You have worked hard for what you have – across many years, too.
Retirement may be on the cards for you, sooner than you would think. Have you started financially planning for it yet?
Regardless of whether it’s one, five or even ten years away the steps, strategies and healthy financial habits you put in place now can really make a difference for your future.
This involves knowing the money mistakes to steer clear from.
Want to know what they are? Read more from the Gold Coast financial advisers at Crest Wealth, to find out.
1 A non-existent financial strategy
It’s said ignorance is bliss, but this shouldn’t be the motto for retirement planning (or lack thereof).
Will you need millions of dollars to fund your retirement, or will you be able to comfortably live on much less? The very thought of running the numbers may put you off, but that’s what a Gold Coast financial advisor is here for.
What should you do?
- Estimate how much money you’ll need year by year, considering your current budget.
- Think about how this may change as you age.
While you can’t predict how long your retirement will be, you can still set the financial groundwork.
2 Keeping your cash in low-paying bank accounts
It certainly pays to look for more competitive returns on your hard-earned savings, whether or not you’re a pre-retiree building wealth, or a self-funded retiree ‘banking’ on that money.
- For those who have yet to retire, superannuation funds offer great savings perks such as competitive interest rates, a wide range of diversified investments and tax advantages.
- For retirees, a superannuation income stream is far more likely to beat bank interest offerings, while also offering a wide range of diversified investments and tax advantages.
- On the topic of superannuation funds, scrutinise the administration and member fees with a trusted financial adviser. You might be paying a lot more than necessary.
Talk to a Gold Coast financial planner about the downsizer superannuation contribution scheme (open to those over 65) and how it may help you live the retirement of your dreams.
3 Ignoring the potential for the Age Pension
Most people when they hit retirement age will be eligible for at least part of the Age Pension.
Seek advice from a financial planner about your eligibility and how you can successfully structure your assets and income to maximise the money you can receive.
It’s worth enquiring about any other extra payment you could be eligible for such as carers allowance, an energy supplement or disability support.
4 Spending frivolously
Now we’re not saying you should be frugal but try to avoid spending habits that would only be sustainable if you’re still working.
Delving into your savings on the regular for big, exorbitant purchases should be minimised at all costs.
5 Not downsizing
While you likely have sentiment and nostalgia for your beloved double-storey family home, maintenance is probably chewing up at your savings. Yes, you might be asset rich but cash poor.
Maintaining a large home may eat away at time that could be spent on other activities like family time or a luxury holiday.
Crest Wealth is home to Gold Coast financial advisors who help people understand and implement financial strategies for all major milestones.
Need financial planning services on the Gold Coast?
Contact Crest Wealth today for transparent and professional financial planning services to assist you in reaching your financial goals.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.