A Guide for Individuals in the Accumulation Years

In the working and accumulation years, it’s common to ask questions like: Where do I start? What’s the next right financial step to take? Am I “on track”? Although each person’s situation is different, there are a few guiding principles that can help an individual to orient themselves to a starting point and chart a course forward with confidence. Blue Chip Financial would be honored to support you through this important phase.

Short-term Savings & Debt Repayment

Develop a household budget based on estimated household expenses. Plan to ensure that expenses, including debt payments, are below income and enable saving and debt reduction.
Prioritize development of emergency reserves and repayment of higher-interest-rate debt (e.g. credit card balances, personal loans, vehicle loans). For emergency reserves a general rule of thumb is 3-6 months-worth of household expenses. Debt balance repayment should be prioritized in order of highest interest rate to lower.
Plan and build savings for large short-term purchase goals like vehicle replacement, home purchase down payment, etc.
A Life insurance policy of the appropriate kind is an important planning tool to provide debt repayment and income replacement protection for those who need it.

Retirement Savings

Participate in any available workplace retirement plan and prioritize contributing from salary, at a percentage amount at least securing any/all Company-offered match amounts offered, if possible.
Save by investing in an Individual Retirement Account (IRA) to supplement workplace savings plans or if workplace retirement plans are not available.

Target saving 10-15% of your income, including Company contributions, toward retirement savings as soon as possible in your earning years. If beginning savings later in your career, consider even higher contribution rates.
If possible, target saving a total of 1x your salary by age 30, 3x by 40, 6x by 50, and 8x by 60 towards a goal of your needs in retirement, often roughly 10-12x salary by age 67.

Remember, as in all financial goals, positive progress can be made from any starting point and having a plan can improve your outcome.

Other Savings & Planning

Other planning and investment strategies may also be appropriate in the accumulation phase, including individual or joint investment accounts, annuity solutions, and permanent life insurance options.
As an individual approaches retirement, planning objectives may change from accumulation to Retirement Income Planning. See our Retirement Income Planning Guide linked here.

How can Blue Chip Financial help?

IRA and Roth IRA Accounts
SEP and SIMPLE Workplace Accounts
Individual & Joint Investment Accounts
Life Insurance and Annuities

How We Work Together

From your first call to ongoing reviews, here’s what you can expect — with no cost or obligation along the way.

1. Call or Email Our Office

Share your thoughts and questions so we can learn how we can help.

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2. Initial Meeting

We’ll arrange an initial meeting to discuss and better understand your goals, objectives and financial situation, typically in person at our office, though remote options are available. There is no cost to meet and no obligation.

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3. Recommendations

We’ll review what we learned from the initial meeting, develop and share a set of personalized recommendations based on your goals, objectives and financial situation. There is no cost to receive the recommendations, and you choose when and how to act. If you choose to implement recommendations, Blue Chip will facilitate all required follow-up.

4. Relationship
& Review

On an ongoing basis, we’ll connect to review your plan and prepare for modifications as your goals, objectives and financial situation grow and change.

Take the first step. We’re here to help.