Financial milestones for those ages 46-55
As people enter their late forties and early fifties, they often focus on securing their financial future and preparing for retirement. Below are some key financial milestones offering practical steps to help achieve financial stability and peace of mind.
Be in the right KiwiSaver Fund: Review your KiwiSaver and complete a risk profile to ensure you are in the right fund for your stage of life and circumstances. This means checking if you are a conservative, balanced, or growth investor.
Prepare for retirement: Begin detailed retirement planning. Calculate how much you will need to retire comfortably and adjust your savings and investments accordingly. Consider speaking with a financial adviser to create a comprehensive retirement plan.
Established rainy day fund: This fund should now have at least 3 months of living expenses. Only use for emergencies and if you need to use some funds, start saving the balance back up again with slow and steady amounts each pay.
Review insurance cover: Talk to a financial adviser to regularly review and update your insurance policies to ensure they are fit for purpose. Lots can change during this stage of life, including health, family size, and assets.
Review your financial goals: Keep checking and achieving your goals. Sometimes life changes and you need to make tweaks. Regularly reassess your financial plan to ensure it aligns with your current situation and future aspirations.
Marriage or living together: Ensure you and your partner are on the same financial page. Set joint goals, have regular money dates to discuss finances, and be willing to compromise on spending and saving strategies. Be open and honest.
Estate planning: If you don’t have a Will, make sure you create one or update your existing one as circumstances change; you may now have grandchildren. Sort out Enduring Powers of Attorney too.
Downsize, renovate, or buy rental property: If you already own a home, you may be ready to consider downsizing or enjoy renovating. Alternatively, look into purchasing rental property as an investment. Ensure you live within your financial means to avoid overextending yourself. You may now have an empty nest, paid off your home loan. Look at investing the funds that are now surplus from paying your home loan off.
Support children starting university: Plan and budget for the costs associated with supporting children through university, including tuition, living expenses, and other related costs.
Enjoy grandchildren: Spend quality time with grandchildren and support them as needed. Consider setting up savings accounts or investment funds for their future.
Diversify investments: Keep reviewing your investment portfolio and ensure it includes a mix of stocks, bonds, and other assets. Consult a financial adviser for personalised advice to manage risk and optimise returns.
Travel! Consider extended trips or exploring new destinations. If you’ve planned for your future, start using these funds and enjoy the experiences! Ensure you have comprehensive travel insurance for peace of mind.
This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request
