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