Gaining access to a lifetime of savings and investment returns with superannuation opens up opportunities but can also lead to irreversible mistakes. Here are the top 10 financial mistakes people make in their 50s and 60s.
Accessing super is exciting and can lead to emotion decisions such heavy spending in the first couple of years. Some people make immediate full withdrawals as soon as they hit preservation age leaving them with no money left for their retirement. By providing retirement planning advice we can balance lifestyle with longevity. Learn how I can help you with your retirement planning.
According to the government a comfortable lifestyle in Brisbane for a couple costs $1,155 per week and for singles $840 per week but this is based on estimated averages. Retirement means different things to different people and therefore we must first determine your income needs or your income capacity. For more information check out the What’s my number calculator.
As working tax payers we want to know the government will provide us with everything we need once we retire. Unfortunately this will only provide you with a basic standard of living, maximum of $907.60 per fortnight for singles and $684.10 each for couples. We also do not know what changes will be made to the Aged Pension in the future. Therefore retirement planning is crucial area of expertise in my financial planning practice.
Once you are retired you may be entitled to Centrelink entitles such as the Aged Pension, New Start and Concession Card. Too many people put off applying because of the comprehensive application process involved. The easiest way to apply for government entitlements is with the assistance of your financial planner. To maximise your government entitlements book an appointment today.
The biggest risk once you are retired is sequencing risk which is the order and timing of investment returns. As a retiree you are regularly drawing an income from your investment. During this time an unfavourable investment return can be difficult to recover resulting in less spending money. One way I combat this is by using a short, medium and long term wealth management bucket strategy.
In Brisbane we are living longer with those in their 50s and 60s often having parents needing financial assistance with aged care while at the same time children needing assistance with property finance. It is important to consider the impact of financial support to family members can have on your own retirement. Before making any decisions ask your Brisbane financial advisor or contact us.
Owning your home outright is an amazing experience and a popular goal. However if you have other financial debts such as credit cards or personal loans you may be better off consolidating them into your home loan for a lower interest rate. The freed up cashflow can then be used to make extra contributions to your mortgage or super but it is important to talk to your local financial planner first. Click here to learn more about debt consolidation.
Having a valid, current and legally binding will removes the burden on loved ones and avoids any confusion after your passing about how you want your assets to be distributed. If you decide to make your own will, make sure it is checked by a solicitor, otherwise your beneficiaries may not be entitled to receive any of your estate. Also, check your appointed executor knows exactly where your personal documents are kept and that they are aware of their responsibilities. Click here to learn more about estate planning.
Most people know they should have a will but less people know the importance of having a Power of Attorney. If you were to become unable to manage your personal and financial affairs your Power of Attorney appoints someone to act on your behalf.
No one can be an expert at everything and when it comes to your retirement planning there are many benefits to seeking advice. Risks including sequencing, market volatility and longevity all need to be addressed and mitigated where possible. Tax optimisation, Centrelink entitlements and retirement income all need to be optimised resulting in your money lasting longer. We can also plan to maximise the inheritance left to your family.
If you have reached 50 as a Brisbane Financial Advisor I can help you get clarity around your future, your options and the next steps in your retirement planning strategy in plain English. Book an appointment today to learn more.
Constancy Wealth Management Pty Ltd ABN 51 168 427 361 trading as Constancy Wealth is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706.
This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.
This list contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
Constancy Wealth Management Pty Ltd ABN 51 168 427 361 trading as Constancy Wealth
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