Stage 3: Age of Maturity (45 to 60)
the final countdown –
it’s never too late
You are at the peak of your earning potential, but your expenses can put you under much pressure – an even bigger house, a nicer car and more exotic holidays can become even bigger traps that derail your life planning. College or university tuition, divorces and career changes all typically occur during this stage.
As you get closer to 60, some expenses may be dwindling, for example your children are qualified and no longer a financial burden (are they ever not?) Other costs—such as health-related expenses—may be on the rise. You may also have to contribute money to support your own parents.
As your circumstances change – you have paid off the bond, the car and no longer have university fees to pay – INVEST this money, don’t spend it. Retirement is just around the corner and the decisions you make today will have an impact on your future.
Now is the time to focus on your retirement strategy and goals, and to review your investment risk strategy.
Although a high-risk investment vehicle may have been appropriate during your 20s, at this stage it may be wise to choose something less risky, but with sufficient growth.
Most people begin to realise with the passing of time that retirement is a reality and getting closer every day.