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10 Things To Do Before You Are 50 - Part 2
By Sandro Azzopardi
...continued from Part 1
3. Review your protection
Are you sure you have enough life cover in place? Should the worst happen to you or your partner how would the family cope? Many base their life cover needs simply on the amount of their outstanding debt. However, as any monthly budget chart usually shows, the majority of one's income tends not to be spent on servicing loans but rather on regular family living costs such as food, car expenses, school fees and electricity and water bills. Clearly, in the event of your death, your family will still incur. Should your children be young it may be difficult for your partner to continue to work, due to the extra care your children may need. Of course, your family could be entitled to state benefits but a cash lump sum gives an extra cushion of security at such a critical time. It's worth adding up how much cover you have in place, and working out how much you may actually need. Amazingly, good life cover doesn't have to be expensive and you will usually find it's a lot cheaper than you thought. You should also consider 'staying alive cover'. You know what they say 'if you do not keep up your home loan payments, your home may be at risk'. If you fall seriously ill not only would it affect your health, but it could also have a devastating effect on your finances as well. It is now possible to protect yourself from the financial implications of a heart attack or cancer for example.
4. Update your retirement planning
Many people know that the state pension won't take them very far. But do you know how much you will actually receive? By contacting the Government department responsible for pensions it is possible to get an idea of what you can expect to receive when you retire. An independent financial adviser can also help you find this information. Retirement should be the longest and happiest holiday of your life, but like with all holidays, it's good to work out how much you can afford to spend in advance. The good news is that you probably still have time to build up funds to provide for those special things in your retirement years.
5. Keep track of your existing investments
You may already have started to save for the future; but do you know how well your investments are performing? Are they on track to achieve what you had hoped for? By reviewing their performance on a regular basis you will have time to do something given that they are not growing as expected. These days it is much easier to research funds on web-sites, maybe you should also get a second opinion from an independent financial adviser? You may get a nasty shock if you fail to review your investments and wait until the day you need them!
6. Lay a nest egg
Perhaps you have some major expenses in mind - possibly helping your children with their education or wedding, or maybe going on a world cruise when you retire. A fixed regular savings plan or a minimum period investment is a good way to get the best returns, and also helps keep your money away from temptations. You don't even have to take big risks to achieve better returns than the interest rates offered by the Banks.
7. Plan your will
If you haven't yet made a will you should do so without delay. Preparing a will is the best way of leaving a record of what you want to happen after you die. If you do not do so, your loved ones would be left to sort out the problems, at a time of great stress. Speak to a suitably qualified professional person about the benefits of having an up to date will.
8. Give your kids a head start
Start the saving habit young. A good idea is to open a savings account on the children's behalf and let them see it grow. Whether it's buying their first car, funding a fantastic wedding or helping them through university these things cost money! Planning as early as possible will solve many future financial worries and will make their dreams come true.
9. Invest for Income
You may have built up a sum of money in the bank, from the sale of a property or by investing wisely, yet at some point, it will be important for you to actually see the benefit of your hard work. You may then need to consider changing your investment strategy from 'growth' to 'income'. In order to achieve better returns you may have been happy taking a risk with some of your money. But can you now afford to lose what has been taking you years to build up? Investing for income generally means taking a lower risk and seeing the benefit each month or each year in the form of an income payment. Ultimately, it's your money and you should enjoy it!
10. Keep an eye on the parents
A large number of people need to have some form of financial help or may even consider going to a nursing home in their old age. It therefore makes sense to talk things with your parents, regarding their wishes should this eventuality arise. Thinking ahead can really help and with the correct planning and preparation any future financial burden will be greatly eased.
About the Author
Sandro Azzopardi is a professional author who writes several articles on various subjects on his web site and local newspapers and magazines. You can visit information about this article and others on: http://www.theinfopit.com/society/life/10before50-2.php
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