If you are aged between 40 and 50 you are probably juggling a lot of balls. This is a decade when many people are carrying a heavy responsibility load. Careers are established, there may be young children or teenagers and ageing parents to consider. It’s a lot and it is easy to take your eye off the ball when it comes to money matters and financial planning. But if you make a bit of time to put a few things in order you will reap the benefits in later years.
1. Set some goals
Be specific and measurable, and set a deadline. Include short, medium, and long-term goals. Maybe you want to take the family on an overseas holiday in three years’ time, or you want to be able to retire in 15 years. Write your goals down. Formalising them in this way will help you to focus and become more accountable to you.
2. Review your investments
Take stock of your investments. Are they in line with your risk tolerance and are they going to help you achieve your goals? There are lots of options including managed portfolios, managed funds, shares, fixed interest investments, term deposits, property, and superannuation. Everyone’s circumstances are unique, and it is important to align your investments to suit your situation.
3. Check your personal insurances
We would all rather not think about the unexpected curve balls that life can throw at us. If something happened to you or your partner would you be covered? How would your family be affected financially? Could your debts be repaid and where would your family’s new source of income come from?
Explore solutions for life insurance, income protection, business protection, total and permanent disability, and trauma insurance to protect yourself if the worst should happen.
4. Review your loans
Checking in on your loans may well save you some money. If you do a bit of research on the best rates available you can often negotiate with your bank for a better deal. If you have multiple loans you could also consider consolidating your debts. Combining multiple outstanding debts into a single loan reduces the number of payments and interest rates to worry about. If you are reviewing your home loan you may also find you can tap into the increased value in your property and use some of the equity to make improvements to your home if you wish.
5. Consider estate planning
Family dynamics are varied, and sometimes complex. Putting a protective estate plan in place will give you peace of mind. A robust estate plan should ensure financial security for your loved ones and minimise tax implications for beneficiaries.
6. Get advice
In your 40s you are often reaching the peak of your career and earning potential. It can be easy to succumb to lifestyle inflation as you start to earn more. A few smart moves at this juncture in life can make all the difference in the future. We can help you align your investments, loans, insurances, and estate planning with your goals through a holistic financial plan. Get in touch.
General Advice Warning: The information provided in this article is general in nature and does not consider your particular investment objectives, financial situation, or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Dobbrick Financial Services (Gympie) Pty Ltd ABN 48 931 205 109 and Dobbrick Financial Services (Ipswich) ABN 86 100 184 521 & DFS Oakland ABN 64 340 527 395 and their advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
