Life is what you make it – so it’s important to make yours count. While money can’t buy happiness, it sure can help us prepare for major milestones in our life.
Read more from the Gold Coast financial planners at Crest Wealth to find out about financial planning tips for 4 major milestones.
New career financial planning
This is where the magic starts. You’re fresh out of high school, university, TAFE or another learning institution and you know what path you want to take for your career.
Did you know that the financial decisions you make here, will set the foundations for your long-term financial health?
What does this mean?
- Essentially, establishing and implementing good financial habits early on will give you a higher chance of reaching your retirement goals, compared to those who don’t.
How to do it:
- Start with some soul searching. What do you hope to accomplish in 5, 10 or 20 years? Is marriage and/or children important to you? Perhaps you want to reach a net goal of $1 million by 40? Anything is possible when you strategise and strategise early.
- Learn to spend less than you earn and steer clear of a loan for everything.
- Build up your savings – include purchasing a home.
- Pay off high-interest debt such as any car or student loans.
Mid-career financial planning
This is the milestone that involves more than just establishing a cashflow. At this point in your career, long-term wealth building is important. If you have a family at this stage in your life, you’ll want to financially protect them, too.
How to do it:
- Protect what’s important to you with adequate insurance products.
- Prepare a will.
- Pay for short-term expenses like vacations and/or home maintenance completely out-of-pocket.
You’re more than likely to have a higher income now than you did just starting out. So, set some of that money aside for wealth-building and rainy days.
Pre-retirement financial planning
You’re coming to the end of your career journey… Is retirement for you within the next 5-10 years? It’s time to go through your financial goals and situation now with a fine-tooth comb.
How to do it:
- Adjust your financial plan accordingly (if needed) to meet retirement goals.
- Devise a sustainable financial strategy that will endeavour to see you through retirement.
- Try really, really hard to pay off your mortgage and/or other expenses.
- Work out strategies to minimise tax burdens.
- Continue to grow your savings and other investments.
Seek out a Gold Coast financial planner who is well-versed in helping clients understand financial planning and aged care services.
Retirement financial planning
This is a strange but exciting time for many people. There’s an abundance of free time, but no steady paycheck. Be cautiously optimistic in early retirement to avoid overspending.
In early retirement:
- Monitor withdrawal rates.
- Ensure your portfolio is protected.
- Track your budget and make slight alterations if needed.
In later retirement:
- Consider the need and reality of aged care services in your life.
- Ensure your withdrawal rates are still sustainable.
- Update your will and estate if/when needed.
Whatever milestone you’re approaching, back yourself with financially healthy habits. From your early career, to the end of your career, consult with a financial professional to get yourself in the very best possible financial position, for you.
At Crest, we have the financial planning team to assist you in all the major milestones throughout your life.
Contact Crest Wealth today.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.