Five Life Events That Affect Your Finances

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Jon Stein, CEO of Betterment, provided insight on how to start investing better and smarter as well as how to prepare for major life events using technology to grow your money.

Life is full of changes, and with each new set of circumstances, come new financial needs. These transitional moments call for a financial plan, and while many think they have things under control, a little guidance never hurts. Recently, Jon Stein, CEO of Betterment, teamed with YourUpdateTV to provide some helpful financial tips for life's major events.

Getting Married:
When it’s time for a wedding, people seem to think about everything except money. However, when discussing long-term financial plans, it is critically important for married couples to be on the same page, from setting common goals to the nitty gritty process of managing your accounts. Many now use a three-pot system, which features one joint account along with two personal accounts. Having everything in one place helps couples keep their finances organized and transparent.

Switching Jobs:
Changing jobs is one of the best opportunities in life to reset and rethink your finances. When changing jobs, it’s easy to forget your previous 401(k), which can cost you in the long run due to the potential for high fees and lack of attention. Combining old accounts into an IRA or a new 401(k), which helps control fees and makes things easier to intelligently manage. When starting a new job, make it a point to understand the new plan and investment options. Make sure to set the right deferral amount as the defaults are often too low. Always contribute enough to maximize any match on your 401(k).

Saving for retirement:
Even if it seems far away, most people will need to stop working at some point, and need to save for that retirement. This is especially important with health care costs going up, Social Security at risk, and life expectancies increasing. By starting early, the power of compounding means you can actual save less overall. The good news is that it is easier than ever to get started. With a Betterment account, investors can save and create a plan for their full financial life. Betterment offers suggestions on how much to save, specific accounts to open, and how to stay on track toward retirement goals.

Talking to your kids about investing:
When talking to kids about money, it’s important to start early. Even at age 5, they can understand the concept of money, including savings and charitable giving. As kids get older, we should be encouraging their financial growth, whether it be the valuable lessons learned at a lemonade stand or the power of compounding. Regular discussions and experience can set them up for financial success in the future.

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About Jon Stein:
Jon started Betterment after years of consulting for Wall Street's biggest financial institutions. He studied economics at Harvard University and finance at Columbia Business School. He is a CFA® charter holder.

About Betterment:
Betterment is the largest independent online financial advisor with more than $9.7 billion in assets under management. The service is designed to help increase customers’ long-term returns and lower taxes for retirement planning, building wealth, and other financial goals. Betterment takes advanced investment strategies and uses technology to deliver them to more than 280,000 customers across its three business lines: direct-to-consumer, Betterment for Advisors, and Betterment for Business. Learn more.

About YourUpdateTV:
YourUpdateTV is a social media video portal for organizations to share their content, produced by award-winning video communications firm, D S Simon Media ( It includes separate channels for Health and Wellness, Lifestyle, Media and Entertainment, Money and Finance, Social Responsibility, Sports and Technology.

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Michael O’Donnell
D S Simon Media
+1 (212) 736-2727
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