How to build wealth at any age

While everyone’s financial journey is unique, the path to building wealth often follows a similar series of milestones. Whether you’re in your 20s and just starting your career or in your 60s and looking toward retirement, taking intentional financial steps throughout your life can help you build, grow and protect your money for the long-term.

How to build wealth in your 20s

While you may have had a bank account for years, your financial journey often starts in your 20s. You’ll begin to establish your financial independence and start planning for both short- and long-term financial goals. Here are three wealth-building steps to start in your 20s.

Establish your financial independence.

Think of your 20s as the foundation of your financial life. Start by setting a budget that balances your needs, wants, and wishes. If you have debt, make a consistent plan to pay it down. This is also the time to begin building a credit history and start an emergency fund with at least three months of living expenses.

Set a course for your financial future.

It’s never too early to start saving for retirement. Join an employer-sponsored retirement plan, if you have access to one. Small, consistent contributions in your 20s can grow significantly over time. Be sure to contribute enough to receive any employer match—it’s essentially free money. If a career change includes a change of employer, make a plan for your existing retirement account.

Get the right insurance coverage.

Insurance is an important part of your financial foundation as it can help protect you from unexpected events that could derail your progress. Take time to learn about the different types of coverage, from health insurance to disability insurance, and make sure you have the protection you need.

How to build wealth in your 30s

Once you hit your 30s, you’ve likely established your career and may be starting a family. Now is the time to think more deeply about your financial goals and get serious about planning for retirement, even if that feels far away. Here are four wealth building tasks to tackle in your 30s.

Set clear personal financial goals.

Whether you are paying down debt, buying your first home, or launching a business, prioritizing your financial goals can help you make intentional decisions as you continue to build your wealth.

Focus on your earning potential.

Your 30s are an optimal time to grow your career. Home in on opportunities to negotiate your salary, go after promotions or consider other career-building moves. Make sure to maximize any employer benefits provided beyond your retirement account, such as bonuses, stock options and professional development.

Accelerate your retirement savings.

This is the decade to get serious about retirement. A good target is to save 10–15% of your pre-tax income in a 401(k) or individual retirement account (IRA). You might also consider a Health Savings Account (HSA), which can help you pay for qualified medical expenses now and in retirement.

Protect yourself and loved ones.

As your responsibilities grow, so does your need to protect your financial well-being. Consider life and long-term disability insurance to provide for yourself or your loved ones in the case of unexpected illness, injury or death. A financial professional can help you find the right policy for your needs.

How to build wealth in your 40s

Your 40s are often your prime earning years and you may want to shift your priorities accordingly. Consider fine-tuning your financial plan and maximizing your investments. Here are three financial tasks you should work toward in your 40s.

Maximize your peak earning years.

With higher income comes more options. You can accelerate debt repayment, increase your emergency savings, or explore charitable giving. Life can also bring changes, such as supporting children or parents (or both), divorce or marrying again. Regularly check in with your financial plan to ensure it evolves with your life.

Expand your retirement savings.

Try and take full advantage of your higher income to max out your retirement contributions. This is also a good time to review and diversify your investment portfolio. If you have children, you can balance your retirement goals with establishing a college savings plan.

Protect your most valuable financial asset: you.

If you haven't already, now is the time to consider purchasing life insurance. It’s also the time to create an estate plan, especially if you have a family. This includes a will, financial power of attorney, and other documents to ensure your loved ones are cared for.

How to build wealth in your 50s

You may still have a decade or more before retirement, but time flies. Think about what you envision for your retirement and beyond, including long-term care and your overall legacy. Here are four financial aspects to consider in your 50s.

Make the most of your empty nester experience.

If your children have left home, it's an opportunity to recalibrate your finances. Encourage their financial independence while you review your own spending. Your empty nest lifestyle may allow you to cut expenses, avoid new debt, and channel more money toward savings.

Envision your retirement needs.

It’s time to get practical about retirement. Envision what you’ll need in retirement and take advantage of 401(k) and IRA catch-up contributions, which are available to individuals age 50 and older. Review your asset allocation to make sure your investment risk aligns with your timeline.

Plan for long-term care.

Your 50s are also a good time to consider long-term care insurance when premiums are at their lowest. Long-term care coverage can help with future medical or personal care needs, protecting your retirement savings from being depleted by healthcare costs.

Picture the legacy you want to leave.

Regularly revisit your estate planning documents, including your designated beneficiaries on insurance policies, retirement accounts and other investments. Explore if setting up a trust makes sense for your situation, and consider making a charitable giving plan.

How to build wealth in your 60s

Retirement is imminent, and getting advice from a financial professional is critical. You’ll need to make key decisions about income streams, healthcare and insurance coverage. Here are four financial activities to take on in your 60s.

Prepare to make the leap to retirement.

Before you retire, review several key milestones and decide if you want to keep working after retirement. Create a detailed retirement income plan, including when you’ll start taking Social Security benefits. It can be helpful to do a practice run of living on your projected retirement income.

Apply for Medicare.

For most people, Medicare eligibility begins at 65. The initial enrollment period is a critical window. You’ll need to understand your options for supplemental coverage and prescription drug plans to ensure you have the healthcare you need.

Re-evaluate your insurance portfolio.

Review your life, disability, long-term care and other health insurance policies to ensure they still meet your needs into retirement.

Talk with family about your estate plan.

Your estate plan spells out the legacy you’ll leave loved ones, so get them involved in the conversation. Discuss topics like who should be beneficiaries for certain assets or who might take over a family business. Open communication ensures a smoother transition and peace of mind.

When it comes to managing your finances, you don’t have to go it alone. Learn how our integrated approach to financial planning can help you work toward the life you want.