65+ Year Old
Retirement is now upon you. You have finished work and are focusing more on your interests, the kids have grown up and the grand kids are now the apple of your eye.
Your decisions at this stage purely revolve around how you can get the most out of what you have got.
To be financially secure you need two components to be satisfied;
- You need to own your house
- You need a passive income stream form your investments.
Where is your retirement income coming from?
Superannuation – The Hidden Gem
Superannuation not only provides you with tax effectiveness solutions but the perfect platform to undertake a long term investment strategy required to fund your retirement income for the next 20 years.
Self Managed Superannuation – The Rolls Royce
Undoubtedly, the best vehicle for superannuation to be held and once a family has about $150,000 in aggregate monies it becomes cost effective. We can utilise strategies inside these funds that are not possible in a retail or industry fund environment.
Some of the reasons why we utilise Self managed Superannuation is as follows;
- Be able to control and be actively involved in the investment decisions in relation to your superannuation fund,
- Have the option of investing in particular types of assets not commonly available through other types of superannuation structures such as warrants and direct property. We can also use gearing (or borrowed money) to purchase these assets which will magnify returns over the long term.
- Have flexibility in structuring of the payment of superannuation benefits to others in the event of death,
- Be able to transfer existing investments that you hold into the superannuation environment,
- Accumulate savings for your retirement in a tax effective manner,
- Achieve cost savings in the ongoing management and administration of your superannuation savings,
- Given the share market volatility over the last couple of years, opportunities have never been so prevalent. We can invest in a portfolio of shares and the income stream from this portfolio will be far greater than previously. This is a once in generational opportunity don’t miss out a sit can set you up for the next 20-30 years.
Estate Planning - What Will Happen?
Another realisation is that after seeing friends or family members suffer serious medical conditions you understand the concept of mortality unlike when you were 21 years old and 10 foot tall.
What will happen you should you lose your mental capacity or who would look after the affairs for your partner should you die or become unable to function?
The estate planning process is a key component of the overall financial plan. However, for estate planning to be effective it must be addressed well before death. This will ensure that there are sufficient assets on your death to be distributed to the appropriate people at the appropriate time and in the appropriate manner, as chosen by you. Your estate planning needs should be reviewed regularly to ensure that your plan accurately reflects your current circumstances.
Helping the Kids
I feel obliged or indeed want to help the kids get started. How can I help them but still do what I need to do?