Life stages and Financial planning
Single and
starting out
When staring out the following needs might be your priority.
You
should consider expected events such as disability and illness.
You do not want to be a burden to your parents should this happen.
Single and
established
In this stage you might be thinking of getting married, The question here is..
Do I have a financial plan and is it up to date?
Life cover and disability cover is now getting important.
This is also the stage where you should start thinking of retirement.
Married
The joining of two lives is joyous. it is also nerve wrecking. There are
a number of adjustments couples have to make when thinking and planning of two.
In this stage you may need financial protection as spouses now depend on each
other for support.
In merging 2 households and perhaps 2 careers, there are choices couples may
need to make. These incomes may be needed to be protected against unexpected
death, disability or illness.
Family Life
A family's financial needs will grow and change over time. You may
need steps to manage finances and protect your assets and lifestyle against
changes in life or health.
Children are the future., We need to plan for their future and protect it.
Education costs become very important for primary, secondary and tertiary
levels. The most tax and cost effective method of saving for these expenses need
to be explored.
Divorced
Not all happily couples live happily ever after. Some marriages fail.
Divorce is unfortunately very real for many people. Couples face the difficult
task of separating emotionally and financially.
It is time to consider your financial situation and put a plan in place to take
care of your needs. The joint financial plan now has to be separated.
Your main concerns might be the impact of disability and ill health.
Who will look after you?
If you were to die, what about the maintenance payments?
Protection
Retirement and savings plans needs to be revised in the light of the divorce
settlement.
Deep in Debt
Clients who are deep in debt desperately need the assistance of a Financial
Adviser
A appropriate debt consolidation product needs to be considered.
Empty nest
At this stage the children have left home. Suddenly there are extra money due
to reduced living expenses
Some investments may be paying out. This is the stage that you needs a Financial
Adviser
Retirement planning becomes an urgent issue. this is the last chance you will
get to make up for the gaps in your retirement plan.
Retirement
The challenge here is to manage your assets so that they last as long as your
expected lifespan.
Life Assurance still plays an important role.
Investing funds to generate an income in the most tax efficient way is
critical.
Estate planning and finding the best solutions to avoid paying unnecessary
estate duty will prevent the unwanted sale of assets that are earmarked for the
clients heirs.
