With all this going on, it’s easy to not concentrate on your finances and just let it all happen. You don’t want to miss out on any opportunities that may be available. You should consider:
- Managing your debt – eliminate non-deductible debt to help grow wealth
- Boosting your Superannuation – it’s tax effective
- Paying for your children’s education
- Protecting yourself against financial loss
- Protecting your financial legacy
- Building other assets outside the home
These years are where you will be earning a good income and your financial responsibilities may be reducing. Your family may be growing older and you will be thinking of how to cover the costs that are present, as well as how these will change in the years to come. Making a plan will help set yourself up for retirement.
Common issues people just like you face
1. Not paying down enough debt
You may need to prioritise how you pay down your debt. You may have a home loan that you would like gone before retirement, or perhaps want to pay down loans on an investment property, so it becomes more financially manageable? Transitioning from Interest Only to Interest and Principle repayments is a common way to actively pay down debt and plan for retirement.
2. No other assets other than the home
You may not have given any consideration to diversification of your assets. If you only have a home and superannuation, this may not be enough at retirement. This is where purchasing an investment property or looking into other investment opportunities might be needed, but BE WARNED this is the time in your life you can’t afford to make the wrong decision! Getting the right advice is critical.
3. Superannuation not being utilised
This is going to be one of your biggest assets at retirement. Not making extra contributions to take advantage of generous tax considerations is often neglected.
4. Not reviewing your insurances
You may have commenced personal insurance like Life, TPD, Trauma and Income Protection previously, however, you have not checked whether you are under or over insured.
5. Not preparing for your financial legacy
Quite often, people are still without a Will and Power of Attorney, which leaves them exposed if a significant illness or death occurs. They have also not considered who they want to receive their wealth.
Please note these are just ideas and is not financial advice, please seek specific guidance from a licensed financial planner like our friends over at Astute Brisbane Central. We are also here to help if you are interested in investing in property in Brisbane, feel free to get in touch below.