Life happens, whether you expect it or not. Life events occur planned or unplanned and will impact your financial plans. You should expect your financial goals to vary as you go through different stages of life. Your financial goals established when you get your first job, may change if you buy your first home or plan to start a family. Furthermore, the goals at your peak earning years will likely change dramatically when you decide to retire or even slow down a bit
To guide you and your family in future planning, here are some financial priorities and considerations tied to commonly shared life stages and goals. Remember, everyone is different and, as such, it is important to have a financial plan that suits your needs along the way.
|Stages of life||Financial priorities & considerations|
|Post-secondary and early career years: You may be going to college or university, starting a career, and maybe finding a life partner. Spending is often greater than income.||
|Career-building years and starting a family:You may begin changing jobs to enhance your career. Your income usually rises during these years. You may also start a family and find you need to save for their education.||
|The kids’ post-secondary and marriage years: If you have children, you may help pay for their education and their weddings.||
|The pre-retirement years: Your expenses may start to go down, and savings can start to build. Children may have left home by this stage.|
|Early retirement years: You may work less, and your health may still be good enough to support an active lifestyle, perhaps with travel, volunteer work, or some part-time work.||
|Later retirement years: You may become less mobile and need to take care of health problems.|
Over time, your financial goals will change and be influenced by life events and various milestones.
As these changes occur, you should be continuously reviewing your financial plan to ensure you are on track to reaching both your short-term and long-term financial goals. As your Advisor, I am here to support you by proactively building and managing your financial plans. A solid financial plan will help you and your family prepare for and navigate through life events and bring you closer to your life goals.
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This article was originally published in November 2018 at https://www.investmentplanningcounsel.ca/and supplied by Scott Penney, PFP® and Wealth Advisor with Investment Planning Counsel of Canada.