Over 50 & looking ahead?
Are you over 50 and starting to think more about your retirement, how much you will need and by when, are you on track and what do you need to start doing now to get you on track for achieving these outcomes.
Here at Three Pillars Wealth, we work mainly with people like you. One or two of you working, kids may be getting closer to leaving home and the mortgage is getting to a stage that is more manageable. As this is the core part of our business, we know what lies ahead. We can recommend ways to manage your financial situation to overcome potential hurdles and maximise the opportunities to ensure a smooth journey.
let's consider...
Your mortgage is coming down, however the Superannuation balance needs some work.
As you approach age 60 (the age that most of us will be able to access some of our Super) the time frame that the funds are locked away is substantially reduced and there are some great ways to grow your Super over the coming years to retirement and potentially reduce some tax that you pay in your personal name as a result.
The Government continues to make it harder to get funds into the Super environment, so it has now become more important than ever to get in as early as possible to maximise the benefits available through this concessionally taxed environment. If you are not working or just working part time, the Government also provides some benefits to contribute to Super – not just for the high-income earners.
Other pre-retiree considerations may include:
Changing work environments and potential redundancy at the peak of your earning potential. You may find your circumstances change quickly. At that stage you might need to consider what would you do with the lump sum payment, how long will it take to get another job and what if you are unable to earn as much as you were before?
Investment Management - we may work on ways to grow your Super through adding additional funds. We may also look at how we can make it work harder for you – without you needing to do anything. LEARN MORE.
Perhaps the kids are staying at home longer and you want to help them get a financial “head start” (not only to get them out of the house!) We can look at how you might help fund their education needs (including university where funding is being reduced and accommodation costs increasing). Do you want to help them get a car to get to work or maybe assist in getting them into the ever increasingly expensive property market?
Some retirees find themselves coming into an inheritance and receiving a lump sum. The big question is what is an appropriate way to utilise these funds? Do you pay off debt, put the money into Super, buy an investment property or perhaps buy a portfolio of direct shares?
Another consideration is downsizing to a smaller residence to free up some cash or just to make life simpler with the ability to lock up and travel without any issues.
You may have one main income earner – what happens if they are unable to work for an extended period of time – how would your assets and future lifestyle be affected under these circumstances?
Aging parents and how we juggle our lives while supporting them through some tough financial and emotional decisions. This is a complex area and not an easy one to navigate – especially if there are multiple decision makers. LEARN MORE about Aged Care considerations.
Other areas for considerations – How can I utilise the equity I have in my home to grow wealth. What how should I pay out the car lease when it is up. What are my options to pay down the home loan debt. Once the home loan is gone, should I pay off the Investment Property Loan? These are all topics and issues that we help clients with every day.
How do I transition to retirement? This is one of the toughest questions around whether to go cold Turkey or to work with your employer to allow you to reduce your work hours over a period of time and maybe even incorporate your long service leave to have “trial run” to see how you go. We all get something different from work and it is about how we replace this to make the transition seem-less and within your financial reach.
How we help?
We use financial modelling to show you where you how you are tracking now towards your goals and what your income needs may be in retirement. We then educate, advise and implement a strategy to show you how to bridge any gaps and maximise what is available to you. We also hold progress meetings to make sure we are staying on track and achieving the small outcomes along the way.
We are proactive in looking forward to see what is ahead, and how to plan for the journey.