 You’ve spent what seems like a lifetime getting your dream home, and retirement is creeping up fast. You have put the absolute bare minimum contributions into your superannuation, but it doesn’t matter because you own your house and your house is your super. Right?
 Most people come in to see us about 10 years from retirement and are usually very surprised on what can be achieved if they decide to switch on and focus.
 Making the leap to see a financial adviser can be a daunting process, especially knowing that you need to lay all your cards (regarding your financial situation) on the table.
You may feel as though you should have saved more or should be earning more income.  Most people need a car, it is a necessity that gives us the freedom of getting from A to B. Eventually, you’re going to want to buy a new one and that’s fine if you are being reasonable. However, there are a few myths you need to be cautious of that could push you into making an unnecessary purchase.  Building a successful business doesn’t happen overnight.
A successful business is a product of dedication, sacrifice, humility and hard graft. After years of investing a great deal of time and energy into your business it’s fair to assume it will be worth something when you decide to hang up your boots. Or will it?  Often people invest based on a prediction the price of their chosen asset will eventually rise.
This must be the case, otherwise they’d just wait until the price drops to buy. Their predictions are usually based on a range of information sources, some credible, some not. But is it possible this information is already factored into the price?  Tax. It’s an unavoidable aspect of working.
Most people pay a lot of tax in their working life and don’t receive much assistance from the government in return. So, when it comes time to collect the Age Pension it may feel like it’s your time to finally ‘get something back’.  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.  It is important to understand what we, as financial advisers, are able and willing to do, and what we are not able to do for you.
 The last article in this series covers the remaining major risks that can affect planning for retirement.
We have already covered market risk, purchasing power risk, business risk, and sequencing risk. Some of the other major risks include the following. |
