Money Maturity-How To Take Care Of Your Money So Your Money Takes Care Of You

Whether you are 27 or 72, learn what to do withclause.
your money and when to do it.Though it's best to have both a will and a trust, a
In your 20s…trust eliminates the lengthy probate court process
Master your credit score.required to validate a will. A lawyer can draw up the
It determines the interest rates you'll get on loansdocument for you, but you can also create one
and credit cards, and a good one—aboveyourself with several software programs. You'll then
720—will save you money throughout your life.need to hire an estate lawyer to review your work.
Visit to get your score, understand how it'sSave for your retirement before the kids' college
calculated, and learn how to improve it.tuition.
Enroll in your company 401(k) plan.Don't shortchange yourself—the kids can get loans
Most companies match your contribution; by notfor school but you can't get loans for retirement. Max
enrolling, you're virtually throwing away free money.out your 401(k) and, if you're eligible, a Roth IRA. To
The secret to investing is giving your money time tofind out how much you need for a secure future,
grow. If you delay saving for 10 years, you'll bevisit smartmoney.com/retirement.
hard-pressed to make up for lost time. If you'reOnce you're on the track to a comfortable
self-employed, park a Roth IRA or a SEP-IRA at aretirement, visit for tips on funding your children's
discount brokerage such as Muriel Siebert or aeducation.
low-cost fund company like Vanguard or Fidelity.In your 50s…
Pay off credit card debt.Start your bonding.
To calculate the shortest and most effective routeThough stocks should still make up the bulk of your
to becoming debt-free, visit bankrate.com's Creditportfolio, shift about 20 percent of your retirement
Cards section.assets into bonds.
In your 30s…Speed up your mortgage payments.
Build an eight-month emergency cash fund.If you intend to stay in your home, pay more now
Set up a savings account into which money isso that you can head into retirement without large,
automatically transferred from your checking accountlooming monthly bills. In the Mortgages section at
each month. Once you have saved the minimumbankrate.com, you can calculate how much less time
required—often $500—move your savings intoit will take you to own your house fully if you up
a higher-interest money market account.your payments; you'll also be able to see how much
Save for a down payment on a home.you'll eventually save on interest fees.
Don't go for a mortgage that doesn't require a downIn your 60s and 70s…
payment—if you don't have the necessary 5Consider opting for early Social Security benefits.
percent or so, you're not ready to own. Set up a…But only if your payout won't be taxed (if you're
housing savings account with an automatic transfermaking less than $12,000 in 2005). If you earn more,
from your checking account.those early benefits will be reduced by $1 for every
In your 40s…$2 you make above that $12,000 threshold. Taking a
Draw up a revocable living trust with an incapacityreduced amount before you're 65—you're eligible
clause.at 62—makes more sense than waiting three
Though it's best to have both a will and a trust, ayears for the full benefits.
trust eliminates the lengthy probate court processBegin your traditional IRA and 401(k) withdrawals
required to validate a will. A lawyer can draw up thewhen you turn 70.
document for you, but you can also create oneYou'll face a stiff penalty if you don't start taking out
yourself with several software programs. You'll thenmoney at this time. Contact the brokerage, fund
need to hire an estate lawyer to review your work.company, or bank where you've invested for
In your 40s…assistance on how to calculate and collect your
Draw up a revocable living trust with an incapacitywithdrawal amount.