Uncertainty, debt, and unemployment are just a few of the financial consequences brought upon by the coronavirus pandemic. With summer coming to an end, it's time to start accepting our new normal and adapting accordingly. Yahoo Life is joined by a wealth management expert to help us get back to business. Jared Finkelstein shares 4 tips on how to get your finances back on track at every decade of life. Whether you’re struggling to clean up student loans or planning for retirement, there are certain action items one can take to ensure you're set up for success, regardless of the current climate.
JARED FINKELSTEIN: When March took place, everybody was paralyzed. Many lost their jobs, many took on debt. The key word for the pandemic was uncertainty. Now that we're quickly approaching the end of summer, many have started to accept that this is going to be our new way of life, and we need to start getting back to business. I'm here to get you back on track, whether you're 20, 30, 40, 50 or beyond.
So for people in their 20s, I think the primary situation is to make sure that some of the debt that you may have incurred, you start to clean up. A company that we love is a company called CommonBond. CommonBond will help you refinance to get a lower rate, and they can help you, at no cost, to review your debt load and see if they can help you, specifically as it pertains to your school loans.
Saving for retirement may actually be easier than you think. It's a simple formula. Spend less than you make. Action item for those in the 30s, prioritize savings and create a systematic savings plan. Just like hiring a trainer, you want to have an advisor that can serve as your financial trainer, and what a financial trainer will do, just like a personal trainer in the gym, will make sure that you stick to your plan and stick to your regimen.
By the time you're in your 40s, you're in the thick of things. If you don't like what you see, it's OK. It's still time to make changes. Having a written action plan in your 40s is key.
How much are you making? How much are you spending? How much are you saving? What are your goals and dreams? What does retirement look like for you? Next thing you know, you will have a plan in place with a roadwork and a framework on how to get there.
At this point, we are more than halfway through our lives. The primary focus should be making sure that we have an income plan. How will we turn the money that we've worked so hard to save and accumulate into income? Start looking at how you can turn your assets that have been solely focused on accumulation into income vehicles.
The stock market, which has been wonderful for your accumulation, is very, very volatile when it comes to distribution. It is not a stable asset that you want to rely on when it comes to creating income. So how do we create stable assets? We access markets that exist, things like bonds. Although it seems bleak right now, we can really do anything we set our minds to. We just need to have a plan and execute.