Financial planning for every stage of your life

By Tina Hurley, Head of Planning & Ultra-High-Net-Worth Solutions, EVP | Citizens Wealth Management

_{As a strategic partner who helps clients navigate and grow in changing circumstances, Tina is responsible for the direct management of the Citizens Wealth Management financial planning and estate planning team, including a team of CERTIFIED FINANCIAL PLANNERS™, estate and tax planners, and trust officers.}

Building a secure financial future involves more than just saving money. It means having a plan, preparing for the unexpected, and taking an active role in your finances to meet your short-term and long-term financial goals.

Whether you are just getting started on your financial journey, navigating life changes, or preparing for retirement, having a clear strategy is essential. This guide can help you understand key considerations for each stage of life.

Building a strong foundation

As you plan your financial future, here are some important steps to consider.

Investing for retirement

One common way to get started on your retirement investing is with a 401(k). A 401(k) is a tax-advantaged retirement account sponsored by employers.

Contributing to your 401(k) as early and often as possible is one of the most reliable strategies to build wealth, as your investment returns could compound year over year. Your employer may also match contributions to this account, with either a partial match (up to a certain percent of your contribution) or a full match. In 2025, 401(k) contribution limits for people under 50 is $23,500. Those over 50 can make additional catch-up contributions of up to $7,500.¹

An individual retirement account, or IRA, is another option that will allow you to invest for retirement on your own in a tax-advantaged way. For 2025, the IRA contribution limit is $7,000 annually; if you're over 50, you can contribute an additional $1,000 in catch-up contributions. If you have a 401(k) from a previous employer, you can roll it into an IRA or another 401(k).

You may also be eligible to set up a health savings account (HSA) to prepare for health care costs later in life or pay for general health care expenses along the way. To be eligible, you must be enrolled in a high-deductible health plan. Your contributions to this account are not taxed on the federal level but could be taxed on the state level pending your state's regulations.

Finding a financial advisor

A trusted and experienced financial advisor can be your guide in establishing your strategy to help you reach your financial goals. They can answer your specific questions and provide advice for investments that align with your objectives and risk tolerance. A financial advisor can also suggest steps you can take to help financially protect you and your family from the unexpected. As you move through different life stages, a financial advisor can be there each step of the way to refine and update your financial plan, so you feel confident about the future.

Setting up an estate plan

Even though it can be a challenging topic, it's important to determine who will receive your assets and handle your responsibilities in the event of your death. Ideally, this planning should start sooner, rather than later. So if you haven't already, there's no time like the present to begin. Creating your estate plan early on allows you to fine tune it as time goes on.

You will need to create an inventory of your tangible and intangible assets, name a guardian for any minor children and your wishes for their care, and establish legal directives that will determine how your wishes are carried out in the event of death or incapacitation. These directives can establish trusts, spell out living wills, and give power of attorney to a trusted individual. You may want your financial advisor to partner with your lawyer to be sure all your wishes are documented.

Navigating life milestones

Whether you're looking to buy a home or your family is growing, your needs and goals will change as you move through life. When big changes to your life occur, you can work with your financial advisor to reevaluate your options and revise your financial plan to take your loved ones into account.

Owning property

Renting and buying both have their merits, depending on the lifestyle you choose. But if homeownership is one of your goals, you'll want to investigate the many programs available for first-time homebuyers.

Many state housing authorities provide tax breaks, closing cost and down-payment assistance, and mortgages with favorable interest rates to help you get started. You'll want to see whether you are eligible for these housing benefits.

Planning for higher education

Paying for the college education of one or several children can be a challenge for many families. A 529 account can be a smart and effective way to support higher education goals. These are potentially tax-free qualified tuition programs, administered by individual states, that can be used to pay for tuition at any qualified college or university in the country, and even some abroad.

There are two types of 529 plans:

• A prepaid tuition plan: Allows you to pay all or part of the costs of college tuition up front.
• A college savings plan: Works similarly to a Roth 401(k) by investing after-tax contributions in mutual funds and other vehicles. The college savings plan can be used to pay for qualified expenses ranging from textbooks to rent, as well as student loans and the cost of apprenticeship programs.

Paying down debt

Becoming debt-free before retirement is a worthwhile goal that can increase your financial stability and leave you with peace of mind. Therefore, assessing the impact of a mortgage, student loans, and other debt early, can help you mitigate any impact they might have on your retirement.

For example, making minimum payments on your lower interest loans can leave you with more money to pay off debts with higher interest rates, build your emergency fund, or pay for large expenses like your child's college education.

Preparing for retirement

As you approach the age when you want to retire, your needs and goals will change again. You'll start thinking about how you want to live out the rest of your life and how to care for your loved ones after you're gone. Although these conversations can be difficult, they are important to ensure the legacy you want to leave behind is carried out.

Claiming Social Security

Social Security is a guaranteed source of income (for eligible participants) that can also help keep up with the rising cost of living. You've been paying into this fund your whole working life, and taking advantage of it later on will open up new strategies for supporting your retirement.

Reviewing various Social Security claiming options with a financial advisor is key to maximizing your finances. If you dip into Social Security at the earliest opportunity (age 62), your benefit will be reduced from what you would have received if you had waited until full retirement age. For those born in 1960 or later, full retirement benefits are payable at age 67. You can also delay longer, up until age 70, which will further increase your monthly benefit.

Married couples also have a lot to consider when it comes to claiming Social Security, including understanding their options around spousal benefits and survivor benefits. Choosing the right strategy can impact both spouses' lifetime benefits and financial security, so it's important carefully evaluate all the options and make an informed decision.

Making it last

There are many strategies to make sure your retirement assets last. For example, you may have heard of the 4% rule. This approach maintains that you can sustain a 30-year retirement by withdrawing 4% from your retirement assets in the first year, and making inflation-adjusted withdrawals of the same amount every year afterward.

While the idea of the 4% rule is sound in theory, the real amount should vary based on context including age, expenses, and life expectancy. Keep in mind that withdrawing a fixed amount could deplete the principal of the account, affecting your retirement account's performance.

Another strategy is to leave the principal of your retirement account intact and only withdraw the dividends and interest from investments. This way, your account will never run dry. The caveat is that you need a sizable principal, or it may be difficult to live on the income from interest alone.

Certain retirement benefits can help you create an income floor, such as Social Security, annuities, and pensions. No matter how the markets perform, the income from these accounts could help provide you with stability and serenity.

You may also want to consider a “bucket” strategy to help your money last. With this strategy, you separate your money into three buckets:

• The first contains the money you'll need in the next three years. This would be invested in relatively low risk, but low return vehicles to reduce the risk of incurring losses.
• The next holds what you'll need in the next 10 years. This would be allocated in a less risk averse manner, in pursuit of moderate growth.
• The third contains everything else. This money could be invested more aggressively, as there is a longer time horizon before the funds are needed.

Given all the complexities, it is important to have a well-planned retirement income strategy. Your financial advisor can help you determine the best approach drawing income without depleting your account prematurely.

Make your plan work for you

As you can see, a good plan goes a long way. Whether you're considering parenthood or preparing for retirement, your financial plan will give you an advantage as you navigate through the challenges and capitalize on your successes in life.

Smart planning could enable you to live the life you want, protect yourself and your loved ones, and help you retire comfortably. Along the way, Citizens Wealth Advisors* can help you create and regularly revise your financial plan to help you achieve your goals.

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