Beyond Retirement: Consider Your Other Goals

When it comes to financial stability, people tend to focus on paying off debt and saving for retirement. In reality, many other financial goals beckon to individuals during their lifetime. Because of this, it’s important to look beyond retirement when setting targets, no matter how old you are.

While it is never too early to start planning for retirement, waiting until you reach 65 years or older to truly live is a mistake many people come to regret. A number of exciting possibilities are waiting for you throughout your life:

While some people start their careers making six figures or more, this is rare. The median salary for those 20-24 years old is $706 per week—or $36,712 per year, according to the Bureau of Labor Statistics¹. Those in the 25-34 age range have a median salary of $52,156 per year. If your salary increases follow the historical rate and you have no major employment gaps, you should earn close to $2 million by the time you’re ready for retirement.

Without a doubt, $2 million is a lot of money. If you take a second look at the list of potential financial goals, however, it begins to lose its comparative value. For instance, the median current cost of a starter home in 2022 was $325,000²—a 48% increase over the cost of the same house in 2019. Similarly, student loans are one of the biggest obstacles to a debt-free life. The average student loan debt is $37,787³, and nearly 43 million borrowers have federal student loan debt.

If you’re starting to feel discouraged, the good news is that money isn’t a static asset. It has the potential to grow and do some of the work for you by creating passive income. In fact, people who begin to invest in their future early can better position themselves in the pursuit of their retirement goals. You can employ several different strategies to help your money go further:

The best time to start minimizing debt is before you take any on. This does not mean you should never buy anything on credit. It does imply wisdom in how you use debt. Also, be wise about payment terms, interest rates and the types of debt.

Whenever possible, pay down that debt as quickly as you can. However, never become so focused on paying off debt that you neglect your savings. Take yet another look at the list of potential financial goals. There is more to life then repaying big corporations.

Need help figuring out where to get started? Our financial professionals at LPL Financial can help. Contact us for more information today.
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