FINANCIAL MILESTONES TO HIT IN YOUR 20s AND 30s

YOUR 20s

#1: Pay Off Debt - Getting debt under control in your 20s will make your other financial goals in your future much more attainable. Focus on high-interest debt (like credit cards) and then move toward student loans.

#2: Build an Emergency Fund - More than 2/3rds of Americans say they don't have enough emergency savings to cover one month of living expenses. Most financial experts recommend having 3-6 months worth of living expenses set aside for emergencies (more if you are an entrepreneur or commission based). Keep this in a high-yield savings account that is easily accessible.

#3: Start a Roth IRA - As you begin saving for the future, utilize a Roth IRA. That way you can begin saving tax-free income for retirement. Investments within a Roth IRA grow tax free as well, so you want to start this as early as possible to take advantage of compound interest.

YOUR 30s

#1: Purchase Your First Home - A typical first-time homebuyer is in their mid-30s. This may not be a milestone for everyone, but if it is one you aspire for, look to aim for it in your 30s. I recommend at least a 5% down payment.

#2: Increase Retirement Savings - In addition to your Roth IRA, make sure you enroll in your employer's 401(k) plan and contribute at least to the match. You want to aim to start saving 15% of your income toward retirement.

#3: Save for Kids' Education - A good option for a tax-advantaged education account is a 529 plan. These plans typically offer a variety of investment options to help your savings grow tax-free if used for qualified education expenses. Also, a new rule allows a certain amount of excess in accounts not used for education to be rolled into a Roth IRA.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Past performance is no guarantee of future results.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

This material was prepared by LPL Financial, LLC.