Life can get complicated as you approach and enter mid-life. You might be in the middle of countless transitions, like moving up in your career, starting a business, buying a home, getting married, growing your family — and a whole lot more.
This also makes it the busiest time, and the most difficult, to find the time to attend to your finances.
At this age, having some one focussed on your finances and ensuring you have the necessary plans in place – for emergencies, retirement, disability or even death - can be invaluable.
If you reach this age with no plans in place, you are definitely overdue for a planning session. A good financial adviser can help you with a full review of your situation and plan for the future. Read more: Why should I consider using a financial planner?
It is not impossible to make your own financial plan, but it will require a lot of research and you will probably need help with at least some aspects, such as ensuring you have good life cover in place or drawing up a will, especially if your family affairs are complex or if you have lots of assets, such as businesses, investments and properties.
If you have not yet put adequate life and disability cover in place, don’t delay doing so especially if you are the breadwinner and support a family. Read more: Do I need life cover and Do I need disability cover.
Life events like marriage, the purchase of a house, the birth of a child, a change in your job or divorce, should trigger a review of your financial plans and your life and disability cover. Read more: When should I review the life, disability and severe illness cover I have in place? and How do we survive the birth of a baby financially?
If you have children, you most likely want the best for them, so give some thought to saving for their tertiary education: How can I invest for my children’s education?
If you haven’t yet started to save for retirement, this is also something you should tackle with urgency. The sooner you start, the easier it will be to save a meaningful amount with the help of compounding returns. Read more: How much do I need to save for retirement?
All these financial commitments may seem overwhelming when your family needs are at their highest, but keep the trade-offs between spending on your lifestyle now and the financial stability you can provide for the rest of your life in mind. Plan your expenses to ensure you can be happy with your life, both now and in the future. If you don’t already have a spending plan, take a few minutes to read Why budgeting doesn’t have to be a bad word and use the Smart About Money Budget planner to make the most of what you are earning.
| If your lump sum taken on retrenchment (plus previous sums) is: | The tax you will pay is |
| R1 – R500 000 | 0% |
|---|---|
|
R500 000 - R700 000 |
R500 000 - R700 000 |
|
R500 000 - R700 000 |
R500 000 - R700 000 |
