THE ULTIMATE GUIDE TO FINANCES IN YOUR 30sHOW TO MAKE YOUR MONEY WORK FOR YOU

TABLE OF CONTENTS

Five Things People Do With Their Money ............... 2

Build Your Career ............................................................... 3

Save & Invest for Today ................................................... 7

Save for Retirement .......................................................10

Pay Off Debt ......................................................................14

Manage Love & Money ................................................. 17

Buy a Home ......................................................................20

Take Care of Your Family .............................................. 23

Give to Others ................................................................... 27

What's Next ...................................................................... 29

Checklist ............................................................................ 30

About Northwestern Mutual ....................................... 31

If you were to road trip from Chicago to Austin, you’d use navigation, right? The same holds true for your finances. When you have a road map to get from where you are today to where you want to be in the future, you’re much more likely to reach your destination—and, likely, with more confidence.

A lot can happen in your 30s. You may be building your career, moving in with someone, starting a family or buying a home. Whatever you're focused on, now's the time to get serious about financial planning.

This guide will show you how.

FIVE THINGS PEOPLE DO WITH THEIR MONEY

Here’s something that you, a famous A-lister, professional athlete or a founder of a startup have in common: There are only five things you can do with your money:

So as you think about what you do with the money you have now—and the money you’ll earn in the future—look to strike a balance across these five actions.

Build up savings to cover life’s goals and surprises today and to afford a comfortable life tomorrow.

Manage what you have, what you owe and what you want.

Invest in ways that match your goals, your timeline and your tolerance for risk.

Safeguard your most important financial assets: the money you’ve already saved and the future paychecks you need to support your lifestyle.

Where would you like to make a difference? When you have time or money to share with causes that matter to you, what people and purposes will you support?

HAVING BALANCE HELPS YOU JUGGLE MULTIPLE FINANCIAL GOALS

When you’re in your 30s, you’ve got lots of priorities competing for every dollar you bring in.

This guide outlines the common financial priorities that people like you face in their 30s. For each priority, you’ll find advice and tips to help you make the most informed decisions about your finances.

2

PROTECT

SAVE

SPEND

GROW

GIVE

THE ULTIMATE GUIDE TO FINANCES IN YOUR 30s

BUILD YOUR CAREER

As you make advancements in your career—like landing that job you wanted or getting a certification—it’s a great time to check in on your finances. Putting the right strategies in place will help you make the most of what lies ahead.

Build Your Career

Save & Invest for Today

Save for Retirement

Pay Off Debt

Manage Love & Money

Buy a Home

Take Care of Your Family

Give to Others

What's Next

Checklist

About Northwestern Mutual

3

UNDERSTAND THE VALUE OF YOUR PAYCHECK

Your greatest financial asset is not your car, home or even bank account; it’s your paycheck. Think about it this way, if you’re making $75,000 today and have 30 years until retirement, that’s over $3.5M of income potential. Factor in promotions and that number climbs exponentially.

How Important Are Benefits?

Salary typically accounts for 70 percent of total compensation, with benefits making up the remaining 30 percent.1

BUILD YOUR CAREER

$3.5MIncome Potential

$75KA yearSalary

30 years later

Worthof $75K 3% Each Year+ =Compounded

SALARY70%

BENEFITS30%

1 Economic News Release, BLS, March 2015, http://www.bls.gov/news.release/ecec.nr0.htm

4

Americans live with a disability.21 IN 5

PROTECT YOUR LIFESTYLEMost of us know someone who has had to take some time off work because of injury or illness. When you’re unable to work, your lifestyle can be jeopardized. Disability income insurance

provides replacement of a portion of your income in those situations.

And if others rely on your income, life insurance will help ensure your loved ones can maintain their lifestyle should you no longer be here to provide for them.

BUILD YOUR CAREER

2 U.S. Social Security Administration, October 2015

Disabilities Are More Common Than You Think

Disability income insurance plans offered by your employer are a good start, but consider this:

• They might offer only a fraction of the benefit you need to protect your lifestyle.

• They don’t move with you when you change employers.

Be sure to review and understand what your benefits offer to help you make informed decisions.

QUICK TIP:

5

What is your monthly budget?

Revisit your budget.

For most people, the more you make, the more you spend. So as your income grows, don’t lose sight of where your money is going. Revisit your budget from time to time to help keep your spending in check, so you can remain focused on funding the things that mean the most to you.

MONTHLY BUDGET

To complete your current �nancial pro�le, it is important to review your monthly expenses.

Housing

Mortgage/Rent

Property Taxes

Home Maintenance

Renters/Homeowners Ins.

Utilities (Electric, Gas,Water, etc.)

1,1000

5020

120

36021511550

250160

50

5250

500

0

50

1,025

1,075

5,385

3,285

5,415

5,385

30

150

210170

2580110

210300

1103075

200150

0

NET MONTHLY INCOME

LESS EXPENSES

TOTAL SURPLUS/DEFICIT

TOTAL MONTHLY EXPENSES

Emergency Fund

College Savings

Short/Mid-Term Needs

Cable/Phone/Internet

Dining Out

Recreation/Club Dues

Movies/Sporting Events

Hobbies

Vacation/Travel

Gifts/Contributions

Credit Card Debt Repayment

$

$

$

$

$

$

Transportation

Auto Payment(s)

Gas

Maintenance/License

Parking/Tolls/Bus/Train

Auto Insurance

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

Student Loans

Loan A ( )

Loan B ( )

Loan C ( )

$

$

$

Health Care/Insurance

Children

Health Insurance

Life Insurance

Disability Income Insurance

Long-term CareInsurance

Medical/Dental/Drugs

$

$

$

$

$

$

Household/Personal

Groceries

Personal Care

Clothing/Dry Cleaning

Professional Dues

Dependent/Child Care

Education/School

Cash/Allowances

$

$

$

$

$

$

$

$

$

DISCRETIONARY EXPENSES (20%)

ESSENTIAL EXPENSES (60%) SAVINGS AND INVESTING (20%)

$ SubtotalSubtotal $

Subtotal $

Download the budget worksheet now.

BUILD YOUR CAREER

MAKE EVERY DOLLAR EARNED COUNT

You work hard for your paycheck; make sure your money is working just as hard for you. Begin by tracking your savings and expenses for a few months to see where your money is going. At the same time, build out an ideal budget based on the 20/60/20 rule, meaning that no more than ...

Once you have a good idea of your expenses, compare the budget to what you're actually spending and adjust accordingly.

20%

20%

60%

of your income should be spent on saving and investing (emergency fund, down payment on a house, wedding).

of your income should be spent on essential expenses (food, transportation, children, health care, etc.)

of your income should be spent on discretionary expenses (entertainment, clothing, dining out, etc.)

6

SAVE & INVEST FOR TODAY

Making smart money decisions is all about setting yourself up to enjoy today, next year and even years down the road. Follow these "rules of the road" when you consider your strategy for saving and investing.

THE ULTIMATE GUIDE TO FINANCES IN YOUR 30s

Build Your Career

Save & Invest for Today

Save for Retirement

Pay Off Debt

Manage Love & Money

Buy a Home

Take Care of Your Family

Give to Others

What's Next

Checklist

About Northwestern Mutual

7

EMERGENCYFUND

HAVE AN EMERGENCY FUND

Things will come up that you didn’t plan for, like car repairs or an unexpected vet bill. Save enough to cover one month of net household income, and work your way up to a longer-term goal of six months. Put this money in places you can access anytime and in a vehicle that generally won't go down in value (like a savings account).

Saving for other shorter-term goals like a friend’s wedding or vacation? The rule of the road is that if you need to use it in less than a year, use a savings account.

Could you cover a $400 emergency expense?3

3 Federal Reserve Report on Economic Well-Being of U.S. Households in 2015, May 2016.

SAVE & INVEST FOR TODAY

Nearly Half

50%of Americans would have to borrow money, sell something or use their credit cards to cover a $400 unexpected expense.

8

Ready To Get Started?DON’T SHY AWAY FROM INVESTING

Investing can help accelerate your wealth. Most people don’t get involved in investing because they saw the impact of the Great Recession on their families or they simply don’t understand it.

The first thing to focus on is what you want your money to do. Investing isn’t about whether you should buy Apple or Google, it’s about selecting the right vehicles for your goals. For some it's a mutual fund, for others it might be stocks. Learn more about the options and the goals they address in The Guide to Investing.

How much do I need to get start investing?

You could get started for as little as $25 or $100 per month with standard investment accounts. You can buy investments like mutual funds each month or have your money accumulate over time and buy more investments at one time.

You can invest with a financial professional or through a do-it-yourself online account.

Want a professional to help you? We’ll have a licensed financial professional reach out to help you align your financial goals with the right investment vehicles.

SAVE & INVEST FOR TODAY

The Guide to Investing will help you get started.

INVESTING FOR YOU:

People spend a lot of time worrying about finding the “best” investment. They pick a bond, mutual fund or stock and then second-guess themselves on whether they should have picked something different.

Yet the most important part of investing isn’t deciding whether to buy Apple or Google; it’s about having a strategy to grow your money—in other words, taking time to identify what you want your lifestyle to look like and then creating an investment strategy to help get you there.

Whether you have a little or a lot, managing money brings a lifetime of choices. The most important thing is educating yourself on the opportunities available so you can be ready for whatever presents itself. That’s what planning is all about. Learning how to strategically approach investing will help you make the most of your money for your short- and long-term objectives.

Inside you’ll find information to help you answer five critical questions:

1. What are your reasons for investing?

2. What are your investment options?

3. What do you need your money to do?

4. How do you feel about risk?

5. How involved do you want to be?

5 CRITICAL QUESTIONS FOR EVERY INVESTOR

*Source: Bankrate.com, April 2015

of Americans don’t own any stocks or stock-based investments;

said they don’t know enough about stocks to take the plunge.*

Morethan 50%

21%of those people

. . . . . . . . . . . . . . . . . . . . . . . . . . .

* All investments carry some level of risk including the potential loss of principal invested

9

SAVE FOR RETIREMENT

Although retirement is a long way off, now’s the time to act. By being serious about it now, you’ll be setting yourself up with options and flexibility in retirement that will help you live the life you imagine.

THE ULTIMATE GUIDE TO FINANCES IN YOUR 30s

Build Your Career

Save & Invest for Today

Save for Retirement

Pay Off Debt

Manage Love & Money

Buy a Home

Take Care of Your Family

Give to Others

What's Next

Checklist

About Northwestern Mutual

10

MAXIMIZE YOUR SAVINGS

If your employer offers a 401(k) or Roth 401(k), take advantage of it and contribute at least enough to earn the company match—it’s free money. If you don’t have a company match, minimally save at least 1 percent of your salary toward retirement and increase each year when you get a raise.

MONTHLY SAVINGS NEEDED TO ACCUMULATE $1 MILLION BY AGE 65

The earlier you start investing, the easier it is to reach your goals.

SAVE FOR RETIREMENT

Always begin by contributing to your 401(k) at least up to the employer match. For instance, if your employer offers a 100 percent match up to 6 percent of your gross income, it’s advisable to take full advantage of that benefit and contribute at least 6 percent of your gross income to your 401(k).

Above and beyond that level, the decision to increase contributions to your 401(k) depends on your financial plan and the other options available to you for achieving your goals.

SHOULD I MAX OUT MY 401(k) OR JUST CONTRIBUTE UP TO THE EMPLOYER MATCH?

EmployerMatch

PersonalContribution

401(k)

6% 6%

12%

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0$381

$820

$1,920

$5,778

.

25-YEAR-OLD 35-YEAR-OLD 45-YEAR-OLD 55-YEAR-OLD

Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. Source: ©2013 Morningstar. All Rights Reserved. Assumed 7% return compounded.

11

BANK YOUR INCREASES

Every little bit can add up to a lot over time, so increase your IRA, Roth or 401(k) contributions each year, even if by just 1 percent. You won’t even miss the money, especially if you bump up your contributions after getting a raise.

SAVE FOR RETIREMENT

Give Yourself Options in Retirement

1 percent adds up!

If you make $75,000 a year, have 30 years till retirement and save 5 percent of your salary, you’ll have $439,700 at retirement. Add just 1 percent each year (till you reach 15 percent), and you’ll have nearly $1.1 million.

$010 years 20 years 30 years

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

$1,100,000

Saving just 5% ofyour salary

Adding 1% each year

$439,700

$1.1 Million

PAY TAXES NOW OR IN RETIREMENT?THE PROS AND CONS OF DEFERRED TAX

You probably know the phrase “Don’t put all your eggs in one basket.” It’s often used to describe the strategy of diversifying your investments across a variety of stocks and bonds so you can minimize your overall losses if one particular segment you’ve invested in takes a downturn.1 In much the same way, “Don’t put all your eggs in one basket” also applies to the types of retirement assets you own.

By spreading your retirement savings across a variety of savings vehicles (like 401(k)s, IRAs, annuities and nonqualified investments), you’ll be giving yourself added flexibility in retirement that will help you accomplish two things:

Minimize taxes

Maximize income

Of course, to take full advantage of the benefits of asset diversification you have to think about retirement now so you can plan accordingly during your working years.

1 No investment strategy can guarantee a profit or protect against a loss in down market.2 LIMRA Secure Retirement Institute 2014

1

2

42%

33%

Millennials

Gen-Xers

Trailing-EdgeBaby Boomers

Leading-Edge Baby Boomers

“I am currently very involvedin monitoring and managingmy retirement savings.”

Percentage of workerswho agree with theabove statement:2

40%

46%

Where you save is as important as how much you save. Learn why.

This is for illustrative purposes only. Assumed 6% ROR, compounded monthly and 3% increase in salary each year.

12

Have an Old 401(k)?

Learn about the options available to you for an old employer retirement plan in the Changing Jobs guide.

DON’T CASH OUT YOUR 401(k)

When you're thinking about how to get ahead financially, you might be tempted to cash out your 401(k), even if the balance is just $5,000. You can make up the ground some other time, right? But if you cash out now, your $5,000 will be reduced to about $3,600 after taxes and penalties. If you leave it in your 401(k) or roll it over into an IRA, it could grow to as much as $40,000 by the time you retire.4 Learn about additional options for an old 401(k) in this short video.

Are you on track?

Across the industry, experts recommend you have the following amount saved to replace about 80-85 percent of your income in retirement.5

SAVE FOR RETIREMENT

4 Hypothetical example: Assume $5,000 taxed at 20% with a 10% penalty. Assume $5,000 invested with no additions at 6% annual return (compounded monthly) after 35 years.

5 Time, What You Should Save by 35, 45, and 55 to Be on Target

CHANGING JOBS?

How many jobs do you expect to hold by the age of 50? Five? Eight? If history is any indication, plan for about a dozen. The last wave of Baby Boomers, people who are today in their early to mid 50s, have held an average of 11.7 jobs1 throughout their adult lives, with nearly half of them by the age of 25.

So whether you’re just starting to put out feelers or have already made the decision to take on a new challenge, take the time to think beyond just your salary. You’ll want to carefully evaluate the value of benefits such as retirement savings plans, insurance and tuition reimbursement that are often overlooked and are equally important. And once you’ve taken a new position, you’ll need to plan strategically for the retirement assets you’ve accumulated and for any increase in salary you expect to receive.

By taking a broader view of the financial picture for each opportunity, you’ll be better prepared to make informed choices today that will help lead you to the financial future you desire. This white paper points the way, with five key considerations to help ensure your next move is financially sound.

• Consideration 1: Evaluate the major insurance benefits.

• Consideration 2: Understand your new employer-sponsored retirement plan.

• Consideration 3: Factor in additional perks, which can add up quickly.

• Consideration 4: Decide what to do with your previous company’s retirement plans and company stock.

• Consideration 5: Bank your salary increase.

TOP FINANCIAL CONSIDERATIONS BEYOND SALARY

1 Economic News Release, BLS, March 2015, http://www.bls.gov/news.release/nlsoy.nr0.htm2 Economic News Release, BLS, March 2015, http://www.bls.gov/news.release/ecec.nr0.htm

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DID YOU KNOW?

Salary typically accounts for just 70 percent of an employee’s total compensation. Benefits make up the remaining 30 percent.2

SALARY70%

BENEFITS30%

1xAnnualSalary

2xAnnualSalary

5xAnnualSalaryBy age 35 By age 40 By age 50

13

PAY OFF DEBT

When you think about your finances, paying off debt is probably top of mind. Striking the right balance of paying off debt and funding other priorities will help you reach your vision for the future.

THE ULTIMATE GUIDE TO FINANCES IN YOUR 30s

Build Your Career

Save & Invest for Today

Save for Retirement

Pay Off Debt

Manage Love & Money

Buy a Home

Take Care of Your Family

Give to Others

What's Next

Checklist

About Northwestern Mutual

14

ResourcePAY OFF CREDIT CARD DEBT

You have to pay at least the minimum on each of your credit cards each month; that’s obvious. But if you have extra cash, make additional payments on the card that has the highest interest rate. Once that gets paid off, move onto the next highest interest rate card. Set a goal to pay off all credit card debt within five years.

What’s the average credit card debt in the U.S.?

PAY OFF DEBT

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Up to age 35 Age 35 - 44

$5,808

$8,235

AVER

AGE

BY A

GE

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

From $45k - $70k From $70k - $115k

AVER

AGE

BY IN

COM

E

$4,900

$8,300

Learn more about budgeting, debt management and starting your financial plan with this guide.

YOUR GUIDE TO MONEY MANAGEMENT:

In some ways, building a financial plan is a lot like building a house; you need to start with a solid foundation. No matter what you build on top, it has to rest on solid footing in order to last.

Regardless of your age, being strategic with money management starts with four steps:

1. Understand your cash flow, the ins and outs of your money each month.

2. Develop a saving and investing plan for your goals.

3. Be strategic about debt management.

4. Protect your assets and income.

In this paper, we’ll address each of the four steps while also answering common questions such as: How do I build a budget that gives me money today but also allows me to save for the future? How much should I spend on things like housing or entertainment?

This guide is here to help you feel more financially empowered by giving you the information and tools that you need in order to take action toward your financial goals.

BUDGETING, DEBT MANAGEMENT AND STARTING YOUR FINANCIAL PLAN

Two-thirds of Americans consider themselves savers, but over half have equal or more debt than savings.

SAV

ING

S

DEB

T

SAV

ING

S

DEB

T

Planning and Progress Study, 2015 Northwestern Mutual

Average Debt in America, ValuePenguin 2016

15

Watch this short video to learn more about paying off debt.

Learn More About DebtPAY OFF STUDENT LOAN DEBT

If you are still paying off student loans, consider looking into alternative repayment plans. You might be able to lower your payments, shorten the time you need to pay on loans or possibly have your debt forgiven.

Have student debt? You’re not alone.

PAY OFF DEBT

of four-year bachelor’s program grads rack up on average $35,000 in student loan debt.

70%

Get tips on how to pay off your debt in this two-minute video.

Understand the details of your loans and the payment options for them by downloading our Guide to Student Loan Debt.

HOW TO TAKE CONTROL OF YOUR STUDENT DEBT

You put in the work, earned your degree and now—if you're like most college grads—you've joined the ranks of millions of young professionals with one thing in common: student loan debt. Nearly 70 percent of students attending a four-year bachelor's program graduate with some amount of student loan debt1, so you'd probably be in good company if you found yourself wondering, "Was it worth it?"

Here's one way to answer that question: By getting your degree, you'll earn an average of $800,000 more by the time you reach retirement than someone who graduated from high school without a degree.2 So, look on the bright side. You may actually be in a better financial position than you think, at least in the long term.

And in the short term, there may be things you can do to ease the burden of paying back your student loans. That's critical, because more than half (57 percent) of people with student loans worry about being able to repay the debt.3

What can you do? You may be able to switch to an alternate repayment plan and pay less each month. You may be able to defer your payments, consolidate or refinance them, or even qualify to have your loan balance forgiven. And the best news is this: By exploring your options, you may be able to free up money you can use for other priorities, such as buying a car or home, starting a business and saving for your future retirement.

IN THIS GUIDE YOU'LL FIND:

Resources to help you understand what you have and what you owe.

The options available to you for managing or lowering your student loan debt payments.

Key considerations to evaluate before changing your repayment plan.

More than half of people with student loans worry about being able to repay the debt.3

57%

Source: Life Delayed, American Student Assistance, 2015

16

The fun part of a relationship is thinking about what you can do together: go on vacation, move in together, talk about what the future holds. But you will also need to talk about finances, which may be not as fun. Here's how to do both.

MANAGE LOVE & MONEY THE ULTIMATE GUIDE TO FINANCES IN YOUR 30s

Build Your Career

Save & Invest for Today

Save for Retirement

Pay Off Debt

Manage Love & Money

Buy a Home

Take Care of Your Family

Give to Others

What's Next

Checklist

About Northwestern Mutual

17

Checklist

START OFF STRONG

Talk Money. Be candid about what you have, what you owe and your approach to saving/spending. Get it all on the table.

Decide how you’ll manage money. Agree on whether you’ll commingle funds, who will be responsible for bill paying and what you want to achieve financially. Doing a budget together is also recommended.

Develop a financial plan. A financial plan gives you both a road map as your guide to managing your finances. It also helps you prioritize where your money will go.

MANAGE LOVE & MONEY

5 Financial Decisions You Need to Make as Couple

6 US Census 7 http://money.cnn.com/ 2016/04/05/pf/average-wedding-costs/ and KNOT Survey

Age: In 2015, the median age for a first marriage was 29 for men and 27 for women—an all-time high.6

Fast Facts on Marriage Today

Cost: The average cost of a wedding today is $32,600.7

Who's Paying? 79% of couples had some help from parents.7

Not getting married but in a wedding? 7 Expect to spend about $1,000 per wedding.

18

Impacted by Divorce?

SOMETIMES IT DOESN’T WORK OUT

If you find yourself in a marriage that isn’t working, get help from financial professionals to make sure you understand all of your financial options. One of the common mistakes people make is underestimating the future value of assets, such as:

MANAGE LOVE & MONEY

Learn how to help minimize the financial impact.

401(k)s

Permanent life insurance

Homes

Pension plans

Stock options

$12,800Average Cost of Divorce Legal Fees8

8 Martindale-Nolo, national divorce survey 2016

19

Buying a home is typically one of the biggest financial decisions you'll make. Make sure you're ready.

BUY A HOME THE ULTIMATE GUIDE TO FINANCES IN YOUR 30s

Build Your Career

Save & Invest for Today

Save for Retirement

Pay Off Debt

Manage Love & Money

Buy a Home

Take Care of Your Family

Give to Others

What's Next

Checklist

About Northwestern Mutual

20

Resource

How's your credit?

Most mortgage lenders require a credit score of at least 620. Beyond qualifying for a mortgage, credit scores also impact the interest rate you’ll pay.

BUY A HOME

When you’re in the market to buy a house or condo:

• Aim to spend no more than 30 percent of your take-home pay on mortgage and related expenses (taxes and insurance).

• Put at least 20 percent down, so you can avoid having to pay private mortgage insurance.

• Make sure you include all costs, such as taxes, homeowners association dues and insurance, as you determine how much you can afford.

• Revisit your disability income and life insurance policies to make sure you’re adequately covered in case something happens to you and you're not able to pay the bills.

Learn more with our Guide to Credit Scores.

What the First-Time Home Buyer Looks Like

Average age: 31 9

Status: Single (60%) 9

Median income: $69,400 9

Spent: 2.6 times their annual income 10

9 http://www.realtor.org/news-releases/2015/11/first-time-buyers-fall-again-in-nar-annual-buyer-and-seller-survey 10 http://zillow.mediaroom.com/2015-08-17-Todays-First-Time-Homebuyers-Older-More-Often-Single

SOME HOME BUYING BASICS

21

Learn More

BUYING, BUT NOT MARRIED?

If you’re living with your partner, there are unique things to consider. Make sure you know who is legally responsible for paying for the house or apartment or what you’re entitled to if you split up.

BUY A HOME

The top four financial planning challenges faced by unmarried couples

Should you share bank accounts? The pros and cons of shared finances

11 http://www.cdc.gov/nchs/data/nhsr/nhsr049.pdf

Moving in Together?

Unmarried couples living together has increased by 30 percent in the last decade.11

22

Families take on many shapes and sizes. When there are people who care for you and vice versa, it’s important to be strategic about how you care for and protect them.

TAKE CARE OF YOUR FAMILY THE ULTIMATE GUIDE TO FINANCES IN YOUR 30s

Build Your Career

Save & Invest for Today

Save for Retirement

Pay Off Debt

Manage Love & Money

Buy a Home

Take Care of Your Family

Give to Others

What's Next

Checklist

About Northwestern Mutual

23

Resource

Get the Financial Boot Camp for New Parents, which highlights critical financial needs if your family is growing.

KNOW WHAT TO EXPECT WITH KIDS

Kids are expensive—yep, we said it. Now, instead of feeling overwhelmed or simply confused about where to start, put yourself in the driver’s seat. Just like most things in life, with kids there are MUST HAVES and NICE TO HAVES. The key is knowing what to expect and creating a plan to budget for it. Our Financial Boot Camp for New Parents can help you make sense of it all and know what to tackle first.

TAKE CARE OF YOUR FAMILY

Be aware of the costs in the early years.

Once you bring your new baby home, here are the top five new expenses you’re likely to have during the first few years of his or her life.12, 13

The total? About $15,500 for each of the first few years.

DAY CARE

CLOTHES MEDICAL COSTS

DIAPERS FORMULA

$11,600 $800

$720 $1,297

$1,260

DAY CARE

CLOTHES MEDICAL COSTS

DIAPERS FORMULA

($3,500—$18,000)Average — $11,666 $800

$720 $1,297

$1,260

12 BMO Harris Bank, Raising a Child Survey, February 2014. 13 United States Department of Agriculture, Expenditures on Children by Families, August 2014.

24

ResourcePUT AN ESTATE PLAN IN PLACEIf you’re over 18, you should have a basic estate plan in place, even if you don't have a spouse or kids. These plans identify who will help take care of you if you’re unable to make health or financial decisions. The same goes for your parents; now may be the time you want to start talking with them about the plans (if any) they have in place.

We recommend all adults have the following three documents:

Once you begin to accumulate assets, get married or have children, you’ll want to add a will to your plan that will also identify guardians for children.

TAKE CARE OF YOUR FAMILY

Protect Your Loved Ones & Their Lifestyle >

YOUR ESTATE PLAN:

You take care of your family and work hard for the things you’ve acquired. You take the necessary steps to ensure your family’s taken care of. Why wouldn’t you put in the same effort to care for your loved ones after death?

Estate planning isn’t the first thing you wake up in the morning thinking about. Often it requires us to discuss uncomfortable questions and make tough decisions. A better way to view estate planning is as a way to provide for your loved ones even after your death—an objective well worth the effort.

But there are many people who haven’t taken the appropriate steps to ensure their wishes are documented properly in an estate plan should something happen to them. Whether you’re just getting started or want to ensure your estate plan has the right pieces, this guide will help understand your options and take the next important steps.

IN THIS GUIDE, YOU WILL LEARN ABOUT:

Common obstacles to estate planning and how to overcome them.

The most important questions to consider when estate planning.

The key documents everyone should have in a plan and when they need to be updated.

Trusts: the various types and the goals they each address.

IS A TRUST RIGHT FOR YOU?

An estate plan is all about getting the right things to the right people at the right time.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Provides instructions to your physician about how much

or how little medical intervention you’d want

if you can’t communicate

Identifies who will make health care decisions on your

behalf if you cannot

Identifies who will manage your personal financial affairs

if you become unable to do so yourself

Want to understand more about these important documents? Use our Estate Planning Guide for help.

25

ResourcePROTECT YOUR LOVED ONES & THEIR LIFESTYLE

You’ve worked hard to get where you and your family are today and for the resources to build an even greater lifestyle. Life insurance helps you protect that lifestyle should something happen to you.

There are two main types of life insurance: term life and permanent life, each offering many features. It’s common that people in their 30s own a combination of both.

+ Short-term protection

+ Affordable

+ Satisfies temporary need

+ Tax-free death benefit

+ Long-term protection

+ Flexible financial security

+ Accumulates cash value

+ Tax-free death benefit

TAKE CARE OF YOUR FAMILY

TERM LIFE INSURANCE PERMANENT LIFE INSURANCE

Learn more about life insurance in this short video.

Learn more about the options available to you in the Term or Permanent Life Insurance guide.

PERMANENTLIFE INSURANCE

26

One of the most rewarding things you can do with your money is to share it with others, supporting people or a cause you care about.

GIVE TO OTHERSTHE ULTIMATE GUIDE TO FINANCES IN YOUR 30s

Build Your Career

Save & Invest for Today

Save for Retirement

Pay Off Debt

Manage Love & Money

Buy a Home

Take Care of Your Family

Give to Others

What's Next

Checklist

About Northwestern Mutual

27

MAXIMIZE THE IMPACT OF YOUR GIFT

A financial professional can help you take advantage of tax deductions, provide options on the best financial vehicles to give through and help you grow your financial assets so you can give even more.

MINIMIZE THE IMPACT ON YOUR CASH FLOW

When you include giving as part of your personalized financial plan, you can strategically save for your cause and still meet your other financial priorities.

Don’t forget the paperwork.

If you’re planning for income tax deductions on any charitable donation you’ve made, you’ll need proof of your gift. Get a receipt or acknowledgment letter from the charity, and keep it with your tax files. The record must show the name of the charity, the date of the donation and amount of the contribution.

GIVE TO OTHERS

Support Causes You Believe In

Socially responsible investing allows you to make a positive impact on the world by investing in companies that mirror your own values.

28

WHAT'S NEXT

PULL IT ALL TOGETHER

You may feel like every one of your hard-earned dollars is being stretched thin for life's priorities. By focusing on five key actions of money management, you can find the right balance between living the life you want today and making smart decisions for the future.

What's next?

Don’t feel like you have to do this on your own. A financial professional can help you clarify your goals and develop a plan to reach them—all of them.

• If you’re already working with a financial advisor, use this guide for reference as you review and adjust your financial plan over time.

• If you don’t have a plan (or are not yet working with a financial professional), don’t worry. We’ll work with you to develop a personalized plan based on all of your goals, hopes and dreams for the future.

PROTECTSAVE SPEND GROW GIVE

Don't wait. Get started now!

Want a professional to help you? We’ll have a financial professional get in touch to help you get started on the right foot.

29

CHECKLIST

SAVE: Build your emergency fund.

Set short-term and medium-term financial goals.

Contribute to a retirement account.

SPEND:

Put together your spending plan (budget).

Pay off high-interest credit card debt.

Understand your options on student debt repayment plans.

Build and maintain great credit.

GROW:

Invest early to take advantage of the power of compound interest.

Start to learn about investing.

PROTECT:

Purchase individual disability income insurance.

Get life insurance to cover your growing financial needs.

Get estate-planning documents in place.

GIVE:

Think about the organizations you want to support and how.

Resource

Download this checklist to keep on track with your goals.

30

ABOUT NORTHWESTERN MUTUAL

Share With Others:

Connect with Us:

Share This Guide

Share This Guide

Share This Guide

TAKE CHARGE OF YOUR FUTURE—START TODAY

When you work with Northwestern Mutual, you'll have support throughout your entire lifetime. Throughout our nearly 160-year history, we've been helping people find financial security—whether they are just starting out, planning for a family or preparing for retirement.

Contact a financial professional today to get started!

WE LEAD THE WAY WITH UNSURPASSED STRENGTH AND STABILITY

Northwestern Mutual has the highest financial strength ratings awarded to any life insurer, helping ensure we'll be here when you need us most.

Moody’s

AaaA++ AAA AA+A.M. Best Fitch S&P

A.M. Best Company, A++ (highest), 5/2016; Fitch Ratings, AAA (highest), 5/2016; Moody's Investors Service, Aaa (highest), 1/2016; and Standard & Poor's, AA+ (second highest), 6/2016. Third-party ratings are subject to change. Ratings are for The Northwestern Mutual Life Insurance Company and Northwestern Long Term Care Insurance Company.

31

Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. No investment strategy can guarantee a profit or protect against a loss.

This white paper is not intended as legal or tax advice. Northwestern Mutual and its financial representatives do not give legal or tax advice.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries. Northwestern Mutual Investment Services, LLC (NMIS) (securities), subsidiary of NM, registered investment adviser, broker-dealer, member FINRA and SIPC.

05-4042 (0816)