Your 40s are an important decade to build wealth and begin to create a firm foundation for your retirement.
For most Australians, you will be in a more stable financial position in your 40s than you were in your 20s and 30s, and with this increased stability comes the desire to ensure your financial future is as secure as possible.
For some, your 40s might make you prone to panic – like our Principal James Wrigley is often questioned by clients – have I left it too late to invest in property for retirement, for example?
Below are our 4 Top Tips for people in their 40s who are looking at investing for a secure financial future.
1. Tracking your expenses against your income
It sounds easy and possibly like a broken record, but if you’ve made it to your 40s without worrying too much about how much of your total income your expenses eat into, now is the time to get a cap on any possible overspending.
Your 40s can be a good decade to gain control of your debt and prioritise the repayment of debts to ensure you coast into retirement with little to nothing owing.
Back in your 20s and 30s, the set and forget style approach to debt was somewhat of a survival tactic to push you through the difficult period of acquiring a principal place of residence and, perhaps, the beginning of an investment portfolio.
But your 40s are the time to get serious about how much you owe overall, the type of debt you owe and when it will be reasonably cleared so that your investments begin to truly work for you.
Unsure how to figure it all out?
Contact one of our advisers today to book in a consultation.
2. Building wealth through growth assets
Investing in growth assets like shares and property is a great way to build your future wealth, and many people begin to look seriously into property and share portfolio investment during their 40s.
Australian property and Australian shares can deliver strong long-term returns, but you need to time your entry into both investment markets as well as you possibly can.
At First Financial, we realise that there are many different investment options available, and we understand that most of our clients feel nervous about choosing the right one.
Our knowledgeable team provides market intelligence and prudent financial advice so you can make investment decisions that match your investment profile, personal ethics and goals.
To discuss how you can build wealth through growth asset investments in your 40s, contact us today.
3. Doubling down on superannuation contributions
If you are yet to put much thought into your superannuation outlook for retirement, your 40s is the decade to start getting serious about making extra contributions to boost your retirement savings.
Superannuation is an investment in your retirement and a security deposit into your future – and there are plenty of incentives to build your superannuation that you can take advantage of in your 40s.
At age 40, your retirement will likely be 20-30 years away, at most, and the earlier you start retirement planning in earnest, the more opportunities you’ll have to accumulate wealth along the way.
If you’re ready to take the first steps towards building wealth through your superannuation to set yourself up for a comfortable retirement, contact First Financial today.
4. Investing in professional advice
Many people hit their 40s before they seek professional financial advice, but if you’ve got money left over after each paypacket that you aren’t sure what to do with, now is a good time to connect with a trusted financial adviser.
At First Financial, we believe that getting your investment asset allocation correct is critical.
We use a methodology that analyses your current circumstances which helps us arrive at an asset allocation.
From there we discuss your attitude to risk and adjust the asset allocation so you can sleep at night.
Are you ready to learn more about investing and create an investment strategy that is right for your individual situation?
Contact us today.
