Financial Planning In Your Twenties: How To Divvy Wealth You Don't Have Yet


Most twenty-somethings do not have much of anything in the way of assets yet. Most of them also are not planning for their futures or for retirement. However, it is generally recommended that you start planning for retirement as early as your twenties or thirties. Early planning leads to greater wealth amassed over the course of the next thirty or forty years if you start planning early. Yet part of the planning process is bequeathing your wealth to heirs you do not yet have. Here is how you can divvy up wealth you do not have yet among heirs that do not exist yet.

Meet with Financial Planners and Begin Small

If you are like most twenty-somethings, you are probably devoting all your money to school loans and just daily living. However, you can start small by meeting with a financial planner and placing five dollars in a savings account every payday. For most people your age, that is ten dollars a month, which accumulates into one hundred twenty dollars a year. After five years, you already have six hundred dollars, which can be diverted into a short-term CD, stocks, and a few other investments that do not require a lot of money to buy into them. You can use part of your tax refund every year to buy IRAs and other securities too.

Next, Meet with an Estate Planner

An estate planner is usually a lawyer who helps you create a will, trust funds, living trusts, etc. You can create a will that discusses things you own now and then revisit the will to add more later. You can name beneficiaries, or you can use general language that denotes that you would like your most valuable assets and possessions to go to heirs not yet named. You can divvy up what you have equally among the heirs, or give percentages of assets to not-yet-named heirs too. As you accumulate heirs and wealth, you may revisit your will with your estate planner.

Finally, Continue to Work with Your Financial Planner to Diversify

You cannot accumulate assets and assign them if you are not effectively planning and diversifying your portfolio. It is all connected. As each heir is born to you, you can make plans for how much to give, what to give and how to give it in the future. This includes living trusts and shielded education money for your heirs to attend college. To learn more, contact a financial planner.


27 February 2017

Will You be Ready for Retirement?

My name is Alison, and I recently found out that I should have been saving for retirement since I first began working. I have now discovered what it takes to have a successful retirement plan, and I felt secure in my ability to care for myself once I am done working. I may even be able to retire early! I'd like to help you get your retirement plans in order and make the most out of the time you will have when you are no longer working. Let me help you understand what you need in a retirement plan and how you can get started.