Financial Planning Checklist for Generation X

As a member of Generation X, you’re likely in the thick of life — managing a career, raising children and beginning to think about retirement. Sandwiched between responsibilities to both your kids and your aging parents, you can feel overwhelmed trying to manage it all.

For that reason, your long-term finances may be pushed far down on your to-do list. But taking the time now to ensure you’re financially on track can provide peace of mind both today and in the future.

Here are a few key areas to consider to help plan for a more secure financial future and peace of mind.

• Maximize Your Retirement Contributions. It’s easy to get caught up in the day-to-day, but you also need to focus on your future. These are likely your highest wage-earning years, so if you have a 401(k), IRA or similar retirement account, aim to contribute the maximum amount. If you’re over 50, catch-up contributions can boost your savings. Retirement might feel far off, but the sooner you act, the more secure you’ll be when the time comes.
• Balance College Savings with Your Own Future. Many Gen Xers are also parents with kids heading to or in college. It’s tempting to prioritize their education over your retirement, but it’s essential to find balance. Consider a 529 savings plan to help fund their education while still contributing to your own future. Remember, your kids can borrow for college — you can’t borrow for retirement.
• Manage Debt Wisely. Debt can weigh heavily on your financial future, so it’s important to tackle it strategically. Whether it’s paying off credit card balances or chipping away at your mortgage, prioritize paying off high-interest debt first. Every dollar saved in interest is another dollar toward your future.
• Build a Solid Emergency Fund. If you don’t already have one, an emergency fund is crucial. Aim to have three to six months of living expenses set aside in a liquid, easily accessible account. This ensures when life throws you an unexpected curveball — medical emergency, job loss, major home repair — you’re financially prepared.
• Make the Most of Tax Strategies. Don’t let tax opportunities pass you by. Be sure to maximize tax-deferred retirement accounts and take advantage of deductions and credits available. Consult with a tax professional or financial advisor to help identify the best strategies for saving money.
• Revisit Your Estate Plan. It’s never fun to think about, but having your estate plan in order is crucial. You need at least a will, healthcare proxy and powers of attorney. If these are still on your to-do list, now is the time to act. Estate planning doesn’t have to be difficult or complicated, but it’s essential to ensure your family is taken care of according to your wishes.
• Reevaluate Your Investment Strategy. If you’ve been invested for many years, it’s time to review your portfolio. As you get closer to retirement, your risk tolerance might change, and you’ll need to adjust accordingly. Diversification remains key — balancing stocks, bonds and other assets ensures you’re ready for what’s ahead.
• Protect Your Loved Ones with Insurance. With more responsibilities comes the need for protection. This is the time to review your life insurance policy. Do you have enough coverage to ensure your family is taken care of if something were to happen? Depending on your situation, in addition to comprehensive health insurance, you may want to consider disability and long-term care coverage.

And finally, managing finances can feel overwhelming, but a clear plan gives you the clarity and confidence to move forward. As the saying goes, “A dream without a plan is just a wish.” Partnering with a financial advisor can help turn your goals into a realistic plan, tailored to your needs, so you can stay on track and secure your financial future.

Marjorie Wentz, AIF®, is an investment adviser representative with Trinity Wealth Management, LLC, a Registered Investment Adviser. This article is for informational purposes only and should not be regarded as advisory services. No advice may be rendered by Trinity Wealth Management, LLC unless a client service agreement is in place. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. More at Trinity-Wealth.com.