Generation - Lifestyle Stages

Which generation do you belong to – Gen X, Y, or Baby Boomers ? Where are you in your life journey and which Financial Roadmap is appropriate for you to follow?

Our adult years can be divided up into 6 potential phases. Each generation or phase has “lifestyle issues” that affect our decisions regarding our money management and financial planning situation

Lifestyle Phases for :

15 – 24 year olds

25 – 34 year olds

35 – 44 year olds

45 – 54 year olds

55 – 64 year olds

Age 65 +

Financial Planning Issues for 15 – 24 year olds Generation Lifestyle: College/University Education Earnings: first job, first income, first cheque account, Expenses: first commitments – rent, payments on car, car insurance, first credit card, student loan commitments Savings: first superannuation, savings commence for first home purchase

Financial Planning Issues for 25 – 34 year olds Lifestyle: Marriage, birth of children, living on a single income ( or child care requirements for both parents working) preparing for children’s education, preparation of a will Earnings: major career demands Expenses: first home purchase, home mortgage, need for home and contents insurance, life insurance, disability insurance Savings: Maintaining superannuation programme Investing:

Financial Planning Issues for 35 – 44 year olds generation Lifestyle: Return to two incomes (less reliance on childcare support) Earnings: Career demands / resizing corporations Expenses: New home or major renovations to accommodate a growing family Savings: travel plans, maintaining superannuation programme Investing: time for serious retirement planning

Financial Planning Issues for 45 – 54 year olds Lifestyle: Children left/leaving home, caring for aged parents. Plan new interests to replace work activities. Need for preventative health programme Earnings: First signs of discretionary income again, maybe possibility of an inheritance, mortgage could be nearing being paid off ( if renovations during previous decade were able to funded from cashflow) Savings: savings and superannuation increase Investing: (mortgage payment can now be diverted to retirement planning.

Financial Planning Issues for 55 – 64 year olds generation Lifestyle: Active preparation for retirement, Plan new interests to replace work activities. Need for preventative health programme. Move to smaller home/location, provide support to children/grandchildren Earnings: create new career/income stream, understand pension and retirement income requirements Expenses: health care/wellness programmes, create a new pre-retirement budget, extras for grandchildren Savings: Investing: Invest carefully for retirement, adjust risk profile

Financial Planning Issues for Age 65+ Lifestyle: Retirement, travel, staying active. Being connected within the community Earnings: Part-time participation in the workforce, giving back a lifetime of commercial knowledge Expenses: Monitoring the budget, living within your means Saving: Investing: Monitor retirement investments – for extend life maybe to 95 years +

Financial Planning can assist any age bracket. If your current age does not fit the described current status, chose the elements which best describe your current situation. Follow the link for more details on each of the phases to assist you to build your financial plan.

Key factors that can assist the planning is to have your home mortgage paid off prior to retirement. Aim to keep personal loans etc around 10% of household income. To achieve a retirement fund of 7.5 times your household income will in most circumstances see you able to lead a comfortable lifestyle in your retirement. This can be a balance between spending enough to enjoy life today while saving for