Life goals often change. As you go through different stages of life, you have different goals at each stage of life. With the changing circumstances of life, you require different solutions.
The general pattern of life cycle, life goals and solutions can be summarized as follows:
Post secondary years (ages 17 to 25 generally)
Life Goals:
- Post secondary education &/or acquiring various skills for a career.
- Part time or seasonal or full time employment.
- Fascination for a life partner.
- Buying a car and other consumer items.
Financial solutions:
- Develop a habit of savings.
- Acquire one credit card, if possible, to build a good credit history.
- Pay off credit card balances in full every month.
- Apply for a line of credit, when you get a full time job.
- Pay off student and other loans as quickly as possible, without missing any monthly payment.
Career building years (ages 26 to 39 generally)
Life Goals:
- Marriage
- Buying a Home
- Children
- Reducing taxes
- Starting a Business
Financial solutions:
- Tax Free Savings Account
- Registered Retirement Savings Account
- Non Registered Savings Account.
- Protection (Insurance)
- Buy a Home (with a help of a Realtor & a Mortgage Agent/Bank)
- Registered Education Savings plan
- Apply financial strategies to reduce your taxes.
- Prepare a will.
Pre retirement years (40 to 60/65 generally)
Life Goals:
- Dreaming your own retirement/new ventures.
- Supporting your children for their education, marriage etc.
Financial solutions:
- Pay off mortgage and all other debts.
- Grow retirement savings through appropriate strategies.
- Review will at least every five years.
Retirement years (over 60/65 generally)
Life Goals:
- Excellent health
- An active life
- Dreamy vacation
- Volunteer/part time work
- Spiritual and charitable activity/work.
Financial solutions:
- Turn your retirement savings and pension into income.
- Ensure that your savings last till you live.
- Manage taxes.
- Review will and estate periodically.
The above list is not exhaustive but only illustrative. It is recommended that you consult a trusted financial planner or advisor to discuss your situations and goals.
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