KEY TAKEAWAYS: Start building savings, managing debt and investing early in your 20s and 30s. Maximize retirement contributions and refine long-term strategies in your 40s and 50s. In retirement, shift focus to preserving wealth and generating steady income. Review your financial plan regularl y and work with a trusted advisor to stay on track. Financial planning is not a singular journey. It is an ongoing, multifaceted process that adapts with you through life’s many stages. As careers advance, families grow and priorities shift, so should your approach to saving, investing and protecting your wealth. Developing good habits early and reviewing your plan regularly with a trusted advisor can help you stay on track no matter where life takes you. Here is how to think about your finances at different stages of life: Your 20s and 30s: Build Your Foundation Financial planning is all about laying the groundwork for long-term financial health in our 20s and 30s. Major life events like pursuing higher education, managing student loans, starting a career, getting married, or buying a first home may impact how much you can save. But starting early, even with small contributions, can help compound your wealth over time. The focus during this stage starts with establishing liquid savings, typically to help cover three to six months of expenses to avoid taking on debt during emergencies. Managing debt is also critically important during this time. Paying off high-interest credit cards and creating a strategy for student loans can free up more money for future goals. Once you have a financial safety net, the next step is to start investing early. Tax-advantaged accounts such as Roth 401(k)s or Roth IRAs are ideal at this age because contributions are made with after-tax dollars and withdrawals in retirement are tax free. Many employers also offer matching contributions, a benefit that can boost savings and is well worth taking full advantage of. Another valuable option is to participate in a traditional employer-sponsored 401(k), which allows workers to contribute up to $23,500 in 2025 using pre-tax dollars. A portion of these contributions are often matched by employers, effectively adding to your retirement savings and helping you maximize long-term growth potential. For individuals in their 30s, this is the perfect time to consider a Health Savings Account (HSA) if you are enrolled in a high-deductible health plan. HSAs are one of the most tax-efficient tools available, offering tax-deductible contributions, tax-free growth and tax-free withdrawals for qualified medical expenses. Best of all, the funds are yours to keep even if you change jobs or health plans, making it an excellent long-term saving vehicle. Your 40s and 50s: Strengthen and Strategize In your 40s and 50s, financial planning becomes more complex. As your income and assets grow, so do your financial responsibilities and expenses. Your peak earning years are the time to fine-tune your plan and focus on long-term goals. This stage is often about balancing future savings while meeting current obligations, like paying a mortgage, raising children and covering education and health care costs. If you have not already, consider opening or contributing to 529 plans or custodial accounts to save for children’s education in a tax-efficient way. This is the time to maximize contributions to traditional 401(k) and IRA accounts, which can lower your taxable income while building retirement savings. People 50-59 can boost their pre-tax 401(k) contributions to $31,000 to “catch up” for years when they weren’t able to invest more. Workers from 60-63 have a catch-up ceiling of $34,750. This is also a good time to pay down major debts such as your mortgage, freeing up cash flow and creating opportunities to invest in other areas, including real estate or income-generating opportunities. For higher earners, the 40s and 50s may also be a smart time to explore irrevocable trusts and other estate planning strategies that support wealth transfer by reducing future tax burdens. In addition, reviewing your life insurance coverage ensures your loved ones are protected and your long-term goals are secure. Significant life events like divorce, remarriage or career changes may also require adjustments to your plan, so it’s important to revisit your financial strategy regularly with your advisor. Retirement Year: Preserve and Protect In retirement, the focus shifts from building wealth to preserving it and generating steady income. By strategically drawing from accounts like 401(k)s, IRAs, pensions and Social Security, you can help minimize taxes and make savings last. Your investment strategy should remain balanced, with enough growth potential to keep up with inflation but enough stability to protect what you have built. Plan carefully for health care costs in retirement, including long-term care if needed. It’s also important to regularly review estate plans and beneficiary designations to ensure they align with your intentions. This may include gifting assets to children and grandchildren or supporting charitable causes that matter to you. The Bottom Line Financial planning is a lifelong journey. By building a strong foundation in your 20s and 30s, strengthening strategies in your 40s and 50s and focusing on wealth preservation in retirement, you can stay in control of your financial future. The most important takeaway is to ask for guidance rather than going at it alone. A trusted financial advisor can help you adapt to life’s changes, provide insight through major decisions and keep your long-term goals in sight. The earlier you start your financial journey and the more consistently you revisit your plan, the better positioned you will be to grow and protect your wealth, creating a lasting financial legacy for future generations. This article is for informational purposes only and should not be considered financial or investment advice. Sam Bruner is a Wealth and Fiduciary Advisor at BankPlus, where he serves clients across Louisiana with personalized strategies for achieving financial independence and long-term stability. Investment Advisory Services are offered through BankPlus Wealth Advisors, an SEC registered investment adviser. ...read more read less