Financial Planning for Life’s Big Milestones: A Guide to Staying Ahead

Life comes at you fast. One minute, you're learning how to ride a bike, and the next, you're trying to figure out Medicare enrollment while simultaneously searching for your reading glasses. The good news? With proper financial planning, each stage of life can feel a little less overwhelming and much more manageable.

Birth to Young Adulthood: Setting the Stage

• Birth: Congrats! Someone just opened a 529 plan or UTMA/UGMA account for you. Too bad you can’t say "thank you" yet.

• 13 Years Old: Say goodbye to the Child and Dependent Care Credit—your parents are now wondering why you eat so much.

• 17 Years Old: The Child Tax Credit also waves goodbye. Financially speaking, you just got a little less cute.

• 18-21 Years Old: Depending on the state, you’ve officially reached adulthood. This means access to certain custodial accounts and, more importantly, no more forced bedtime.

• 24 Years Old: Full-time students finally escape the dreaded Kiddie Tax, a moment of financial freedom (and likely, many student loans).

• 26 Years Old: The Affordable Care Act says it’s time to get off your parent’s health insurance. Welcome to the real world—it's expensive.

  
  

Midlife Money Moves: Growth and Preparation

• 50 Years Old: The government finally acknowledges that retirement savings might need a boost—catch-up contributions for retirement accounts kick in.

• 55 Years Old: Eligible for penalty-free withdrawals from certain retirement accounts. Just in case the idea of working for another decade is too much to bear.

• 59½ Years Old: The magic age when you can withdraw from an IRA without the 10% early withdrawal penalty. It’s like a reward for making it this far.

  
  

The Retirement Era: Social Security, Medicare, and RMDs

• 60 Years Old: Eligible for Social Security survivor benefits if widowed—proof that financial planning isn’t just for the living.

• 62 Years Old: You can start claiming Social Security, but it comes at a cost (reduced benefits).

• 65 Years Old: Medicare eligibility! That means health coverage as long as you enroll on time.

• 66-67 Years Old: Full Retirement Age (FRA) for Social Security benefits. If you’ve waited this long, congratulations—your patience pays off.

• 70 Years Old: The maximum Social Security benefit is reached. There’s no reason to wait longer, so go ahead and cash those checks.

• 70½ Years Old: The magic age for Qualified Charitable Distributions (QCDs) from IRAs. Give and receive—tax benefits included!

• 73-75 Years Old: Required Minimum Distributions (RMDs) start, depending on birth year. Uncle Sam wants his cut, and he’s not known for patience.

  
  

Financial Planning: It’s a Lifelong Journey

The key to financial success isn’t just knowing these milestones—it’s planning for them in advance. Whether maximizing retirement contributions, preparing for healthcare costs, or ensuring you don’t miss a critical age-based financial opportunity, a little strategy goes a long way.

WHWM is here to guide you in identifying your priorities, developing a plan, and making adjustments along the way. By choosing WHWM, you're partnering with our Founder and President, Stephen Bodwell. As a CPA and CFP® professional, Stephen is committed to helping you achieve your financial goals and aspirations. Don't hesitate to take the next step toward realizing your dreams. Schedule your complimentary, no-obligation 30-minute consultation with Stephen. 

Walnut Hill Wealth Management, LLC (“WHWM”) is a registered investment advisor offering advisory services in the State of Texas and in other jurisdictions where exempt. The information provided is as of the date indicated and is subject to change.