Building wealth in your 40s can be one of the most lucrative times. Most people…
Planning for retirement can be rather tricky. This is because there are many different ways to go about doing it. To help simplify things, we thought it would be useful to put together a guide that will help you have a more comfortable retirement. If this is something that you’re interested in learning more about, read on for five practical tips for a financially healthy retirement.
Consider How You Want to Live During Your Retirement
Financial retirement planning requires foresight. Begin by thinking about how you would like to live during your retirement. Avoid heeding some outdated rule book or how your parents might have lived in their retirement, and instead think about how you want to live. This factor is vital to help you stay positive and enthusiastic about the days ahead. Once you’ve thought this through, come to a complete understanding of where you stand financially. Don’t be overly pessimistic or optimistic—the numbers will tell you the truth. Work out how to use your money most effectively to fund what you want from the rest of your life, considering your financial situation as a whole
Look Into the Australian Age Pension
When planning for a secure financial future, retirees tend to overlook one factor: whether they might be eligible for the Australian age pension. Failing to prepare for a monthly pension payment can be a serious mistake. If you qualify for the age pension, your monthly pension can make a big difference to your retirement, and it’s easy to secure. Your age pension is an untapped half-million-dollar nest egg, so it’s important to know how to access it. You can use your superannuation savings to provide an income stream that will top up your age pension entitlements and offer a secondary source of income.
Make the Most of Your Superannuation
Too often, people think they need to save one million dollars in superannuation money to retire comfortably. While that’s a nice goal to have and can be accomplished with discipline, many people give up on their retirement plans because they feel like they will never save a million dollars in super. People should put every spare dollar they have into super and aim for that one million dollar goal. If invested wisely, a person can expect to generate $6,000 of tax-free income every month for the rest of their life.
Make Sound Investment Choices
While all of this might seem obvious, it’s worth focusing on because it will help you make smart investment choices in your retirement plans. If you’re not saving enough for retirement, you may think you need to look for investments that will generate significant returns or substantial capital gains. This often leads people to put their precious retirement savings into risky products such as penny stocks or get-rich-quick schemes. This can be disastrous in the long term and almost certainly results in a loss of money. You should focus on investments that are reliable and have a low chance of failure
Live Within Your Means
Once your financial investment is sorted out, and you’re receiving a regular income from it, make sure to live within your means. If you use revenue generated from investments for your living expenses, there will be good years and bad years when the amount of income will vary. In poor investment periods, you’ll have to spend less to make ends meet, but be sure to save in good years so that you can do things like travel later in life.
We hope that this article’s information will help you prepare for retirement. While all of this may seem like a lot of hard work and stress, it is worth it in the end when you can maintain a comfortable standard of living for the rest of your life.
While retirement planning to ensure a comfortable and enjoyable retirement may be difficult, you don’t have to do it alone. Achieve your retirement goals by checking with a professional retirement planner who can help you stay on track to a stress-free retirement! Coastal Advice Port Macquarie aims to help our clients all over Australia reap the benefits of their working years. Please book an appointment with us today to know how our services can help!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.