Your Life Stages
Planning for Life’s Financial Journey
Life is constantly evolving, and with each new chapter comes fresh financial considerations. As you move through different stages, whether starting a family, changing careers, or preparing for retirement, your priorities naturally shift. At OpesFidelio Cyprus, we offer tailored advice that reflects your unique circumstances, wherever you are on your financial journey.
A strong, overarching lifestyle financial strategy helps you recognise that your finances are never static. It enables you to understand both your current position and your long-term goals. While financial markets may be unpredictable, the changes in your personal financial life stages are far more foreseeable and planning for them is key to long-term stability.
Three Primary
Financial Stages
Most individuals pass through the following three primary financial stages as they travel through life:
| Life Events | Financial Events |
|---|---|
| Enter work force | Develop financial habits |
| Marriage | Purchase car |
| Children | Purchase home |
| Life Events | Financial Events |
|---|---|
| Family grows | More home purchases |
| Career advancement | Accumulation of wealth |
| Inheritance | Funding university educations |
| Life Events | Financial Events |
|---|---|
| Enjoyment | Income Generation |
| Retirement | Greater tax sensitivity |
| Grandchildren | Preserving wealth |
| Death of spouse | Estate planning |
Laying the Foundations for Your Financial Future
So ask yourself, what in your lifestyle is important to you now and in the future, what do you want, and what can you not do without? If you feel that you are ready to take that important next step and to start or reassess your personal financial plan, please contact us.
Attitude to Risk is a Factor
There are two different considerations when discussing risk: one is your overall attitude to risk for your estate, and the other is the specific risk that you are prepared to take with the investments you are intending or being recommended. The two are not necessarily the same.
If you were asked if you were prepared to invest your home to produce a 20% growth, but the downside is you could lose your home, you are unlikely to be prepared to take the consequence of loss whatever the possible return. This is because it would have such a large impact on you if it were to fail. If, however, you were asked if you were prepared to invest 2% of your investment in assets which could produce 20% growth, with the same scenario of possibly losing all of the investment, you MAY be prepared to take the consequence of loss as it may have very little, if any, impact on you.
There is one further important note to add here – by spreading and diversifying investments you are reducing the risk of an investment. Whilst it is true to say that any equity holding you hold shows you are prepared to see fluctuations in the value of those investments, that is an over simplification. Classifying equity holdings as high risk once again ignores that holding shares in one company is far riskier than holding shares in 100 different companies.
Finally, the length one holds an investment plays an important part in assessing risk.
Need more information? For answers and help contact us.
Get in Touch with Our Experts
No matter where you are in life, starting, building your wealth, or planning for retirement, our qualified planners are here to help. Contact us today for personalised, independent advice tailored to your circumstances and goals. Let’s take the next step in your financial journey together.