5 Financial Questions Every Young Adult Should Ask Themselves

Guest Author Christopher Haymon • Nov 05, 2020

Whether you are a recent graduate or a first-time professional, thinking about the potential the future holds can be so exciting. If you’re not thinking about your finances, however, you could be missing out on a crucial step in ensuring you reach all of that potential. Financial stability in your future starts with making the right choices to protect your wallet right now. If you’re unsure of where to begin your financial planning, ask yourself the following questions.

Do I Really Need Life Insurance Right Now?

There’s a lot of confusion around whether everyone needs life insurance, especially younger adults. The truth is, while people of all ages can benefit from having life insurance coverage, it’s extremely important for those who are the primary source of income or care in their household to be protected by life insurance. Life insurance can also offer financial peace of mind for those who are married or have children or even those who own a home. Plus, signing up for a policy when you are younger can have some perks , like getting more coverage for a lot less.

Should I Be Worried About Saving for a Home?

Renting instead of buying is becoming a popular housing choice for many young adults, but that doesn’t mean you shouldn’t at least save for the possibility of buying a home. You can easily start your savings by paying down debt and limiting your spending.

Saving for a down payment is a savvy financial move because if you don’t buy a home for yourself, you can put your savings toward a real estate investment for extra income that requires minimal effort on your part. Saving for a down payment also works to your benefit because the more you put down, the less you’ll have to pay in monthly mortgage payments.

Do I Really Need Health Insurance Coverage?

Having health insurance can help you afford the preventative care needed to maintain good health, and can also help you avoid paying out of pocket for surprise medical bills after an emergency. Plus, it’s typically easy and inexpensive to get coverage from your employer, especially if you work full time, or you can look for reasonably priced plans via the annual healthcare marketplace. Keep in mind that if you plan on adding coverage from the marketplace, you only have a very short window to do so. This year’s open enrollment runs from November 1 to December 15 for coverage that officially begins in 2020.

Should I Think About Saving for Anything Else?

Even if you never plan on buying a home or investing in real estate, there are still some common savings goals you should think about setting for yourself. One such goal is investing in an emergency fund, which can help out with unexpected expenses and life events. If you can swing it, plan to set aside enough to cover anywhere from 3 to 6 months’ worth of expenses in this account. An emergency fund can really come in handy if you lose your job, experience a sudden illness, or have any other unexpected issues impact your family’s finances. This is another time when a high-interest savings account can be helpful in reaching your goals.

Do I Really Need to Open a Credit Card Account?

Being cautious about credit is crucial when you are venturing out on your own, but don’t let your anxiety prevent you from using credit altogether. You actually do need to start building credit now, especially if you plan on leasing an apartment or buying a home in the future. To ensure that you take the right steps towards building that credit, be sure to look for online guides that will provide all of the ins and outs you need to know, in order to avoid taking on too much debt or getting in over your head with credit cards—all of which can impact your credit score.

These questions can help you create a basic financial plan. If you really want to get some savvy tips for your financial present and future, though, working with an accountant or an Integra Financial investment advisor is wise. That way, you can create a custom financial plan that really works for you.

For a completely free, no-strings-attached 20-minute phone consultation, contact Integra Financial to learn more about their unmatched level of financial expertise. Call (303) 220-5525 or email willis@integrafinancial.ws.

If you have any questions for the author, please email Christopher Haymon, christopher@adultingdigest.com

< Older Post Newer Post >

2Q 2024 Newsletter

By Willis Ashby • 08 Apr, 2024

As usual I hope this finds you well. As we welcome spring and having just finished the first quarter, things look good. The broad Morningstar index was up 10.24% through 03-31-24. The large cap companies led the way up 11.08% and the small caps up 5.69%. The S&P 500 experienced 22 “all-time highs” with less than 2% drops in-between. Amazing!

1Q 2024 Newsletter

By Willis Ashby • 11 Jan, 2024

I hope you had a safe and enjoyable holiday season. For the first time since COVID we were able to have our entire family together, including the Australians, it was very nice. I hope yours was as enjoyable. The top news stories of the year were the rapid rise of interest rates effectively slowing inflation without crashing the economy:

4Q Newsletter

By Willis Ashby • 05 Oct, 2023

After the bruising market in 2022 where the broad index was down 19.43%, we are in a better place. Year to date the Morningstar broad index is up 12.81% but down 3.19% for the quarter. That said, we have a lot to keep our eyes on. On the positive side, consumer spending is remaining robust, and the Biden administration passed their TRILLION-dollar spending bill, corporate profits are slowing but still positive, unemployment is a low 3.6% and the Fed again passed on raising interest rates.

Distribution Options for Inheriting Retirement or IRA Proceeds (Beginning in 2020)

By Keith Fevurly • 19 Sep, 2023

Distribution Options...

To Roll or Not to Roll (Rollover IRAs)

By Keith Fevurly • 24 Jul, 2023

Some points to consider: 1) Likely the biggest distribution question that a 401(k) participant asks is: should I rollover the proceeds to an IRA or retain it within the 401(k), assuming the plan sponsor allows that? There is no certain answer to this question, although in the majority of situations, it is preferable to roll the proceeds because of participant control of the account. See Willis, Nick, or Keith to begin the paperwork for a Rollover IRA.

Q3 2023 Newsletter

By Willis Ashby • 10 Jul, 2023

I hope you had a wonderful 4th of July celebration. We have a reading of the Declaration at our gatherings, it is always amazing to me to hear how many people under 30 saying they didn’t understand what was declared and to whom it was sent. After the declaration we (our founders) wrote our Constitution taking the best from the Magna Carta of 1215 and the English Parliament’s Bill of Rights of 1689. We have a lot of issues in our country but when you look at our beginning, it is amazing!

Q2 2023 Newsletter

By Willis Ashby • 13 Apr, 2023

You cannot say we do not live in interesting times; A past president indicted on criminal charges; bank failures; FTX collapse; and high inflation to mention a few. The Morningstar broad index was up 7.40% for the quarter and YTD. Most of this was the rebounding of the large tech companies which had been crushed at the end of last year.

Q1 2023 Newsletter

By Willis Ashby • 30 Dec, 2022

First Happy New Year. I hope you and your families had a pleasant, safe, and healthy start to the year. There are so many things causing headline news and affecting the market: COVID, “Transitory Inflation”, Ukraine, another $1.7 trillion spending bill, FTX’s downfall, snowstorms, Trumps Tax Returns, Fentanyl and the border. It is no wonder we are having a rough market! The S&P was down 19.4% in 2022, the worst since 2008. I think the three things that are most affecting the market are:1) the COVID shutdowns,2) massive government spending, and 3) inflation. The shutdown of an enormous part of our economy during the pandemic, in hindsight, was a mistake.

Q4 2022 Newsletter

By Willis Ashby • 05 Oct, 2022

This is not a pretty quarter or year for the markets. The broad Morningstar index is -4.58% for the quarter and- 24.88% for the year. As I noted a few quarters ago the large-cap growth stocks make up the largest part of the index, so when they go up or down the entire market feels it. The Large Cap Growth section of the market is -40.99%, (Time to buy?). We also know on average every 5 years the stock market loses money. It is the price we have to pay for “investing” and receiving better investment results in the long term. It is interesting to note that with few exceptions there have been no safe harbors. Cash -8%, Gold -8%, Bitcoin -70%, Bonds -15% (depends on the class and type Muni vs Corp vs Govt), so if you wanted to go into the currency market and made a “bet” on the US Dollar rising, you would be very happy; too risky for me. As a reminder, when interest rates go up bonds go down, but the usual result of “stocks go down bonds must rise” is not occurring. This is the time to reflect on how much our accounts have gone up in the last few years and to realize it will do so again. It is just a matter of time! Apple, Google, and Procter & Gamble are not going anywhere, just because the market thinks they are a LOT less than last year really means they were overpriced then and now they are likely underpriced. The S&P earnings are at 8% so why are the markets down? If you strip out energy the number drops to 1% and the market thinks inflation is going to take it away: -no earnings and you get a down market! As much as I do not want to admit it, I agree. We don’t know if wages drive prices or vice versa, but we do know inflation is caused by too much money circulating in the economy. The Federal Balance Sheet in 2007 was $850 Billion, today it is close to $9 trillion. We cannot continue printing and sending out trillions of dollars. The Federal Reserve has said it will continue to raise interest rates until inflation is under control. The economy will likely take a hit but sit tight since it will recover. As a reminder, the market went up 9% in July alone. If you are worried about the markets give us a call, we have been through this before.