Matthew R. Short, CFP®, MPAS®, AWMA®, CRPC®,
Senior Wealth Manager
For generations, age 65 marked a well-defined finish line for working life. Now with the shifting Social Security dynamics and people living longer than ever, millennials in particular face growing uncertainty about when – or whether – that milestone remains within reach.
Even if you’re advancing in your career and actively investing, factors like inflation, elevated housing costs, and market volatility can make financial stability feel out of reach. By taking a few key steps, you can navigate your financial journey with clarity and achieve peace of mind.
Assess Your Finances & Budget
It may seem obvious, but the first step towards confidently managing your finances is to take a hard look at where you are. Start by reviewing:
- After-tax income
- Monthly expenses
- Outstanding debts (student loans, credit cards, etc.)
Doing so allows you to create a realistic budget, pinpoint unnecessary spending, and set meaningful short and long-term financial goals. If you need help staying on track, download a budgeting app or online tool.
Make Saving for Retirement a Priority
Saving for retirement is integral to your long-term financial health. Although it may not seem like a priority now, the earlier you start, the more you can benefit from compound interest to exponentially grow your savings. Where to begin:
- Contribute to your employer-sponsored 401(k), especially if there’s a match.
- Consider increasing contributions annually or with each raise.
- If a 401(k) is not available, explore traditional IRAs, Roth IRAs or other tax-advantaged savings accounts.
Remember that even small, consistent contributions can have a meaningful long-term impact.
Invest with Tax-Optimization in Mind
It’s essential to be aware of the tax implications of your investing decisions. Different account types offer distinct tax advantages. For example:
- Traditional 401(k)s and IRAs: Investments typically reduce your taxable income (and lower your liability) in the year you contribute. today, lowering your current tax bill. Withdrawals in retirement are generally taxed as ordinary income, often at a lower rate if your income declines in retirement.
- Roth IRAs: Contributions are made with after-tax dollars, but qualified withdrawals are typically tax-free in retirement.
Note: In 2026, individuals under 50 can contribute up to $24,500 to a 401(k) and $7,500 to a traditional IRA.1 Full Roth IRA contributions are permitted if MAGI is below $153,000 for single filers or $242,000 for married couples filing jointly, with phase-outs beginning above those thresholds.1
Beyond account selection, thoughtful strategies can further enhance tax efficiency:
- Tax-loss harvesting: Use investment losses to offset gains and reduce your federal income tax liability.
- Long-term investing: Hold on to appreciating investments for more than a year so you can qualify for more favorable long-term capital gain rates.
Understanding and implementing these types of tactics can help significantly reduce your tax burden and potentially increase your after-tax returns.
Build & Maintain an Emergency Fund
Whether it involves medical bills, car or home repair, or dealing with the effects of a natural disaster, life is full of unexpected expenses. An emergency fund can help cover these costs, reduce financial stress, and avoid reliance on credit or retirement savings. Aim to save three to six months of essential expenses, or more if possible, and replenish the fund after any withdrawals.
Navigating Your Financial Life: Brief Q&A
Q: How much should I be saving for retirement?
A: The common guideline is to save 10–15% of your gross income annually, including employer contributions. However, the right amount depends on your goals, lifestyle, and starting point.
Q: Should I prioritize paying off debt or investing?
A: It depends on the type of debt. High-interest debt (like credit cards) should typically be paid down first, while lower-interest debt may allow for a balanced approach between repayment and investing.
Q: What’s the difference between a Traditional and Roth IRA?
A: Traditional IRA contributions may be tax-deductible today, with taxes due on withdrawals. Roth IRA contributions are made after tax, but qualified withdrawals are generally tax-free in retirement.
Q: How much should I keep in an emergency fund?
A: Aim for a minimum of 3–6 months of essential expenses. If you have variable income or dependents, consider a larger cushion.
Q: When should I start working with a financial advisor?
A: There’s no minimum threshold. Many people benefit from guidance early on, especially during major life events like career changes, marriage, or receiving a financial windfall.
Partner with a Registered Investment Advisor
Taking control of your financial future is a serious undertaking. As a fiduciary, a Registered Investment Advisor will put your best interests first, provide objective advice, and build a comprehensive plan aligned with your goals and risk tolerance.
The team at Tiller Private Wealth understands the importance of building a solid foundation for a thriving financial future. We offer tailored solutions designed to help young, high-earning professionals support their financial goals and seek to align long-term strategies with evolving priorities.
Reach out today to get started.
Sources
1https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
The views expressed represent the opinions of Tiller Private Wealth as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.
Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website. Past performance is not a guarantee of future results.
