What are milestones for aged 35-45?

Many people in their mid-thirties to mid-forties are solidifying their financial foundations and planning for future stability. Below are some key financial milestones for those aged 35-45, offering practical steps to help achieve financial security and growth.

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.

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. If you have had any children, list a guardian for them in your Will. Sort out Enduring Powers of Attorney too.

Purchase your first home or upgrade: If you haven’t purchased a home yet, consider doing so. If you already own a home, you might look at upgrading or renovating or look at an investment property. Still live within your financial means to avoid overextending yourself.

Children: If you have children, costs will increase as they grow. Education, food, clothing, technology, transport and other costs can stack up! Still important to live within your means.

Invest in your career: Consider further education or professional development to enhance your career prospects. This can lead to higher income and greater job security.

Diversify investments: Start or review 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.

Travelling: If seeing the world is on your agenda, now is the time to start saving or if you have already got a savings plan – start travelling! Consider longer trips but remember your travel insurance.