Link to Owner Dr. Robert B. Pamplin Jr.



This article brought to you courtesy of Matt Stutes, CFP of Cornerstone Wealth Management, Canby Herald Insider Financial Planning Expert.

Matt Stutes, CFP

Let's say that at the age of 25, you earned $35,000. If your salary increased at the average historical rate, you'd have earned nearly $2 million in total by the time you were

651/2 That might sound like a lot -- until you begin thinking about all the financial goals you'll need to juggle in a lifetime, including buying a home and paying for your child's education, while funding your own retirement.

If managed wisely, your money could potentially go a long way. It's really all about putting a plan in place and sticking to it. These tips may help get you started.

Get a Jump on All Your Goals

There's tremendous value in starting early on retirement savings, even if you can only invest a little

each month. The same goes for college savings and other goals. Even a $100 a month investment for college could

potentially leave you with about $16,470 in 10 years, assuming an average annual return of 6% -- a good

start that you can build on as your income grows.1

Set Aside a Slice of Pay Hikes

As your income rises over the course of your career, it's easy to slip into a pattern of "living up" to your

means; that is, spending that extra pay you didn't have before on daily living expenses. Instead, consider

setting a quota for yourself: Earmark a predetermined portion of every pay hike for your savings goals. You may

want to apply the same rule to other windfalls, like an unexpected bonus or tax return.

Use the Right Tools for the Job

Just as your employer-sponsored retirement plan offers a tax advantaged opportunity to set aside money for your later years, certain vehicles, such as 529 college savings

plans, provide potentially attractive tax breaks for college savers. Minimizing the taxes you have to pay up front on investments and earnings gives you the chance to make the most of compounding over time.

Cornerstone Wealth Management

486 N.W. Canby Avenue

Canby, OR 97013


1Hypothetical example is for illustrative purposes only. Does not represent the return of any actual investment. 2Assumes inflation-adjusted 1.5% annual

wage hikes, as reported by the Bureau of Labor Statistics.

Securities and advisory services offered through LPL

Financial, a registered investment advisor. Member


The opinions voiced in this material are for general information

only and are not intended to provide specific

advice or recommendations for any individual.

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