Never Too Young to Get a Financial Plan
Transcript:
Katie Nealis:
We got another question and asking At what point should I get a financial plan?
Tom Vaughan:
Yeah, that’s kind of interesting. I think the youngest person I’ve done a financial plan for is 22. And that was no problem. So really, there isn’t a low end age or a high end age, you can be 90 and still have a plan, you know, to look at the tax planning standpoints and the different things like that, really, as soon as you start making income wouldn’t be a bad idea to have a plan. I think one of the key things of planning for somebody younger, isn’t so much that the plan would be exactly accurate, you know, 60 years later, or whatever. But it’s just as a motivational tool. It’ll give you a path. So I’m 22. I want to retire at 50. What do I have to do? What I have to say? What am I probability of success? What’s the issues that I have to deal with?
And so for example, you know, should be saving some money outside of retirement plans, because I’m retiring at 50, I can’t get to those retirement plans without a penalty, or using 72 t until 59 and a half. So I might, you know, so all of these things are motivational. And once you kind of see a path, right, you see, well, I can go this direction, I can go down here and try to get somewhere. That’s where you know that savings are because that’s, that’s what this is, if you can’t save, there won’t be anything to invest, and then then the investments can grow. But you have to be able to save first you have to put some of that money away. And so yeah, that that’s I would say there isn’t a too young age, I’d work with anybody personally, that at any age. Because again, it’s just about creating a path, creating a motivation and creating, you know, someplace that you want to go.
Easan Arulanantham:
Yeah, it gives you that reassurance that you’re on the right path, you can make it there and say you were saving 50% of your income somehow. But you only need to save 30% and you can use that other 20%. Like, you know, maybe you’re living your life, not to the fullest, per se. And so being able to cut back that savings a little bit, and doing things that you really enjoy, because then the time you want to still enjoy your money.
Tom Vaughan:
Yeah. You’d obviously want to revisit the plan on a regular basis. We do it every six months. But you know, at some point, you know that we can make adjustments and you get even more confidence that you’re going the right direction. So yeah, that’s a good question.