As we approach retirement some people start to panic a little wondering if they are truly looking forward to the time of their life when they no longer have to work. All of a sudden something they have been dreaming of starts to seem real! Instead of worrying, have a read of the following tips and if necessary, act now. After all, it’s your future – and it could be here sooner than you think.

1: What do you want and how will you get it?

What are your goals and objectives for your retirement? Write out a plan that sees you enjoying the fruits of your labours. Then make sure your finances can achieve your goals. If not, do something about it now while you still have time. Be realistic and set achievable timeframes.

2: It’s not just about returns; remember the risks

Every investment has some degree of risk. Cash is considered the safest as there’s a good chance your money will still be in the bank when you need it. The downside is that it pays the lowest return; it isn’t tax effective; and doesn’t tend to keep pace with inflation. To achieve higher returns and make your money work harder, you need to take appropriate risk. Understand the differences between cash, fixed interest, shares and property and make your decisions wisely.

3: Share it around

To help reduce risk, share your investments across several asset classes and within those asset classes as well. The right balance will depend on your financial objectives, the amount of time you have available to invest, and your risk tolerance.

4: Don’t forget super…

Superannuation will be your bank account when you are no longer working so you should be considering ways to boost your superannuation balance prior to retirement. But be aware the tax benefits are not always equal so make sure you have a balance of inside-super and outside-super investments. 

5: …or tax

Tax is the trickiest area of all. Always make sure you get good advice on investing tax-effectively. A simple restructure of an underlying asset, investment vehicle or ownership structure could help you to minimise the amount of tax you pay and maximise your after-tax return.

6: Retirement can last another lifetime

With medical technology and improved lifestyles we are living much longer than our previous generations. The older you get, the longer you’re likely to live. If you’ve managed to survive early risks, such as accidents or illnesses, your life expectancy actually increases. Be prepared for a longer retirement than your parents. This means that your money must last longer, so don’t be too conservative with your investments, speak with one of Leenane Templetons financial advisers to discuss your investments and risk.

7: Stay cool

You are in this for the long term so when markets fluctuate and investments unexpectedly fall in value, don’t panic and sell. Sit down with your adviser, review your portfolio and stay focused on your long-term goals and objectives. 

8: Keep learning

You are never too old to learn. Financial advisers have an important role in giving you tailored guidance, but you still need to make your own informed decisions about your financial plan. Make sure you understand your plan and if not, ask questions or do some research.

To discuss your retirement
Call (02) 4926 2300 or email us. 

Our team of award winning financial planners are available to discuss your retirement needs. 

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Life in your 50's is great. You don’t have a huge mortgage, the kids have grown up and are not as dependent on you, your career has progressed… So what is next financially?

When you are in your 50s, you can see retirement on the horizon. Sure it might be 10-20 years off, but it is becoming more tangible. So if you haven’t already, you need to start some serious planning.

Decide on your lifestyle

Up until now you may have been reactionary in your lifestyle, with mortgage payments and work pressures being the biggest worries. But you need to start thinking about how and where you want to live for the next 30 or more years. Do you want to stay where you are? Downsize? Always wanted to move to the beach or bush?

Figure out how much you need

Once you have decided how and where you want to live, you will need to set up plans to achieve it. There are a couple of things you can look at to ensure you are on the right track:

Superannuation – Is your super invested appropriately? Do you need to contribute more now so that you have enough for the future?

Investments – If you have managed funds, shares or property, are they invested strategically to help accommodate your changing lifestyle?

Insurance – Do you have the right level of life and income insurance? Are you and your family covered if anything happens?

Daily finances – Are you spending money on things you don’t use? If the kids have moved out, are there ways you can scale back?

Start catching up now

You might find that you are further behind than you thought for your ideal retirement lifestyle. This happens to a lot of people but it is never too late to make a change. You could be at the peak of your earning potential, so that means you have a chance to save more and make up for lost time.

Get help

Everyone’s financial needs and goals are different and it’s worthwhile seeking professional advice before you make important financial decisions. Your financial planner can provide you with strategies to help make your ideal retirement lifestyle a reality.

Source: IOOF

Our expert financial planners are here to help with any financial questions you may have about your 50's. 
Call (02) 4926 2300 or email us. 

To discuss getting ahead in your 50's please give the team at Leenane Templeton a call. 

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A good financial planner is your best asset and the following information describes why having a good financial planner is important in uncertain economic times – or any time really.

Financial planning is about establishing a long-term strategy to secure your financial future with the lifestyle and living standards you desire. ‘Value’ often goes beyond dollars and cents. It can be the peace of mind and security that comes with being better prepared for the future. Once you've started a relationship with a good financial planner you will quickly see that they add value to your circumstances by helping you in a number of ways.

How can a good financial planner help better?

• Setting goals. This process helps you decide where you want to go in life. A skilled financial planner can assist you to identify your financial goals, prioritise them and understand the steps required to turn your vision into reality.
By knowing your financial goals and time frames, it’s easier to see where to concentrate your efforts. You'll also quickly spot the distractions that would otherwise blow you off course.
• Getting a financial plan started. Developing a written plan with a clear emphasis is critical to achieving your financial objectives. Your financial planner can also provide budgeting and debt management advice to help you start creating wealth without the costly anchor of “bad” debt. Protecting your future dreams with appropriate insurance is another key aspect your planner will manage.
• Maintaining a diversified portfolio. Every financial planner is required by law to take a client’s risk tolerance into account as part of their personalised financial plan. Diversification is another important tool for managing risk.
This means that the advice given and any investments recommended as part of that process are suited to your needs and risk level. And these will change to meet your circumstances as they vary throughout life.
• Being there over the long term. Going your own way is rarely the best option. Most people don’t have the background knowledge to feel confident about making investment decisions that will have a large bearing on their financial future. Keeping up with all of the legislative changes and new investment offers is also an onerous task. Your planner will be there to guide you on your path to financial independence and ensure your financial plan remains relevant and on track.

While investment magazines and subscription services can provide useful information, they are often written by journalists with a general grounding in financial concepts but who are not looking at the fuller picture. A good financial planner is trained to take into account all legislative and strategic implications to ensure you receive the best advice possible… and this training is ongoing.

Your financial plan is not a one-off, set-and-forget arrangement. Just as life has its many twists and turns your financial plan must be flexible and appropriate to your needs at any point in life.

If you would prefer to have a qualified, experienced and licensed financial planner work together with you on achieving your financial goals, give us a call.
Call (02) 49262300 or email us.

Disclaimer

A good financial planner is your best asset and we have our professional and qualified advisors at hand ready to assist you.

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Ready or not, the end of the year is fast approaching and now is the perfect time to start thinking about the year(s) ahead. In particular, this time of year presents a great opportunity to meet with your adviser to review your financial strategies and goals.

Many people use the Christmas/New Year period to reflect on the year that has just passed, often in a blur, and to begin thinking about the year(s) ahead. In particular, this time of year presents a great opportunity for you to review your financial strategies and goals in preparation for 2014 and beyond.

The importance of reviews

Changes can take place to your circumstances at any time and while you may already be having regular meetings with your adviser to ensure your plans continue to meet your needs, there are other changes that can have an impact, such as legislative and tax changes.

This is why reviews should take place on a regular basis, where you have the opportunity to make informed decisions and factor any of these changes into your financial plan.

Below is a simple guide to tidy up your finances for the year ahead.

1.Have your key financial goals changed?

Our lives are not constant and our goals change slightly (or greatly) from year to year. Also, major life events such as serious illness, the birth of a child, inheritance, marriage and the death of a parent or spouse can all result in significant changes to our wealth management goals.

2.Prioritise your goals.

It is important to rank and prioritise goals and decide in what timeframe you want to achieve them. Being realistic about your timeframe is essential to ensuring that your goals will be achieved.

3.Short, medium or long term?

Most industry experts agree that a short-term goal is one that can be achieved within a year or so. Medium-term goals typically require two to five years, and long-term goals usually take longer than five years.

For example, reducing credit card debt is likely to be a short-term goal, whereas saving for a home deposit would often be a medium-term goal. Depending on your age, providing for retirement is a long-term goal.

4.If your financial goals have changed, how will this affect your financial strategy?

This is where the advice of a financial planner is critical. An adviser has the tools and knowledge to create projections that take into account changes to your goals, and changes to your timeframes for achieving them. These projections will help you to see where your plans for savings, assets or investment contributions may need updating.

5.Be savvy.

Make sure that your investments and level of protection support your level of risk and your goals. An adviser can develop a tailored analysis that best suits your individual needs and provide ongoing portfolio.

Reflecting and thinking about your financial position, as well as setting a clear path, is critical to making sure you can reach your goals. You don’t have to wait until the first day of January to review your financial situation…contact your adviser today, so that you can get the help you need to achieve your “New Year” resolutions.

Our Office will re-open on Monday 6 January 2014 and we would love to help you set your financial goals for 2014 and beyond. Give us a call!

Source: Zurich, October 2013

Disclaimer

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