About Life’s Four Stages

As you go through life, your income, accumulated wealth and protecting what matters most to you change.

Below are four of the main stages of life and an overview of how these considerations might change during each stage.

Beacon Point Financial Security Limited :: Introduction to Life's Four Stages

Life Stage 1 – Your Early Career

Building the foundation of your financial security should begin with the start of your career.

Your Income

In the beginning years of your career your income might be relatively low. It’s still a good time to create a personal budget, start your investment portfolio, and start saving towards your first home.

Your Wealth

Even when you’re first accumulating your personal wealth, longer term planning is beneficial. The earlier you start building your investment portfolio, the easier it will be to enjoy the retirement that you deserve.

Protecting What Matters Most

When you’re young, you might feel invincible. But unforeseen circumstances can hit at any time, so having the right insurance products in place can help protect you. If your employer doesn’t offer an employee benefits plan, getting your own can help offset unexpected medical costs.

Life Stage 2 – Starting a Family

Part of venturing into parenthood includes heavier financial responsibility and protecting and providing for more than just yourself.

Your Income

Continuing to carefully manage your personal finances is still key, regular contributions to your investment portfolio will help your retirement plans, and starting an education savings plan when your children are born will help you give them a great education.

Your Wealth

During this second life stage, more of your wealth accumulation might be in buying a home and providing for your family. While it might seem that every dollar has to stretch so far, you can still build wealth with smart budgeting and cashflow management!

Protecting What Matters Most

When you have children that rely on you, protecting yourself becomes even more important. More substantial living benefits and life insurance can help you provide for them if something happens to you, and individual health benefits help you give them the best medical care through adverse times.

Life Stage 3 – The Midlife Years

Once the hard work of raising your family and building your financial foundation is done, it’s time to enjoy the fruits of your labour!

Your Income

You’re earning more money and with a solid foundation in place and fewer pressures you get to do more of the things you want to do! This can be a great phase to accelerate your investment contributions but also start preparing your financial platform for retirement and estate planning.

Your Wealth

As your life situation changes, how you position your wealth can also change. Downsizing your home once your children are off starting their own families can free up significant wealth which can be invested for your retirement or gifted to your children in a tax-efficient manner to help them build their financial security.

Protecting What Matters Most

Even with fewer pressures, you still want to make sure you’re adequately protected. Having the right insurance products to protect your health and wealth is important, as is offsetting potentially higher health and wellness costs through affordable health benefits.

Life Stage 4 – Retirement

Your golden years is the time to enjoy your life’s work and fully prepare your estate for efficient transition to those that matter most to you.

Your Income

Your income will come from government and company pensions, but your financial security work shifts to converting your investment portfolio into a steady stream of income so you can do the things you want.

Your Wealth

Once you’re sure you have enough wealth and income to live the retirement you deserve, you may wish to gift part of your wealth to your children to help them build their financial security or support charities and causes that matter most to you. We can help manage this in the most tax-efficient way!

Protecting What Matters Most

During your golden years, your focus might shift to ensuring your estate is ready for efficient transition to your children and other beneficiaries. The most tax-efficient transitions happen when both the giving and receiving financial platforms are fully prepared.

BeaconPoint Financial Security Limited :: Let Our Team of Financial Advisory Experts Help You Protect What Matters Most to You!

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