Considering retirement?
Retiring can be one of the biggest decisions of your life – and not just financially. Planning for a 30 year holiday is a pretty big task when most of us will have only planned previously for a month or 2 at a time.
By now you will have been aiming to be debt free and have a lump sum that will deliver your income needs through retirement.
Common considerations for those approaching retirement include:
What you will I do each day in retirement?
What interests and hobbies do I have?
How much money will I need to live the lifestyle I want?
How do I make sure I don’t have to go back to work?
What benefits are available to me from the Government to try and take the pressure off my own assets along the way?
Usually in retirement when your fortnightly income stops from work, you will need to think about how this can be replaced from your investment assets. This can be a range of property rental income, interest from cash in the bank and also dividends from shares. Superannuation is also likely going to be the biggest asset that will be your new employer. Getting this area right and avoiding pitfalls is important as you don’t want to have to go back to work.
At Three Pillars Wealth, we understand what lies ahead, what the journey might entail and can help lead you into the future.
let's consider...
Working on the budget to ensure that there are no surprises around what it is you may need.
This does not mean not spending – just understanding where you do spend your money is very empowering to have the control you need to know you will not run out of money.
Perhaps you have a personal or self managed super fund that has been growing nicely up to now and you want to know how to start to focus on income to fund your retirement. It may be time to consider what gaps there could be in managing your finances from here. For example, is your Will up to date with your current wishes? Understanding what assets will go where, any special needs to plan for and what potential tax may be payable as a result.
It may also be a time to consider having Enduring Powers of Attorney put in place to ensure that action can be taken financially by a representative/s. As well as Enduring Guardianship to make sure that medical decisions can be made by loved ones. You may also be considering what your legacy is going to be and what is it that is important to you over the coming years and after you are gone. Perhaps Gifting to Children, Philanthropy or spending the kids inheritance?
You might be coming into an inheritance. Unfortunately you may lose a loved one and this can see a lump sum transition of wealth to you. The big question is what is the sound way to utilise these funds – do you pay off debt, put the money into Super, buy an investment property or buy a portfolio of direct shares?
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 is another consideration for retirees.
Not forgetting, Health changes and ongoing care needs. As you go through retirement your health may deteriorate and experience cognitive decline. You may need to consider your options for care in the home and utilising the services available to keep you there longer, how does the system work, what are the costs and what other issues do I need to consider?
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 plan for the journey ahead.