6 Crucial Personal Finance Strategies for Investors in Their 30s – Business Insider

  • Plancorp CIO Peter Lazaroff has important advice for investors in their 30s.
  • “The financial decisions you make in your 30s will impact you for the rest of your life,” he said.
  • From consolidating investments to optimizing debt payoff plans, here’s six strategies to consider.

Because time is money, there’s one universal truth all investors can agree upon: the earlier the better, at least when it comes to investing.

Supposedly, Albert Einstein once called compound interest the most powerful force in the universe. It’s an applicable notion at any stage or your investing career, even though personal investing preferences might shift over time depending on individual life goals.

One particularly pivotal stage for personal investing is in your 30s, according to Peter Lazaroff, the chief investment officer of wealth management firm Plancorp, which manages $6 billion in assets.

“Once you reach your 30s, the looming worries of graduating, starting a career, and climbing out of the student loan debt hole probably have been replaced by more domestic concerns,” said Lazaroff on a recent episode of The Long Term Investor Podcast, citing marriage, parenthood, and the median age of a first-time homebuyer at 33, according to data from the National Association of Realtors.

He continued: “Your 30s are the time to begin building lasting wealth to meet life’s growing demands.”

On the podcast, Lazaroff shared six personal finance strategies specifically geared towards investors in their 30s to consider, with the clarification that this information may be useful even for those outside of this targeted age range.

“The financial decisions you make in your 30s will impact you for the rest of your life,” said Lazaroff. “With these strategies, you can plan for a successful retirement long before you near the end of your career.”

6 personal finance strategies for investors in their 30s

First of all, Lazaroff emphasized the importance in consolidating multiple investments, such as separate 401(k) or Roth IRA accounts, into one easily accessible platform.

“Pooling them in one place makes it easier to see the role each investment plays in achieving your financial goals,” he explained. “It also will help you avoid redundancies and manage your overall risk.”

However, Lazaroff cautioned investors to be careful about any potential tax consequences or closure costs that might be associated with account transfers.

Next, Lazaroff advised investors in their 30s to get strategic about paying off debt.

While he cautioned that every individual’s financial situation should dictate their exact payoff priorities, Lazaroff recommended investors generally first prioritize paying off private loans or high-interest debt that isn’t tax-deductible, such as credit cards, then debt …….

Source: https://www.businessinsider.com/investing-stock-market-personal-finance-strategies-30s-long-term-success-2022-8

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