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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.

40 and Catching Up: Why This Decade Could Be Your Best for Building Wealth

July 18, 2025
Your 40s arrive with a unique mix of clarity and urgency. You've likely figured out what you want from life, but suddenly retirement no longer feels like a distant concept. If you're looking at your financial situation and feeling behind, you're not alone. Many people in their 40s experience this same wake-up call. The good news is that this decade offers some of the most powerful opportunities to accelerate your wealth-building journey. Think of your 40s as your financial prime time. You're earning more than you ever have, you understand money better than in your 20s and 30s, and you still have 20-25 years to let compound growth work its magic. Instead of dwelling on what you should have done differently, let's focus on what you can do right now to make this decade count. The Reality Check: Where You Stand vs. Where You Want to Be Before exploring strategies, let's acknowledge the elephant in the room. Many financial experts recommend saving three times your annual salary by age 40. If you're reading this and thinking, "I'm nowhere near that," take a deep breath. Life happens. Maybe you started your career later, switched fields, dealt with medical expenses, helped family members, or simply prioritized other goals during your 30s. The key is to start from where you are today, not where you think you should be. Your 40s bring unique advantages: higher earning potential, greater financial discipline, and often more stable life circumstances. Many successful investors didn't hit their stride until their 40s or later. You're not behind; you're just getting started on a more intentional path. Retirement Savings Strategies That Work in Your 40s Your retirement savings strategy in your 40s should differ from someone in their 20s or 30s. You have less time but more resources, which means you need to be both aggressive and smart about your approach. First, maximize your employer's 401(k) match if you haven't already. This is free money, and missing out on it is like leaving cash on the table. Additionally, consider increasing your contribution rate by 1-2% each year, or whenever you receive a raise. This gradual approach makes the adjustment less painful while significantly boosting your long-term savings. Roth conversions become particularly powerful in your 40s. If you expect to be in a higher tax bracket in retirement or if you want to leave tax-free money to heirs, converting some traditional IRA or 401(k) funds to Roth accounts can be a smart move. The key is to do this strategically, perhaps in years when your income is temporarily lower or when you can manage the tax impact. Don't overlook the power of diversification beyond your 401(k). A taxable investment account gives you flexibility and access to your money before age 59½ without penalties. This can be crucial for achieving early retirement goals or covering major expenses that may arise before the traditional retirement age. Catch-Up Retirement Contributions: Start the Habit Now Once you reach 50, you can make catch-up contributions to your retirement accounts, which significantly increases your savings potential. For 2025, this means an additional $7,500 in 401(k) contributions (bringing your total to $31,000). However, you don't have to wait until 50 to think like someone making catch-up contributions. Start now by treating your savings rate as if you're already eligible for these higher limits. If you can save an extra $600 per month ($7,200 annually) starting at 45, you'll have built the habit by the time you're actually eligible for catch-up contributions. Retirement Milestones by Age 40: A New Perspective Traditional retirement milestones can be discouraging if you're starting later or if life hasn’t gone as planned. Instead of focusing on arbitrary multiples of your salary, consider these more practical benchmarks for your 40s: The Emergency Fund Foundation : Before aggressively pursuing retirement savings, ensure you have a solid emergency fund in place. This prevents you from having to tap retirement accounts during tough times. Aim for 3-6 months of expenses, adjusted for your specific situation. The Debt Freedom Focus : High-interest debt can quickly derail retirement plans. If you're carrying credit card debt or other high-interest obligations, addressing these might be more valuable than maximizing retirement contributions beyond your employer match. The Income Replacement Goal : Rather than focusing on net worth multiples, think about what percentage of your current income you're on track to replace in retirement. A good target is 70-80% of your pre-retirement income, but this depends on your lifestyle and retirement plans. The Flexibility Buffer : Your 40s are a great time to build financial flexibility. This means having investments outside of retirement accounts that you can access without penalties, creating multiple income streams, and maintaining career skills that keep you marketable. Insurance: Life and disability insurance coverage should reflect your current income and family needs. Estate Planning : A basic will, power of attorney, and healthcare directive should be in place. Making Your Peak Earning Years Count Your 40s often represent your peak earning years, and how you manage this increased income will significantly impact your financial future. The temptation to inflate your lifestyle with every raise is real, but this decade calls for more strategic thinking. Consider implementing a "pay yourself first" approach where you immediately redirect any income increases to savings and investments. If you get a $5,000 raise, automatically increase your 401(k) contribution by $3,000 and your taxable investment account by $2,000. You'll barely notice the difference in your take-home pay, but you will thank yourself in the future. This is also the time to think seriously about additional income streams. Whether it's consulting in your field, starting a side business, or investing in rental real estate, diversifying your income sources provides security and potential for acceleration. Building Wealth Beyond Retirement Accounts While retirement accounts are crucial, they shouldn't be your only wealth-building tool. Your 40s are an excellent time to diversify your investment approach and build wealth that's accessible before traditional retirement age. Consider opening a taxable investment account if you haven't already done so. This provides flexibility and liquidity while still offering growth potential. Focus on tax-efficient investments, such as index funds, and consider holding dividend-paying stocks or REITs for their income potential. Real estate can be particularly powerful in your 40s. Whether it's paying off your primary residence early, investing in rental properties, or exploring REITs, real estate adds diversification and potential inflation protection to your portfolio. Don’t Forget the “You” Factor We’d be remiss not to mention this: life in your 40s is busy. You might be managing aging parents, teenagers, or a toddler (or all three). You may be helping your partner through a career change or navigating one yourself. It’s a lot. Which is precisely why intentional financial planning matters now more than ever. You don’t need to do it perfectly. You just need a plan that’s rooted in your real life — your values, your vision, and your goals. A good financial advisor can help you prioritize, simplify, and clarify the next best steps, even if you feel like you’ve fallen behind. Ready to Create Your Personal Financial Strategy? Feeling overwhelmed by all the options and strategies available? You don't have to navigate this journey alone. At Five Pine Wealth Management , we specialize in helping individuals and families in their 40s and beyond create comprehensive financial plans that align with their goals and circumstances. Whether you're looking to maximize your retirement savings, explore catch-up strategies, or build a diversified investment portfolio, our team can help you develop a personalized approach tailored to your situation. We work with clients at various stages of their financial journey, from those just getting serious about retirement planning to those with substantial assets seeking to optimize their strategies. Don't let another year pass wondering if you're on the right track. Schedule a conversation with our team to discuss your financial goals and explore how we can help you make the most of your financial prime time.

The Best Long-Term Investment Strategy? Stay Invested, Stay Calm

June 20, 2025
When markets are calm, investing can feel easy. You contribute regularly, watch your portfolio grow, and start picturing that future vacation home or early retirement. But when markets get volatile, everything changes. Suddenly, headlines are full of dire warnings. Account balances fluctuate. And the urge to do something can feel overwhelming. At Five Pine Wealth Management , we understand how emotional investing can become during periods of market uncertainty. One of the most important things we do as fiduciary financial planners is to help our clients stay grounded when the market gets choppy. Let’s walk you through how we approach investment risk management and why having a clear, disciplined philosophy matters most when volatility strikes. Our Philosophy: Think Long-Term, Not Next Week When markets are moving fast, it is easy to think that the “best long-term investment strategy” must involve taking action to avoid losses or chase gains. The reality is usually the opposite. Reacting to market noise can often do more harm than good. In fact, one of the greatest risks to long-term returns is making emotional decisions in response to short-term events. We coach our clients to stay focused on their long-term financial plans and goals. Volatility is a feature of markets, not a flaw. By designing portfolios with realistic expectations for ups and downs, we help clients stay invested through all market environments. Here is what this looks like in practice: We use broadly diversified portfolios built around low-cost ETFs. We focus on asset allocation aligned with your time horizon, goals, and risk tolerance. We do not chase trends or attempt to time the market. We regularly review and rebalance portfolios based on your financial plan, not headlines. In short, your portfolio is designed to ride out volatility, not avoid it entirely. Fiduciary Financial Planning: Advice in Your Best Interest There is a great deal of noise in the financial world, particularly during turbulent market conditions. One of the most significant ways we help cut through it is by being fiduciary financial planners. That means we are legally and ethically obligated to act in your best interest at all times. We are also fee-only advisors. We do not receive commissions for recommending one investment over another. Our primary agenda is to help you reach your goals. During market volatility, this matters more than ever. Too many investors fall prey to sales pitches disguised as “solutions” to market risk. We focus on education and long-term planning rather than quick fixes. Being a fiduciary allows us to focus on what serves you best: Keeping you aligned with your personal goals and values Helping you tune out market noise and media hype Offering sound, research-backed guidance without conflicts of interest Your Coach Through Emotional Market Cycles One of our most important roles as financial planners is helping clients manage the psychological side of investing. It is one thing to know, intellectually, that markets will recover over time. It is another thing to watch your portfolio drop 15% and not feel anxious. Market downturns create powerful emotions. Fear. Doubt. Sometimes, even panic. As humans, our instinct is to take action to relieve those feelings, even when the logical course is to stay invested. That is where we come in. We help coach clients through these moments so they can avoid costly mistakes like: Selling during a downturn and locking in losses Chasing the next hot trend during a rebound Over-concentration in “safe” assets out of fear We remind clients that volatility is a normal part of the market. Markets have experienced recessions, wars, pandemics, and political turmoil before. They will again. Over time, markets have historically rewarded patient investors who stayed the course. When you work with us, you gain a trusted partner who is here to talk through your concerns, offer perspective, and help you make decisions that serve your long-term goals. Why Staying the Course Actually Works It may seem counterintuitive, but reducing activity during market volatility often yields better outcomes. Consider this: From 1999 through 2018, if an investor missed just the 10 best days in the S&P 500, their overall return would have been cut nearly in half . Many of the best market days happen very close to the worst ones. Trying to time the market is a challenging task, even for seasoned professionals. By maintaining a disciplined investment approach and staying fully invested, you ensure that you are there for both the recoveries and the long-term growth that markets provide. Our role is to help you build a portfolio designed for precisely this kind of staying power. We structure your investment mix to help you weather market cycles without having to guess what will happen next. Educating Clients About Normal Market Cycles Another key aspect of fiduciary financial planning is helping clients understand what is “normal” in the market. Volatility is not a sign that something is broken. It is a natural part of how markets function. In fact, without volatility, markets would not offer the returns that make long-term investing so powerful. We work with clients to help them see: Why some years will be down, but others will be very strong Why trying to avoid all losses is neither realistic nor necessary How staying invested through cycles often leads to far better outcomes than jumping in and out of the market Perspective is everything . The more you understand market behavior, the less likely you are to make emotional decisions during downturns. Different Stages, Same Principles Our approach also adapts to the varying needs of clients at different stages of their financial journey. For clients in their 40s to 60s: We may focus on prudently preserving and growing wealth. We help manage sequence-of-returns risk as you approach retirement. We may emphasize income planning and portfolio sustainability. We ensure that your investment mix aligns with your evolving goals and risk tolerance. For clients in their 30s: We provide education about typical market cycles (especially if this is their first experience with volatility). We coach clients to take advantage of their longer time horizons. We help younger investors see downturns as buying opportunities, not threats. In all cases, we are committed to helping clients invest with confidence, regardless of the headlines. Ready to Build a More Resilient Investment Strategy? Market volatility will always be part of investing, but it doesn't have to derail your financial goals. As your trusted financial advisor Coeur d'Alene team, we're here to help you navigate market uncertainty with confidence through our comprehensive financial planning approach. Contact Five Pine Wealth Management today to discuss how our investment philosophy and comprehensive financial planning approach can help you navigate market uncertainty with confidence. To see how we can help you support your financial goals, send us an email or call us at 877.333.1015.  Whether you're looking to preserve the wealth you've already accumulated or build a foundation for long-term growth, our team has the experience and commitment to help you stay focused on what matters most: achieving your financial goals.