Personal Life Cycle
Throughout life, from childhood to retirement, circumstances and
priorities change. Personal goals at age 25 will be very different from those at
age 63, but at every stage it is important to make well-informed decisions to
ensure that you and your family are following the best strategies for realising
your goals.
Childhood
– It is never too early to begin planning for a child’s financial future.
Parents, grandparents, and other relatives can assist in the early years by
providing funds for the child’s education and future.
Teenage Years
– This is an important time to learn the value of financial planning as children
begin to earn money for the first time, save to buy things such as sports or
hi-fi equipment, fashion wear, learn the disciplines of managing a student loan,
and so on.
Young Adulthood
– This is usually the time to make provision for the purchase of
a car, and to plan for the purchase of a home. It is also the time to start
planning for retirement and other long-term financial goals. Money invested now
is the foundation of your personal long-term investment strategy.
Settling Down
– If you have not already done so, you may be considering buying your first
home. You need to save for the deposit and furnishings, and you will need to
budget for the mortgage payments and theother expenses that are an inevitable
part of home ownership.
New Parents
– The imminent arrival of your first child, with the extra responsibilities and
perhaps the need for more space, should trigger a re-evaluation of your personal
financial strategies.
Middle Age
– As the children approach higher education you may wish to ensure you can meet
a share of the costs. Many people begin saving plans when their chidren are born
and although these can help at this time, you might also need to consider making
extra provision. You should also be thinking seriously about your retirement at
this time. You may well have reached your earnings peak, and as the children
leave home and begin work youshould review your strategies to ensure a
comfortable retirement.You might, for example, want to consider moving to a
smaller house, acquiring a second home, or increasing your retirement funding.
Nearing Retirement
– Your retirement plans should now be nearing fruition. As you
approach retirement, you need to check at least once a year to ensure that your
income in retirement will meet your needs – and provide a little extra for
luxuries.
Retirement
– After forty or more years at work it is time to take a
well-earned rest, but you still need to keep one eye on financial planning if
you want to enjoy a long and comfortable retirement.This may also be the time to
begin putting some money aside for your children or grandchildren.
Personal financial planning is important at every stage in your
life, and in the lives of those around you. We would be happy to advise you on
appropriate financial strategies for each of these stages.
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