Examples of Financial Planning Needs at different life stages
We all need a financial plan, whether you have just started your family or you are planning to retire soon, it is never too early or too late to start your Financial Plan. The ages chosen below are representative and obviously each individual case will be different.
Job Starter (Age 18 – 25)
At this stage of life a person is starting out financially. It may be the first time a regular income is being earned. Various financial needs must be addressed, such as college loans, credit card debt, health insurance options and whether all tax reliefs are being claimed (i.e. rent relief). Life goals need to be established and a financial plan to meet these goals put in place. The goal may be to save a deposit for a property or saving for a Master’s Degree. Unless the goal is planned for, the financial means to achieve the goal may not be met.
Family (26 – 55)
At this stage of life many financial needs become evident. You may wish to purchase your first home or a bigger property to make room for the new arrival. Protecting your income and your wealth becomes more important. Saving for your children’s education may be a need that enters your mind.
Pre or Early Retirement (50 +)
Anyone with children will at some stage see them move on to start their own life of independence. At this stage parents begin to focus on their own needs again. Are there adequate funds for a comfortable retirement? Can more funding be made? What goals do you still want to achieve and what financial needs are required to achieve these? Do you want to travel? Perhaps you have a family business that you wish to transfer to your children?
Are there adequate funds for a comfortable retirement? Can more funding be made? What goals do you still want to achieve and what financial needs are required to achieve these? Are funds required for health/medical expenses? Will there be a need for long term care / home help and how will this be provided for financially? Have you made a will and have the taxation consequences of passing on assets been addressed?
Only with a Financial Plan can you achieve your financial goals and minimise financial risk, unless of course you win the lotto.