Growth and building assets
Age 30 – 40
Starting a family
Having established yourself through your 20’s, the latter stages of your 20’s and into your 30’s are likely to be the years when you start thinking about family plans and a whole new range of considerations arise – safety, security, parenting, education, providing for the future – whew!
Getting a bigger house
A decision to start a family is often accompanied by consideration of a larger home. Equity built up in a first property can be used to make the next move. It may also be possible to keep the first property for rental purposes. There are a range of finance and tax issues to consider here.
Planning / executing career moves
Career progression is always important in the 30’s. By now you’ve got a good idea about what you like and what you don’t like. It’s really important to have your career plan mapped out and to ensure that your work, family and life goals are all well aligned.
If you’ve partnered and have children you may be considering private school education. Fees are expensive and you must evaluate the ROI to be certain the (after tax) spend is warranted. Careful budgeting is really important as you juggle the household bills, the mortgage(s) and the school fees. There’s lots of financial stuff to manage so having a plan and working to it is vital.
Through the 30’s and as 40 approaches, it’s time to be thinking about building investments. This can be supported by borrowings (gearing) to a sensible degree or by using equity in property(s). A well thought out and researched financial plan will provide clarity, structure and a “road map” with which to work. Medium to long term investment goals will assist in keeping you focused.
Contributing to superannuation
As part of your investment plan, maximising contributions to the “tax advantaged” superannuation environment usually makes sense. In addition to statutory contributions from your employer, the option to “salary sacrifice” up to the maximum allowable level should be investigated.
Review personal insurance
A regular review of your personal insurances should be done to ensure their adequacy, relevance and cost.
Review your Will
As with your insurances, your Will(s) should be regularly reviewed to account for changing wealth and family circumstances.
Your network should now be well established and really working for you, to provide business, career and personal opportunities. It’s incredible “who knows who” and how beneficial your contact network can be. Build it and use it!