Financial advice at every stage of life

The main questions at this stage of life

To enjoy your independence after you start working, the following are some of the questions you’ll need to think about:

• What accounts do I need?
• What expenses am I planning for in the short to medium term and how will I finance them?
• How can I invest my own money sensibly? What risks am I willing to take in the process?
• How can I insure myself from the start against unexpected events, e.g., a sudden inability to work?

How to address these questions

Deal with these questions early on. A basic account set-up comprises at a minimum a private account for regular payments, a savings account for major purchases, and a retirement account for pillar 3a. In addition to organizing your own finances, you’ll also need to think about the future, even if it still seems a long way off. This also means thinking about investing. Investing your money rather than leaving it in a savings account can be worthwhile. A suitable investment strategy will help you to achieve your financial goals – be it owning your own home, affording a luxurious vacation, or enjoying a certain standard of living in general. Learn more about how to be smart about optimizing your wealth in the following article.

When you start your career, you don’t want to think about unforeseen events. Nevertheless, you should start looking into this topic as soon as you can and also invest in a private pension using pillar 3a.

The main questions at this stage of life

Couples don’t like talking about money. But to enable you and your partner to look forward to the future with confidence, you should still ask yourself certain questions:

• How will major expenses, e.g., buying your own home, impact your future wealth?
• Which investments will further your long-term goals and financial flexibility?
• What accounts do we need as a couple? What about account access and powers of attorney?
• How can we safeguard ourselves against a sudden loss of income, for example?
• What inheritance arrangements should we make?

How to address these questions

Talk actively with your partner about money to preserve financial harmony in your relationship. Consider both long-term and short-term finances, such as joint accounts and powers of attorney. Set both individual and joint goals and plan how you want to achieve them. Make arrangements for when something doesn’t quite go as planned. Did you know, for example, that in the case of unmarried couples, inheritance law means the surviving partner receives nothing?

When you talk to your partner about money, base your conversation on these 7 financial topics.

The main questions at this stage of life

When you have a family, a lot of things change in your day-to-day life and new questions arise about finance and wealth:

• How will your changed circumstances impact your wealth in the long term?
• Who will look after your children if something happens to you?
• Who will be responsible for using and maintaining an inherited property?
• What is the best way to finance your dream of home ownership?

How to address these questions

Having a family means assuming new responsibilities, including financially. Your wealth may change over time, due to lower income if, for example, you or your partner work part-time. Therefore review your financial goals and, as soon as you can, start planning how you can achieve them in your new circumstances, including with regard to your pension provision. Often you’ll have new goals, for example financing a course of study, helping your children realize their dreams, or the desire to own your own home.

This life stage also gives rise to some difficult questions that need to be addressed at an early stage. Decide who should look after your children and how your assets should be divided up should anything happen to you.

The main questions at this stage of life

Once you’ve launched your career, you need to make sure you’re on track for the future. To do this, here are some of the questions you’ll need to consider:

• How should I provide for my retirement? Which pension instruments are worth investing in?
• What will happen to my pension if my career doesn’t go according to plan?
• How will wealth tied up in a company affect my taxes?

How to address these questions

Even if things are going really well in your career right now, it’s still worth looking to the future, especially when it comes to your retirement. Think about what standard of living you want to enjoy in retirement and set up your own pension early. To do this, take advantage of the possibilities of private pension provision and invest in the appropriate pension instruments. To learn how you can take responsibility for your own retirement planning, click here.

If you are a manager or self-employed, often a significant portion of your income or assets will be illiquid. In addition to the tax implications, you’ll also need to think about liquidity and withdrawal planning.

The main questions at this stage of life

Once a number of major milestones have been reached in your professional and family life, you’ll need to keep your sights on the upcoming goals and plans. Here are some of the questions you’ll need to address at this stage:

• How can I ensure I maintain my desired standard of living in the long term? What could knock my plans off course?
• How high are my taxes and how can I maximize my net income?
• How can I find the right woman or man to take over my business? What’s the best way to finance the transfer?

How to answer these questions

Time to enjoy your achievements so far. But don’t lose sight of your goals for the future. At this stage in life, you should think about how to grow your wealth in line with your future plans. This will include thinking about taxes. Higher incomes usually lead to higher taxes. Take a close look at your taxes and take the opportunity to optimize your tax liability.

Woman entrepreneurs should also get to grips with company succession at an early stage. This will allow you to pass on your company to the right person and in accordance with your own best interests. To learn about your options, click here.

The central questions at this stage in life

Sometimes not everything goes to plan – including in relationships. Separation or a new partnership raises both new and old financial issues that you should address at this stage of your life:

• How will the separation affect the long-term living standards of both parties?
• Are new or other accounts required? Do powers of attorney need to be changed or revoked?
• How do I ensure the legal status of new partners or family members? Are adjustments to existing successor documents necessary?

How to deal with these questions

Separation also changes your financial situation. Get an overview of the changes and how they will affect your long-term living standards. You’ll also need to disentangle and adjust joint accounts, joint contracts, and joint powers of attorney. Read more about how your financial situation will change in the event of divorce.

In a new relationship, “old” financial questions come up again. Adjust your financial goals, retirement planning, and any insurance policies you may have to your new needs and situation.

The main questions at this stage of life

When you retire, an important new chapter begins – you’ll have more time for yourself, your family, and your own projects. To enable you to enjoy this time, you’ll need to deal with the following questions:

• When exactly will I retire?
• How much confidence do I have in my pension fund?
• How should I decide when to start drawing my pension?
• What is a sustainable level of spending during my retirement?

How to deal with these questions

At this stage of life, your personal perspective on the future is important. Think about when you want to stop working. If you decide to retire early, you’ll need to plan early. You’ll also need to decide whether you wish to withdraw your retirement savings as a lump sum or a pension. This will also involve thinking about the tax implications.

In retirement, your focus will switch to vacations, grandchildren, hobbies, and realizing your own dreams. Decide on a sustainable spending level that will allow you to put your plans into practice and to enjoy your retirement with peace of mind.

The main questions at this stage of life

What will happen to my wealth after I die? This question may sound simple, but there are many aspects to consider. To enable you to pass on your wealth as you would wish, here are some of the questions you’ll need to answer:

• How much money do I want to pass on? Which documents will I need to do so?
• Do I want to help the common good? How can I ensure that my money reaches those who need it?
• Do I want to pass on some of my wealth in advance? What are my options?

How to deal with these questions

Although we’d rather not think about our own mortality, you should start thinking about your succession sooner rather than later. Decide whom you want to leave your wealth to and how much and what documents you’ll need. Take tax issues into consideration too, especially in an international context. If you want your children to inherit some of your wealth early, you could opt for either a gift or an advancement.