By Daniel Archibald | CFA
Though not an exhaustive list, here is a quick guide to some things you should be looking at when it comes to your financial affairs (yes, many of us will not fit neatly into these categories, so adapt where appropriate):
20 - 30 (single and free)
Save - if you haven't already started, now is the best time to learn how to budget and build your savings. These savings can be used for leisure (holidays, iPad, etc) or for investment (first house, education, etc). AND STAY OUT OF PERSONAL DEBT (credit cards, personal loans, mobile phone bills).
30 - 40 (young family)
Family home - buying and paying off the family home is one of your major financial focuses. To some extent, putting all surplus cash onto your mortgage may be the best "investment" you can make.
Insurance - protect your family's biggest asset - you. Take out life covers (death, disability, trauma) to mitigate the risk of losing your ability to provide and care for your family.
Salary sacrifice - if you haven't already started, look to put a little bit extra away into your super. You will appreciate this effort later on.
40 - 55 (older family)
SMSF - now may be a good time to consider a family super fund. This will allow you to take control of your super investments and destiny. Also, look to increase your salary sacrifice.
Business - one of your biggest investments may be in your own business.
50 - 65 (pre-retirement)
Super - take advantage of transition-to-retirement laws and use your super to its utmost to reduce your tax bill significantly.
Estate planning - make sure your will is iron-clad (especially if you have an unconventional family make-up) and include enduring power of attorneys. Also, business owners should look to the future and make sure solid succession plans are implemented.
65+ (retirement)
Tax-free investing - make sure you are not paying excessive taxes by ensuring most of your assets are inside your super.
Entitlements - be aware of the Government benefits available.
Downsizing/reverse mortgage – you may no longer need to live in your large family home or you may be able to release some of your home capital to help fund your retirement.
So, whether you be young-at-heart or mature-beyond-your-years, look to age gracefully whilst creating greater financial freedom.