A comprehensive guide to wealth-planning for every stage of life

Financial needs and goals transform significantly over time. Consider how the ambitions of a fresh university graduate starting their wealth journey differ from those of a middle-aged person raising a family. They each have distinct goals, dreams and needs.

The priorities of someone approaching retirement are entirely different again. Wealth planning is a lifelong journey that evolves as the years pass, which is why having a comprehensive financial plan for every stage of life is so important.

At First Financial, we specialise in empowering clients to retire with confidence. We offer customised solutions tailored to each individual’s unique journey, recognising that every client has their own distinct story and financial needs at different points in their lives.

Your early career is the ideal time to lay the groundwork for your financial future. Regardless of whether you pursued hands-on training or formal education, you’ve worked hard to land your dream job, and now it’s time to put those first big paychecks to good use. During this phase, you likely have fewer financial obligations, such as mortgages and childcare, allowing you to focus on building healthy financial habits, start budgeting and learn how to live within your means.

One key goal in this phase is to start building wealth through consistent saving and investing. Consider allocating a portion of your income to high-interest savings accounts or diversified assets.

Establishing an emergency fund is also important; while you may not need this safety net immediately, your future self will appreciate having it when unexpected expenses arise in later stages.

Another important aspect of early financial planning is managing debt wisely. If you take on car or personal loans, create a strategy for paying down that debt, starting with the high-interest loans first. This approach will free up more resources for long-term saving and investing.

As you move into the middle stages of your career, your financial focus shifts toward building and growing your wealth. This period often brings increased income and significant life changes, which may include buying a home, starting a family and advancing your career. It’s essential to develop a strong financial strategy that supports these changing needs.

During this phase, it’s important to revisit your investment strategy. With a stable income, you can maximise contributions to your superannuation and explore diverse investment options.

This is a great time to consult your financial adviser, who can help tailor your portfolio to align with your risk tolerance, future objectives and personal circumstances.

As you accumulate wealth and assets, along with important personal responsibilities like raising children, insurance becomes a crucial aspect of your financial planning. Ensure you have adequate coverage, including life and income protection, to safeguard your family’s financial future in the event of unforeseen events. Additionally, proper estate planning—such as drafting a will and establishing trusts—can protect your assets and provide for your loved ones.

Once you reach the pre-retirement phase, your focus should shift to solidifying your financial position and preparing for the transition to retirement.

With the end of your career in sight, it’s crucial to evaluate your savings and investments to ensure they can sustain your desired lifestyle. This is the time to fine-tune your retirement planning strategies and make any necessary adjustments.

Reviewing your superannuation efforts is also important. Where possible, maximise your contributions during this phase, and if you haven’t previously done so, salary sacrificing could be a feasible option now.

If you’d like to slowly wind down your working days, you may also consider a transition to a retirement income stream. If you have a self-managed super fund (SMSF), make sure it’s structured to correctly meet your retirement goals.

In pre-retirement, it’s common to consider options like downsizing the larger family home to a smaller, more affordable, and manageable property to free up capital for your retirement fund. Planning for health needs and potential aged care in the later years of retirement is also critical.

Retirement—the phase that all the other financial stages lead up to—is where you enjoy the fruits of your long-term wealth-building efforts. The focus now shifts from accumulating wealth to managing your retirement savings and creating a sustainable income stream that supports your desired lifestyle. It’s essential to have a clear understanding of your living expenses and what you’ll need to maintain them.

Budgeting remains important, as it helps you manage day-to-day finances while allowing for luxury items and experiences like overseas vacations. Diversifying your income sources—such as drawing from superannuation, investments, or rental income—can provide the stability you need and a buffer for any unexpected expenses.

It’s important to stay engaged with your finances during retirement. Regularly review your investment portfolio and adjust your strategies as needed. Consult your financial adviser about your options, especially if you’re concerned about the longevity of your funds or if you’re considering returning to work and wondering how that will impact your finances.

Life is a journey, and our financial needs change along the way.

Your current stage and lifestyle will impact your plans, whether retirement is 30, 20 or five years down the road.

At First Financial, we are here to support you at every stage. If you’re ready to take control of your retirement planning, contact a friendly, experienced member of our team today and take the first step towards a brighter, more secure financial future.

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