| Introduction | | | | Delaying a decision until you reach 40 means |
| | | | that your may be unable to retire early in |
| This article seeks to discuss some of the | | | | the future due to ongoing mortgage repayments |
| specific financial planning that needs to be | | | | into your 60's or even 70's. In addition |
| considered by individuals in their thirties. | | | | insurance payments that you take out for the |
| The age range between 30-40 is significant | | | | duration of your mortgage term to protect |
| time in relation to financial planning given | | | | against critical illness or disability and |
| that it is during this time that many | | | | life insurance or income protection will be |
| financial decisions will directly effect | | | | cheaper than they would be at 40 because of |
| retirement plans and long term financial | | | | your age. |
| matters, all of which will effect future | | | | |
| prosperity. | | | | 3. Life Insurance |
| | | | |
| 1. Pension Planning | | | | Life insurance gets more expensive the older |
| | | | you get because the risk of death increases |
| If you haven't yet had opportunity to start | | | | with age. If you have not yet thought about |
| saving towards a pension this is a critical | | | | life insurance consider taking it out now as |
| time because failure to do so before you | | | | it will never be cheaper. Whilst no one |
| reach 40 will almost definitely mean that you | | | | likes to think about death, it is important |
| will have insufficient time before retirement | | | | to protect loved ones from an excessive |
| to build up a decent level of pension | | | | financial burden should you die early. Taking |
| contributions to ensure a comfortable | | | | out life insurance whilst in your 30's can |
| lifestyle. | | | | save you anywhere between $300 and $600 |
| | | | dollars a year on an average policy. |
| Where possible join a corporate or government | | | | |
| related pension plan as these employers often | | | | 4. Saving for your children's education |
| contribute additional amounts to whatever you | | | | |
| can afford to save. So for instance if you | | | | If you have children as you reach your 30's, |
| put 4% of your wages/salary a month into a | | | | planning for their future educational needs |
| pension plan they will likely match it. | | | | is now critical if you intend to give then a |
| | | | good start in life and not place excessive |
| These schemes are often referred to as final | | | | financial burdens on yourself another 5-10 |
| salary schemes, as the pension provider | | | | years further along. College and university |
| promises to pay you a pension based upon your | | | | education can be very expensive. Costing |
| final salary before leaving the organisation | | | | between $30-40,000 per child. Whilst this |
| and the level of financial contributions made | | | | figure is spread over a period of years it is |
| to the plan. So the sooner you can start | | | | important that you start thinking about how |
| saving in your 30's the more pension | | | | you will meet this cost now. |
| contributions you will have built up by | | | | |
| retirement and the greater your final pension | | | | Also think carefully about what level of risk |
| pay out. | | | | you are willing to expose yourself to as you |
| | | | save or invest for your child's College |
| 2. Property Investment | | | | University fund. Do you really want to invest |
| | | | in high risk shares where the potential to |
| If you have not yet been able to purchase | | | | lose your original investment is significant. |
| your own property, your 30's are a good time | | | | Try instead investing in government bonds or |
| to get into the market. The benefit those in | | | | placing money on deposit in a high interest |
| their thirties have over those looking to buy | | | | savings account. |
| in their 20's, is that you may already have | | | | |
| 10 years worth of savings from employment | | | | Summary |
| which can be used to place a larger deposit | | | | |
| on the perfect property. This often reduces | | | | This article has attempted to explore some of |
| the size of the monthly repayment levels and | | | | the financial planning considerations for |
| the total amount of interest you will have to | | | | those in their 30's and the commitment this |
| pay in the long term. Whilst the decision to | | | | requires. We have examined the importance of |
| own a property is down to personal choice it | | | | good retirement planning through sound |
| is advisable, as property usually gains in | | | | pension and property investment along with |
| value and is therefore a long term investment | | | | the need to make contingency plans through |
| In the future you may be able to sell your | | | | life insurance in case of death. Finally we |
| property and downsize leaving you with a | | | | have explored the importance of thinking now |
| healthy profit with which to improve your | | | | about financing college or university |
| retirement. | | | | education to dependent children. |
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