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Financial Planning at Any Stage: A Quick Guide

Your finances are always in a state of change. Aside from fluctuating financial markets, your financial needs are also bound to evolve as time goes by. Fortunately, these changes in each life stage are easier to predict than the direction of market trends.


Many people generally go through four main financial life stages. Although spending patterns, family setups, and income levels are not exactly foreseeable, these factors often follow a pattern.


Here are some points to remember when planning your finances at different stages.


Career Building Years


Once you start earning income, financial planning is crucial. However, this also happens to be the stage where you might feel unsure about managing cash flow and implementing a budget—which is perfectly normal for those who are just starting in their chosen career. Perhaps you’re considering your investment options or plan to buy a house, but you’re not sure how to get started.


With a financial advisor, you can get help with your insurance needs, budgeting, and investment planning at this stage. An expert can also guide you in following a discipline of living within your income, so you avoid falling into a debt trap.


Middle Age Years


This is considered the most demanding stage because most of the financial planning elements have to be serviced. By this time, you are likely to have dependents and therefore require life insurance to secure your finances.


You may be searching for financial planning advice in terms of managing a complex budget while making sure your family is protected in case the unthinkable happens. A wealth management plan early in this life stage enables you to enjoy the benefits in the future and offer the security you need now.


At this point, a financial planner can provide you with sound advice concerning your investment needs and options, superannuation and debt repayment strategies, as well as estate planning.


Pre-Retirement Years


In this period, managing your investments is critical. For instance, let’s say you may consider leaving the workforce soon, and you’re trying to figure out if this is possible financially. Your children are now adults and your expenditure has become steady. Then, you are beginning to think about what an ideal retirement lifestyle looks like.


Hiring an expert in financial planning during this stage lets you have tailored wealth management strategies that involve estate and cash flow planning, superannuation, and account-based pensions.


Retirement Years


Budgeting becomes your focus again once the retirement stage comes. The goal now is to stay within the income by controlling your expenses. At this stage, your priority should be managing investments to keep generating income and securing the corpus from inflation.


A certified financial advisor can make this phase less stressful for you by helping with tax-efficient superannuation techniques, estate planning for your family, and providing insight on government benefits.


Why You Need Financial Planning


You may have already figured out what stage you’re at, but you might not be aware of the options available to you. A personal financial planning expert can help you seamlessly move from one stage to the next. Whether you’re planning for retirement or simply looking for income protection options, a financial advisor will help you navigate the transition into the next phase of your life.


Do you need a Financial Plan?

Contact one of our Advisors today.


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