On our social media pages, we are sharing a Happy Birthday series of videos where we talk about things you should consider when you reach a certain age. In this blog post, we’ll be summing up these points.
You’re having a baby
Starting good financial habits early is a good way to set your child up for success. For many people, they learn the hard way about finances. As a parent, it’s good to be a role model for your child and if you’re having a baby, you might want to consider starting a junior ISA for them so they can have a good head start for the future, whether it’s going to university or buying their first home. This account is tax-free and encourages families to save for their child’s future. You can put up to £9,000 per tax year in a junior ISA tax free. When your child turns 18, they can access the money in their junior ISA.
You’ve turned 18
When you’re 18, you are now old enough to set up a lifetime ISA (LISA). You don’t have enough money yet to buy your own house, but you’re going to want to think about it and a good way of saving money to buy a house is through an investment LISA because for every £4,000 you put in per year, you get a government bonus of £1,000 per year and by the time you reach 28 years old, you’ll have at least £50,000 plus any investment growth that you have received during that decade. That’s enough for a decent sized deposit on a home.
You’ve turned 25
When you’re 25, you’re probably in your career now and you may have a partner or spouse and you may have a family or may be thinking about starting a family and one thing you might want to consider is getting a life insurance policy. The earlier you take out a life insurance policy, the better since when you’re younger, you’re generally healthier and don’t have as many pre-existing conditions that someone in their 40s and beyond would have.
You’ve turned 30
When you’re 30, you’ll probably be anywhere from 5-10 years into your career and you’ll have made some pension contributions through your workplace. This can be an overwhelming, anxiety-ridden time in your life financially because you may be newly wed, buying a house, or starting a family or have a young family and there’s a lot of expenses associated with those milestones in life.Take a deep breath and make sure to think about your objectives for the short, medium, and long term, your financial foundations so to speak. Make sure you have an emergency fund in case there’s an illness or something breaks in your house or your car. The key is having peace of mind and a happier, more contented life.
You’ve turned 50
When you’re in your fifties, you’re nearing retirement and you’ll want to plan for retirement and think about your pension more because you’ll want to make sure you put more money into the pot so when you retire, you’ll not only have enough for a dignified retirement, but also enough for a fun fund and do the things you enjoy. So if you have the money, you might want to put a bit more into your pension. At this age, you’ll want to make sure that you’re organised and that you’ve tracked down all of your pensions and you’ll want to look out for lifestyling in your pension. You may not have enough money in the pot to retire, but often people put more money into their pension as they get older, so don’t worry too much. Just control what you can control.
In conclusion
No matter what your age is, it’s a good idea to speak to a financial advisor to get the financial foundations in place and plan for retirement. If you want to know if Plan With Neil is the right fit for you, book a free discovery meeting with us today.