Most of us have the desire to be in control of our finances, but taking the first step towards getting financial advice can sometimes be hard. Depending on which life stage you are in, your financial goals will differ. Therefore, it is important to be aware of these different life stages when it comes to financial planning. Additionally, having the right financial adviser to guide you through each stage will help you achieve your lifestyle goals.
Financial Life Stages
Early Career ( ~ 20 – 35 years old)
At this stage you are likely to have finished University and be starting your career, you might be unsure how to implement a budget or manage and maximise your cash flow. New financial goals will appear, for example purchasing your first home or a new car, you may be considering different investment options. It is never too early to start looking at your financial position and now is the perfect time to do so! The following areas should be considered when seeking financial advice:
- Budgeting
- Investing
- Dept repayment/HECS/HELP
- Insurance (in particular income protection)
- Saving for first home/new car purchase
Later Career ( ~ 35 – 50 years old)
You have settled in your career, and possibly have a young family which means your expenditure has increased, paying off your mortgage while also funding your children’s education and/or childcare. Setting up a complex budget like this can be hard. Our recommendation at this stage is to have the following strategies in place so that you can sit back and enjoy your financial journey.
- Debt repayment strategies
- Investment options
- Superannuation strategies
- Insurance needs
- Estate planning
- Education funding
Pre-retirement ( ~ 50 – 65 years)
Retirement is getting closer and this is the perfect time to maximise your savings. Your children have “left home”, your mortgage is low or has been paid out and it’s time to concentrate on yourself. Now is a good time to review the income directed between investments, super and your leisure. It can be the make or break for how you approach and spend your retirement years. As financial advisers, being in control of the following strategies is a great step towards your financial goals.
- Superannuation Strategies
- Account based pensions
- Retirement income strategy
- Estate planning
- Asset/debt consolidation
Early Retirement ( ~ 65 – 80 years)
You have done the hard work leading up to retirement, now you can enjoy the rewards! It is important to stay physically active, maintain your social networks, try new hobbies and plan those holidays. Now is the time to ensure that you continue to maintain your cash-flow and your investments to continue to fund your retirement lifestyle.
- Government benefits
- Super strategies
- Account based pension
- Estate planning
- Aged Care planning
Late Retirement (+80 years)
There is no reason why you should stop enjoying your retirement. Travel, social groups and hobbies continue to be important. Allowances for unexpected medical situations may need to be considered and planning for these unexpected events will see you get through stress-free to keep enjoying retirement. Also, transitioning into aged care is becoming a reality and reviewing of estate planning is critical. If you get this right, you could enjoy many more supported active years.
