You may find yourself financial planning in your 40s, just like our clients Melanie and Simon. Both in their 40s, business owners, and who are in that stage of life that we usually term the ‘accumulator’ stage, where they are earning reasonable incomes, steadily repaying debt and beginning to accumulate surplus income and assets.
It is important to identify once you have reached this stage to ensure that you are maximising your opportunities and making the most of your situation.
In this case we implemented several strategies to help them reach their personal goals. In particular, we looked at retirement planning and identified that Melanie and Simon would be falling short of their income and capital requirement without early intervention. Financial planning in your 40s doesn't have to be scary! Through implementing a super contribution strategy, including salary sacrifice, we were able set them on a path to enable them to reach their retirement goals, while at the same time saving them each around $7,125 in tax , per year.
We also helped them establish a Self-Managed Super fund and continue to provide them with administrative and investment management advice for their super fund, including the use of direct equities.
Finally we were able to safeguard their future by providing them with Personal Life Insurance advice, including income protection, without impacting on their cash-flow. This meant that they could be sure their financial plan could be followed regardless of any illness or injury.
As with all clients, we continue to provide an ongoing service to Melanie and Simon, including ongoing financial advice and legislative watch, which will enable us to help them adapt to any government policy changes that may affect their situation.