Age 25 is not too early to begin planning for long-term investments and retirement.
That was one of the arguments presented by Dale Snell, certified public accountant and financial adviser to Holman, Snell & Munsey, and Tim Kliewer, investment adviser representative for Invest Financial Corporation.
Both Snell and Kliewer presented ways to financially invest and plan for the future to attendees of a lunch and learn session Thursday provided by Young Professionals Making Active Connections in McPherson County.
YP MAC is a group of individuals between ages 21 and 40 that seek to build community relationships within the county through social meetings, volunteering and networking.
Snell said the basis behind financial planning is discussing with an adviser what it is you want and what it is that can be saved.
“You’d be surprised how hard it is to get that information out of people,” Snell said. “Clients are more keen to discuss the future of their 401K within the next few years rather than that summer cabin they’d like to have down the road.”
Snell said things to discuss with a financial adviser include goals, current age, marital status and current tax situation.
“All of those things will determine what you invest in,” he said.
After finances are laid bare, advisers can begin to lay out investment options for an individual. Snell said financial investment options, including mutual funds, bonds and stocks, vary on an individual basis.
One of the most important funds for any individual to have, Kliewer said, is an emergency fund.
“It’s ideal to have three to six months of living expenses saved away,” Kliewer said. “Most investment offices will kick you out to get one first before discussing investments.”
Kliewer said an emergency fund should be based off of an individual’s current salary.
Snell said one of the most underutilized investment options is a Roth Individual Retirement Account.
Snell said the benefit of this option, especially for younger individuals, is the ability to withdraw from and deposit into the account at any time without concern of taxes.
“I could recommend a Roth IRA most likely to everyone in here,” Snell said during the presentation.
Both Snell and Kliewer encouraged attendees to look more in-depth at available financial planning and investment options, no matter their current situation.
“Plan as early as you can, especially for an emergency fund,” Kliewer said.
“People underestimated how much money they have,” Snell said. “Just because you don’t have $100,000 in the bank doesn’t mean you shouldn’t start looking at planning and investment.”
Page 2 of 2 - Snell can be reached at Holman, Snell & Munsey at 620-663-7478. Kliewer can be reached at Invest Financial Corporation at 620-241-5502.
For more information on YP MAC, call 620-245-2514, or email email@example.com.