Financial Advice for Every Generation

Everyone should follow good financial advice whether you are 19 or 99.  The economy is uncertain and it is vital that everyone follows a plan to minimize the impact of a personal or global financial crisis. It does not matter where you came from or how much you earn, everyone needs to effectively manage his or her money. Here is dynamic financial advice for all generations.

Generation Z (Millennials): Born between 1995 and 2015

1. Don’t live for day to day, think about your future.  Actions you take now will affect you in the future:  student loans, credit card debt, spending more than you earn, etc.
2. Save.
3. Spend less than you earn:  spend 70%, save 20%, donate 10% to charity.
4. Don’t assume someone will take care of you when you retire (government, family, etc.).
5. Do better than your parents.
6. Don’t be an emotional or impulse shopper.
7. Avoid being wasteful.
8. Pay with cash.
9. Don’t pretend to be something you are not (buying designer clothes, taking expensive trips and spending money frivolously if you live at home).
10. Get as much education as possible (college, graduate school, etc.).
11. Consider the environment when making purchases.

Generation Y: Born between 1975 and 1995

1. Plan for retirement when you start your first job. Contribute as much as possible. 
2. Become a homeowner.
3. Pay off student loans.
4. Buy health, life and disability insurance.
5. Do better than your parents.
6. If you still live at home pay rent – your parents may be struggling and not tell you.
7. Pay with cash and use credit cards sparingly.
8. Create an emergency fund to cover monthly expenses for 9-12 months.
9. Get as much education as possible (college, graduate school, etc.)
10. Consult a financial advisor.
11. Spend less than you earn.

Generation X: Born between 1961 and 1981

1. Become a homeowner.
2. Pay off student loans and credit card debt.
3. Buy health, life and disability insurance.
4. Do better than your parents.
5. Determine your net worth and ensure it is always positive.
6. Adjust financial goals and retirement contributions as needed.
7. Consult a financial advisor.
8. Spend less than you earn.
9. Pay with cash and use credit cards sparingly.
10. Create an emergency fund to cover monthly expenses for 9-12 months.

Baby Boomers: Born between 1945 and 1964

1. Ensure you are on target for your retirement goals, do an annual check-up with financial advisor to make any necessary adjustments.
2. Consider downsizing (home, car, etc.).
3. Reduce spending by 10% - 30%.
4. Contribute more to retirement if you are not on target to meet your retirement goals.
5. Pay off debt.
6. Use credit cards sparingly and pay with cash.
7. Avoid scams.
8. Borrow money with caution (reverse mortgages, etc.).
9. Use bankruptcy as a last resort.
10. Withdraw no more than 4% yearly for retirement or annuities.
11. If you have money in the stock market the allocation should be 60% bonds and 40% stocks.

The Silent Generation: Born between 1923 and 1944

1. Update your estate plan and beneficiaries.
2. Review insurance coverage and make adjustments if necessary.
3. Consider purchasing long-term care insurance.
4. Withdraw no more than 4% yearly for retirement or annuities.
5. Consider working part-time to earn extra income if you are unable to meet your financial obligations.
6. Downsize (home, car, etc.).
7. Pay off debt.
8. Use credit cards sparingly and pay with cash.
9. Avoid scams.
10. Borrow money with caution (reverse mortgages, etc.).
11. Use bankruptcy as a last resort.

The Greatest Generation: Born between 1910 and 1925

1. Ensure your estate plan and beneficiaries are up-to-date.
2. Review insurance coverage and make adjustments if necessary.
3. Withdraw no more than 4% yearly for retirement or annuities.
4. Pay off debt.
5. Use credit cards sparingly and pay with cash.
6. Avoid scams.
7. Borrow money with caution (reverse mortgages, etc.).
8. Use bankruptcy as a last resort.
9. Seek assistance from social organizations or family members if necessary.