5 Deceptively Simple Ways to Accelerate Wealth Creation in Your 40s

There isn’t a single client I speak to that isn’t concerned about their retirement.

And it’s no wonder as most of them are in their 40s (or even 50s) and getting closer to retirement - realising that there is less time than ever to retrace their steps and erase any less-than-astute financial decisions.

With the responsibilities of the 30s well at hand - marriage, mortgage and munchkins - savvy professionals in their 40s are looking to capitalise on their hard work to start really accelerating their wealth creation.

Whilst there can never be any guarantees, there are still ways to ensure that you set yourself up right.

But before we do, let’s get clear on your goals and priorities

It’s surprising how many people have no idea what they need to retire.

Even fewer have a plan.

Goes without saying that you can’t move towards what you want if you don’t know where you’re at - assess what you currently have and figure out what the forecast might be.

Truth is, most people simply do not have enough to retire with their intended lifestyle. If you think this might be you, then read on...

1. Ramp up your super contributions

Have you checked your super balance recently? Do you know what you need to sustain your lifestyle in retirement?

If you’re not happy with the number you’re looking at, consider putting something extra towards your super as a salary sacrifice arrangement. This will help reduce your personal income tax whilst growing your money in the most tax effective way for most people - their super.

2. Unlock equity for investment

Have you got lazy equity in your home? Paying off non tax deductible debt, i.e. your home loan?

Then you might want to consider using it to purchase investment assets that will grow in value.

3. Consider refinancing

Have mortgage rates dropped since the ink dried on your home loan?

It’s probably worthwhile looking at what’s available right now to see what your options are and the possible savings you might make through refinancing.

You could be pleasantly surprised by the amount of interest you could save each month - that could go towards other assets to accelerate your wealth creation!

4. Renovate or invest

Home owners in their 40s usually have a significant amount of equity built in their home. it’s usually around this time they consider upgrades to the family home...but before you do - consider whether this is the best investment given your financial goals.

Furthermore, depending on the extent of the home improvement, the money you invest in a home improvement now may not be recovered in a sale. Tread carefully with the equity you’ve built up. There could be better investment opportunities.

5. Redirect underperforming capital

We frequently speak to people who may have made poor buying decisions in the past, say a property that has not appreciated in value for a long time. But as a result of previous poor performance, they never action the rest of their plan for wealth creation.

Depending on why the asset is underperforming, often times you might be better off taking a small loss but freeing up the capital to invest in a better asset.

This is by no means an exhaustive list of wealth creation methods. But it’s certainly ones we see our clients benefit from the most. And with very little effort on their part.

You’ve worked hard to get to this point in your life - you are certainly entitled to enjoy your money now.

Simply ensure that you’re also making that money work hard for you.

If you’re unsure what your next best steps should be, we can help. Click here to book a time to speak to one of our Wealth Creation consultants.

Find out how you can accelerate your wealth creation.

Book your no obligation free call.