It’s never too early or even too late to set out your financial objectives for now and the future. Knowing what you have and how your spending it, then putting a financial plan in place is essential to ensure you have enough in the bucket for the life you want. We’ve set out a ‘Financial to-do’ list below for each decade of your life. What you should be considering if you want to maintain the lifestyle you have or hope to have.
20/30s
- Start a Pension
- Reduce/pay off your education and credit card debt where possible
- Build your credit rating
- Set up an emergency fund. Consider an online savings account or easy access savings plan.
- Beware of predatory lending
- Keep your debt to a minimum
- Learn how to manage your finances
- Save for a house deposit
40s
- Avoid excessive personal and mortgage debt
- Where possible put away 8% to 15% of salary
- Where possible increase your retirement savings and capital accumulation
- Work with your partner/spouse on the same financial goals
- Children’s educational savings
- Make a will and enduring power of attorney
- Prioritise family & personal protection
50s
- Start to imagine the career end game and target a retirement date
- Begin discussing your retirement plans and expectations
- Start retirement simulations with your financial planner using financial modelling programs
- Consider how you can increase your pension portfolio
- Begin estate planning and consult your family
- Look at building an Investment Portfolio
60s
- Firm up your retirement plans
- Review tax implications of your retirement
- Meet with your adviser about attainment of financial goals and necessary adjustments
- Consider drawdown options for pension plans
- Make big repairs/investments while you’re still earning
- Consolidate your retirement accounts