By Larry Mendel, Vice President, Sales
Having our office across from Truist Park, the home of the Atlanta Braves, is a constant reminder of America’s favorite past time. As baseball is often used as metaphor for life, at MONTAG, we occasionally use it to illustrate financial preparedness.
1st Base: Building Career and Family
These are the formative years where many of us engage in defining our career and family paths. Should your path include having a family, we begin to think about things bigger than ourselves and taking care of those around us. We create our Will, consider life insurance, set up our 401k or retirement plans. These are also the years where we aim to educate our children and instill the financial behaviors which are important. It’s what I refer to as building “our ethical relationship with finance” which is how to think about money, investing, and developing our spending habits.
2nd Base: Spending and Planning
I know what you are thinking… can I “steal” second base?” I had already thought someone might ask that question. In this game of preparation and strategy, the answer is no, these are the years for spending and building a foundation. We possibly buy a home, continue to define our careers and begin planning for the long-term financial health of ourselves and our children. We should build a relationship with a financial advisor, get life insurance in order, both long-term and short-term, think about 529 plans for our children, think of retirement investment strategies, 401(k) plans etc. These are the years to think about investing for the long term with tax free and tax deferred methodologies. Time is on your side and planning for the future becomes an integral part of the decision-making process.
3rd Base: Accumulation
Rounding 3rd should align with your high earning years and allowing your assets to work for you. As you think into the future, revisit your estate planning, consider eldercare options and long-term health insurance. Utilize your team such as your CPA, Attorney and Financial Advisor, to strategize together in reviewing your plan to make sure it still works for your long-term goals.
Home Plate: Transition to Retirement
As you come into home plate, working with a financial planner can help with your transition as you move from being an accumulator into the retirement years. Believe it or not, the mindset transition can take some adjustment. At MONTAG, our financial planner is prepared to coach and create a plan to smooth this transition and create an income stream which meets your needs.
Finally, when thinking of your financial pastime, it’s important to have your team work together and to remember that as life changes, so should your documents. Many of the headaches the next generation will deal with are the mistakes (errors) made along the way, and many of these are self-imposed. Remember to check in regularly with your professionals and stay in the game with your planning. A good strategy with strong communication is the key to success as you round the bases of life.
The information provided is for illustration purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action to be taken. These analyses have been produced using data provided by third parties and/or public sources. While the information is believed to be reliable, its accuracy cannot be guaranteed. MONTAG employees do not provide legal or tax advice. For specific legal or tax matters, you should consult with your own legal and/or tax advisors. There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, and money market funds involve risk of loss. Loss of principal is possible.
