#2 - Asset Building
The ages of 25 to 35 are considered to be the typical asset building phase, characterised by:
- the early to middle years of working careers
- small net worth
- large debt, courtesy of home loans, student loans, car loans, etc
- long investment horizons
- a focus on accumulating assets to satisfy immediate needs (deposit for house, children’s education, etc).
As most people spend the majority of this time working, now is the time to realise your lifestyle goals (such as buying your first home, saving for your children’s education, and saving for retirement). Meeting these goals will involve balancing between living for today and meeting tomorrow’s needs. Although this is one of the greatest challenges of the asset building phase, we need to remind ourselves that income for our retirement and later life funding comes from early investing activities or cash savings.
Risk protection at this stage is also vital. This can be achieved by purchasing an adequate mix of personal insurance that will cover Life, Total Disablement, Trauma & Income Protection insurance.
Financial planning, wealth protection, savings, investing, asset allocation and diversification strategies should be developed early - with the help of a professional - to make sure you are on target to meet your future goals as you move towards your next major phase of life.
Our asset building case study may help you to understand this life-phase better.
Chris Humphrey Private Wealth Management is independently owned and conveniently located on the outskirts of Brisbane's CBD.
" I contacted Chris Humphrey Private Wealth Management through a website enquiry seeking professional advice including a life insurance review. Chris took the time to fully understand my financial position, goals and needs to provide me with timely, relevant and easy to understand personal advice. This allowed me to make an informed decision about the types of insurance I really needed, my appropriate levels of cover and how to structure my cover to get the best value for my money."