Financial planning services are important for young adults, whether they plan on going to college or entering the workforce for the first time. From knowing how much to contribute to your employer matched 401(k) to determining the right amount of money to save for a down payment on a house or car, financial planning services can help young adults have bright financial futures. Here are some of the ways that financial planning can help.
Many young adults graduate from college with a tremendous amount of student loan debt. Sometimes this is on top of auto loans, credit cards, and other types of debt. One of the first recommendations from your financial advisor will be to pay off the debt in order to free up cash flow to put toward other investments, such as a down payment on a house. Your financial advisor can look at your financial situation and give you personalized strategies to pay off debt.
Higher Acceptable Risk
Younger people tend to accept more risk in investments than older people who are nearer to retirement. When you make investments at a younger age, the investments have more time to grow. This means that you can take a long-term approach to investing since you don’t plan on taking out the money in the near future.
Learn About Healthy Money Habits
Young adults can benefit strongly from financial planning services that educate them on how to properly manage their money. By starting with healthy money habits in earlier in life, you can avoid common pitfalls and grow more wealth than someone without guidance. This may include investment strategies, career planning, and how to save for a vacation or wedding.
Save an Emergency Fund
Most Americans do not have adequate savings to protect themselves in an emergency, whether they lose their jobs or their car breaks down. It is recommended to have an emergency fund with 3 to 6 months of living expenses set aside in case something unexpected happens. The exact amount will depend on your unique circumstances, family size, and living expenses.
It is never too early to save for retirement. Yet, many young adults push off saving for retirement until later in life. The more time investments have to grow, the more the investments will be worth. Early adulthood is an ideal time to start saving for retirement, even if it is only a small amount each month. Someone starting their retirement savings 10 years later will need to save a lot more over the long run to have the same amount of money as someone who started saving earlier.
When young adults choose a financial advisory firm, it’s important that they choose one they can trust. You’ll want to choose a firm with the experience needed to navigate all life’s stages, from marriage to retirement. CORDA Investment Management has become a leading investment advisory firm young adults can count on.
CORDA Investment Management, LLC, is an investment advisory firm that provides wealth management services for clients nationwide. CORDA’s headquarters is in Houston, and the firm also has offices in Austin and Dallas. If you are ready to begin a long-term professional relationship with a proven investment firm, please contact CORDA today at https://cordamanagement.com or by phone at (855) 439-0665.