Last weekend, my wife and I had a rare night out without the kids. We attended a school fundraiser, and it was a lovely evening filled with friendly faces, casual conversation, and a welcome excuse to swap sweatpants for something a little more formal. As the evening progressed, the MC announced, “Cocktail and hors d’oeuvres will end in 15 minutes before we head to the theatre. Eat and drink as much as you’d like.”
A younger version of me would have treated that as a personal challenge. And this made me reflect on how each version of my younger self would have acted.
In my 20s, I would’ve made a beeline for the open bar, determined to make the most of those final minutes, perhaps double-fisting some lagers.
In my 30s, I probably would have overdone it at the raw bar, juggling a cocktail and too many shrimp, likely with a splash of cocktail sauce on my shirt to show for it.
But now, in my 40s, I simply sipped a drink, enjoying a few relaxed conversations with other parents, and quietly hoping the waiter carrying crab cakes w/aoli would make a left turn toward our group. I suppose I haven’t fully outgrown the allure of a good appetizer, but my approach has certainly matured, as I’m sure it has for much of Gen X.
Shifting Priorities as Life Goes On
My shift in behavior at cocktail hour got me thinking about how our priorities change over time, and how our financial planning should evolve alongside them. In your 20s, life is often centered around spontaneity, adventure, and seizing every opportunity. For many, financial planning takes a backseat to experiences. While that can be understandable, it’s important to begin establishing good habits early, even with small contributions to a retirement account.
By the time you reach your 30s, responsibilities tend to increase. Careers start to take shape, families grow, and the idea of long-term financial independence becomes more pressing. Budgeting becomes more purposeful, and saving for milestones like a first home or a child’s education takes center stage. In your 40s, conversations shift yet again. Financial decisions grow more complex as retirement, college funding, and support for aging parents become important themes. Planning with clarity and intent becomes essential.
In your 50s and 60s, the urgency to maximize retirement contributions typically intensifies. You begin to take a closer look at Social Security and Medicare, and you may start refining your magic number/vision for retirement. It’s a time to reduce financial uncertainties and ensure your plan is aligned with the lifestyle you envision. Once in your 60s and 70s, it’s about enjoying the life you’ve worked hard to build—travel, hobbies, and more time with loved ones. But even in this phase, your strategy matters. You want your money to last and support the freedom you’ve earned.
Eventually, in your 70s and 80s, the focus often shifts to legacy and estate planning. It’s about ensuring your financial decisions reflect your values and create a meaningful impact for the next generation. From maximizing opportunities in your younger years to preserving what you’ve built, each phase of life brings new priorities and corresponding financial considerations.
Evolving Financial Priorities
From chasing down crab cakes to chasing down retirement goals, our journey is marked by changing focus, evolving financial priorities, and maturing strategies.
As a long-time family financial planner, please reach out if you think about how your financial plan should adapt to where you are today and where you’re heading tomorrow.
