Wealth creation potential for 30-somethings

By iTrust Financial Advisors (www.iTrust.in)

Based on one’s age, there are certain common financial products that can be suitably recommended to most people. We recognize that everyone is unique when it comes to the world of personal finance.

However, there are good financial habits and relevant products that all can benefit from that can facilitate long-term wealth creation. What appears below is a highly generalized list of suggestions for what you should be thinking of in your 30s.

Real Estate and Financing: If you aren’t already living in a house that you own, but are renting, start planning to buy your own house and build an asset. Understand how home loans work in case you need financing. Get home contents insurance as well. If you already own a home, consider a real estate investment to generate rental income to fund your retirement.

Long-term Investments: Understand that you need long-term investments in place to fund your goals such as child’s education and marriage, upgrading your car, buying a bigger house. Consider stable and diversified large cap mutual funds as the core of your investment portfolio

Life Insurance: It is likely that you have a family and dependents by now, so you need to ensure their financial security by having adequate life insurance. Continue your personal accident protection either as a rider on your life policy or a separate policy.

Health Insurance: Get a family floater plan. If you parents are below 65 years, get health coverage for them as well, after this age it can be tougher for them to get coverage.

Retirement Planning: Choose what age you want to retire at and the kind of lifestyle that you might be interested in during retirement. Invest in a pension plan. Start thinking about your Will and how you want your assets to be transferred to your survivors. If you have a lot of assets already, write a Will.