‘Gen X’ers’ must juggle a variety of financial issues - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

‘Gen X’ers’ must juggle a variety of financial issues

Print
Font Size:
Default font size
Larger font size

Joseph Ortiz

Related Stories

Posted: Tuesday, May 15, 2012 2:45 pm

If you’re part of “Generation X” — the age cohort born between the mid-1960s and the early 1980s — you’re probably in one of the busiest phases of your life, as you’re well into your working years and, at the same time, busy raising a family. But just as you’re “multi-tasking” in your life, you’ll also need to address multiple financial goals.

In seeking to accomplish your key objectives, you may be asking yourself a variety of questions, including the following:

• Should I contribute as much as possible to my IRA and 401(k)? In a word, yes. Your earnings on a traditional Individual Retirement Account (IRA) and a 401(k) grow on a tax-deferred basis, so your money can accumulate faster than it would if placed in an investment on which you paid taxes every year. Plus, since you typically make 401(k) contributions with pretax dollars, the more you contribute, the lower your taxable income. And your traditional IRA contributions may be tax-deductible, depending on your income. If you meet income guidelines, you can contribute to a Roth IRA, which provides tax-free earnings, provided you meet certain conditions.

• Should I put away money for my kids’ college education? It’s not easy to fund your retirement accounts plus save money for your children’s college education. Still, college is expensive, so if you feel strongly about helping to pay for the high costs of higher education, you may want to explore college funding vehicles, such as a 529 plan, which offers tax advantages.

• Should I pay down my mortgage or invest those funds? Most of us dream of freeing ourselves from a mortgage someday. So, as your career advances and your income rises, you may wonder if you should make bigger mortgage payments. On one hand, there’s no denying the psychological benefits you’d receive from paying off your mortgage. However, you may want to consider putting any extra money into your investment portfolio to help as you work toward your retirement goals. Work with your financial advisor to determine what may be most appropriate for your portfolio.

• Do I have enough insurance in place to protect my family? You may hear that you need seven or eight times your annual income in life insurance, but there’s really no “right” figure for everyone. You may want to consult with a financial advisor to determine how much life insurance is appropriate for your needs.

• Am I familiar with my parents’ financial situation and estate considerations? Now is the time to communicate with your parents about a variety of issues related to their financial situation and estate plans. The more you know, the better positioned you’ll be to provide assistance and support if and when it’s needed. Just to name one example, you should inquire of your parents if they’ve designated a durable power of attorney to make financial decisions for them in case they’re ever incapacitated.

By answering these questions, you can get a handle on all the financial issues you face at your stage of life. It may seem challenging, but taking the time now can help you better position yourself to reach your financial goals.

• This article was written by Edward Jones for use by Ahwatukee Foothills Edward Jones Financial Advisor Joseph B. Ortiz, CRPS. Reach Ortiz at (480) 753-7664 or joseph.ortiz@edwardjones.com. Chartered Retirement Plans Specialist and CRPS are registered service marks of the College for Financial Planning.

More about

More about

More about

  • Discuss

Arizona grand jury indicts man in 2012 killing in Quartzsite

PHOENIX (AP) - An Arizona grand jury has indicted a man in the 2012 killing of a woman in Quartzsite near the California border. State prosecu…

Published: June 25, 2016 - 6:53 am @ http://www.cbs5az.com/story/32295712/arizona-grand…

Rum Bar's New Summer Cocktail Menu Is Dazzling

Shelby Moore A A In mid-May, The Breadfruit and Rum Bar debuted a new summer food and drink menu. As anyone who's even visited the downtown ea…

Published: June 25, 2016 - 6:41 am @ http://www.phoenixnewtimes.com/restaurants/rum-bar…

Take a look at the new building that will house Fry's in downtown Phoenix

PHOENIX - A commercial development company has released new renderings of the building that will house downtown Phoenix's first grocery store.…

Published: June 25, 2016 - 6:42 am @ http://www.12news.com/news/local/valley/take-a-loo…

9 Best Things to Do in Metro Phoenix This Weekend

Janessa Hilliard A A New Times picks the best things to do in metro Phoenix from Friday, June 24, to Sunday, June 26. For more events, see our…

Published: June 25, 2016 - 6:42 am @ http://www.phoenixnewtimes.com/arts/9-best-things-…

Right-wing militant charged for planting a bomb at BLM building

Info On the night of June 21, members of the Patriots Defense Force militia allegedly planted a bomb at a Bureau of Land Management cabin in M…

Published: June 25, 2016 - 6:23 am @ http://www.hcn.org/articles/bomb-threat-blm-bureau…

Utah Militia Leader Arrested After Trying To Blow Up BLM Building (VIDEO)

A Bundy militia supporter was arrested over a plot to blow up a Bureau of Land Management building in Arizona. William Keebler, who has ties t…

Published: June 25, 2016 - 6:11 am @ http://freakoutnation.com/2016/06/utah-militia-lea…

How Could Paul Ryan And Mitt Romney Be So Misled?

5095788Criticizing Donald Trump’s concerns about the objectivity of a judge of Mexican heritage openly associated with the La Raza San Diego L…

Published: June 25, 2016 - 6:10 am @ http://dailycaller.com/2016/06/23/how-could-paul-r…

Trump's VP Front-runner: Sen. Sessions of Alabama

With less than a month to go before the Republican National Convention that will make Donald Trump's nomination for president official, source…

Published: June 25, 2016 - 6:08 am @ http://www.newsmax.com/JohnGizzi/jeff-sessions-don…


The Endangered Species Act: Making Birds Great Again

When most people think about the Endangered Species Act, they think about wolves, polar bears or salmon. Less known is the quiet and remarkabl…

Published: June 25, 2016 - 5:52 am @ http://www.huffingtonpost.com/kieran-suckling/enda…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…