Providing hand outs to your adult children is not going to teach them the valuable lessons they need to stand on their own two feet. However, that’s not to say you can’t help them by providing a “hand up” alternative.
The old-fashioned method of payment of cash has become a thing of the past for most people.
But cash can be used as a great tool to cap your spending on certain discretionary expenses and not blow your budget out of the water.
There are a fair few strategies that we’ll be able to use immediately with most of our new clients to help achieve their retirement goals.
I’ve just had my first child just before I turn 30.
My father was 30 when I was born and his father was 30 when he had him. Based on this anecdote let’s assume the average 50-year-old has 80-year-old parents and 20-year-old children.
Out of these three, I believe that the average 50-year-old is in the toughest spot.
“Each generation imagines itself to be more intelligent than the one that went before it, and wiser than the one that comes after.”
George Orwell said that in 1945. It was true then, is now and will probably always be true.
My parents have always said to me, they plan to spend their last dollar on the day they die.
Before I was their financial adviser, I didn’t give this much thought.
Retirement is a concept many people struggle to visualise on a day-to-day level, especially when planning years (or even decades) in advance.
When talking to people about their financial situation, I often hear ‘I need to look at this more often’. But I’m not sure that’s the answer. Some people may need to spend more time working on their financial situation, but I think for most people it’s just a matter of using the time they already spend focusing on the right things.
In preparing for retirement, a common strategy is to downsize the family home to a smaller and lower cost home. By selling and purchasing a lower cost, smaller house, and pocketing perhaps $100,000 to put into your superannuation, you could benefit from drawing an additional income of circa $8,000 pa. in retirement.
A major part of pre-retirement planning is focused on growing or increasing retirement savings using available cash flow. Two of the main ways to do this include paying down debt, or contributing to superannuation. To compare these properly we need to look at all of the factors that will affect this decision, such as:
Dallas Davison, Michael Hogue and Ali Hogue.