Retirement
The long road to retirement has finally arrived for you. You've achieved a goal many people look forward to their entire lives. Now it's time to ensure you're doing everything you can to fully enjoy the rest of your years ahead - and that means making sure you've set aside enough money that will allow you to do just that.
Take care of your money-so it can take care of you
Are you confident you have enough funds to last for the remainder of your retirement years? With inflation eroding your purchasing power and life expectancy steadily increasing, you'll want to ensure that your savings work hard enough to stand the test of time.
The following are some helpful tips you may want to use to safeguard your retirement funds: | |
| Balance growth and risk | Consider investing a portion of your money into an investment vehicle that will provide potential growth of your funds. Of course, depending on your financial situation and goals, you will also need to determine how much risk you are willing to accept. In retirement you will also need a regular income so the balance between growth and income is important. |
| Establish an emergency fund | If you don't have one already, you may want to consider establishing an emergency savings account for potential unforeseen crises that could arise. Having a fund of this type will provide you with money you may need to pay for emergencies and help you safeguard the money you've set aside for your short- and long-term retirement goals. |
| Establish a plan for how and from where you income will flow | Your strategy may centre on a tax-free income from superannuation. Depending on the level of assets and income that you have you may also be entitled to part age pension. This would also lead to some fringe benefits such as concessions on council rates, utility bills and entertainment venues. |
| Work part time | Some retirees take up part-time work to bring in extra income. If there's a specific type of work you enjoy doing, consider working part time. In doing so, you may be able to use less of your retirement funds, and allow yourself to save more money in the process. Keep in mind, you can collect Social Security benefits while you are working part time. However, depending on your income level, you may receive reduced benefits or even be taxed on them. |
| Consider your new lifestyle | It all seems easy when retirement is considered, as it becomes the opportunity to travel and do those things that were not possible while working. Importantly though the transition to retirement means that you have a significant amount of extra time to allocate - holidays can only last for a certain time. The change should be to the next chapter of your life which is "Retiring To something worthwhile" rather than "Retiring From something worthwhile" Those people who have a new chapter planned and continue to feel that they are making a contribution find retirement a very fulfilling place to be. |
Develop an estate plan
Have you established an estate plan yet? If not, now is the time to work on developing one. A well-constructed estate plan may be essential to ensure your estate assets pass to the right people at the right time. Talk to your solicitor to start the estate planning process today.
When developing your estate plan, take into account:
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Your will. If you don't have a "will," be sure to consult your solicitor who can assist you with developing one. A "will" allows you to control how your assets are divided among your heirs after your death. Without one, state laws govern how your assets are distributed between creditors and your heirs, and can create unnecessary confusion, stress and difficulties for your loved ones.
Estate taxes.Consider the impact estate taxes may have on the assets you pass on to your heirs. Properly planned this should not be a large burden to your heirs.
If you already have an estate plan in place, take some time to review it to ensure that it is up-to-date. Consult your solicitor if you need to make any updates to your existing plan.
Plan ahead for long-term care
Have you thought about the level of medical attention you might need in the event you require long-term care in the future? Health insurance will assume an increasing importance in role as you move into senior years. Check that your benefit levels and nominated plan will serve your needs into the long-term.
Evaluate your life insurance needs
Do you currently have a life insurance policy? This may now need to be reviewed. Your need for insurance, now that you are moving into retirement may well have changed. It is a good opportunity to review the nature of any insurance you have together with the purpose of this in retirement.
Think, where will you retire?
An important factor to consider in retirement is where you will live. You'll want to assess where you live right now and your style of living to determine whether it makes sense financially to remain in your current home. As you grow older, you'll also want to take into account whether you will be able to continue maintaining your home. Options to consider, include a move into an independent living home within a retirement community, selling the existing home and moving into a smaller home that is low maintenance or selling the home and moving to a new location locally or interstate where you are closer to family.
To plan a course of action which will ultimately lead to a better life style in my retirement
To work on my business strategy, manage my business for greater profitability and help with my ongoing taxation compliance obligations
When I need help to negotiate the maze of options available to me and to make sure I am fully informed before making any decisions.
 | Financial Planner Dip FP, CFP Licensed Dealer in Securities & Registered Life Insurance Broker. Winner of the prestigious National "Securitor Adviser of the Year" Award for 2008. |
 | Financial Planner Dip FP, CFP, Grad Dip Mgt Licensed Dealer in Securities & Registered Life Insurance Broker. |
 | Accountant BA(ACC) CA FTIA AICD Member of the Institute of Chartered Accountants and Justice of the Peace for SA |
 | Financial Planner Dip FP Licensed Dealer in Securities & Registered Life Insurance Broker. Winner of the prestigious 2009 Securitor "Rising Star of the Year Award" |
 | Mortgage Specialist Cert IV Mortgage & Finance Services, AMC. Winner of the prestigious SA/NT Rookie of the Year Award 2008/09 |