Issue link: http://read.dmtmag.com/i/141342
Special Advertising Section In Your 30s: Where Are You At? The 30s are a time to find your bearings on your financial situation and make solid, educated decisions that will make retirement the relaxing time of life it's meant to be "You have to monitor things more closely and make sure you understand what your goals are, and take more time with it, too." Jody Brown, financial advisor A financial pinch a woman faces in her 30s won't be as damaging as it could be in her 70s, with Summit Financial Advisors at Summit Credit Union when it's too late to make recovery plans. That's why the biggest financial goal for women in their 30s is to look at a savings plan with more rigor and discipline, says Jody Brown, financial advisor with Summit Financial Advisors at Summit Credit Union. At this point, when you're out of college and in a full-time job with benefits and hopefully a retirement savings plan, it's time to, says Brown, "realize Brown recommends women in their 30s: what trail you've left financially and how to clean it up and get on track." • Budget. Brown says the metabolism analogy rings true for finances, too. While • Develop a savings plan. a woman can sail through her 20s eating and exercising at will, her 30s • Set a long-term retirement goal. bring need for increasing attention and control. Money is no different. • Review goals annually to adjust. "You have to monitor things more closely and make sure you understand • Make sound mortgage decisions. When you need what your goals are, and take more time with it, too," she says. money later, "You can't pull off the front door and sell it," says Brown, explaining that if retirement money Some women don't, however, and end up with allocations inappropriate was given up for a mortgage, a woman may find she for their age group or life situation, whether too conservative or too risky. regrets the decision later when she is faced with Brown explains that a 5-percent loss may be acceptable if there are both more-limited retirement funds. risk tolerance and the time to regain financial speed later on. • Create your own investing opportunities if you are "Some people love the rollercoaster while for others, the Ferris wheel self-employed or your employer does not provide is even going to be tough," she explains. retirement investment opportunities. Brown says that people won't change their innate "spots or stripes," • Just do it—now. "It's just about getting the information but do need education and expert guidance on the best options for the and taking first step to build a portfolio," she adds. long term. Another no-no, she says, is cashing out existing retirement funds for a house down payment. One of Brown's clients recently did this and is now realizing the money must be replaced. But how? One-quarter of women report that they plan to tap into retirement funds for other expenses, but with taxes and penalties, experts say a person really can recover only 50 to 60 percent of that money. Cashing out a $50,000 balance would take at least three years to get back to ground zero. At any age, it's not the ideal situation. Is it crucial to have an emergency fund? 67% of women say yes 45% of men say yes Source: a recent MONEY survey 52 BRAVA Magazine July 2013