Members of the Silent Generation Baby Boomers and some of Generation X may now reflect on their life course and say “back in my day” when sharing financial wisdom with their family’s youth However many people may not be aware of how much things have changed thereby presenting a barrier to achieving common goals such as education housing and having a family Individuals in Generations Y (…, Leaving home in early adulthood,   According to a 2022 study by the Pew Research Center 50% of young adults ages 18–29 live at home with their parents compared to 38% in 2000 1  US Census Bureau statistics show that this trend has been steadily increasing over the past 60 years 2 Increasing housing costs such as rent and utilities as well as student loan debt are common financial barriers that prevent young adults from leaving…, Establishing a career, Although individuals continue to launch into careers in their 20’s the lifespan of a career has decreased in recent years We no longer live in a culture where working at the same company or in the same field for 30 years is the norm It is estimated that most people will have 12 jobs during their lives In 2022 32% of individuals ages 25 to 44 considered a career change Since starting their first…, Getting married , As years progress the average age for first-time marriages is increasing Currently the average marriage age for men and women is 30 and 28 respectively This is up from ages 23 and 20 for men and women respectively in 1960 4 Individuals ages 55+ represent 36% of first-time marriages 5 Many marriages are occurring at a later age as individuals take longer to prepare for and launch their careers as…, Purchasing a home,   Purchasing a home is a major life decision that has historically created benefits such as equity as property values increase However home ownership is harder to obtain as prices outpace the rate of income growth In 2024 the average age of a first-time home buyer was 38 up from 35 in 2023 6, Having children,   In recent decades the age of new parents has increased globally Currently the average age of first-time mothers and fathers in the US is 27 and 31 up from 21 and 27 respectively in 1972 7 The delay in parenting has largely been influenced by individuals desire to complete educational and career objectives before focusing on a family Completing such goals are now viewed as necessary before…, Funding education,   Having children has been negatively impacted by the cost of raising a family of which education is among the most challenging In a 2023 survey nearly 70% of parents said they are worried about having enough money compared to 63% in 2021 9  In recent decades the inflation rate for college tuition has well exceeded the national average College tuition and fees have grown twice as fast as the…, Retirement,   Workers in the United States retire at around age 64 In recent years the average retirement age has risen In 1986 the average retirement age for men and women was about 62 and 57 respectively By 2021 the average retirement age for men had climbed to approximately 65 and for women approximately 63 11 12 Many people plan to retire early until it is time to retire Retirement has become more…, Conclusion,   Key life accomplishments are more challenging and may take longer given greater financial and life complexity Historically key milestones such as paying for education purchasing a home getting married and retirement have best been achieved with financial planning Financial planning has been shown to improve financial success and life satisfaction and may be needed more now than in past decades…, Seek the help of a trusted financial advisor, — Trusted advisors such as financial advisors accountants and attorneys can help your evaluate options and demystify your financial future as well as reduce risk that may occur from changing family dynamics and career choices  , Pay for financial planning as a gift to young adult children, — This may help them launch into adult independence earlier and develop a plan and resources for future success , Plan for increased longevity, — Individuals are living longer and therefore require more resources throughout their lifetime Healthcare can be a major expense especially in the later stages of life Developing a plan to stay healthier longer may be one of the best ways to maintain financial freedom and improve life satisfaction long term   Published February 2025 1 https//wwwpewresearchorg/short-reads/2022/08/24/americans-more…

Whether you have been in the workforce for the last three years or are a recent graduate here are some quick financial planning tips to jumpstart your wealth accumulation journey,  , Pay yourself first, A good rule of thumb for savings and budgeting is the 50/30/20 rule 50% of income is spent on needs 30% of your income is spent on wants and 20% of your income is saved However if you would like to save aggressively we would recommend a 50/20/30 rule  50% spent on needs 20% spent on wants and 30% saved, Set up your accounts, Over the course of your career strive to have four core accounts that are regularly funded Checking Savings 401(k or 403(b Discretionary IRA or Roth IRA, Live beneath your means, Set yourself up early by creating healthy habits around how much you spend on larger expenses such as rent a car and trips Rather than utilizing 100% of what you need to spend on these expenses aim to use 70-80% of your monthly budget, Create a monthly budget with short- and long- term goals, Getting into the habit of budgeting will allow you to truly analyze how much money you are spending rather than just taking an estimation  We recommend saving at least 50% of your bonus annually, Understand your company’s benefits, Many people no matter what age don’t take the time to learn their company’s benefits Knowledge is power— understanding what is available to you right from the start will help guide your financial planning decisions We recommend reviewing for the below benefits before you start or take on a new job 401(k or 403(b Plans Health Savings Account (HSA Flexible Spending Account (FSA Commuter and/or work…, Learn investing basics, Taking the time to learn the basics of investing will set you up in the long run Below are a few facts we believe can help shape a good investing strategy at an early age The S&P 500 Index average rate of return is 10%¹ Know the Rule of 72 The rule of 72 tells you how long it will take an investment to double based on the rate of return (as an integer, Max out your 401(k plan, The limit on employee elective deferrals for a traditional and safe harbor plan is $23500 in 2025 Know the 401(k matching policy at your company and take full advantage of it If you can’t max out add a percentage of each raise received up until the matching point is reached, Next steps, While all of this may seem like a lot to do now it is just the tip of the iceberg when it comes to saving and investing The biggest take away we want you to have is this Simply to diligently put small amounts of dollars away to fund your lifestyle once you have retired   1 The Standard and Poor’s 500 or simply the S&P 500 is a stock market index tracking the stock performance of 500 large…

Individuals and families have different wealth planning and investment needs Finding a financial advisor that is the “right fit” for you can require patience and diligence, For 86 years Mesirow Wealth Management has been helping individuals and families make the financial decisions that support their most important life decisions We listen We understand We help If you or someone you know are looking for a trusted financial advisor this guide is designed to help you ask the right questions and determine the right fit, Questions to ask your financial advisor, Are you held to the fiduciary standard Fiduciaries are required to act with good judgment and due diligence be accountable for the long-term sustainability and ongoing appropriateness of investment recommendations provide full and fair disclosure and avoid conflicts of interest It might sound odd but not all advisors are fiduciaries and they might only be responsible for making sure an investment…, Advantages to partnering with a wealth advisor/financial planner, As you become more successful your financial goals may become more complex A knowledgeable trusted advisor can save you time helping you to avoid costly financial mistakes Your advisor can help you articulate your financial goals and establish a plan to get you there Procrastination and indecision when it comes to making financial decisions are common your advisor can help you remain disciplined…, Published January 2025

Financial terminology can sometimes seem like a different language Financial news reports can seem daunting to try to understand what is being said and how it impacts a person’s everyday life, To make things simple here are five essential finance terms we believe everyone should know Net Worth Compound Interest Asset Allocation Diversification Capital Gains Through this high-level overview we hope to provide helpful information to make everyone feel more confident about their financial knowledge  , 1 Net Worth, Simply put , net worth,  is the value of everything that you own (also known as your “assets” after accounting for everything that you owe (referred to as “liabilities” Knowing your net worth is important because it gives you an idea of your overall financial health You want to have a positive net worth when possible It can also help you understand your various types of obligations on your loans Certain loans such as…, interest rates,  (fees for borrowing the money than credit cards When deciding what loan to pay off first it can be helpful to prioritize paying off the loans with the highest interest rate Understanding your loans might also help you see if there is an opportunity to , refinance,  or get a lower rate of interest by working with your lender  , 2 Compound Interest, Also referred to by Albert Einstein as “the eighth wonder of the world…” compounding can be thought of as , growth on your growth, When referring to savings or investments compounding is what happens when instead of taking out the money that is earned on your investment you let it stay invested and earn interest on your interest Compound interest can also refer to loans meaning the longer it takes you to pay off your loan the more you end up paying in interest This is why Albert Einstein’s quote finishes”…He who understands…, 3 Asset Allocation, Asset allocation is how your money is invested into different categories known as , asset classes, Broadly speaking the main asset classes include cash bonds (also knowing as “fixed income” stocks (also known as “equities” Your asset allocation is determined by the amount of money you have invested into each of these asset classes Each of these asset classes carries its own set of risk and return profiles Typically a stock has more growth potential than a bond but it also has more volatility…, conservative,  asset allocation Someone who is investing for long-term growth such as a recent college graduate who is saving for retirement would invest more heavily in stocks Understanding your goals time horizon and risk tolerance are all key factors in determining your asset allocation, 4 Diversification, Imagine you had $1 million dollars to invest and you were 100% confident that investing in a single individual stock would grow to $10 million after 10 years That would be great right Well unfortunately individual stocks have a wide range of outcomes If you put your entire $1 million in this stock and it went to $0 you would suffer a massive loss with no money left to start over This is why , diversifying,  or investing across various asset classes and various investments is the key to a successful portfolio Diversifying your investments across different asset classes is important but it is also important to diversify within those asset classes by investing in companies that vary based on their industry company size and other factors By diversifying you are spreading (and likely reducing your risk…, 5 Capital Gains, Once you begin to invest the hope is that your investments rise in value If you choose to sell a position which may happen to get back to a desired asset allocation diversify investments or raise money to make a purchase you create a realized gain or realized loss This is the difference between what you paid for an investment and what you receive from its sale If you have made money through the…, Published March 2025,  

Financial planning is a crucial aspect of family life From managing day-to-day expenses to preparing for major life events families must navigate a complex landscape of financial decisions It is easy for the demands of daily life to take precedence, —, from coordinating schedules for extracurricular activities to planning birthday parties or even simply planning a weeknight dinner This article addresses five key financial planning topics that should be prioritized when trying to accomplish financial goals on top of day-to-day demands , 1 Discussing finances as a family , The first step in financial planning for families starts with having a conversation Discussing money is not always the easiest and most comfortable topic but regular discussions can help align priorities identify potential challenges and foster a sense of shared responsibility  To kickstart your financial planning discussion its essential to gather all pertinent financial information and create a…, Account statements,  checking and savings 401ks taxable investment accounts etc, Asset valuations,  home value investment properties etc, Debts, mortgage balance student loan balance car loans etc, Expenses, day to day living expenses mortgage payment (or rent property taxes day care etc Going through this exercise at least once a year and putting pen to paper is incredibly valuable It allows you to track progress and make sure both partners are on the same page  In conjunction with creating a balance sheet families should openly discuss their short- medium- and long-term goals The key to financial…, 2 Estate planning, Estate planning is not just for the “rich” Estate planning involves creating a plan for the distribution of assets and properties after ones passing Its a critical component of financial planning that ensures the smooth transfer of wealth and minimizes potential conflicts among heirs Families should consider drafting essential documents such as wills trusts and powers of attorney to outline their…, Accounting titling and beneficiary designations, Ensuring that accounts are titled in an optimal manner allows for easier transfer of assets should something happen to the account owner Along the same lines periodically checking that the beneficiary(ies listed on retirement account assets are as chosen secures that assets get passed on according to the account owners desires, A will, This is a legal document that outlines how a person’s assets will be distributed upon their death Importantly a will names an executor (who is going to oversee that what the will says actually gets done and a guardian for your minor child(ren , Powers of Attorney (POA, A durable power of attorney for property or health care allows an individual to appoint an agent to handle their financial/health care affairs in the event of incapacity , 3 Insurance planning, Insurance plays a vital role in mitigating financial risks and protecting against unexpected events Families should assess their insurance needs across various areas including health life property and liability Adequate coverage can safeguard against medical expenses property damage legal liabilities and loss of income due to disability or death By reviewing insurance policies regularly and…, What is life insurance, Insurance on your life Meaning if you pass away the insurance company pays your beneficiary (usually the surviving spouse an agreed upon lump sum There are several different kinds of life insurance, Term insurance, This is the lowest cost life insurance you pay a level annual premium for a fixed death benefit The term expires after a set number of years (ie 20-year term Term insurance = renting insurance for a stated period of time, Whole life insurance, Compared to term insurance these policies result in a larger premium for the same amount of death benefit however these policies build up a cash value over time and may be permanent Things to consider when buying term insurance  If one spouse is earning more money they should consider having greater levels of coverage in the event something happens “Matching” the term to outstanding liabilities…, 4 Saving for college , A 529 plan is a state-sponsored savings vehicle designed specifically to address qualified education expenses Every 529 plan has one account owner often a parent or grandparent and one designated beneficiary , State tax benefits,  Numerous states including Illinois extend state tax benefits for contributions made to 529 plans For instance Illinois offers a state tax deduction for contributions made to an Illinois-sponsored 529 plan with limits set at $10000 for single taxpayers and $20000 for those filing joint returns, Tax-free growth,  Assets within 529 plans enjoy the benefit of tax-free growth allowing contributions to accumulate without incurring taxes on earnings, Tax-free withdrawals,  Perhaps most notably 529 plans permit tax-free withdrawals of both principal and earnings when utilized for qualified education expenses This feature serves as a significant advantage for families seeking to fund educational endeavors without incurring tax liabilities, Beneficiary Flexibility, Owners of 529 plans possess the flexibility to reassign beneficiaries within the same family without triggering any gift tax consequences This versatility enables families to adapt to changing circumstances while maintaining the tax advantages associated with the plan Importantly anyone can contribute to a child’s 529 plan so if grandparents want to give gifts to their grandkids this is a great…, 5 How to prioritize savings , With numerous financial goals competing for attention prioritizing savings can be challenging Families should evaluate their objectives and allocate resources based on their importance and urgency Essential considerations include building an emergency fund to cover unexpected expenses paying off high-interest debt to reduce financial strain and investing for long-term growth By establishing clear…,  , Conclusion , Financial planning is never one size fits all By addressing these key considerations proactively families can strengthen their financial well-beings protect their loved ones and work towards a more secure future Through collaborative decision-making and a commitment to financial responsibility families can navigate the complexities of financial planning with confidence and clarity  Collaborating…