Making smart choices to enjoy a better retirement
Our job is to help our clients make smarter choices with their money, so they can enjoy the lifestyle they want.
For some that means retiring early, for others, making sure they have enough in their nest egg as they leave the workforce in their mid to late 60s. In either case we help them re-think their approach to their finances to make their money go further.
We recently had clients who were a couple. She was 66, he was 63. By utilising the little known sheltering rules within superannuation, she was now able to qualify for the age pension. She’d previously been barred because of means testing. They were now able to use that pension to avoid eating into her superannuation until he turned 66, at which point neither of them will have access to the pension. That three years of additional pension income could prove crucial, particularly if they live a lot longer than they’d originally expected or budgeted for.
Another client was 27 and had a plan to retire by 45. We created a financial plan that will help her to achieve that goal, ensuring there will be enough money in her superannuation fund when she reaches 60 and enough money in her investment portfolio to support her from age 45 to 60. The plan includes specific decisions covering property purchasing, superannuation contributions, regular holidays and investments and with our help she now knows what she needs to do each week, month and year to achieve her desired life.
One of the best things about being a financial planner is we help people to get more excited about their lives. Instead of them just trudging away at a job, living from week to week, we help them create a future to look forward to. That vision gets them more excited about the steps they take in the present day. It also helps alleviate their fear of being older. After all, with advances in medical science and treatment, some of us could be around for much longer than we’d planned to be and we need our money to last.
We also help our clients to become aware of some of the risks that those in our profession understand, but others might miss. For instance, there is a tendency for some clients as they move towards retirement to invest too conservatively. Their first priority is to preserve their capital, knowing it won’t be possible to restore it without an income. Unfortunately, with interest rates falling over the world, a nest egg produces less income than it did in the past and they find themselves running out of money years before the end of their life. A higher growth strategy can make sure the nest egg is large enough to look after them for life. We can help put one in place that fits their needs and has a manageable level of risk. We also help them get into it early enough that they’re more likely to ride out any shorter-term falls.
Some clients also feel tempted to splurge too much in retirement. It’s about having fun after all. But too many resorts and cruises can cause the cash to run out much earlier than excepted. We help our clients to fully understand how long their money will last and they can then plan their activities around that. Some of the most fulfilling events in life can happen outside world travel and knowing their limits has caused our clients to get more creative about how they will spend their time, in case they do make it into their 90s and beyond.
Call us on 07 3062 7444 or Email firstname.lastname@example.org to find out how iPlan can help
General Advice Warning The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.