Pakenham, Cranbourne & Beaconsfield

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Retirement Income

What is retirement income? Well once you stop work, income from any source is your retirement income. But your focus changes. Instead of building capital value you now have to look for enough capital growth to keep pace with inflation but focus on income to replace your salary. Now might be the first time you have to do a budget when your adviser asks you “how much income do you need to live on?”

The investment market swings can be your friend when you are younger as each new investment or contribution can see you buying more than you did last month as the price is cheaper (its called “dollar cost averaging”). Now these market swings are your enemy if you have no strategy to manage them. Falling markets and falling portfolio values in retirement mean you have to sell more shares or units in your fund to cover the income you need. Its called “sequencing risk” and it can be a vicious circle if not managed.

For most people, now is the time that superannuation becomes much more interesting. Instead of a brief glance at the statement once a year this is real money now. I have to live on this, I have to make decisions, my retirement income depends on this. Understandably this is one of those crucial points when many people who do not have a Financial Planner seek advice for the first time. It can be daunting. Who can I trust, how do I know if they are competent, are their fees fair, will they still be here to help me next year and the year after that? These are all questions you should ask and we are happy to answer them.

Of course maximising what Age Pension or other benefits you may qualify for reduces the pressure on your own funds. An assessment of your Centrelink entitlements is the start of our analysis to prepare your retirement income advice.

We have many years experience dealing with retirement income. We have heard most of the questions. Should I downsize my home? Can I go back to work part time if I’m bored? Should I do the repairs and upgrades on my rental property or just sell it now? If you have thought of the question it’s likely someone else has thought of it before and we have considered the answer!

We know how it all works, we do this every day but we know you do this once in your lifetime. Our “putting you first” philosophy means we take our time so that you know your options and understand our recommendations and do not feel pressured into making a decision.

We put things in place when YOU are ready.

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