Financial Advice For Every Stage Of Life

January 29, 2020

financial-advice-for-every-stage-of-life

Financial planning for different stages of life requires the expertise of the various investment instruments in the market. Read on to know more about how financial advisors can help you plan your finances for different life stages. 

In the purview of the rising inflation, the prices of basics have increased significantly. And it is expected to rise further in the future. While it can be challenging for the people to deal with the price rise, it is not impossible if you plan your finances well. 

With meticulous financial planning for every stage of your life, you can secure yourself from increasing expenses. However, savings alone will not be helpful, and you need to put your money to better use by ensuring it grows over time. A certified financial planner can help you devise a strategy for the different phases of your life, which can help you save and grow your wealth. Some of the critical elements that you must consider for financial planning are future goals, emergencies, dependent's security, etc. Let's take a look at the different stages in a life-cycle and financial planning advice for each one of them:

The First Phase

In this initial stage of life, you will complete your education, get your first job, get married, and think about buying a property for yourself. It is also the most crucial stage as you need to develop a habit of savings. Meanwhile, it would help if you also explored how to grow your wealth. The early you begin, the more profits you reap in the future.

The initial stage lays the foundation for your future, and it can make or break your plans for the future. Though your income might be less when you begin, you can consult a financial advisor and chart out the path ahead. You need to develop a saving pattern. Also, at the same time, explore wealth-growing instruments such as mutual funds, stocks, etc. Starting to invest from the age between 21-27 years can give you higher chances of gaining more wealth in the latter stage of life. You also need to factor in inflation as it can play a significant role in the future.

The Peak Phase

In this stage, you are relatively settled with your spouse, your young child and a job. You will also be earning higher during this stage as compared to the initial stages of your life. The salary will keep rising every year. However, even expenses will increase proportionally. 

At this phase of your life, you need to think about you and your family's future. Instances such as child's education and future medical emergencies must be addressed. Along with the initial investments that you have made, you need to add life insurance policies, medical insurance plans, Fixed Deposits, etc. to your financial portfolio to meet your future goals.

Also, in this stage, you would think about investing in property and building a retirement corpus. Achieving these goals can be hard, but with wise investment decisions, you can get them. You need to create a financial strategy that would help you pay all your loans by the time you retire.

The Retirement Phase

If you have followed a sound financial strategy, then this will be the most comfortable and relaxed stage of your life. However, you need to make sure your medical insurance is in order as this can be the stage where there might be a medical emergency.

At this stage, you will either be a grandparent or are about to become one. Hence, you need to consult with your financial advisor on leaving a will for your children and grandchildren. Securing the future of your children and grandchildren can be a satisfying experience.

Financial planning for the future may not be an easy job. However, not making one may land you in trouble.

 

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