I’ll tell you what…
The month of May is beginning to look a lot like December.
Definitely not because it’s cold out there, but with so much “end of school year” stuff happening these days, from graduation parties (ranging from pre-k “graduations” all the way up through college and beyond), to weddings (both royal and otherwise), to sports seasons wrapping up, to Memorial Day plans … well, I know some San Diego parents who are longing for those “quieter” days during the winter holiday clamor.
I guess we all find ways to look ahead, and OUT of our current circumstances.
Which is why I’d like to take a moment and address my younger readers today. Specifically the recent graduates, but really anyone on the sunnier side of 30 years old.
Though, to be clear, this is advice that would behoove you to pay attention to, no matter your stage of life.
How To Manage Money For San Diego Millennials
“Age is a very high price to pay for maturity.” -Tom Stoppard
One thing not often taught in schools is how to manage money and prepare for retirement.
Many students, whether they attend college or go straight into the workforce after high school, don’t grasp the importance of saving for later in life and are waiting too long to start stashing away money for retirement. When we start working with younger San Diego clients, these are the sorts of things about which we have conversations…
Think about saving before a life event forces you to.
Major life events such as the death of a family member, being laid off from a job, or a debilitating physical injury can occur before we consider the impact they could have on our financial future.
Don’t be caught off guard. Begin to build a nest egg to ensure the financial security of your (future) family.
Technology can’t replace the human touch.
For all the conveniences that technology provides us, it still can’t replace the experience of a connection with another person.
An experienced personal financial advisor can ask the right questions, provide ongoing guidance, and be an important resource for those who want to plan for retirement. A computerized advisor or even a live advisor supporting an automated advisor service often doesn’t deliver the same depth of advice or relationship.
Don’t give up too quickly.
Let time be your ally.
Investing in the stock market with retirement savings can feel like a roller coaster ride. There will be plenty of ups and downs, but the descent is no time to jump off, even if you do get jittery. Market history suggests that eventually things may work out, if you allow enough time.
Think about taxes before they think about you.
In the early years of your career, taxes seem more like a mere inconvenience than a tangible thing to plan around. But the reality is that you can set up your financial life NOW to prevent your future self from having to pay more taxes than you ought.
Whether that’s starting in on a Roth IRA or other tax-savings strategies, don’t be fooled that the larger standard deduction moving forward will suffice for you when your career reaches maturity. Get advice now for how you can plan ahead for whatever comes.
I wonder if you know someone who can help you with that?
Daniel K Yowell
San Diego Tax Center