It’s A Question Everyone Should Be Able To Answer But Sadly Most People Can’t Until It’s Too Late?

It is very common to get a blank look when a new client is asked how much they feel they will need in retirement. The reality is that the later people start thinking about this question, the more disappointing the outcome is likely to be.

While it may seem like a complex question, there are plenty of tools available to assist with planning but make sure you use them wisely and conservatively. A variety of calculators are available from the Australian Securities and Investments Commission (ASIC) via the following link:

When thinking about income needs in retirement there are a number of ways to approach it. One approach is to look at your current net pay and then take out expenses that will not exist when you are retired, but make sure you plan to own your home outright at retirement.

Once you have settled on an income figure for your retirement, you then need to think about a retirement date, your life expectancy (with an appropriate margin of error included as you may live longer than you think) and how much the lump sum goal needs to be to achieve your retirement income goal. The suite of calculators above from ASIC will assist with this projection.

From there it is a reasonable straight forward exercise to determine how much you need to save per month, from now until retirement, based on a reasonable level of investment risk and earnings (net of fees and a margin of error). Investment fees should be given special consideration as high fees can be very detrimental to retirement goals and the calculators above will assist with this projection also.

Hot Tip: The sooner you take a proactive approach to your retirement affairs, the more likely you will be to make your retirement a success. Don’t make the mistake in believing your employer superannuation contributions of 9.5% will ensure you a comfortable retirement as it most likely will not.

We do not agree to help everyone but if you feel you need a second opinion on your superannuation and financial position, contact The Financial Advice Shop to see if we can add value.

#financialadvice #retirementplanning #superannuation #financialadvicecanberra #retirementplanningcanberra #financialplanningcanberra #financialplannercanberra #superannuationadvicecanberra #financialadvisercanberra

Why Trying To Time The Share Market Can Be A Really Dumb Idea!!

Investing and financial advice is often about making sensible and informed decisions, and for most people it should not be about major speculation.

In recent months I have been amazed at the number of new client discussions I have had where their investments have been in cash. In some cases they have been invested in cash since the Global Financial Crisis when they sold out in a panic, and in other cases it has been for the last year or two because they were concerned share markets were about to correct.  In all cases they have missed out on a substantial return on their investments because they have taken an extreme position without advice.

I am certainly not saying that 2018 is not without significant share market risks but there is a lot of value to be gained through seeking assistance before you make decisions.  Once you have made an extreme investment decision and got it wrong, it is much harder to then decide what to do next.

It is very normal to be concerned or excited about investments from time to time and at those times there is always a question about how to manage the situation. Think carefully before you commit to a high risk binary solution: all in or all out.  It is often far better to modestly adjust the cash levels in your investments over time in consultation with your adviser, to sensibly manage the situation and to give you more options down the track.

If you are foolish enough to be in a set and forget investment and have accepted the default position on your level of risk, you may have made a poor choice. Your investment portfolio manager is certainly not going to consider your individual needs or concerns as they invest on behalf of thousands of other investors with a ten or twenty year investment horizon.  If you want a tailored outcome you need to be proactive and initiate sensible changes to your portfolio that are right for you.

At the end of the day, share markets are more a measure of fear and greed. When investors are fearful share markets tend to fall and when investors are greedy share markets tend to rise.  Unfortunately for many investors they tend to follow the herd and make decisions at the extremes in the investment cycle, and the outcome is not always ideal.

Hot Tip: Everyone’s financial situation is different so now might be a good time for you and your Financial Adviser to review and understand the risks you are taking with your investments.  In periods of share market volatility and uncertainty, nervousness can result in wealth passing from weak hands to strong hands so make sure you have a plan for how you will respond to a share market correction as it will come eventually.

We do not agree to help everyone but if you feel you need a second opinion on your superannuation and financial position, contact The Financial Advice Shop to see if we can add value.

#financialadvice #retirementplanning #superannuation #financialadvicecanberra #retirementplanningcanberra #financialplanningcanberra #financialplannercanberra #superannuationadvicecanberra #financialadvisercanberra

Don’t Let Your Future Retirement Concerns Become A Miserable Reality!!

Imagine a 30 year retirement where you couldn’t afford to enjoy yourself? No one would actively plan for this outcome but sadly it is a reality for a very large number of retirees. Don’t let this happen to you.

Relying on your employer’s superannuation contributions and holding your hand out at retirement for an Age Pension in the hope that this will make everything OK is a very poor choice. A far better outcome is to make smart investment decisions, save tax effectively through voluntary superannuation contributions in a low fee environment over many years and as a result make yourself 100% financially self sufficient in retirement. It really is time for everyone to start taking more responsibility for their retirement outcomes.

When it comes to achieving a comfortable retirement, making additional tax effective superannuation contributions over long periods of time is critical. The greater your retirement expectations, the more you need to do to ensure you achieve your goals. If you are planning to have less than $1,000,000 in investments (excluding the family home) at retirement you are probably setting your sights too low.

If you are starting to think about your retirement, or know you should be planning for your retirement, it is time to start taking action with a trusted financial planning advice discussion to “see what’s possible”.

HOT TIP: The need for honest, transparent and practical financial planning advice has never been greater, so contact The Financial Advice Shop without delay. To get things started, we offer a very cost effective Financial Advice Health Check discussion to ensure you can access our experience to understand all of your fees and future superannuation investment strategy options.

#retirementplanningcanberra #financialadvicecanberra #superannuationcanberra #retirementadvicecanberra

The May 2016 Federal Budget Will End Superannuation As We Know It

On 3 May 2016 the Australian Treasurer, Scott Morrison, handed down his first Budget and changes to superannuation were a core theme.

While there is plenty of focus on things that are perceived as negative changes, let’s not forget there are also some important changes that are potentially quite good news.

It is important to note that the Budget measures will not become Law unless Legislation to support the measures is passed in Parliament. Until that time, the Budget measures are simply a proposal.

A detailed summary of the 2016 Federal Budget has been prepared by The Financial Planning Association of Australia and is available via the following link:

2016 Federal Budget Summary

HOT TIP: In relation to superannuation reforms, most of the 2016 Federal Budget measures are planned for a 1 July 2017 commencement so there is plenty of time to plan.

#superannuation #May2016federalbudget #superannuationadvice #retirement #womenssuper #retirementplanning #financialadvice #retirementadvice #earlyretirement

Superannuation Is Irresistible If You Combine Makeup, Features and Confidence!!

Superannuation for most people is an investment that is not really of interest to them until they are approaching retirement. Unfortunately, by then it is far too late!

The reasons for a lack of interest in superannuation are varied. It can be seen to be dull and boring, the Government keeps fiddling with the rules, it’s an investment that you cannot accessed as a lump sum until they reach preservation age and retire, and for some it is even seen as an extremely risky investment.  With this lack of interest comes a lack of focus to maximise final retirement benefits.

To be a successful investor you should take the time to study your superannuation fund choices, consider your contribution options, examine how to strip out excessive fees and commissions, and then make sure you invest cost effectively and confidently to achieve competitive long term returns with a level of risk you are comfortable with. Then, as you watch your investments grow over many years, it can be a beautiful thing so see it steadily become an important and significant retirement asset.

As current and future Australian Governments grapple with the issue of providing Commonwealth support in retirement, there is little doubt that future retirees will receive less in Age Pension entitlements than current retirees. The reason for this is simple: as the Australian population ages there is a shrinking percentage of working people who are paying taxes to support the retired population.

When it comes to superannuation, many women are at a significant disadvantage. Women often put family before career, have breaks in employment and are not always employed in roles that reflect their true capabilities.  Over a working life, the negative effects of a fragmented working career on superannuation balances for women can be very significant.

There are two clear options for everyone with superannuation: do something or do nothing. Anyone who chooses to do nothing is foolish and should brace themselves for the ultimate consequences of a poor standard of living in retirement.

For those who have the energy and motivation to do something positive and would like to be successful, it is time to take action! You have many choices at your fingertips and with careful research, sound financial advice and an appropriate action plan including regular additional superannuation contributions, you have a real chance of being successful.  Importantly, the sooner you start planning, the more likely you will be successful with your retirement planning.

What should you do next? It’s really simple: if you are serious about planning for a secure financial future, we are serious about assisting you to be successful so contact us today to see how we can help you understand things more clearly.

#superannuation #superannuationadvice #retirement #womenssuper #retirementplanning #financialadvice #retirementadvice #financialplanner #financialadviser #financialadvisor #irresistible #makeup #confidence #investing

The May 2016 Budget Is Likely To Be A Shocker For Superannuation So Move Quickly To Get Your Affairs Sorted With Sound Financial Advice!

With the Government under significant pressure to reduce expenditure and raise revenue, it seems very unlikely that current Superannuation arrangements will escape the Budget unscathed.

Everyone hopes that any changes to existing arrangements may be spared through “Grandfathering” but there can be no certainty on this.

In the lead up to the May Budget, an opportunity may exist for example for some superannuation investors to consider commencing an income stream. This could be considered in the hope that any changes to the taxation of existing pension accounts would not be affected by new Legislation.

Another opportunity may also exist to consider maximising salary sacrifice contributions to superannuation this financial year just in case the contribution cap is significantly reduced for future financial years.

To be successful in the lead up to the May 2016 Budget it might be essential to promptly seek financial advice and make any recommended changes quickly, but never act without seeking sound financial advice first.

What should you do next? It’s really simple: if you are worried that any 2016 Budget changes could negatively affect your superannuation entitlements, contact us today to see how we can help you understand things more clearly.

#budgetchanges #budget2016 #superannuation #salarysacrifice #allocatedpension #financialadvicecanberra #financialadvisercanberra #financialplannercanberra #financialadvisorcanberra

Make 2016 The Year You Stop Making Other People Rich And Start Taking An Interest In Your Financial Advice Future!

If you studied your financial advice affairs very closely and knew what to look out for, you might be astounded at how many people and organisations silently benefit from your investments in ways you have not thought possible.

Every dollar that someone discretely takes from your superannuation as a fee, commission or other payment is a dollar less for you to spend in retirement. Additionally, you shouldn’t think you can rely on The Future Of Financial Advice (FOFA) Legislation to protect you because it almost certainly will not.

If this topic strikes a nerve with you then it’s time you stopped thinking about it and started doing something about it. If you suspect your fees are too high then it’s definitely time for you to do something about it.

What should you do next? It’s really simple: if you have a reasonable superannuation balance and wish to cost effectively invest with sound financial advice for a more secure financial future, contact us today to see how we can help you understand things more clearly.

#financialadvicecanberra #financialadvisercanberra #financialplannercanberra