Smart financial choices at every age can pave the way for stability, success, and ultimately achieving a wealthier life. Here is a look at key financial considerations starting from birth to your 70s and beyond. Please note that this list is not exhaustive and may or may not apply to everyone.

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• 529 College Savings Accounts: 529 accounts are one way to save for higher education costs on a tax-deferred basis and allows for tax-free distributions when used for qualified education costs. Though 529 accounts are usually utilized for higher-education costs, they can also be used for lower-level education costs subject to a limit of $10,000 per year for grades K-12. 529 accounts can be used for other education costs as well, subject to limitations.
  • • Though a 529 account can be established anytime once a child is born, what people often do not know is that a 529 account can be set up prior to birth. If you would like to fund a 529 account before your child’s birth, you can name yourself as the beneficiary, and then once the baby is born, change the beneficiary to the child. There is no penalty for shifting the beneficiary if the new beneficiary is a member of the family. However, there may be some gift tax implications if the value of the account is greater than the gift tax exclusion amount.
    • 529 to Roth IRA: If there are unused or excess funds in a 529 account and cannot be transferred to a member of the family, 529 account holders can transfer up to a lifetime limit of $35,000 to a Roth IRA for the beneficiary. Keep in mind that in order to do this, certain requirements must be met which are detailed here.
• UTMA/UGMA (Uniform Transfers to Minors Act/Uniform Gifts to Minors Act) Custodial Accounts: A custodial account can be established for the child once a Social Security number has been assigned. A custodial account allows parents to save and transfer financial assets to a minor child. A gift to a custodial account is an irrevocable gift that, upon the child’s age of majority – usually 18 but depends on the state – transfers ownership to the child. In California, for example, the age of majority can extend to age 21 or even up to age 25. If a custodial brokerage account is opened, it can be invested in stocks, bonds, mutual funds and more. Custodial bank accounts can also be opened where they are treated like your standard checking or savings account.

• Custodial Roth IRAs: Like the UTMA/UGMA, a custodial Roth IRA may be opened for minor children. The custodian maintains control of the Roth IRA, including contributions, investments, and distributions. But upon age of majority, the account transfers ownership to the child. A key requirement is that a contribution can only be made if a minor has earned income during that year.

• Tax Returns: Upon turning 18, it may be advisable for a child to consider filing their own tax returns, especially if they are working, as the taxes will most likely be simple and can give them a head start on understanding taxes.

• Credit Building: Upon turning 18, a person can apply to open a credit card. However, according to the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, if you are under 21, you may have to have a co-signer who is over 21 or prove that you have enough income to meet minimum credit card payments.
  • • Depending on the card issuer, a minor may be added as an authorized user to a credit card which will allow for them to build strong credit habits and a credit score at an early age. Credit duration or length of credit history is one of key factors that plays a role in your credit score.
• Basic Estate Planning: At age 18, establishing basic estate planning can be good practice. This includes actions like setting up advance health care directives, powers of attorney, a will, and making sure beneficiaries are added onto brokerage accounts and bank accounts. Upon reaching 18, you are considered as being capable of making your own medical decisions, emphasizing the importance of the advance healthcare directives.

20s

• Start Saving for Retirement: Many people obtain their first full-time job in their 20s. It is advisable to begin contributing to an employer 401(k) or other type of retirement plan. Below are the annual contribution limits for various retirement accounts for calendar year 2025.
  • • 401(k)s (Including Solo 401(k)s), 403(b)s, 457s): $23,500.
      • Taking advantage of an employer match: Some employers may offer an employer match when contributing to their employer-sponsored plan, so depending on your income and cash flow, it may make sense to contribute enough to take advantage of the “free money” that comes with an employer match if you’re unable to contribute the full amount.
    • Traditional & Roth IRAs: $7,000
    • SIMPLE IRAs: $16,500
• Health Savings Account (HSA) contributions: If you are enrolled into a High-Deductible Health Plan (HDHP) and you have access to a Health Savings account, the 2025 contribution limits are $4,300 and $8,550 for singles and families, respectively.

• Health Insurance Expiration: Upon turning 26, you can no longer be on your parents’ health care coverage and must get your own coverage via an employer or in the healthcare marketplace.

30s & 40s

• Mega Backdoor Roth Contributions: Depending on your income and your cash flow, it may also make sense to make what is known as a Mega Backdoor Roth contribution. This is done once you have maxed out the deferral amount above and you contribute after-tax dollars into an after-tax qualified account and immediately convert that portion into the Roth bucket within the same qualified account. This will allow those dollars to grow tax-exempt once specific conditions are met. This amount is $70,000 which includes the employee and the employer contributions. Not all retirement accounts offer this, so please check with your employer to see if this is available to you.

• Backdoor Roth IRA Contributions: Depending on your income, you may not be able to make a Roth IRA contribution via normal contributions. If you are in excess of the phaseout amount, you may be able to do what is known as a backdoor Roth IRA contribution. This is done by making a non-deductible traditional IRA contribution and immediately converting it into a Roth IRA. By doing this you are still effectively making a Roth IRA contribution, but through indirect means (Please keep in mind that there can be potential tax implications depending on whether or not you have additional pre-tax IRAs outstanding).

• Life Insurance: At this age it may be advisable to consider adding a term-life insurance policy to support your loved ones in the unlikely event that you are to pass early. Premiums for term-life policies are generally lower for younger people, although official quotes and underwriting are necessary to determine pricing.

• Disability Insurance: You might consider adding supplemental disability policies in addition to potential work policies since employer-sponsored policies are sometimes insufficient. Remember, if the employer pays disability premiums, then the benefits are taxable to the employee. However, if the employee pays the premiums, then the benefits are not taxable to the employee.

• Estate Planning: With the accumulation of additional assets, addition of family members, and other specific needs, more formal estate planning may be required as your life continues to get more and more complex. Consulting with a local and experienced estate planning attorney would be prudent as you want to make sure your wishes are met in the case you prematurely pass.

• Donor Advised Fund: Around this age range, your income can start to increase and depending on if you are charitably inclined, it may make sense to open a donor advised fund. A donor advised fund allows you to contribute funds (e.g., cash, stock, and also non-cash assets), and depending on your income, you may be able to take a charitable deduction (if you itemize your deductions) based on what was contributed. If you have highly appreciated securities, those are commonly contributed into the donor advised fund as you do not have to realize the capital gain if contributed versus having to realize the gain if you sold it in a taxable brokerage account. Once contributed, you can make grants to any eligible charity of your choosing and does not have to occur in the same year as the contribution.

• Property and Casualty Insurance: As you begin to accumulate more assets such as a home, cars, investments, and more, it would be prudent to have a holistic look at your property and casualty insurance to make sure that you and your family are adequately protected in case something bad were to happen such as your house catching on fire or a car accident.

50s

• Long-term Care Insurance: Though it may seem early to consider long-term care insurance, the longer you wait to get a long-term care policy, the higher the premiums will likely be. It may be a good idea to get initial quotes for long-term care and see if it makes sense for your personal situation. You may also consider a hybrid life/long-term care insurance policy, as well, which has been gaining more interest in recent years.

• Retirement Account Catch-Up Contributions: Upon reaching the age of 50, catch-up contributions can be made to a variety of retirement accounts. Here are some of the limits of catch-up contributions for various accounts for the calendar year 2025.
  • • 401(k)s (Including Solo 401(k)s), 403(b)s, 457s): $7,500.
    • Traditional & Roth IRAs: $1,000.
    • SIMPLE IRAs: $3,500 until age 60.

• Health Savings Accounts (HSA) Catch-Up Contributions: Upon reaching the age of 55, catch-up contributions can be made to HSAs in the amount of $1,000. One does not need to have earned income to contribute and even someone else can make contributions on your behalf.

• Retirement Account Distributions – Rule of 55: You can withdraw funds from your current job’s 401(k) or 403(b) plan (not IRAs) with no 10% penalty if you leave that job in or after the year you turn 55.

• Retirement Account Distributions: Upon reaching age 59.5, you may withdraw funds from your retirement accounts (401(k)s, 403(b)s, and IRAs) without needing to pay the early withdrawal penalty tax of 10%. If you are still working, you may also take in-service distributions (if available) from the employer sponsored retirement accounts without penalty. Keep in mind that pre-tax retirement accounts are still subject to ordinary income tax upon withdrawal.

60s

• Roth Conversions: Roth conversions can be a way to strategically pay taxes at a lower rate during retirement and before Social Security where your income may be lower. By taking advantage of converting a lower tax rate, the amount converted grows tax-free in the Roth IRA upon withdrawal. Please consult with your financial advisor and tax advisor to see if this strategy may work for you.

• SUPER Retirement Account Catch-Up Contributions: Starting at age 60, individuals between the age of 60 and 63 can contribute additional amounts to various retirement accounts. Not all retirement accounts may offer this, so please check with your employer to see if this is available to you. Here are some of the limits of catch-up contributions for various accounts for the calendar year 2025.
  • • 401(k)s (Including solo 401(k)s, 403(b)s, 457s): The standard catch-up contribution is $7,500. If you are between the ages of 60 and 63, you can contribute an additional 150% of $7,500, which is $11,250.
    • SIMPLE IRAs: The catch-up contribution once hitting age 60 increases from $3,500 to $5,250.

• Home Equity Conversion Mortgages (HECMs) a.k.a. Reverse Mortgages: Upon reaching 62, you are eligible to obtain a reverse mortgage on your principal residence. Reverse mortgages may make sense if you plan to age in place and need additional funds to support your living expenses. There are eligibility requirements and trade-offs for this strategy, which should be discussed with your financial advisor.

• Social Security Benefits: The earliest you can begin to claim Social Security benefits is at age 62. This includes Social Security benefits from your ex-spouse if you were married for 10 years or more. Keep in mind that claiming at 62 generally generates the lowest benefit and it is advisable to consult a financial advisor to determine the best time to start collecting Social Security.

• Social Security Full Retirement Age: Depending on the year that you were born, your full retirement age may vary. Full retirement age is the age at which you can claim full Social Security benefits based on the amount of Social Security tax paid over your working years. Here are the full retirement ages based on year of birth.
  • • 1943 -1954: 66
    • 1955: 66 and 2 months
    • 1956: 66 and 4 months
    • 1957: 66 and 6 months
    • 1958: 66 and 8 months
    • 1959: 66 and 10 months
    • 1960 & after: 67
    • Note: People born on January 1st of any year, refer to the previous year. i.e. Born January 1st, 1959, your full retirement age will be based on if you were born in 1958 so your full retirement age will be 66 and 8 months, not 66 and 10 months.
• Delaying Social Security: In general, delaying claiming Social Security past your full retirement age can increase the benefits by around 8% a year. There is no additional increase in benefits from delaying Social Security past age 70. Ensure you consult with your financial advisor for strategies around the best timing to take your Social Security. Delaying taking the benefit until age 70 increases the benefit amount but also reduces the amount of time you will receive benefits for.

• Medicare:
  • • Medicare Premiums: Medicare premiums for Parts B and D are based on your income reported two years prior. There is an additional Medicare premium surcharge known as IRMAA (Income-Related Monthly Adjustment Amount) if your income is above a certain threshold. Since Medicare begins at age 65, it may be a good idea to do some planning around your income at age 63 so your Medicare premiums for Part B and D are not increased unnecessarily.

• • • Medicare Enrollment
      • Medicare Enrollment Opens: Three months before you turn 65, you can enroll for Medicare Parts A and B.
      • Medicare Enrollment Window (Without Penalty): The initial enrollment period to apply for Medicare Parts A and B ends three months after the month you turn 65. If you do not enroll during this period, you may have to pay an increased premium depending on your circumstances. If you must pay for Part A, you may also have to pay a penalty. If you do not register for Part B, you have to wait until the open enrollment period to sign up which can lead to a late enrollment penalty.

• Health Savings Account (HSAs): Upon turning 65, your HSA does not only have to be used for qualified medical expenses and essentially becomes a pre-tax IRA. There are no penalties for distributions made for non-medical expenses. Keep in mind that the distributions not used for qualified medical expenses are still subject to ordinary income tax. If you continue to use your HSA for qualified medical expenses, distributions are tax-exempt. At age 65, once you are enrolled in Medicare, you can no longer contribute to an HSA.

• Gifting during your lifetime: The annual amount that you can gift to an individual without having to file a gift tax return in 2025, is $19,000. Depending on your financial plan and the goals that you have, if you would like to provide financial support for your loved ones, it may be a good idea to consider gifting starting this period of your life.

70s and beyond

• Continuing Care Retirement Communities (CCRCs) and Aging in Place: It may be a good idea to consider whether or not you would like to age in place or potentially relocate to a CCRC. CCRCs often have lengthy waitlists and may have health screenings as a requirement. So, if a CCRC is something you are interested in, it may be a good idea to start looking and get on the waitlist of some of your top picks.

• Viatical Settlement: A viatical settlement is a financial arrangement where an individual with a terminal or chronic illness sells their life insurance policy for immediate cash at a price below its full-face value. This may bear consideration later in life.

• Required Minimum Distributions (RMDs): RMDs are the minimum amounts you must withdraw from your retirement accounts each year.
  • • 70.5: This is the age when RMDs apply for those born June 30, 1949, or earlier.
    • 72: This is the age when RMDs apply for those born from July 1, 1949, to December 31st, 1950.
    • 73: This is the age when RMDs apply for those born from January 1st, 1951, to December 31st, 1959.
    • 75: This is the age when RMDs apply for those born January 1st, 1960, or later.

• Qualified Charitable Distributions (QCDs): Qualified charitable distributions are distributions from your pre-tax account that can be sent directly to a 501(c)(3) charity of your choice. Upon reaching the age of 70.5, you are eligible to do this. When making a qualified charitable distribution, the amount is excluded from income whereas an ordinary distribution must be reported as ordinary income. You are not allowed to take a deduction when you file your taxes for a qualified charitable distribution. The limit is currently $108,000 for calendar year 2025 per person.
  • • QCDs & RMDS: If you are RMD age, it can count towards your RMD as well.
    • SEP/SIMPLE IRA QCD Limitations: Keep in mind that QCDs are not allowed from active SEP IRAs or SIMPLE IRAs (inactive SEP or SIMPLE IRAs are allowed to do QCDs).

If you have any questions or would like to talk about any of these items further with your financial advisor, please do not hesitate to reach out to Wealth Architects.

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