A bigger home, regular vacations with family and raising children can easily consume the increasing income.
At this stage, along with wealth creation for yourself, you need to plan for your children’s future. With increasing dependents, adequate life cover becomes more important and should be enhanced to protect spouse and children’s future.
Married with grown-up children
With children growing up, the responsibilities increase significantly and become top priority. At this stage, besides planning for children’s higher education and marriage, an individual also needs to plan for retirement and being free from liabilities. A higher proportion of investments need to be allocated in safe assets as goals come closer. Also, you need a comprehensive health plan to take care of hospitalization and critical illnesses.
Post retirement, you want a comfortable and relaxed life. To ensure that golden years are the best years of life, you need to consolidate all your assets for a regular income, provision for health expenses and leave behind a legacy for your family, you should invest in a pension plan for lifelong income and a health cover.
It’s fun to start by listing down your dreams and goals. Your financial planner or advisor can help you draw a plan to fulfill these dreams and goals. But don’t forget to revisit this plan with changing lifestages.
The most important aspect of financial planning is sticking to your plan for the long term. Because the wealth that it creates with very small amounts paid as premiums can guarantee a secure and fulfilling life for your family; higher education for your children and even their marriage; and a fulfilling life after retirement for you.
Anup Rau is CEO, Reliance Life Insurance