Your financial circumstances change as your life changes, so getting some advice, whatever age you are, is always worthwhile.
We often find that it’s only as they near retirement people really start thinking about their finances. Especially when they start looking at everything that retirement offers, like making time for a hobby, more travel, volunteering projects or spending time with family.
At Cotter Financial Services we suggest that seeing a financial adviser well before you retire, rather than trying to do it all yourself or at the last minute, is the best option. Not only will this give you peace of mind but it will also give you options for when you do need to make financial decisions.
So even if you’ve never received any financial advice before, here are just some of the things a financial adviser could help you with that could make a real difference to the quality of your retirement.
Working out the best time to retire.
This depends on how much money you have in super and other investments to live on in your retirement.
- We often find there is a real difference between people’s expectations around the income they’d like to retire on and the investments they have that can actually generate this income.
- What we can show people is the positive impact that working another couple of years can have on their final super balance, and what this could mean for their retirement income.
Are you feeling overwhelmed about how to increase your savings as retirement gets closer?
- We can suggest a number of tax-effective ways to fast-track your savings some of which may not impact your cashflow that much at all.
- Saving as much as you can in the last few years before retirement can make a significant difference in how much income you’ll have in retirement, and also how long this income will last.
- Rather than rushing in and making immediate decisions we encourage people to take their time and assess their whole situation before doing anything.
- When people approaching retirement come and see us, we always spend time upfront with them to understand their situation and their goals so that we get things right
Make sure you’re invested appropriately.Having the right investment mix for your age and risk profile will help build your funds and give you the opportunity to increase your savings ready for when you retire.
- We see some people that have been invested too conservatively for much of their life. Often their super has been put into cash and fixed income investments at some point, and they’ve never actually changed it. So that’s something we would look at.
- And for those people that are closer to retirement, we’d look at whether or not they are over-exposed to growth assets, as the impact of negative returns can be felt more deeply when you have a limited amount that needs to last a long time.
Consider different types of income.Many people planning for retirement often see term deposits as the only way to generate a consistent, stable income.
- With interest rates already dropped, term deposits are less and less attractive especially when you take inflation into account, which make things even harder for people with fixed incomes.
- We can look at income options available, for example, transition-to-retirement pensions, annuities and credit funds, and structure things to make the most out of the amount of income each person receives in retirement.
- We can also look at whether they would be eligible for any Government entitlements, as these can make a big difference too.
The information provided is general in nature and does not take into account your particular investment objectives, financial situation or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Cotter Financial Services and its advisers are Authorised Representatives of Fortnum Private Wealth Pty Ltd ABN 54 139 889 535 AFSL 357306 Australia Credit Licence No 357306 trading as Fortnum Financial Advisers.