5 Practical Ways To Help Build And Retain Wealth At Any Age
Whether you’re just starting out on your wealth-building journey or closing in on retirement, the tips below can help you remain on track toward your goals at every stage of life.
1. Embrace the power of compounding
When it comes to building wealth, the earlier you begin to save, the more time your money may benefit from the effects of compounding. Compounding generates earnings on both your initial principal and accumulated interest, which may result in significant growth over time. This “snowball effect” can be even more pronounced when it comes to tax-deferred retirement vehicles like 401(k) and 403(b) plans, and individual retirement accounts (IRAs). That’s because tax-deferred compounding allows investment earnings (interest, dividends, capital gains) to reinvest and grow without being reduced by annual taxes, which may help accelerate wealth accumulation. Keep in mind, the need for growth doesn’t stop when you retire. Your assets need to continue to grow to help support your goals for a potential 20 to 30 years or more in retirement.
2. Take full advantage of your employer retirement plan
Your employer retirement plan may provide one of the best opportunities to put the power of tax-deferred compounding to work for you, along with other important benefits, such as employer matching contributions, automatic deferral increases, and catch-up contributions for those on the home stretch to retirement. Traditional (non-Roth) plan contributions can also reduce your current taxable income.
In 2026, the maximum contribution amount for eligible participants under age 50 in a defined contribution plan, such as 401(k) or 403(b), is $24,500. Individuals aged 50 and older can make standard catch-up contributions of up to $8,000, bringing their total elective deferrals to $32,500. A new "super catch-up" for individuals aged 60–63 allows up to $11,250 in catch-up contributions for a total elective deferral of $35,750. Effective January 1, 2026, catch-up contributions for high earners (those with $150,000 or more in FICA wages in 2025) must be made to a Roth account.
Don’t forget – if you’re eligible to contribute to a traditional or Roth IRA, you have until the April 15th filing deadline to make a tax-year 2025 contribution of up to $7,000, plus $1,000 in catch-up contributions for those aged 50+ for a maximum of $8,000. The standard contribution for 2026 is $7,500 plus $1,100 in catch-up contributions for individuals aged 50+, for a maximum of $8,600.
3. Live below your means
If you’re looking for ways to get ahead, spending less than you earn each month may be the ticket. Living below your means can help you save, invest, and avoid debt. While doing so requires discipline and commitment, the benefits can be well worth it, putting you on the path to long-term financial independence. For example, think about how you would pay for an unexpected $1,000 expense today. Do you have the available cash on hand, or would you need to borrow money or pay with a credit card? Having emergency savings available to pay for unanticipated expenses can help prevent debt and interest charges, and keep the financial impact limited to that one-time cost. Below are several tips for living below your means:
- Adhere to a budget to track the disposition of each dollar coming in and out of your household
- Make emergency savings non-negotiable by automating savings into its own account
- Rein in spending on things and experiences that don’t align with your needs and priorities
- Avoid pressure from others to spend (friends, social media, coworkers, or other influencers)
4. Avoid credit card debt
To reduce and avoid burdensome credit card debt, consider the following best practices: Treat cards like cash by only spending what you can afford, and keep credit utilization below 30% of your total available credit. Pay your full balance on time every month. If you can’t pay in full, pay more than the minimum due since minimum amounts rarely cover interest, which can lead to compounding debt.
5. Protect what’s most important to you
Insurance is an essential part of any wealth-building strategy. It helps to shift the financial burden of potential unpredictable losses, such as accidents, theft, natural disasters, disability, and more from an individual or business to an insurance company in exchange for a fee or premium.
- Life insurance can help replace lost income in the event of the death of a primary wage earner or it can be used to fund certain estate and legacy goals.
- Disability insurance helps to replace a portion of your income in the event you are unable to work due to an accident or medical condition resulting in a short- or long-term disability.
- Renters, homeowners, and auto insurance all work to shield you from major financial losses by helping to cover property damage, repairs, and liability costs.
- Umbrella insurance offers additional liability coverage to protect assets, wages and investments from damages that go beyond what other policies cover.
To learn more about these and other wealth-building strategies, call the office to schedule time to talk.
6 Age-Appropriate Ways to Help Kids & Grandkids Boost Their Financial Literacy
For many families, passing down the values that shaped their financial success is just as important as transferring the wealth itself. Yet parents and grandparents often find it challenging to clearly communicate principles around education, tithing, charitable giving, wealth preservation, and more to younger generations.
While there’s no single blueprint for preparing the next generation to become thoughtful stewards of family wealth, early and ongoing financial education may make a meaningful difference. That’s because children and young adults who are provided with opportunities to develop appropriate financial skills are more likely to develop the confidence and competence needed to carry family values forward later in life. The following tips are provided to introduce children, teens, and young adults to basic financial concepts and boost financial literacy in a fun and engaging manner.
1. Introduce the Spend-Share-Save method. Gather three small containers that will hold money earmarked for spending, sharing, and saving. This simple activity helps children visualize how financial choices can reflect core values like responsibility, generosity, and security from an early age. Consider adding a small amount of “seed money” to each container and offering “matching gifts” when children choose to allocate earnings from chores or other sources toward saving or giving.
2. Open a youth savings account. Once savings begin to add up – or as children get older – consider opening a youth savings account. Many credit unions offer savings accounts for minors with no minimum balance or monthly fees to encourage savings habits.
3. Make learning fun. Books, apps, and online games can help kids of all ages understand basic saving and investing principles. The App Store and Google Play offer a variety of age-appropriate apps that allow kids and teens to learn about earning, saving, and spending with educational quizzes, games, and videos. Some tools allow kids to practice money skills in a more hands-on way, sometimes with parent-managed spending features.
4. Consider a Roth IRA. Teens with earned income may be eligible to contribute to a Roth IRA in 2026, up to the lesser of $7,500 or their taxable compensation for the year. A Roth IRA can introduce teens to long-term investing and the potential benefits of tax-free growth.
5. Share decision-making. Invite children to participate in your charitable giving strategy by giving them a meaningful voice in selecting organizations and articulating why those causes matter to them.
6. Don’t make money taboo. Your kids and grandkids will deal with money for the rest of their lives. Talk openly about the role it can play in supporting your family values and developing sound financial habits for life.
To learn more about aligning your values with your legacy plan, call the office to schedule time to talk.
7 Easy Ways to Increase Your Financial Literacy Now
If you’re seeking to expand your understanding of money management concepts, techniques, and strategies, there’s no better time than during National Financial Literacy Month, which takes place each year in April. Financial Literacy Month focuses on raising awareness about the tools and resources available to help people increase their money management knowledge and skills.
Whether you’re a long-term investor or new to money management, strengthening financial literacy may help you make more confident decisions about spending, saving, building long-term wealth, and planning for retirement.
Below are seven ways to help you expand your knowledge in areas that continue to evolve, from basic money management strategies to avoiding credit pitfalls, increasing fraud awareness, and more.
1. Determine your baseline
To evaluate your financial knowledge, consider taking an online financial literacy quiz to help identify areas you may want to brush up on or strengthen. Many financial institutions and organizations, including banks and credit unions, offer free online literacy tests and quizzes. Get started by checking out: Finra.org/financial_knowledge_quiz or FinancialEducatorsCouncil.org/national-financial-capability-test/.
2. Attend a local or virtual event
Check your local listings for community centers, libraries, or organizations hosting in-person presentations and events during Financial Literacy Month. Or consider attending a virtual event, such as YourLife Finance Classes, hosted by TheWomensResource.org/classes/. Live classes cover a wide variety of topics and are also archived for on-demand viewing. Men are also welcome!
3. Proceed at your own pace
If you prefer self-study on your timeline, visit Khanacademy.org/college-careers-more/financial-literacy. This free Khan Academy curriculum is comprised of 16 modules you can follow at your pace.
4. Embrace fun and games
Increasing your money management skills doesn’t have to be dull or boring. Ratchet up the fun by visiting PlayMoneySmart.fdic.gov/games where you’ll find more than a dozen learning games on topics from basic money management techniques to protecting your identity, smart borrowing decisions, and more.
5. Access interactive tools
Visit MyMoney.gov/mymoney-five-tools to access calculators, budgeting worksheets, and checklists designed to help you increase your fiscal management and organizational skills. You can access your free weekly online credit reports from Equifax, Experian, and TransUnion at AnnualCreditReport.com. Brush up on best practices for managing credit, including how to differentiate between good and bad debt, and create a plan to pay down credit card balances, student debt, or high-interest loans.
6. Make it a family affair
Organizations like the Council for Economic Education provide different ways parents, grandparents, and other interested parties can get involved in helping children and teens develop positive financial habits early in life. Visit Councilforeconed.org/programs/for-families/ to download a free Family-At-Home Financial Fun Pack. This curated set of materials allows families to explore financial literacy activities, games, worksheets, and suggested books for children or adults.
7. Keep it going
Financial management tools, technology, products, and delivery methods continue to evolve over time. One of the best ways to keep up with the changing financial marketplace is to make financial literacy an ongoing endeavor by tuning in to podcasts, videos, articles, financial market research, and other educational tools available through your financial professional, bank or credit union, or your employer’s retirement plan website
Do You Really Need Travel Insurance?
Nothing puts a damper on travel like an emergency. However, being prepared can go a long way toward reducing the stress and chaos that can accompany an unexpected event, especially when traveling outside of the United States. Travel insurance from a reputable provider can help protect against high-cost health emergencies, trip cancellations, and interruptions. While travel insurance can be more expensive for seniors, it can also be highly cost-effective because:
- Older adults are more likely to encounter medical issues while traveling due to pre-existing conditions and increased vulnerability to infections or accidents
- Medicare generally does not cover health expenses outside the U.S., which can leave travelers with thousands in uncovered medical or emergency transportation costs
- It can help protect prepaid, non-refundable expenses for cruises or flights
If you’re planning to travel outside the U.S., you may want to buy a policy that includes travel health coverage. While some credit cards and loyalty programs already offer limited coverage for domestic travel, comprehensive travel insurance policies are designed to cover a wide range of risks, from trip cancellation and interruption to travel delay, baggage protection, medical issues, emergency evacuation, and 24-hour assistance. Before purchasing a comprehensive policy, take time to:
- Verify your existing coverage. Review your credit card benefits and personal health insurance. If they offer coverage abroad, you may not need to purchase a separate policy.
- Compare quotes. Websites like Squaremouth, TravelInsurance.com, and InsureMyTrip allow you to compare and evaluate multiple policies and costs at one time.
- Read the fine print. Review limitations and details, including pre-existing condition exclusions, coverage for specific activities (e.g., scuba diving), medical evacuation coverage, and whether the policy acts as primary or secondary insurance.
