts requires more oversight and frequent adjustments to ensure they remain balanced. This complexity can be time-consuming compared to the simplicity of managing a joint trust.
2. Higher Administrative Costs: Creating and maintaining two trusts often comes with higher legal fees, management costs, and possibly even separate tax filings, adding to the overall expense.
3. Potential for Conflicting Goals: Separate trusts allow for independent decisions, but that freedom can lead to disagreements if one spouse’s approach to estate planning differs from the other.

Pros and Cons of a Joint Trust

Strengths of a Joint Trust:

1. Simplified Asset Management: A joint trust consolidates all assets into one place, reducing paperwork and complexity. This makes it easier to manage the trust and update its terms without handling multiple entities.
2. Unified Estate Plan: Joint trusts create a cohesive plan, reflecting both partners’ shared financial goals and making it easier to plan for future generations.
3. Easier Administration Upon Death: When one spouse passes, assets in a joint trust automatically transfer to the surviving spouse, reducing legal complications and eliminating probate.
4. Fosters Clear Communication: A joint trust requires both partners to align their goals and work together to manage their shared assets, fostering transparency and cooperation.

Weaknesses of a Joint Trust:

1. Complications in the Event of Divorce: A joint trust can become problematic if the couple divorces, as separating jointly held assets can be legally and financially challenging.
2. Potential Conflicts in Decision-Making: If you and your spouse disagree on estate planning goals, managing a joint trust can create friction, as both must agree on any changes or updates to the trust.
3. Lack of Asset Protection: With all assets combined in one trust, they are at greater risk in the event of legal claims or financial issues facing one partner.

Other Factors to Consider

Beyond the pros and cons of each type of trust, here are additional factors that may influence your decision:

1. Estate Size and Complexity: Larger estates or those with more complex financial needs may benefit from individual trusts for better asset control and protection.
2. State Laws: If you live in a community property state or a state with specific estate tax laws, the decision between joint and individual trusts may impact your tax liability.
3. Marriage Status: For unmarried couples, individual trusts are generally preferable to avoid legal complications.

Should You Choose an Individual or Joint Trust?

The decision to create an individual or joint trust depends on your specific estate planning goals, family dynamics, and financial situation. If you have a simple estate and shared goals, a joint trust may be a good choice. However, if you have a complex estate, blended family, or prefer to manage assets separately, individual trusts may be the better option.

Before making your decision, it’s essential to sit down with your partner and discuss your goals. Consulting with a financial advisor, estate attorney, or tax professional can also help ensure that your trust strategy aligns with your long-term objectives. Remember, both types of trusts are revocable, offering the flexibility to adjust as your circumstances change. What matters most is that your estate plan reflects your wishes and provides the protection and clarity you need for your financial future.