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Saving for Major Milestones


Saving for Major Milestones

What do homes, education, and retirement all have in common? They are major life milestones requiring advanced planning and saving significant money. That amount of planning and money saved that is needed may make you doubt your ability to reach these goals. Even if you don’t feel that way today, you may have in the past or future.  

The good news is that there are ways to plan and save for these significant milestones in a way that aligns with your values and current life situation and still sets you up for success. Keep in mind: 

  • Make a plan for how much you need to save and when you want to have that money saved. Our personal finance manager tool, PerForM is a resource that can help with your planning.  

  • Whenever you have more than one goal you are working on simultaneously, it’s important to prioritize them. You can save for retirement and education or retirement and home ownership simultaneously. You may need to allocate more of your available money to save more for one goal over another. 

  • You get to decide which goal is the most important to you right now, and you can use that decision to guide your plans. And this can change over time.  

  • When tough times happen, and they will at some point, it’s OK to set aside some saving goals. If you lose your job, you may need to forgo continuing to save for your retirement and child’s education until you find a new job.  

  • Do your research. Having the correct information for your circumstances can help you more confidently plan and execute that plan. 

  • With retirement, you want to understand what savings vehicles you can access through your employer before seeking resources for individual accounts. You also want a reliable calculation of the money you need to save and the best investment options. A BRB Wealth advisor can help with this. 

  • With home purchases, it’s essential to know the type of house you want, and in what area so you can research prices. You also want to know your credit score to understand what types of mortgage rates you qualify for.  

  • When saving for education, 529 College Saving Plans are one of the best options available as the money grows tax-free and is not taxed when withdrawn when it is used for qualified expenses.  

  • Typically, employer-defined contribution retirement plans use automatic deductions from your paycheck. You can also direct an investment company or financial institution to set aside monthly money for retirement, home down payment, or education accounts. With any of these goals, utilize automatic saving vehicles wherever possible.

With all these goals, the sooner you can start saving for them, the less you will have to save each month. Recognize that your situation will determine when you can start saving. Delaying when saving for education may mean you need more loans. Delaying saving for home ownership or retirement may mean you must wait longer to buy a house or work longer before retiring. These are your choices to make.  

Confidence comes with knowing you have done your research, consulted with professionals, examined your current situation, made some predictions for future saving opportunities, and recognized that as life unfolds, you can adjust your plans.