Savings & Retirement: Learn About the 3 Financial Stages of Life

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By: Jimmy Rhoades Posted: 11:28 PM, Mar 27, 2018

Money might not mean the same thing to you now as it did ten years ago. We spoke with Marcy Keckler, VP of Financial Strategy at Ameriprise Financial, to look at life’s various financial stages.

1. Asset Accumulators

First, there are the Asset Accumulators, comprising mostly of people in their 30s and 40s. “People are really focused on how they can begin to build assets, but balance it with their need to pay their living expenses, and also to pay down debt if they have it,” says Marcy. Attack the anxiety of this life stage by having an explicit plan. “Write down your goals, and have a defined financial plan,” advises Marcy.  “Once you write them down and you've got a plan, you really cement your commitment, and that boosts people's financial confidence.”

2. Asset Maximizers

The next financial stage of life? That would be the Asset Maximizers – usually folks in their 40s and 50s. “Those are people who are really focused on turbocharging their saving and their investing,” shares Marcy. The future goal that stands out for these people? “Retirement is typically at the top of the list for people,” explains Marcy. So focus on savings as a buffer against debt. “Have a cash reserve, a place to turn if an unexpected, big expense [arises]. Because then you don't have to take on any debt to handle it,” adds Marcy.

3. Asset Sustainers

Folks in the final financial stage are the Asset Sustainers. “These are people who either are on the verge of retirement, or they've already transitioned into retirement,” says Marcy. “Their focus is really on how their money will last throughout retirement. So get advice to stretch the assets you've saved to that point. “Making sure that you've got a diversification strategy, and a tax-smart way to tap into your retirement savings are […] key areas of focus at that Asset Sustainer life stage.”

And those are three things to know about life’s financial stages.

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