How to nail your Retirement Plan in a Crisis?

The world is crazy right now!

If retirement is on the horizon it can feel a little like landing a fighter jet on an aircraft carrier in the middle of a storm.

One minute your thinking ahead, planning out your retirement.

The next minute it all changes as you watch it turned on its head.

It’s unchartered territory.

Reaching for a stiff drink as you review your investment balances!

Nerve-wracking as it may be.

It’s enough to make you a little anxious.

A little frustrated.

Perhaps your more worried about running out of money in retirement now the market has crashed.

Maybe even concerned retirement may be further away than you thought.

Thinking, have you made the right investment choices.

Confused about what you should be doing now.

While times like these challenge us all, it’s the best time to be figuring out your retirement path and how you’re going to close the gap!

It’s a little like getting everything ready for the final descent when landing the plane.

First, you must have everything in order before the tray tables go up.

You want to live well now, but know you’re going to be ok later on.

It’s not easy.

It takes being agile.

A proven process to get it right.

Here’s our proven process we use to help successful professionals plan their retirement:

Not only to know they will not run out of money in retirement.

But be in control of experiencing time freedom on their terms and living their best life!

A proven Path to achieving your retirement in a crisis:

Step 1: Figure out the retirement lifestyle you want!

  • Vocation – what are you going to do to keep mentally active?
  • Vacation – what holidays and trips would you like to experience?
  • Recreation – what are you going to do to keep fit and healthy?
  • Relationships – who are the closest people in your life you want to stay connected with?

If you are struggling to figure this one out.

It’s ok, just take a wildly awesome guess.

Click here to download “Dream up your retirement worksheet” to help you work through it>>

Step 2: How much do you need to fund your retirement lifestyle?

This can be broken down into three areas:

Think of it like cooking a nice pasta meal.

You have the pasta, which is the base of the dish. It’s ok but not very tasty.

Next, you add the sauce. 

Now it’s a little better.

Adding spices and parmesan take the dish to the next level.

  • Basics – What it’s going to cost to live your day to day life?
  • Wants – This could be regular travel, sporting clubs or interest that costs money.
  • Wishes – These are things that would add that extra spice to your life, but if you couldn’t afford to do them, it would be ok. Think once in a lifetime holidays.

For some, you may not be able to afford everything on your list.

That is ok, as this is where you determine what’s really important to you.

It gives you a sense of control over your destiny!

Click here to download the worksheet>>

Step 3: Do you have a GAP?

Time to work out what you have in retirement savings.

If you have a GAP, now’s the time to address that GAP!

How are you going to bridge the GAP?

Are you going to invest more?

Will you work longer?

Maybe work part-time into retirement!

Perhaps you need to look at negotiating on what you want in retirement!

If you are fortunate enough to not have a GAP.

It’s time to figure out, what does this possible?

How can you use your money to improve your life or experiences in retirement?

Step 4: Start building your cushion!

That’s right, you’ll need to start building your security blanket.

Having enough cash for emergencies, upcoming capital expenses, and creating an income floor.

Many over the years have said we hold too much cash.

In times like these, you’ll appreciate having a solid plan in place.

If you are further from retirement, you’ve got time.

Time to increase cash holdings into retirement.

Step 5: Stress-test your retirement plan!

Sounds a little like going to the doctor for a physical.

No one wants to do it!

However, stress testing your retirement plan will give you more confidence.

Giving you the confidence that no matter what is going on in the world, politics or investment markets, you’ll be ok.

This is why we think now is the best time to be putting a solid plan in place.

Everything you know about money is being tested right now.

Step 6: How much risk do you need to take?

In Australia, many are obsessed with maximising the returns on their investments.

Implementing strategies with no real science and approach behind them.

This is what’s commonly called, a hope and pray strategy.

Not understanding the empirical evidence. 

How risk-adjusted returns are generated.

While we all want the best from our investments, it’s about achieving the balance between risk and return.

As you approach retirement, a different mindset and a different set of tools are required.

You’re transitioning from a distribution phase to a preservation phase.

We think of it in terms of, what return do you need to get the job done?

The return on your life is what matters here.

Step 7: What strategies do you need to employ to fast track your progress?

This is where you may require some expertise.

Working through all the options:

Do I put more into super?

How much do I put into super?

Do I invest in my own name?

What should I be doing with my current investments?

Do you need to consider working longer and what impact will that have on your plans?

Step 8: What products do you require to get the job done?

Yes, that’s right, we haven’t mentioned anything about products until this point.

While many financial experts discuss products and the beginning, this is not the place to start!

We’re all about simplicity.

In a world where the financial pornography channels are spitting out so much rubbish.

It’s all noise you need to try and ignore.

Contrary to what many will tell you, you don’t need complex products and services to get the job done.

Many new clients we see often over-complicate it.

Simple is always best.

Step 9: Rinse and Repeat!

While it would be nice to put a plan in place and forget about it.

It’s vital to the success of your plan that you are continually reviewing and refining it.

Life changes, the world changes, which means you may need to pivot from time to time.

That’s why we advocate focusing on the process, not the plan.

You got this!


Your personal invitation to a Secure Your Retirement Strategy Call:

To help you navigate through this period of unprecedented turmoil and disruption, I’ve opened up a spot on my calendar for you.

So, I’d love to offer you a complimentary 1 one 1 “Secure Your Retirement Strategy Call with me.

It’s a simple way to help you figure out the right money moves you can make right now and thrive on the other side.

Many lack a proven process to get them back on track when events like these blow them off course.

Here’s what we’ll cover on your call:

 #1 Help you unpack your most pressing issues and concerns right now.

 #2 Uncover what needs to change, if anything, what to pivot and prioritise in order of importance.

 #3 Figure out what’s working and what’s not.

 #4 Come out with a clear action plan and next critical steps.

 In times of unprecedented events, you’ll come out with a crystal clear gameplan.

 You’ll be more confident about the future, knowing what you have control over.

 Instead of feeling frustrated, unsure, you’ll be excited about what’s to come.

 You’ll have your personalised gameplan to get you right back on track. 

It’s time to book your Secure Your Retirement Strategy CallClick here to book>>


You might also be interested in:

Coronavirus Retirement Action Plan

You may be thinking your retirement plans are in tatters or in damage control.

You might be feeling like it’s slipping away.

We’ve put together an action plan to help you maintain focus in unchartered times.

Click here to view>>

Mountain in a Hurricane

In times of unprecedented events, you may be feeling all is lost.

We share insights from a podcast with Jerry Colona, author of Reboot.

Sharing some valuable insights on you can get through this better than ever.

Click here to view>>

 

Glenn Doherty – CFP – Founder & Financial Organiser at Jigsaw Private Wealth

We conduct virtual client meetings!

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 January 2020. This is an online information blog. It does not imply an offering of securities.


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