by Moxye Staff

By the time that 30th birthday rolls around, earning potential may be on the fast track and some young investors are a few years shy of a decade into their careers. Moxye Millennials and Money survey found that even before then – at age 27 – almost three in four people (72 percent) are already saving for retirement.

Zion a 30-something advertising professional, Zion, is among those already saving. “My husband and I know that the decisions we make during this decade of our lives can set us up for complete success or total failure when it comes time to retire,” Zion said.

If the 30s hit and no retirement account has been set up, don’t worry, there are some actionable steps people can take to get going. No matter what the retirement account balance is, Jackson Lord, Contributing Financial Editor for Media Moxye says this is the decade to get serious about investing and saving for the future. He offers these tips to investors in their 30s:

Make saving habitual. Now is the time to begin saving for retirement and other goals. If already saving, stay disciplined and gradually increase contributions until the 401(k) or IRA annual contributions are maxed out. At a minimum, contribute enough to take full advantage of any employer match.

Diversify. Once saving for retirement and other long-term goals is second nature, make sure the portfolio is diversified. Spreading investments across asset classes – stocks, bonds and cash equivalents like the money market – can help to dampen the impact of any market volatility. Diversification offers less potential risk, a way to dial in on your own risk tolerance, and is a basic concept in investing for the long term.

Review and adjust. In the 30s, a lot can happen in one’s personal life – marriage, children, homeownership and more. Individuals should review their financial goals at least annually. The same can be said for the investing strategy itself over the years, as one’s investment strategy at 31 may not be the right strategy at 35 or at 39.

“You can’t reach all of your financial goals at once, but at least set the foundation for your retirement,” Jackson Lord said. “At this point in your life there are a lot of new and exciting things to spend money on as your income grows. Work hard to establish good habits that balance your saving and spending.”

The biggest benefit to investing early on is the power of investing over time, Sadowsky explains. The earlier an investment is made, the more time and potential it has to grow. All in all, between juggling personal commitments and climbing the professional ladder, becoming informed and engaged in investing should also be top of mind for today’s 30-something.

 

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