The art and science to achieving a comfortable retirement?
I just got off the phone with a guy struggling to work out if he had their finances in order for their upcoming retirement…
He was successful in his career, the wife winding down a small business.
Nagging doubts…
While they had accumulated a reasonable sum of assets. Questions remained unanswered.
Still trying to answer the million dollar question, how much is enough?…
Were they set up in the right manner (structures and investments) to deliver the lifestyle they wanted in retirement…
They’d been planning for some years, but struggling with when and how they should start their transition.
With the last few years taking them in a slightly different direction than they had planned.
Struggling to work through what those tangible plans should look like.
They were at the crossroads, wanting to make some major changes but didn’t know how to make sense of the money and structures they already had in place.
Looking to put some financial science behind their thinking to achieve the lifestyle they wanted in retirement. While being able to assist their adult children financially along the journey…
They wanted clarity that they had ENOUGH money to fund their retirement dreams.
Confirmation that their finances were set up in the best way possible to confidently transition to their next phase in life.
At the same time they were smart enough to know they didn’t know everything and the reason they were speaking to us.
Get your PDF copy of ENOUGH? here…
ART and SCIENCE of Retirement Planning…
For every soon to be retiree, there’s an ART and SCIENCE to crafting your ideal retirement plan.
It’s unique to you and requires the critical skill of blending the ART and SCIENCE of retirement planning to deliver your comfortable retirement lifestyle.
One where you can live the lifestyle you want without fear of running out on money…
The Art…
The fun part of retirement planning…
What are you going to do with all that time? Making the most of your time before you’re too old to ENJOY IT…
Activities…
The only time of your life where you’ll have too much time.
You want to make sure you fill it with the fun things in life. Like travel and leisure activities.
To enjoy a long rewarding retirement you’ll want to keep the brain matter active. Perhaps with a new hobby, mentoring the younger generation or volunteering to name a few.
Find time for keeping yourself fit and healthy…
Relationships…
The home dynamics will change if one partner has been home more than the other. It will take some adjustments…
Once work ceases, in most cases so do your social networks.
For some, work has been their whole life. It can be a difficult transition for some…
It’s important if you have few social networks outside work, to start to look at ways you can develop them.
Whether through people you already know, volunteer groups, sporting clubs or other interests you may have.
Time…
There’s only so much golf you can play in a week…what are you going to do with your 165 hours a week.
So you don’t lose your way in retirement, it may be a good idea to lay out what your average day will look like. Morning, afternoon and night…
For many years, you’ve lived a highly structured life.
In retirement that changes but developing a structure around your week can make it more fulfilling and enjoyable…
The science…
Traditionally people think of retirement planning as a numbers game…
Enough number…
No matter who you are. There is a certain level of income you are going to need to support the lifestyle you want in retirement.
Then there’s the bigger, once off capital costs. Think overseas holidays, purchasing a caravan, upgrading of cars and financial gifts to family.
This is not a number you can pluck out of thin air. Many have little idea of the money they will spend in retirement.
Get this number wrong and it can spell disaster in retirement…
Investment returns…
Ohh, how the financial media love to prey on human nature’s need for greed.
The majority of financial news channels or advertisements focus on investment returns. The amount of money you’ll receive from your investment.
There’s a multitude of options available to you. You can take a punt on the market or use evidence to drive your investment decisions.
Yes, the investments you choose are important. The way you structure your investments is a critical component to whether you’ll a have successful retirement or one of heartache…
Investment returns are important.
But what we have found over time is that a sole focus on investment returns generally lead to bad investment decisions.
Our experience over the last 20 years or so, shows if you are poorly prepared, an extra one or two percent extra will make little difference.
The investment decisions you make at retirement should be based on the return you need to achieve. While incorporating an element of risk management to protect your retirement income when markets fall.
Solutions…
Once you’ve figured out the non-financial aspects of your retirement and the financial science you need to employ to fund your retirement lifestyle.
There’s likely to be a product you’re going to need to use.
If you have not considered your non financial aspects of retirement when selecting a product to use, it’s likely to be a product lead solution. You want to avoid this at all costs…
It’s your financial engine.
Some are built to weather all conditions while others are limited and will falter under certain conditions.
One of the biggest mistakes being made is people are leading with the product. It’s a little like putting the cart before the horse.
The product you use (generally a retail super, industry super fund or Self Managed Super Fund) should support the art and the science of your retirement plan. Not the other way around…
Blending the ART and SCIENCE of retirement planning is a skill…
A successful and fulfilling retirement is one part art and one part science.
Leave out one important aspect and your retirement dreams may come unstuck.
Your retirement is potentially the best years of your life. When you have all the time in the world to do all the things you couldn’t while working.
You’ll need a well structured retirement plan to fuel all the adventures you’ve planned before you’re too old to enjoy them.
Don’t leave it until it’s too late…
Blending the ART and SCIENCE of retirement planning is one aspect we help many people with. So they have the clarity and confidence to transition into their next phase in life.
If you are on the cusp of retirement and want to be sure you are well prepared for retirement.
Let’s have a friendly chat about the challenges you’re having and give you some clarity and maybe a roadmap to get clear on your retirement plans.
Either email me at gdoherty@jigsawprivatewealth.com.au or you can book a call here.
Glenn Doherty – CFP – Retirement Planning Specialist | Retirement Planning Made Simple for Over 55’s powered by Life-Centred Financial Planning
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Schedule hereAdvice Disclaimer: Any reference in this publication to the provision of advice refers to advice of a generic nature, and should not be taken as product or investment recommendations. Before any action is taken based on the information provided, independent financial advice from a licensed financial adviser should be sought. Financial Freedom Project Pty Ltd ATF GA & DC Doherty Family Trust Trading as Jigsaw Private Wealth is a Corporate Authorised Representative of Exelsuper Advice Pty Ltd. The information contained in this publication is of a factual nature only and is not intended to constitute financial product advice. Information is current as at date of publication. This is an online information blog. It does not imply an offering of securities.