Regardless of where you are in your life stage, strategic planning can ensure that you will be in a stronger financial position for whatever the future holds. Examples of advice via life stage include:
Working Professionals
Characteristics
- Singles or couples
- Established career/s
- High debt level – mortgage or loans
- Purchased a home and/or investment property
- May have managed funds and/or direct shares
- Looking to build and protect wealth
Strategies
- Salary packaging – exploring salary sacrifice options for superannuation, cars and computers
- Superannuation – identifying long term savings and asset allocation contributions
- Negative gearing – borrowing to invest or exploring equity in your home to start an investment strategy
- Wealth protection – protecting your income and assets against the unexpected
The Dependent Years
Characteristics
- Established career/s
- Dependents and may have one income
- Purchased a home and/or investment property
- High debt level – mortgage or loans
- May have managed funds and/or direct shares
- Looking to build wealth and cover children’s education costs
Strategies
- Cash flow planning and savings – assessment of your income needs and requirements, especially if relying on one income
- Salary packaging – exploring salary sacrifice options for superannuation, cars and computers
- Income/life protection – especially important for a growing family to cover both the earner and the primary carer
- Negative gearing – borrowing to invest or exploring equity in your home to start an investment strategy
The Less Dependent Family Years
Characteristics
- Established careers
- Some years off retirement
- Owns home and/or investment property
- May have investment portfolio, managed funds or direct shares
- Looking to maximise superannuation benefits in retirement
- Dependants may be leaving home
Strategies
- Superannuation – increase contributions to take advantage of the Government’s generous superannuation policies for pre retirees
- Wealth creation – assess opportunities inside and outside superannuation investments
- Salary packaging – exploring salary sacrifice options for superannuation, cars and computers
The Sit Back and Enjoy Retirement Years
Characteristics
- Retired
- Owns home and or investment property
- Has a pension in place for retirement income
- Has accounted for health care needs
- May have investment portfolio, managed funds or direct shares
- Aims to ensure that their affairs are managed appropriately
- Seeks taxation benefits
Strategies
- Income generation – providing a replacement income for salary and wages
- Asset security – ensuring that assets last the distance
- Assisting family – wealth distribution and gifting, pre and post death
- Estate planning – structuring assets to go to the right people
- Cash flow planning – assess regular spending and goals such as one off holiday and new cars
Your Less Independent Years – Aged Care
Characteristics
- Owns home but can no longer care for themselves or considering next step in aged care accommodation
- Has a pension in place for retirement income
- Has accounted for health care needs
- May have investment portfolio, managed funds or direct shares
- Seeks security
Strategies
- Income generation – ensure sufficient income for living expenses and cost of care
- Funding for accommodation bonds
- Centrelink – maximising entitlements
- Minimise fees for age care – structuring assets and income to minimise fees
