#3 - Wealth Generation

The Wealth Generation stage generally occurs when your income is rising.  However, nicer homes, nicer cars and children can easily consume your increasing income.

This is the time when the financial decisions you make will have the greatest impact on the financial lifestyle you will enjoy during retirement.  By now, you should have accrued savings, as well as the expertise to make sound choices such as:

  1. taking full advantage of employer offered salary sacrifices.
  2. adopting tax planning strategies.
  3. investing wisely.  Consider an asset allocation strategy that matches your time horizon and risk tolerance.  Don’t ignore the potential long-term returns of equities, but do your homework or rely on a qualified advisor.
  4. if you are contemplating borrowing to invest, do it wisely.  Consider debt recycling and potential gearing.
  5. ensure your insurance protection has kept pace with your needs.  Having adequate life insurance to protect your family, in case of your untimely death, is critical.
  6. preparing an estate plan to minimise tax and to ensure that your custodial, financial and medical wishes are carried out.

The opportunities to help increase your nest egg, come with a host of complexities.  This makes good financial planning essential.

Our wealth generation case study may help you to understand this life-phase better.

Humphrey Partners is conveniently located on the outskirts of Brisbane's CBD.

"Since engaging Chris Humphrey, I have benefited from his comprehensive financial, investment and tax knowledge. Chris and his team are always quick to respond to my queries and pro-active in updating me on any changes that may affect my financial situation. "

Dr Jason Stone