Age 40 – 55
Reducing home debt
The middle stage of life is about paying off debt which is incurring non-deductible interest. Regular review of your gearing position will allow for planning to ensure that some surplus funds are allocated to home loan debt reduction with a view to getting it fully paid off.
At the same time as you are reducing debt, it is also desirable to allocate some funds to building your investment portfolio.
An original property may still be held and with appropriate gearing, it may be sound to add to your rental “stable” and use the benefits of negative gearing to assist with funding.
Maximising superannuation contributions
To complete the investment plan, continuing to maximise superannuation contributions is a sound strategy to ensure that maximum funds are contributed to this tax advantaged environment.
Targeting career progression options
This is likely to be the period when your career will reach its high point. With 20+ years of career experience and likely several positions behind you, moving into the senior ranks will be most likely during this period.
Review personal insurances
The level of cover, cost and appropriateness of your personal insurance should be reviewed at regular intervals.
Review your Will
As with your personal insurances, your Will should be reviewed at regular intervals to ensure it caters for your changing circumstances.
Focus on health – both physical and mental
Life is now very busy – family, work, personal endeavors, friends, community……and so it goes. Ensuring your physical and mental health is vitally important during this very busy time of your life. A life or business coach may be a great asset during this time.
Your professional network will now be robust. Leverage your contacts to maximise business and personal benefits and to provide reciprocal assistance to your support network.