There are a range of issues you need to consider when you're planning for your retirement, including taxation, protection of your wealth and assets and how to structure your investments and make the right investment decisions.
How much will you need to retire?
Can you afford to retire early?
What can you do to prepare for the retirement you desire?
At Nexia, we help you answer these questions and explain how they impact your long term financial position. Then, together, we explore and help you clearly understand your options for a secure retirement.
Amy and Trent were about to retire with a significant superannuation nest egg but were concerned that their capital might not live as long as they would.
Making Your Money Last
Their calculations showed they would have to seriously reduce their standard of living in retirement to make their money last throughout their retirement. When they sat down with a financial adviser, he confirmed that their fears would be realised – unless they adopted three specific financial strategies.
Eliminate Income Tax
The first was to invest their money in such a way that they would pay no income tax for the rest of their lives – a significant saving. This, in part, involved investing some of Trent’s superannuation money into Amy’s super fund.
Maximise Social Security Payments
Secondly, they’d need to use investments which would allow them to qualify for a Social Security part pension, plus fringe benefits.
Invest in Growth Assets
Thirdly, Amy and Trent would need to invest part of their money in growth assets such as shares and property.
While this would mean that their portfolio would have fluctuating returns in the short-term, it would generate greater returns in the long term, allowing them to keep the standard of living they are accustomed to.
