The Young Adult's Guide to Getting Started with Financial Planning - 28

Action Item: Find one area of financial planning from today's episode that applies to your situation right now and take one step toward it this week.Free Guide: fp4ya.com/guideSchedule a call: https://cal.com/earlybirdfp/chatSummaryIn this episode I put together the definitive guide to getting started with financial planning as a young adult, walking through all seven core CFP areas in a way that actually makes sense for where you are right now. I cover risk management and insurance including why disability coverage matters more than most people realize and how to think about term life, how to start investing simply with index funds without overcomplicating it, a tax strategy called capital gains harvesting that could let you pay 0% on some of your investment gains, the Roth IRA and why time is your single biggest advantage, CoastFI and how hitting one savings milestone early could give you options for the rest of your life, the two estate planning items every young adult should handle today, and the psychology behind why we all know what to do but still struggle to follow through. I also walk through Riley's case study, a 26-year-old who had an emergency fund but had no idea what came next, and show exactly how she went from overwhelmed and paralyzed to having a simple automated system in just six months.You can grab the free guide to go along with today's episode at FP4YA.comResources & Links MentionedCFP Board: Let's Make a Plan: https://www.letsmakeaplan.org/financial-topics/topics-a-z/starting-outNerdWallet: The Best Index Funds and How to Start Investing: https://www.nerdwallet.com/investing/learn/how-to-invest-in-index-fundsSmartAsset: How to Start Investing in Your 20s: https://smartasset.com/investing/how-to-start-investing-in-your-20sBankrate: Investing in Your 20s: https://www.bankrate.com/investing/best-ways-to-get-into-investing-in-your-20s/White Coat Investor: Disability vs. Life Insurance: https://www.whitecoatinvestor.com/disability-vs-life-insurance/Student Loan Planner: Life Insurance vs. Disability Insurance Guide: https://www.studentloanplanner.com/life-insurance-vs-disability-insurance/Kiplinger: Coast FI Planning Could Be High Earners' Secret Retirement Weapon: https://www.kiplinger.com/retirement/retirement-planning/coast-fi-planning-for-high-earners-in-ai-ageCFP Board: Psychology of Financial Planning: https://www.cfp.net/industry-insights/psychology-of-financial-planningHow to Harvest Gains and Losses on Fidelity (YouTube): https://youtu.be/Qh49ePRj9mcWhat Is CoastFI and How Do You Calculate It? (YouTube): https://youtu.be/UcVyjqf5MV0Episode 9: We Were NEVER Taught About Taxes: https://youtu.be/hLrqeDfxTV4Timestamps[03:23] General principles: emergency funds and debt management[04:00] Risk management: term life insurance explained[05:55] Risk management: disability insurance and own-occupation coverage[07:50] Investment planning: index funds, ETFs, and the self-cleaning feature[11:25] Tax planning: capital gains harvesting and the 0% bracket[14:00] Tax planning: the Roth IRA and why time is your superpower[16:01] Retirement planning: what CoastFI is and why it changes everything[18:34] Estate planning: beneficiaries and healthcare proxy[20:11] Psychology of financial planning: why the mind matters more than the math[22:03] Case Study: Riley's Starting Line: I have an emergency fund, now what?Email me at [email protected]