#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.
Humphrey Partners is conveniently located on the outskirts of Brisbane's CBD.
" I am exceptionally happy with the quality of the advice and service that I continue to receive from Chris. I am impressed with his breadth of knowledge and expertise, and his ability to deliver it in a simple to understand manner. Chris is my first financial adviser and he has never given me a reason to look for an alternate. "
Jason Banks - State Manager Home Improvement Retailer