Gen Xers have been in the workforce for two to three decades. Many have families, and some are starting to see retirement on the horizon. With all the demands on their time, however, it is all too easy to overlook or put off monitoring their financial progress to date.

For some, it can be an uncomfortable and time-consuming process, especially if you’re concerned about meeting your financial goals. But when talking about reviewing your finances, the old adage, “Sunlight is the best medicine,” rings true.

No matter if you’re feeling ahead, on track, or behind schedule going into this process, you’ll emerge with a renewed confidence. You’ll know exactly where you stand and what items may need attention before retirement.

Conducting a successful review includes assessing your current situation, gathering the necessary documentation, and implementing actions that will fuel your progress.

Assessing your current financial position

The process begins with a thorough review of all your assets, income sources, liabilities, and expenses. Be as honest and detailed as possible throughout this process.

  • How much of your savings is in readily available cash?
    • Are you adding to your savings regularly?
  • Have you contributed to workplace retirement plans?
    • Are you contributing enough to receive any employer match?
  • Do you have other non-retirement investment accounts?
  • What are your current sources of income?
    • Will you be eligible for Social Security or have a pension in the future?
  • What is your current level of debt?
    • Mortgage
    • Student loans
    • High-interest credit cards
      • Are you carrying large balances from month to month?
  • How much does it cost to run your household?
    • Monthly bills
    • Tuition payments
    • Elective spending (eating out, club memberships, travel, shopping, etc.)

Gather appropriate documents

Once you have completed your assessment, compile a list of any supporting documents regarding the items listed above. This can be particularly useful if you plan to engage with an advisor. The documents might include:

  • Recent tax returns
  • Mortgage statements
  • 401(k)/IRA/Roth IRA statements (including current holdings and investment options)
  • Statements for non-retirement investments
  • Pension and/or Social Security estimates
  • Credit card statements
  • Property tax bills
  • Bank statements
  • Current Wills or Trust documents

Implement actions to fuel progress

Once you have done the work to complete a review and compiled the related documents, choosing the appropriate actions to take can bring you one step closer to achieving your goals. Because everyone has their own unique priorities, some may choose to focus on debt management while others look at college planning.

If you’re closing in on retirement, you may want to consider taking steps to build more cash savings or consolidate previous employer retirement plans into a single IRA. Perhaps all these areas are of concern for you. Working with an advisor may ease the burden of determining how much and when to focus on these objectives. If investments are involved, consolidating and outsourcing the management of those assets could free up more time to work on other areas.

Prioritize getting your financial house in order

It may seem like the demands on our time and resources are endless. For those in Generation X, there’s a golden but limited window of opportunity to get their financial houses in order with enough time to make necessary adjustments.

Author Christopher N. Ruedi Financial Advisor

Chris has been involved in the financial services industry since 2011. He earned a bachelor of science degree in finance from the University of Illinois and an MBA from the John Cook School of Business at St. Louis University.

About Savant Wealth Management

Savant Wealth Management is a leading independent, nationally recognized, fee-only firm serving clients for over 30 years. As a trusted advisor, Savant Wealth Management offers investment management, financial planning, retirement plan and family office services to financially established individuals and institutions. Savant also offers corporate accounting, tax preparation, payroll and consulting through its affiliate, Savant Tax & Consulting.

©2020 Savant Capital, LLC dba Savant Wealth Management. All rights reserved.

Savant Wealth Management is a Registered Investment Advisor. Different types of investments involve varying degrees of risk. Savant’s marketing material and/or rankings should not be construed by a client or prospective client as a guarantee that they will experience a certain level of results if Savant Wealth Management is engaged, or continues to be engaged, to provide investment advisory services nor should it be construed as a current or past endorsement of Savant Wealth Management by any of its clients. Please see our Important Disclosures.