Fast track your finances in your 40s and 50s
If you have a family, your children may still be relying on you for their education or just starting their own lives and moving out of home. During your 40s and 50s, making ends meet can be the biggest financial worry. But it does get better.
This is the time to look at your broader investment strategy and ensure financial security in retirement as your generation, known as the baby boomers, will be the first to provide for itself in retirement.
It is possible to realise your financial goals in your 40s and 50s. Your major debt, the mortgage, may be all but paid so more of your savings can be used to assist in your children's education, increase your superannuation contributions or put toward direct investments.
People in their 40s and 50s are still investing for the long-term and therefore should consider investing in growth assets (shares and property), whilst maintaining a diversified investment portfolio.
Now is the time, based on your lifestyle and goals, to determine the amount you can contribute to your financial goals and the level of return you expect from your investments.
If you're dreaming of the day you can quit work and enjoy life in retirement, now is the time to step up your superannuation and retirement planning for both maximum growth and tax effectiveness.
Also, speak to your financial planner about fine tuning investment strategies so money you've already accumulated will continue to grow to fund your children's education expenses as well as your retirement.
While everyone's goals are different, key areas to focus on in your 40s and 50s include:
- Paying out your mortgage and increasing your superannuation contributions
- Retirement planning
- Fine tuning your investments for peak performance
- Consolidating loans
- Taking out personal risk or income protection insurance
- Restructuring borrowings and loans
Money Matters is brought to you by CPS Credit Union and Bridges Personal Investment Services. All information is offered as a guide only and we recommend seeking expert advice tailored to your own unique financial situations and goals. Contact CPS Credit Union to arrange an obligation free consultation to discuss your financial planning strategy.
