We truly believe that financial freedom is achievable for everyone, no matter their income level, present outlook or future objectives. But what opportunities does financial freedom typically unlock, and how do those change as you age and progress through both your life and your career? Let’s go over a few phases and milestones as well as the possibilities that may be availed to you through securing your financial independence.

20s

In your 20s, financial freedom might begin with the ability to start paying off those expensive student loans. You can also use this time to grow in the initial stages of your career while collecting paychecks that ideally allow you to pay down high-interest debt, make a down payment on your first home or consider starting your family. Financial flexibility can also allow you to travel, plan for a wedding, move cities to chase career opportunities, or start a side hustle or passion project. Furthermore, remember, saving any amount can have a huge impact on your future financial freedom because of compound interest.

30s

By your 30s, you might be a bit more settled, either with a family or an estimation of when you’ll begin your family. You may also have a better idea of who you are, your goals, your dreams, your passions and your desired lifestyle. Financial freedom in this stage can allow you to indulge in those dreams, potentially with grander vacations, elimination of hand-cuffing debt, continued repayment or payoff of your home loan and car, and the ability to provide for your loved ones. You can also consider an estate plan or a life insurance policy to protect those who might rely on you, giving both you and your beneficiaries some peace of mind should something happen to you.

40s

Once you reach your 40s, you’re likely used to the life you’ve built and the family you’ve raised. You may also be more comfortable financially, as you’re deep into your career and have adapted with the industry you work in. That’s why in this stage, freedom is about satisfaction. With more security in your profession and better backing in your bank account, you could continue to travel, look for a second home and provide for your beneficiaries. Additionally, with children moving toward college, it can be a good idea to consider saving options for them while still saving time and funds for your aging parents.

50s

Your 50s could be the perfect time to sock money away for retirement and ensure your accounts are well-funded. You should also be prepared to move on to a fixed income and protect yourself from market volatility. Additionally, it can be a good idea to reassess your estate plan and your life insurance policies, making necessary tweaks to pass your wealth as tax-efficiently as possible. Moreover, if you’ve shored up all aspects of your financial and retirement plans, you may have some flexibility to spend on things like vacations, charities, vow renewals or other recreational expenditures.

60s

In your 60s, you may be on the cusp of retirement or already in retirement. That’s why this could be a good time to do your final pre-retirement planning, which could include the creation of income streams to keep you afloat while you wait until your full retirement age. You may also be in a comfortable enough position to begin looking at vacation homes, pursuing your various hobbies, checking off bucket list items or even just enjoying a little bit of downtime. If you have grandchildren on the way, you can begin exploring options that help them save for further education, such as 529 plans or permanent life insurance policies.

70s

Having passed your full retirement age or beyond, you may have the monetary means to match your ample free time. The world is your oyster, and with sufficient retirement funds, you can plan fun things depending on your hobbies and your passions. If you enjoy travelling, it could be a great time to take that once-in-a-lifetime trip that you no longer have to request time off work for. You might also be able to tack onto a collection you’ve been building for decades. Maybe retirement simply means more time to spend with friends and family, and now that your time and your finances are flexible, you can develop those relationships without any inhibiting factors.

80s and Beyond

In this phase of life, it may be critical to consider the possibility of needing long-term care. Roughly 70% of Americans over the age of 65 will need some type of long-term care ^[1], so while it’s nothing to be ashamed of, it can be a good idea to be prepared. Still, however, you don’t have to stop living your life, even if your hobbies change. You may discover that you enjoy less active pastimes, such as attending art or theater shows. You should also continue reviewing your estate plan, helping you pass your wealth in the most tax-efficient manner and helping your beneficiaries attain financial freedom themselves.