Do You Have A Game Plan For Your Retirement?
So, Retirement’s on your mind. You’re starting to think a little more seriously as it approaches.
You’ve saved hard and want to make the most of the working years you have to fund the next 20-30 yrs of lifestyle.
But not sure where to start. It’s normal, no one gives you a manual on this stuff.
You’re starting to ask questions:
How much do I need?
Will my money last?
You’re nervous about how much you’ll actually need.
How do I safeguard my investments against a Global Financial Crisis event in retirement?
You just want to know you’ll be ok and not have to give anything up.
What if you had a game plan that answered all these questions for you?
Imagine for a moment, you have your Retirement gameplan.
You’ve mapped out what your lifestyle is going to look like. From your day to day lifestyle to the annual overseas holidays.
You know how much you need to fund it all. You’ve worked out that you either have enough or more than enough. If so you start thinking about adding a bit more spice to your retirement.
Giving up the 9-5 job is now a little clearer. You can now start planning when the next adventure starts.
The income you need in Retirement will come in like clockwork for your day to day living expenses. No need to worry about selling investments in bad investment markets.
An emergency fund is in place. You don’t have to worry about where the money’s coming from if the fridge packs up or you have to help one of your kids out.
You know the money will be there when you need to fund large capital expenses like overseas holidays and change of cars. You won’t have to worry about taking a loss on your investments when investment markets are performing badly.
The gameplan you have will have this money available and be planned for.
Your Retirement gameplan has been tested against various market scenarios, base case, pessimistic and optimistic.
The amount of risk you are taking in your investment portfolio is enough to get the job done. You’re comfortable in the fact no matter what investment markets throw at you, you’re going to be ok.
You’ve done the hard yards, the work required to set yourself up for a successful retirement.
Knowing also that if life changes and it will, you’ll be able to pivot.
You are able to focus on living life and worry less about money.
How would that feel to have that weight lifted so you can worry a little less about your money and have a little more fun in your life?
We’ve put together a guide to help you plan this out. You can download below.
Struggling to figure out if you are on track for your DREAM Retirement?
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What Does a Retirement Game Plan Look Like?
It all starts with the lifestyle you are wanting.
Are you happy with a frugal, moderate or luxurious lifestyle?
Working what experiences you want in Retirement is critical to a Successful Retirement.
You can download our Rock Retirement Guide here>> that’ll help you work it all out.
Having this information will help you plan better, maybe even allowing a few more experiences. After all, life is for living, right?
Maybe front load your experiences early in your retirement while you’re healthy and fit.
While some will have enough, others will not, so it comes down to what’s possible.
We recently went on a family holiday to Hong Kong for a week. We wanted to get away somewhere that wasn’t too far away but allowed our kids to experience another culture.
I love to travel and have plans to take my kids to various places around the world, so they can be exposed to other ways of living.
Back to the story, we were walking through Hong Kong and as young kids do, they complain a lot. Our eldest, 6 at the time, said I just want to go back to Wallaroo, SA. We’d taken a number of summer holidays here where we spent most of the time on the beach.
My jaw nearly hit the ground. We had spent all this money thinking it would be great for the kids and all they wanted to do was be in Wallaroo.
Could have saved my self a lot of money.
It’s all about the experiences, and it dosn’t have to cost a lot for it to be memorable and enjoyable.
When considering your Retirement lifestyle it’s important to take this into consideration. If certain things look out of touch, consider what else would give you a similar experience but without the cost.
Going through the exercises in the guide will help you work it out.
What’s You’re Number?
The next step is working out what it’s all going to cost.
After all, the last thing you want is outliving your money, right?
In our Rock Retirement Guide, we give you a simple formula to calculate your number.
Essentially, your Retirement lifestyle annual cost times by 25.
You may find this will be a large number. It’s based on the fact that you won’t run out of money and leave a legacy to the next generation.
While this may not be the reality for most, it’s a starting point.
When working with clients, we’ll run a couple of calculations to work out the actual number.
But let’s look at a couple of quick examples:-
Ted & Julie are retiring at age 65. They have worked out they require $70,000 pa including annual holidays. We always assume living till age 100, 6.5% annual return and an inflation rate of 2.5%.
They’d need $1,375,674 to fund their retirement lifestyle.
Let’s take Jane, age 61, wants to retire now and requires $60,000 pa. She’d need $1,238,547.
While these numbers seem large, it’s a starting point. You now have a base number that can start some meaningful and productive conversations on either how to make it a reality or changes that may need to be considered.
Want some help to work through your numbers? Book you’re Rock Retirement Call below and we’ll help you with that.
Do you want you’re own gameplan to achieve your DREAM Retirement?
We’ll help you create your own retirement gameplan. Know how you’re positioned. Know what your options are. Know what you’re possibilities and opportunities are to make it a REALITY.
We’ll help you build your own personalised retirement gameplan on your call.
Your life will have a little less stress and more fun knowing you have a gameplan to enjoy your DREAM Retirement.
You’ve worked out you’re Retirement Lifestyle and you’re Number, now what?
Here’s the exact steps we go through with clients:-
#1 If there’s a GAP.
We’ll work through possible solutions to bridge the gap. Is it contributing more to super? Is it working for longer? Is it making an adjustment to the lifestyle they were working towards? Is it downsizing?
Is it readjusting their investment strategy? Is it looking at possible work solutions, perhaps part-time in retirement to bridge the gap?
Having this information at hand as early as possible allows you to take pro-active action and be well prepared.
#2 If there’s no GAP.
We’ll work with clients to make the most of what they have. Maybe it’s bringing their date forward. Maybe it’s helping them add a little more spice in retirement.
We’ll review their comfort level to risk in their investment portfolio. Maybe they can take a little less risk.
#3 Building an Emergency Account
If no emergency account exists we’ll help them create a plan to get this funded by the time they retire.
#4 Reviewing the Tactics and Strategies
Once your Retirement Lifestyle is clear, you have your number, it’s time to review all the tactics and strategies.
Making sure they align with the direction you are heading is critical.
First, it’s the strategies. Are you maximising your super strategies? Contributing more to your investments. Risk levels in super. What’s at your disposal that will move you closer towards your Retirement?
Then it’s the tactics, what’s required to get the job done. Which super fund is most appropriate? Which investments do you need to have? The less complex the better.
If investing outside of super what investment structures need to be used.
#5 Aligning Investment Risk with Your Retirement Gameplan
We bring this right back to the basics. Understanding that 90% of the investment return comes from how much you have in cash, fixed interest, shares, and property, your asset allocation. Not individual share selection.
Helping clients determine their comfort level with risk to protect them when markets turn.
Using low-cost investments that gets the job done.
#6 Safeguarding Your Retirement Gameplan
One of the most important steps is safeguarding your Retirement Lifestyle.
We do this by setting up a client’s retirement plan with certainty around where income will come from.
Retirement Plans come undone when either you haven’t planned well or you have not positioned yourself to handle the uncertainties in Retirement.
We’re in a privileged position where we have walked alongside many in retirement. We’ve seen the events that make the best of plans come unstuck. We’re able to plan for these.
When it comes to an investment portfolio ( usually an account based pension), we prefer portfolio’s that generate income year to year.
We generally hold 2-3 years worth of income in cash or very conservative investments to protect your income flows.
By doing this you can essentially go through approx 5 yrs of bad markets before needing to sell down your growth investments. This worked very well for our clients through the Global Finacial Crisis.
No one had to downsize their lifestyle and neither should you.
Having said that, I heard of so many horror stories where people did not have their retirement plans set up in a way to withstand these type of events. We don’t want that for you.
We’ll also have a timeline for your capital expenses, knowing when funds are required. We’ll have plans in place to ensure funds are available when required. No more worries about bad investment markets getting in the way.
#7 Regular check-ins
Here’s the thing, once a client leaves our office with their plan, it’s redundant. Sounds a little weird, hey! Here’s the thing, life changes, rules change and markets change.
We are continually reviewing and pivoting for our clients to ensure they have the best Retirement.
Our role is to act as a Guide, so they, our clients know they have covered every angle and know what’s possible. The control is back in their hands, we just help them get there with a little less stress about money so they have more time for fun in their life.
Hope that’s been useful…
Have You Booked Your ROCK RETIREMENT CALL?
Struggling to work out where to start or know whether you’re on TRACK to Live your DREAM Retirement?
Book your Rock Retirement Call now!
What will you achieve on this call?
We won’t be selling you anything, there won’t be time for this. Given the investment of time in these calls we’ve had to limit them, so if you find all the times are taken, you’ll have to wait until next month.
You’ll achieve 3 things from your call:
#1 We’ll help you define the lifestyle you are working towards, even if it’s only a guestimate, it’s something you can start working on. We’ll help you define the cost of it.
#2 You’ll receive a short report, detailing all the important that will put you in a position where you have more control over the direction you’re heading in.
Your short report will contain:-
- A detailed listing of your dream retirement lifestyle
- You’ll know what your Dream retirement will cost
- You’ll have the information to know whether you are on track to have enough
- We’ll provide some options you can consider to improve on your current position
#3 Two Bonuses
- Because we know life is busy, we want to make sure you get practical information you can use. Firstly we’ll give you access to our interactive risk profile tool. It’s something new we have introduced for clients. Rather than answer questions that most use in the industry, this interactive tool is backed by science. You are given six scenarios and you choose the level of upside and downside you are willing to accept. What you get is an answer to the real risk you are comfortable taking with your investments. Never be in doubt.
- Want to know you are going to have enough. We’ll also stress test your retirement plan for you. We’ll run it against different market cycles. You’ll know how you’ll fare against a base case scenario, pessimistic and optimistic scenario’s. You’ll have the information to make an informed decision about the amount of risk you need to take to get the job done.
You’ll have 80% of the information to better your retirement plan and make the most of the only life you have.
CLICK HERE to book now>> These calls are limited.
Know someone that would gain benefit from the information, feel free to forward on.
Make it a great Life!
Challenging the Status Quo!
Glenn Doherty – CFP – Founder & Financial Organiser at Jigsaw Private Wealth
Email: [email protected]
Mob: 0401 253 729
Advice Disclaimer: Any reference in this publication to the provision of advice refers to advice of a generic nature, and should not be taken as product or investment recommendations. Before any action is taken based on the information provided, independent financial advice from a licensed financial adviser should be sought. Financial Freedom Project Pty Ltd ATF GA & DC Doherty Family Trust Trading as Jigsaw Private Wealth is a Corporate Authorised Representative of Exelsuper Advice Pty Ltd. The information contained in this publication is of a factual nature only and is not intended to constitute financial product advice. Information is current as at June 2018. This is an online information blog. It does not imply an offering of securities.