Sunday, March 15, 2020

Lyle Advisors Can Help You Settle Debt Faster

Planning about your finances is really quite a challenge according to almost all the TED talks I've listened to. There's no question about it. P
aying off your marriage expenses, paying off your rent, credit cards, and your children’s enrollment fees may be your financial summary during your 20s or even 30s. During your 40s, you get to think more long term it often features growing responsibilities and ever-competing priorities. Your parents are older, your mortgage is still on foot, children’s education costs are growing, and though retirement may seem a distant reality, planning for that reality becomes an important consideration.

The good news is that in your 40s, the financial planning you undertook in your 30s begins to come to fruition. Perhaps even better news for many is that it’s still not too late to start this planning in your 40s if you haven’t already done so.

Controlling your Finances

Everyone’s financial goal regardless of age is to organize and optimize your financial affairs. Everyone needs a financial plan, and all plans should be in writing so as to be measurable and accountable.
At the very least, your financial plan should encompass your current circumstances, such as specific financial goals, budgeting, emergency funds, cash flow, as well as your road map for achieving these objectives. This road map should cover both wealth-accumulation strategies – that is, growing your investments – and wealth-preservation strategies, which can include using appropriately structured life and income insurance as well as appropriate legal documentation, should something happen to your health, life, or family situation.

Augmenting Your Cash Flow

Having a budget is very important and making sure to have a daily, weekly, or even monthly budget is a must in every household to cover your basic needs.  In your 40s, you should have a family budget that you also regularly review. Simply writing down and organizing your key priorities, then allocating the cash flow accordingly, can bring valuable clarity and simplicity to your budgeting.
Often, you don’t need to earn more to improve your cash flow; you just need to better manage the money that passes through your hands. Depending on your marginal rate of tax, a dollar saved can almost be worth as much as $2 earned.

Settling Debt Faster with Lyle Advisors

In your 40s, if you’re responsible enough and with some luck, you’ve left behind the credit card debt and personal loans from your 20s and 30s. After all, these days, you’ve got enough to juggle and should be dealing with only one non-deductible debt. But in case you still haven’t settled your credit card statements yet due to high interest rates, you may need help from a financial advisor about this such as LyleAdvisors.

Using Superannuation Effectively (for employees)

Employees are lucky for having superannuation. Although superannuation is an important vehicle for your retirement wealth, if you’re in your 40s and more than 10 to 15 years away from retirement, it’s generally better to use your surplus cash flow for the repayment of non-deductible debt instead of additional pre-tax super contributions. Within 10 years of retirement, it’s typically better to flip this strategy and focus on maximising superannuation contributions with your surplus cash flow.

Accelerating your Wealth

Even if you have your company’s retirement plan ready for you, it’s a good idea to have some investments outside of this retirement vehicle. These investments can provide you with the flexibility of a retirement before the superannuation preservation age (the age at which you can access those funds).
Living through your 40s and your finances can be a challenging combination, but with some help and careful financial planning, you can achieve your financial goals and live the life to the fullest - financially speaking. 

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