Retiring FIVE years earlier to join the grey nomad train…
What if you could retire earlier than you had planned?
It may not be 5 years, but what if it was 4 years or 2 years or even one year. What would this make possible for you?
What would you do?
Bring forward your overseas adventures…
Purchase a caravan and jump on the grey nomad train while you’re fit and able too…
Relax a little and focus on the things in your life that are more important to you…
While this may not be everyone’s cuppa tea…what if you had the option?
That is exactly what happened to one of my clients, Barry and Sally (not their real names to protect their privacy).
It wasn’t always that way…
When Barry and Sally came to us over 12 months ago. They’d done a phenomenal job building their nest egg.
But there was something missing…something nagging them…
They were serious about making sure they planned well for their retirement. Disappointed in the lack of guidance from a previous financial planner they had used.
Like a lot of financial planners, they were investment focused. When they should have been focused on this client’s retirement dreams…
Barry and Sally didn’t get the answers to give them confidence in their future direction…
Still confused and not certain of their future. They went searching for more complete answers.
Coming across us on the internet, they downloaded a copy of our book, ENOUGH?
The concepts resonated with them, not something many financial planners were talking about…
We spoke and did some initial work for them to figure out a plan for their retirement.
At that time, they were looking to retire in 5 years time with the view to join the grey nomad train in their caravan…
We mapped out a detailed and simple to understand roadmap. Showing them the exact steps they needed to take over the next five years to retire comfortably.
And how that would look financially.
It wasn’t going to be plain sailing but as long as they put in the work and stayed focused. They’d retire with enough money, debt free and wouldn’t risk running out of money.
They were set with answers their other planner wasn’t giving them…
Get your PDF copy of ENOUGH? here…
What about retiring five years earlier…
Less than 12 months with us, in one of their forward planning meetings, Barry and Sally dropped a bombshell…
“We want to see if we can retire 5 years earlier?”, they said to me…
Knowing their situation, at first glance I was not overly confident.
Curious, I asked them what had changed…
The coastal town they lived in had seen significant increases in house prices.
Since our previous meeting they had an agent come through and give them an idea of what the property would sell for.
This was significantly higher than what they thought the house was worth.
Keen to see if this would allow them to retire earlier and start their adventures travelling the country in their caravan. Sooner rather than later…
I said I’d run the numbers and see whether that would work…
Could they retire five years earlier…
Like most of our clients, nothing rarely remains the same…
What you plan for and what actually happens will be different.
So, we got busy going back to the same framework we use to successfully plan every client’s retirement.
We reworked their cash flows based on the sale of their home, using the proceeds to pay off debt they had on rental properties.
Using the contributions rules to boost up their super and ran the numbers.
Based on their long-term cash flow they’d have more than enough money to see them through their retirement years.
You may also like, Scary Market Action Plan…
What did they decide to do?
On our recent zoom call with Barry and Sally, we showed them the revised cash flow and charts showing they’d be okay and wouldn’t run out of money.
They were a little sceptical at first…
While we’d used very conservative investment assumptions, we dropped them even further right in front of their eyes.
Yep…they’d still be okay…
But what about a house?
Lucky for Barry and Sally, their retirement income was going to be a combination of rental property income and income from their superannuation accounts.
They had the option of purchasing a permanent residential home when they had finished their travels or move into one of the rentals.
Key takeaways…
Forget about the numbers in this example. What’s important is the framework you use which guides your decision making.
No trickery involved, no fancy investment strategies and definitely no hope and pray strategy (the hopium drug).
But you need to know what to look for.
For many, they overcomplicate it all…
I don’t blame them for that…the financial press spends 24/7 using its spell to instill fear and greed in us day in and day out.
If you can block out the noise, spend your energy and focus on what you can control, your life will be much simpler and less stressful.
“We will never be exonerated from three things, pain, uncertainty and the need for hard work”, Phil Stutz.
Planning your retirement is not easy.
It involves all the above, a little pain, a lot of uncertainty and hard work.
There’s many moving pieces. Get any of the wrong and it may not end well…
For many and quite frankly many financial planners, they start with investment piece (the sexy stuff). It’s a little back to front.
A strong retirement plan should always start with working through your cashflow and how that might look over your retirement years.
Only when that is clear can you start building the investment strategy you need and the financial products to support your retirement strategy.
Want to work out what is possible for your retirement? And how you can turn your retirement dreams into reality?
Book a call here and we’ll provide some clarity and maybe a roadmap on how you can achieve a comfortable retirement…
Glenn Doherty – CFP – Financial Planner | Helping people within 10 years of retirement achieve a successful retirement
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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.