A few weeks ago, in the middle of a financial planning conversation, a client made a passing comment that's stuck with me ever since: "We're proud of all that we've done so far, but boy do we wish we would have started sooner."
It wasn't dramatic. It wasn't even the main point of our conversation. But I hear some version of that sentiment constantly from people approaching retirement — and it got me thinking about something more important than just starting early.
It's not just about when you start saving. It's about whether you're saving with a destination in mind.
The Story of a 27-Year-Old Who Did Everything "Right"
I recently sat down with a 27-year-old who had been saving since he got his first job at 18. His parents told him to start contributing to a 401(k), and he never stopped. He still lived at home, kept a small emergency fund, and had built an impressive amount of retirement savings for his age.
When I asked him what his top financial priority was, he didn't hesitate: buy a house in the next two to three years.
That's when I had to stop the conversation.
Because if nothing changed, in two or three years he was going to come back to me excited to buy that house — and I was going to have to tell him he had nearly $200,000 saved in an account he couldn't touch for another three decades.
He'd done everything he thought he was supposed to do. He just hadn't connected his savings to his actual goals.
Why Prioritizing Goals Comes Before Choosing Where to Save
This is the piece most people miss: not all financial goals share the same timeline, and your savings strategy needs to reflect that.
Some goals are short-term — paying off debt, finishing college, moving out on your own. Others are mid-term — buying a house, getting married, starting a family. And some are long-term, like retirement, which might be 30 or 40 years away.
Each of these has a different time horizon — meaning a different answer to the question: how long until I actually need this money?
If you treat every dollar you save the same way, you eventually end up like the 27-year-old in this story: financially disciplined, but financially stuck.
It's Never Too Late to Start — But It's Never Too Early Either
I want to be clear about something: this isn't a message about starting late being a failure. Whether you're starting at 25 or starting at 55, the most important step is simply getting started. The goal of this conversation isn't to make anyone feel behind.
It's about making sure that wherever you are in your saving journey, your money is positioned to actually support the life you're trying to build — not just one version of your future that happens to be decades away.
Three Account Types That Create Real Flexibility
If your employer offers a retirement match, contribute enough to get that match first — it's free money. But beyond that, here are three account types worth understanding, each suited for different goals:
1. A Non-Retirement Investment Account
This is a liquid, non-qualified brokerage account. It's not locked up like a retirement account, which makes it ideal for goals with a shorter timeline. You still get the benefit of market growth and compounding, but you maintain access to your money without penalties if your plans change.
2. A Roth IRA
This account is often misunderstood. While the growth on a Roth IRA needs to stay in the account until age 59½ to remain tax-free, your contributions — your actual cost basis — can be withdrawn tax-free and penalty-free once the account has been open for at least five years. That gives you the ability to save toward long-term goals like retirement while preserving some flexibility to access a portion of those funds if life takes an unexpected turn.
Converting from a traditional IRA to a Roth IRA is a taxable event.
A Roth IRA offers tax free withdrawals on taxable contributions.
To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first-time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.
3. A 529 College Savings Plan
This one comes with a caveat. Yes, many states offer a tax deduction on contributions. But the money has to be used for education-related expenses, or it loses much of its benefit — though recent provisions now allow some unused funds to convert into a Roth IRA for the beneficiary over time. My general advice: treat a 529 plan as a payment portal rather than your primary savings vehicle. Put money in closer to when you'll actually need it for expenses, rather than locking up large sums years in advance for a single, specific outcome that may not happen the way you expect.
Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer's official statement and should be read carefully before investing.
Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investment in any state's 529 Plan.
The Problem With Assuming You Know the Future
I recently had a conversation with a parent who wanted to put a significant amount of money into a 529 plan for their child, a current high school sophomore. When I gently pointed out that we don't yet know if their child will attend a traditional four-year college, the parent was taken aback. "My kid is going to college," they said.
Maybe. Or maybe they'll earn a scholarship. Maybe they'll join the military and have their education paid for. Maybe they'll choose a trade school. Maybe an unexpected opportunity changes their path entirely.
None of these outcomes are bad. But locking your savings into an account that only works for one specific outcome can limit your options — and your child's options — down the road.
Plan the Trip Before You Start Driving
Think about planning a cross-country road trip. If I'm driving from Maryland to San Francisco, I'm not getting in the car without a destination in mind. I need to know where I'm stopping, how much it will cost, and how long it will take. Without that, I'm just driving — inefficiently, and probably more expensively than necessary.
Financial planning works the same way. Once you know your destination — your actual goals, in order of priority — you can map out exactly where your money should go, and which accounts give you the right combination of growth and flexibility to get there.
You don't have to figure this out alone. A financial professional's job is to help you identify those destinations and then build the most efficient route to reach them — so you can spend your time enjoying the journey instead of second-guessing every financial decision along the way.
Having a clear plan doesn't just improve your financial outcome. It removes the stress of wondering if you're doing it right. And that peace of mind is worth more than people realize — at any age, at any stage.
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All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. The views stated in this material are not necessarily the opinion of Cetera Wealth Services, LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.