INVESTING FOR WELL-BEING AND RETIREMENT

Many people equate investing to “making lots of money in the quickest possible time”!  I believe that this philosophy ignores some of the critical aspects of investing, specifically that you need to:

  1. Establish achievable objectives regarding the purpose of investing, returns expected, risk tolerance and time frame before you start. Click here to learn more about the financial planning process, which helps you address these issues methodically. I recommend every adult especially with dependents has a relevant financial plan that is updated as needed.
  2. Consider smart strategies that can legitimately enhance returns by minimising taxation, increasing Centrelink entitlements etc.  I prefer to recommend an approach that exposes you to the least amount of risk while affording you a high probability of achieving your goals. These strategies may include:
  • consideration of the investment ownership form, for example super, trust or personal.
  • formulating an “asset allocation” of investment portfolio mix that has the highest chance of delivering the returns that you require while aiming to minimise risk as much as possible. Of course, the portfolio is likely to include investments with which you have a higher level of knowledge and “comfort”.
  • investment into direct shares (including direct shares, exchange traded funds and listed investment companies) or direct property for those wanting control and to minimise fees and manage tax expenses or managed funds for those wanting diversification into the appropriate sectors and little involvement in investment decision making. Alternative investments such as mining & agricultural commodities, public infrastructure, private equity andhedge investments could be considered to enhance returns and reduce overall portfolio risk.
  • contributing to the superannuation system to accrue retirement savings tax effectively eg: click here to learn about the benefits of “salary sacrifice“.   Tax offsets are another benefit of contributing to super click here for more information regarding how tax offsets work to reduce your tax bill.
  • using super income streams during your later work life to enhance retirement savings click here to view a case study that involves a “transition to retirement income stream and how you can increase your retirement savings without incurring a reduction in your “take home pay”.

Further, families can assist future generations (where practical) by putting in place strategies that will enhance their future financial well being. Good advice regarding intergenerational financial planning can provide children and grandchildren with significant benefits well before estate bequests are passed on.  

You should also ensure that you have made provision for your beneficiaries in your estate and appointed appropriate people to make financial, personal and medical treatment related decisions on your behalf if unable to do so. See estate planning for more information. 

Finally, consideration of the options available for appropriate accommodation later in life is an important issue. How to fund the costs associated with assistance to remain in your own home or a move to a retirement village, granny flat or aged care accommodation facility is an issue that will confront most people and their families. Ideally, early planning involving aged persons and their families will help relieve the stress and anxiety that could otherwise arise. See our aged care planning page for more information. 

If you do not have an up to date financial plan and/or a clearly defined investment strategy, then I can help you do so. A starting point is a self assessment via our Wealth Wall planning tool, click here to review it and submit your answers.

If you have your own self managed super fund you may like to check how it is working for you by completing our handy SMSF Health Check.  The answers you provide will enable me to identify the key issues that may need to be addressed to maximise your benefits. Check also self managed super Adelaide.

If you are in a public sector, managed or industry super fund, I can provide some tips as to what you may like to consider in your planning for retirement.  Please click the button below to email questions on super for me to answer, or click here to contact us in other ways.

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