Financial Planning
By Maddie Fleming/02 Oct 2020/One-minute read

Money that you save for the future is called your ‘nest egg’. Here, our team of financial advisors share the benefits of nest egg financial planning and why it’s worth exploring different strategies to make your nest egg work hard for you.

A nest egg refers to a bundle of financial assets saved for the future. Your nest egg may include cash, term deposits, property and shares, and these assets can either be sold and/or generate income for you. For example, this might be a commercial property providing you with proceeds of rent or a share portfolio dishing out dividends.

The benefits of a nest egg

The aim of the nest egg is to provide passive income when you can’t or don’t want to work at retirement. A passive income-generating nest egg provides you with the ability to choose your work schedule to suit your health and lifestyle in the future. It might give you enough freedom to focus on the things that really matter to you.

Potential implications of not having a nest egg

Perhaps you’re not long-term focused and prefer to spend all your funds now rather than save some for later. This is a lifestyle choice you can absolutely make, but it’s important to understand possible future consequences, such as:

  • Reduced government pension support in the future
  • Reduced ability to generate income to support your preferred lifestyle if the unexpected illness or redundancy happens
  • Less likely to be able to pass on assets to children or support other family members

How to get started

A nest egg can be easily set up with a little analysis of your situation and long-term goals. Here’s some pointers from our team to get started:

  • Set a goal. Decide on an amount that you want to aim for, and decide how much you’re going to put away each month.
  • Be strategic. Understand that some assets don’t potentially generate as much income as others, so this will affect how much you may need to save.
  • Don’t delay.  The earlier you start the better.
  • Seek expert advice. It’s important to make informed investment decisions for your retirement, and choose a financial advisor who’ll look at a strategic vision for your holistic financial situation.

Thinking about the future?

Talk to us about your cash flow and how to start saving for your retirement nest egg today.

Dulwich Group Financial Services Pty Ltd T/A Johnston Grocke ABN 80 165 839 163, Corporate Authorised Representative (ASIC 1240611) and its advisers are Authorised Representatives of Paragem Pty Ltd ABN 16 108 571 875 Australian Financial Services Licence 297276
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