Financial Planning for Millennials: Focus on These 3 Areas First

Admin • October 13, 2023

Millennials are the generation born between 1981 and 1996 . If you were born within that time frame, you likely grew up with cable TV, cell phones, and the internet . You rest comfortably in between your Boomer generation parents and your younger, Gen Z peers. And while you’ve probably been criticized for being lazy and entitled at some point, your generation has had its fair share of unique money challenges compared to other generations. 

Currently, you’re facing: 

Add in rising inflation and interest rates, and making any progress on your financial goals seems even more difficult than before. Even though 80% of adults report “doing okay financially” , Millennials are lagging behind previous generations. 

We can both sympathize and empathize with Millennials because we’re one of you . We’re not your dad’s stuffy financial advisors — rather, we’re young, relatable, and understanding of the financial mountains you’re facing. We hope to not only help you overcome those challenges but help you thrive along the way. 

We’ve had the privilege of working with many Millennials in our Boise office , most of whom are tech wizards who have taught us a thing or two. We enjoy working with and educating individuals of all ages and backgrounds — if you’re in the Millennial generation, this is a great place to start your financial journey. 

Why is Financial Planning Important for Millennials?

Having a clear strategy for your money makes managing it and reaching your goals easier, even during challenging economic conditions. When creating a financial plan, factor in your unique challenges and create a plan that suits your lifestyle, values, and aspirations. While income and spending habits are highly individualized, here are some ways that Millennials can start taking control of their money goals today.

Budgeting for Millennials

Budgeting may feel like a basic suggestion but it’s a starting point for a reason. Having a plan for your money is key to making it work for you. A budget is essentially tracking your income and expenses — you need to know where your money is going before you can make any adjustments. Once you’ve tracked all your income and expenses, here are your next budgeting steps:

1. Set Goals and Priorities

Everyone has fixed expenses such as rent, food, utilities, etc. Beyond those basic necessities, you get to decide what your financial goals and priorities are. By having specific targets to hit, you can be purposeful with your spending. Whether you want to retire early or take a year off to travel around the world, a financial strategy and spending plan will help you reach those goals.

2. Evaluate Expenses

While quitting your $6 latte habit may not break your budget — those small purchases can eat away at your ability to achieve your bigger financial goals. When you can see where your money is going each month, you get to decide which expenses suit your lifestyle and values. If grabbing coffee and saying hi to your favorite barista is a highlight of your morning, maybe you should leave room for that in your budget. 

3. Build an Emergency Fund

Whether it’s a car repair or a medical bill, an emergency fund can help keep you on track when unexpected expenses arise. Having an account specifically for these financial storms will protect you from using debt or slowing down your progress on other financial goals. Additionally, consider keeping your emergency fund in a high-yield savings account. You will earn interest on the balance and with it being outside of your regular checking and savings account, reduces your chances of spending it when it’s not a true emergency (more on these accounts below). 

Saving For the Future

Regular saving habits can help you achieve your long-term goals. Staying consistent is the key to watching your savings grow over time. Your future self will thank you for the financial security you’ve built. Here’s how to start getting into the habit of saving money:

1. Pay Yourself First

It may seem counterintuitive to set aside money before all your bills are paid, but prioritizing savings means that you are valuing your financial future. Even if money is tight, small amounts add up over time. It will also help prevent you from spending everything you earn. 

2. Automate Your Savings

Automating the process is the easiest way to save. It removes the tendency to save after you’ve spent. You know what they say, “Out of sight, out of mind.” Check if your employer offers split direct deposits, where you can deposit portions of your paycheck to different accounts. If not, set your own deposits on paydays.

3. Use a High-Yield Savings Account

A high-yield savings account is a federally insured savings account that offers a high annual percentage yield (APY). This rate is typically much higher than a traditional savings account. This type of account is a great place to store long-term savings, like an emergency fund or a down payment on a home. You get to earn better than average interest and keep your savings separate from your everyday expenses. 

Invest Wisely

Investing your money can help it grow at a faster rate, working to combat inflation and increasing your wealth over time. Starting to invest as early as possible can help you harness the power of compound interest and build the financial future you’ve been hoping for. Let’s focus on some basics for investing:

1. Take Advantage of Employer Programs

Both 401k and HSA accounts often come with employer matching offers as part of their benefits package. If you have access to these or other employer-sponsored retirement accounts, you should take full advantage of them. Tax-assisted accounts are just one of the ways millennials can diversify their investments. 

2. Have a Long Term Strategy

Investing is a long game. Rather than making emotional decisions based on headlines, commit to time and patience. Marketing conditions change daily but since the 1970’s the stock market’s average return rate has been around 10% . There are a variety of investment options and strategies, which can be overwhelming. At Five Pine Wealth Management , we can help you develop a strategy specific to your needs and personal financial goals.

3. Get the Right Professional Advice

Financial advice for Millennials should not be found on TikTok or any other social media app. Take financial advice from a fiduciary professional who understands your unique goals and needs . We’re different from other financial planners. As fiduciaries, we are required to work in your best interest, not ours. We are also fee-only , which means we aren’t selling you on specific stocks or mutual funds to make a commission. We are driven by client needs, not sales numbers. 

Receive Financial Advice Tailored for Millennials

If you’re still feeling overwhelmed or confused about how best to achieve your money goals we invite you to schedule a complimentary meeting with us today. We carry the distinct privilege of being both highly knowledgeable and experienced while maintaining our approachability. 

We offer comprehensive financial planning with regular check-ins to ensure you’re reaching your financial goals. We also offer specialized investment and life insurance advice. We’d love to connect with you in one of our five local offices or virtually anywhere in the United States. 

Give us a call at 877.333.1015, email us at info@fivepinewealth.com, or visit our website to learn more about what it’s like to work with us.

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401(k) Millionaire: Proven Strategies to Reach 7 Figures in Your Retirement Account

October 17, 2025
Key Takeaways Maxing out your employer match provides an immediate 50-100% return and is the easiest way to accelerate your 401(k) growth. Reaching $1 million in your 401(k) depends more on consistent contributions over time than on being the highest earner or picking winning investments. High earners can potentially contribute up to $70,000 annually through a mega backdoor Roth conversion if their employer plan allows after-tax contributions. Hitting seven figures in your 401(k) might sound like a pipe dream, but it's more achievable than you think. With the right 401(k) investment strategies and a disciplined approach, becoming a 401(k) millionaire is within reach for many mid-career professionals. Let's walk through exactly how you can get there. The Math Behind Becoming a 401(k) Millionaire Before we discuss strategies, let's look at the numbers. Understanding the math helps you see that reaching $1 million isn't about getting lucky — it's about time, consistency, and thoughtful planning. Starting Age Annual Contribution Balance at 65* 30 $15,000 $1.5 million 30 $20,000 $2 million 40 $25,000 $1.3 million *Assumes 7% average annual return Time matters, but it's never too late to build substantial wealth if you're willing to prioritize your retirement savings. 7 Steps to Build Your 401(k) to Seven Figures Now that you understand the math, let's break down the specific strategies that will get you there. Step 1: Max Out Your Employer Match (The Easiest Money You'll Ever Make) If your employer offers a 401(k) match, contributing enough to capture it fully is the absolute first step: it’s free money that provides an immediate 50-100% return on your investment. Let's say your employer matches 50% of your contributions up to 6% of your salary. If you earn $150,000 and contribute $9,000 (6% of your salary), your employer adds $4,500. That's a guaranteed 50% return before your money even hits the market. Not taking full advantage of an employer match is like turning down a raise. Make sure you're contributing at least enough to capture every dollar your employer offers. Step 2: Gradually Increase Your Contribution Rate Once you've secured your employer match, the next step is increasing your personal contribution rate over time. For 2025, the 401(k) contribution limit is $23,500 (or $31,000 if you're 50 or older with catch-up contributions). Here's a practical approach: Every time you get a raise or bonus, direct at least half toward your 401(k). If you get a 4% raise, bump your contribution by 2%. Many plans now offer automatic annual increases. If yours does, set it to increase your contribution by 1-2% annually until you hit the maximum. You'll barely notice the change, but your future self will thank you. Step 3: Master Tax-Advantaged Retirement Accounts Through Strategic Contributions Traditional 401(k) contributions reduce your taxable income now, which is ideal if you're in a high tax bracket today. Roth 401(k) contributions don't reduce current taxes, but withdrawals in retirement are tax-free — valuable if you're earlier in your career or expect a higher income later. A hybrid approach works for many of our clients. Step 4: Optimize Your 401(k) Investment Strategies Your contribution rate matters, but so does what you're investing in. We regularly see clients who contribute aggressively but choose overly conservative investments that don't provide enough growth. Keep costs low . Target-date funds and index funds typically offer the lowest expense ratios. Every 0.5% in fees you avoid can add tens of thousands to your retirement balance over 30 years. Rebalance annually . Market movements throw your allocation off balance. Set a reminder once a year to review and rebalance your portfolio back to your target allocation. Avoid the temptation to chase performance . Last year's top-performing fund is rarely this year's winner. Stick with broadly diversified, low-cost options. Step 5: Consider a Mega Backdoor Roth Conversion If you're a high earner who's already maxing out regular 401(k) contributions, a mega backdoor Roth conversion can accelerate your retirement savings. Here's how it works: Some employer plans allow after-tax contributions beyond the standard $23,500 limit. The total contribution limit for 2025 (including employer contributions and after-tax contributions) is $70,000 ($77,500 if you're 50+). If your plan permits, you can make after-tax contributions up to that limit, then immediately convert those contributions to a Roth 401(k) or roll them into a Roth IRA. This gives you tax-free growth on substantially more money than the regular contribution limits allow. Not all plans offer this option, and the rules can be complex. Check with your HR department to see if your plan allows after-tax contributions and in-plan Roth conversions or rollovers. Step 6: Avoid These Common 401(k) Mistakes Even with great 401(k) investment strategies, mistakes can derail your progress toward seven figures. Avoid: Taking loans from your 401(k) . While it might seem convenient, you're robbing yourself of compound growth. The money you borrow stops working for you, and you're paying yourself back with after-tax dollars. Cashing out when changing jobs . Rolling over your 401(k) to your new employer's plan or an IRA allows your money to continue growing tax-deferred. Cashing out triggers taxes and penalties that can set you back years. Panic selling during market downturns . Market volatility is normal. The clients who reach $1 million are those who stay invested through ups and downs, not those who try to time the market. Step 7: Stay Consistent (Even When It's Boring) The path to becoming a 401(k) millionaire isn't exciting (and that’s a good thing!). The most successful savers aren't those who constantly tweak their strategy or chase the latest investment trend. They're the ones who set up automatic contributions, review their allocation once a year, and otherwise leave their 401(k) alone. Let Five Pine Help You Build Your Million-Dollar Plan Reaching $1 million in your 401(k) is absolutely achievable with the right strategy and discipline. Whether you're just starting your career or playing catch-up in your 40s and 50s, the steps remain the same: maximize contributions, optimize your investments, take advantage of tax-advantaged retirement accounts, and stay consistent. At Five Pine Wealth Management , we help clients build comprehensive retirement strategies that go beyond just their 401(k). We can analyze your current contributions, recommend optimal allocation strategies, and help you coordinate your employer plan with other retirement accounts. Want to see what your path to seven figures looks like? We help clients build these roadmaps every day. Email us at info@fivepinewealth.com or give us a call at 877.333.1015. Let's talk about your specific situation. Frequently Asked Questions (FAQs) Q: Should I prioritize maxing out my 401(k) or paying off debt first? A: Start by contributing enough to capture your full employer match — that's an immediate 50-100% return you can't get anywhere else. Beyond that, prioritize high-interest debt (credit cards, personal loans) since those interest rates typically exceed investment returns. Q: Should I stop contributing during market downturns to avoid losses? A: No — continuing to contribute during downturns is actually one of the best strategies for building wealth. When prices are lower, your contributions buy more shares, setting you up for greater gains when the market recovers. Q: I'm 55 with only $300K saved. Is it too late to reach $1 million?  A : While reaching exactly $1 million by 65 might be challenging, you can still build substantial wealth. Maxing out contributions, including catch-up ($31,000/year), could get you to $750K-$850K depending on returns. Disclaimer: This is not tax or investment advice. Individuals should consult with a qualified professional for recommendations appropriate to their specific situation.

Couples Money Management: Why Both Spouses Need to Know Where the Money Is

October 17, 2025
Key Takeaways Both spouses should understand the family’s finances, even if only one manages them, to prevent confusion or stress during life’s unexpected events. Regular money check-ins, shared account access, and attending financial planning meetings together help couples build confidence and clarity. Partnering with a fiduciary advisor ensures both spouses have support, education, and guidance for comprehensive wealth management and long-term peace of mind. Money is one of the most common sources of stress in relationships. Some couples argue about spending habits, while others quietly hand off all financial responsibilities to one spouse and never revisit the arrangement. At first glance, this setup can feel efficient: one partner pays the bills, manages investments, and handles taxes while the other takes care of different responsibilities. However, there is a risk to this method. If something unexpected happens, the spouse who hasn’t been involved in financial decisions can feel completely lost. Even highly capable, intelligent people often tell us they don’t know where accounts are located, how much income is coming in, or what investments they own. When life throws a curveball, like illness, death, or divorce, that lack of knowledge creates unnecessary anxiety during an already difficult time. The solution is not to necessarily make both partners money managers, but to ensure both understand the big picture. Let’s walk through why this matters, what it looks like in practice, and how you can start today. Financial Planning for Couples Effective financial planning for couples goes beyond having the right investment mix or adequate insurance coverage. It requires both spouses to understand the big picture of their financial life, even if only one manages the day-to-day details. This doesn't mean both partners need to become financial experts. Instead, it means creating transparency and basic literacy that protects your family's financial security regardless of what life throws at you. Here are a few essentials: Regular check-ins : Schedule monthly or quarterly “money talks” where you review accounts, upcoming expenses, and investment performance. This keeps both partners informed. Shared access : Make sure both spouses have login information for bank, investment, and retirement accounts. A secure password manager can help keep things organized. Big-picture clarity : Even if one spouse handles the details, both should know where you stand with assets, liabilities, income, and goals. Think of it as insurance against uncertainty. If one spouse suddenly has to take the reins, they aren’t starting from zero. Couples Money Management Couples' money management doesn’t have to mean “50/50 responsibility for every financial task.” Instead, think about it as defining roles while keeping communication open. Many households operate on a “primary manager” system. One person writes the checks, monitors the accounts, and interacts with financial advisors. That’s perfectly fine, as long as the other spouse has visibility. Problems arise when the "non-manager" is completely shut out. Some practical ways to stay connected: Attend meetings together : Whether it’s with your accountant, attorney, or financial planner, both spouses should be present. Hearing the same information firsthand helps prevent misunderstandings. Document everything : Create a simple household financial binder (digital or physical) that includes account numbers, insurance policies, estate documents, and contact info for professionals you work with. Ask questions : No question is too small. If you don’t understand how an investment works or why you own it, speak up. Practice decision-making together: Involve both partners in financial decisions, even small ones. This builds confidence and familiarity with your financial priorities and decision-making process. Fiduciary Financial Planning: The Professional Partnership Advantage Working with a fiduciary financial advisor creates an additional layer of protection for couples navigating financial planning together. Fiduciary advisors are legally required to act in your best interest, providing objective guidance that supports both partners' financial security. A good fiduciary advisor will insist on meeting with both spouses regularly, ensuring that financial strategies are understood and agreed upon by both partners. They can also provide education and support to help less financially-inclined spouses build confidence and understanding over time. This professional relationship becomes especially valuable during transitions. When one spouse dies or becomes incapacitated, having an advisor who knows both partners and understands the family's complete financial picture provides stability during chaos. Comprehensive Wealth Management Comprehensive wealth management goes beyond investments. It covers cash flow, taxes, estate planning, insurance, and long-term care strategies. For couples, it also means creating contingency plans. What happens if one spouse passes away? Will the survivor know how to access accounts? What if the “financial spouse” faces cognitive decline later in life? Will the other partner have the confidence to step in? These are not fun scenarios to imagine, but planning for them is an act of love. Comprehensive wealth management ensures: Estate documents are in place and up to date (wills, powers of attorney, trusts). Beneficiaries are correct on retirement accounts, insurance, and other assets. Tax planning strategies are understood by both spouses, so surprises don’t derail long-term goals. Cash flow is sustainable even if income sources shift (such as after retirement or the loss of a business owner’s salary). When couples approach wealth management together, they reduce the risk of financial upheaval during life’s transitions. When Life Changes Everything: Rebuilding Financial Confidence After Loss Despite the best preparation, losing a spouse creates emotional and financial challenges that feel overwhelming. If you find yourself suddenly managing finances alone, remember that feeling lost is normal and temporary. Start by taking inventory of your immediate needs. Focus on essential expenses and cash flow first. Most other financial decisions can wait while you process your grief and adjust to your new reality. Don't make significant financial changes immediately. Grief affects judgment, and rushed decisions often create problems later. Give yourself time to understand your new situation before making significant moves. Lean on your professional team. This is exactly when having existing relationships with financial advisors, attorneys, and accountants becomes invaluable. They can provide stability and guidance during an unstable time. Consider working with a counselor who specializes in financial therapy or grief counseling. Processing the emotional aspects of sudden financial responsibility is just as important as understanding the technical details. Taking the Next Step Together If you and your spouse have fallen into the habit of letting one person manage all the finances, it’s not too late to shift. Schedule a money talk this week. Write down your accounts. Ask questions. Set a reminder to attend your next financial planning meeting together. At Five Pine Wealth Management , we can guide couples through these conversations. Whether you’re in the wealth accumulation phase, approaching retirement, or already enjoying it, we help both partners feel equally confident in their financial picture. Don't wait until a crisis forces financial literacy upon you. Call (877.333.1015) or send us an email today at info@fivepinewealth.com to schedule a consultation and start building the financial transparency and security your family deserves. Frequently Asked Questions (FAQs) Q: What if one spouse has no interest in learning about finances? A: Start small and focus on the essentials. Your spouse doesn't need to become a financial expert, but they should know where important documents are located, understand your basic monthly expenses, and know how to contact your financial advisor. Q: How often should we review our finances together if only one person manages them day-to-day? A: Quarterly check-ins work well for most couples. Schedule a regular 30-minute conversation to review your progress toward goals, discuss any major upcoming expenses, and ensure both partners stay informed about your overall financial picture. Q: What's the most important thing for the non-financial spouse to understand first?  A: Cash flow and immediate needs. Know where your checking accounts are, how much you typically spend each month, what bills are on autopay, and how to access emergency funds. This knowledge provides immediate stability if they suddenly need to take over financial management.