In your 30s with $300k? Do these 3 things.

Introduction – The In-Between Stage (0:00)

Bo: If you’re between the ages of 27 and 43 and you have six figures invested, you need to hear this, guys. I am so excited to talk about this because a lot of personal finance content covers the first $100,000. A lot covers what to do for retirement, but what about the in between? Today, we’re going to look at three crucial wealth tips to help keep you on that straight path to financial independence.

Tip 1: Get Your Estate Planning in Order (0:25)

Bo: The first tip, get your estate planning in order. If you’re in those middle stages of investing, this very likely applies to you. And you’re probably ignoring some big red flags. Most Americans get married during or just before their 30s, which is also the decade when you’re most likely to buy a home and have children. All of these major life events require financial planning. Whether that’s getting a will and life insurance or saving for your kid’s future. Perhaps the biggest planning opportunity: beneficiary designations. This one is such a small lift for massive potential savings. A beneficiary designation is simply naming who receives the assets in your investment accounts like 401(k)s, IRAs or HSAs when you pass away. The key benefit is that these assets bypass probate entirely. It can be lengthy and it can be costly. In some cases, probate costs can climb as high as almost 10% of the overall estate’s value just because you didn’t fill out a form.

Why Beneficiary Designations Matter (1:25)

Bo: This is especially relevant for this age group because the median 401(k) balance for Americans in their 30s is $81,441 according to a recent study by Empower. If you add in IRAs, HSAs, and brokerage accounts, you’re talking about tens of thousands, if not hundreds of thousands of dollars that are going through probate when they don’t need to. Fortunately, most platforms offer a straightforward process for naming your beneficiary. In Fidelity, there’s a planning tab on the account dashboard. And if you haven’t done it yet, this page will prompt you right at the top to name your beneficiaries. If it’s the same person from one account to the other, you only have to put in that info once, and then you can simply select them as the beneficiary for any remaining accounts. In Schwab, there’s a beneficiaries label under the profile tab, largely the same process. If filling out a form can save you thousands of dollars and save your family the time and headache during an already difficult time, then it’s probably worth it to do it.

Tip 2: Review Your Asset Allocation (2:22)

Bo: The second tip, review your asset allocation. It’s one of the most important factors in determining your portfolio’s risk and return profile. For example, a typical allocation for someone in their 30s might be 90% stocks and 10% bonds. Though, don’t mishear me and think that’s a prescription. The stocks can provide growth potential for decades ahead, while the bonds add stability. This tip is especially relevant for high net worth folks in their 30s because this is likely when you’re getting married and when you’re having children. Even if your risk tolerance hasn’t changed, your risk capacity likely has. Unlike risk tolerance, how comfortable you are with volatility, risk capacity is objective. It’s about whether you can afford to take risks or not. You now have dependents relying on your income and assets. And a major market downturn could impact not just your retirement but your family’s immediate needs. Whether that be mortgage payments, child care, education costs.

Shifting Toward Preservation (3:20)

Bo: Additionally, as your portfolio grows into six figures and beyond, it can make sense to shift towards preservation rather than just accumulation. This doesn’t mean becoming overly conservative, but rather ensuring your asset allocation reflects both your timeline to retirement and your new responsibilities. When you’re a single earner in your 20s, you might be just fine riding the waves of 100% VOO. But you may eventually need to shift your plan to account for all of life’s new variables.

Three Ways to Review Asset Allocation (3:45)

Bo: So, how do you actually do this? We think there are three key ways. First, you can take the do-it-yourself approach. Look at your own investments and decide on a unique asset allocation tailored to your profile. Second, you could use indexed target retirement funds. These automatically rebalance as the fund’s target date approaches to get more conservative over time. They’re good for those who just want a set it and forget it approach. And third, you could talk to a financial adviser. This is especially true for those that have amassed high six or seven figure net worth. An adviser can help you see the blind spots, take the reins to help you land the plane of financial independence, and they can combine the tailored portfolio of a do-it-yourself approach with the hands-off nature of a target date index fund. This is what we get to do day in and day out for our clients here at Abound Wealth.

Tip 3: Just Keep Going (4:35)

Bo: Our third tip, just keep going. The median net worth of Americans in their 30s is just $24,580. If you’re watching this right now with a six-figure portfolio, you’re already way ahead of the curve. But that doesn’t mean that it’s time to coast. You still have decades of wealth building ahead of you. For many people, we call this stage the messy middle. Your discretionary income and time get tied up in life’s obligations. Mortgages, child care, career demands—those responsibilities are what give life its meaning. But it’s all too easy to let your financial future fall by the wayside when life gets busy. And that’s why you have to stay intentional about making it a priority. The key is to keep showing up, keep contributing to your accounts, keep reviewing your plan, keep making adjustments as your life evolves, because the compound growth you’re experiencing now, that’s the foundation of the financial abundance that you’ll likely enjoy in the future.

Closing (5:31)

Bo: We touched on asset allocation, but if you want a deep dive, click right here. And as always, keep building towards your great big beautiful tomorrow.