#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 conveniently located on the outskirts of Brisbane's CBD.
"Chris Humphrey Private Wealth Management has helped my family with professional financial advice on a number of occasions. Specifically, Chris recently helped me to make decisions regarding my salary packaging options. Chris and his team are always proactive and quick to respond to queries. Chris’ advice has always been relevant and informative, enabling us to make careful decisions about our financial situation and planned future. "