As an Independent Financial Advisor, we’re often asked about our definition of financial wellness. It’s a great question because it can mean different things to different people depending on their stage of life.

Financial wellness is about striking that perfect balance between enjoying your life right now and smartly preparing for what comes next. Having a clear strategy and well-thought-out plan helps ensure you aren’t just living day to day without a meaningful plan.

Think of financial wellness as a puzzle with many pieces of different shapes and sizes. Our job is to assemble the pieces into a cohesive picture. Some of those pieces represent

• Budgeting
• Saving
• Investing
• Eliminating debt
• Planning for retirement

It’s important to note that part of financial wellness is feeling confident and secure in your plan for accumulating and preserving your retirement assets. Your financial needs during retirement could last 30 years or more, based on rising longevity. Financial wellness lets you pursue the financial goals you've set for yourself and know you're financially prepared for a comfortable, secure future. It's about establishing that sense of control and confidence.

Retirement Fears? Watch our Managing Partner, Joe E. Hines, Jr., discuss ways to reach your retirement goals.

In this blog, we’ll look at smart money moves you can make to pursue financial wellness at every stage of life.

Early Career (20s and 30s)

Your path to financial wellness should start by creating a realistic budget. Track your income by source and individual expenses to better understand your spending habits. Prioritize saving a healthy portion of your income. Aim for an emergency fund that covers three to six months of living expenses. Avoid spending down your market investments to allow for compounding growth.

You should also consider the long-term benefits of acquiring additional education or training. Assess the potential return on investment, but be cautious about accumulating excessive student debt. Ideally, further education should open the door to higher-paying jobs in the future.

The saying goes, “It's never too early to start.” Take advantage of employer-sponsored retirement plans such as 401(k)s, especially if they offer matching contributions, and explore setting up a Traditional IRA if you’re self-employed or are looking for additional ways to build your retirement savings.

Mid-Career (40s and 50s)

The habits you develop in your 20s and 30s should carry over into this stage, which is often your peak earning period. Here's how you can optimize this period for financial wellness:

Maximize your retirement savings

This is a pivotal time to boost your retirement contributions. Consider maxing out 401(k) plans and IRAs. If you're over 50, take advantage of catch-up contributions.

Be aggressive in reducing any debt

Focus on reducing or eliminating high-interest debts, such as credit cards and personal loans. This will free up more funds for savings and investments.

Diversify your investments

This will help you manage your investment risk. Balance your portfolio with a mix of stocks, bonds, and other investments that align with your risk tolerance and investment goals. Note: It’s important to do this for retirement and non-retirement accounts.

Maintain your emergency fund

Ensure your emergency fund keeps pace with your expenses. Remember it’s best to have six months or more of living expenses saved to safeguard against unforeseen financial challenges.

Reassess your insurance coverage

This includes life, health, disability, and long-term care insurance to ensure it meets your evolving needs as you age.

Continue saving for your children’s education

If applicable, continue to save for your children's education through 529 plans or other educational savings vehicles.

Plan for rising healthcare costs

Start planning for rapidly rising healthcare costs during your retirement years, including long-term care insurance.

Updates wills, trusts, and estate planning documents

Update or establish your will and consider setting up trusts or other estate planning tools to manage your legacy.

Pre-Retirement (60s)

As you plan your retirement, consider these important financial wellness tactics.

Deciding when to start collecting Social Security benefits can significantly impact your retirement. In your analysis, review other retirement income sources and consider your personal needs, life expectancy, marital status, and tax implications.

Identify your retirement income sources and how they may impact your tax situation. If you plan on drawing from Traditional IRAs, consider your required minimum distributions (RMDs) and how you’ll be taxed on that income. Conversely, you should also identify your expected (and unexpected) retirement expenses, such as travel, entertainment, transportation, healthcare and daily living expenses.

Be sure to plan for inflation's impact on your retirement, as it can erode the value of your money over the long term. Inflation will impact everyday expenses like food, transportation, and healthcare if you plan on retiring using fixed income and savings.

Ensure your estate plan and legal documents are up to date, especially if major life events have occurred during this period. Tax minimization should also be an important part of this process.

Retirement (70s and beyond)

Given today’s extended life expectancies, you could be retired for 30 years or longer. This phase of financial wellness is all about carrying the appropriate investment mix that balances principal preservation, income generation, and market growth. Increased healthcare expenses and end-of-life care can put pressure on your asset levels, and proper risk management can help mitigate these costs.

You should develop a withdrawal strategy for your retirement savings. Be sure to consider the required minimum distributions from retirement accounts and the tax implications of your withdrawal strategy.

After Losing a Loved One (Any Age)

The loss of a spouse or loved one brings not only emotional challenges but also complex financial and legal responsibilities. Managing accounts, sifting through records, and making major financial decisions can feel overwhelming during an already stressful time.

In the months that follow a loss, it can be helpful to step back and focus on understanding the full financial picture. Doing this may involve obtaining or updating ownership of accounts, coordinating with beneficiaries, and reviewing household bills. Establishing a clear view of assets, liabilities, and ongoing expenses can help create stability and provide a path forward.

You may also need to reevaluate how to handle real estate, such as a vacation home or rental property, or think through life changes related to work or family responsibilities. Having a trusted financial advisor to help analyze these major decisions can provide a valuable perspective when emotions and uncertainty are high.

Get to Know Global View Investment Advisors

Financial planning is an ongoing journey, not a one-off meeting. Our goal? To help you get to where you want: a comfortable, secure lifestyle that lasts a lifetime.

Working with our team of experienced CFP® fee-only financial planners in Greenville, SC, your journey toward financial wellness begins with us getting to know you through a series of meetings to understand your financial concerns and goals.

It's a team effort—we'll do our part and help guide you with yours. Expect regular catch-ups, checklists, and discussions from us. We believe in regular reviews to discuss your financial plan, investments, and any new developments in your life. We know there will be changes, and we’ll be prepared to address them.

Global View Investment Advisors is an independent, privately owned firm. We don't have to answer to a corporate office or satisfy the earnings demands of public shareholders. Our focus and dedication are solely based on what’s best for you.

When you partner with Global View, you get an experienced wealth management team.

Connect with us to learn more about creating a financial wellness plan for you and your family.