One mistake that people can often make when it comes to preparing for retirement is focusing solely on superannuation.

People can spend a lot of time preparing for retirement. This is normal.

Sufficiently preparing for retirement will ensure that you have a great post-career life! 

Unfortunately, planning and preparing for retirement can be complex. There are many factors that you may have to take into consideration in order to be fully prepared for retirement.

One mistake that people can often make when it comes to preparing for retirement is focusing solely on superannuation. While superannuation is an extremely important source of your retirement income, it isn’t the only thing that matters. 

You want to be able to live your best life in retirement. What does the perfect lifestyle look like to you? 

It’s important to take the time to consider what you want your future to look like and take the best action steps to get you there. You may want to consider seeking a financial adviser who can provide you with a tailored financial plan to help get you there.

Here are three things you may need for retirement beyond your super:

1. Protecting your wealth

Wealth protection can be something often neglected when it comes to planning for retirement. The right life insurance can be very useful once you reach your preservation age. 

Life insurance is designed to protect families from loss of income. Not everybody will need life insurance through their retirement – it depends entirely on your situation. 

You may need life insurance after you retire if: 

  • You are retiring with debt

  • You have people that financially rely on you lie your partner or children

  • You want your family to have income when you pass to pay for things like funeral costs or estate taxes

The main question that people have about this is: How much insurance coverage will I need? Luckily, there’s a way to determine this.

By using a life insurance calculator, you’ll be able to figure out how much cover you may need. This calculator can provide you with a general idea of whether or not you have enough protection to cover death, disablement, and income.

2. Investments in retirement

Outside of your super, consider what other investment options you could take advantage of to provide steady, reliable retirement income

Utilising multiple investment strategies and asset classes will ultimately build your retirement savings in the long term. 

  • Investing in Property: can be used to provide you with a secondary source of income (rent) and has the potential to offer capital growth, which you can reap the benefits of once you sell in the long term. 

  • Cash Investments: such as savings accounts or term deposits, can provide you with a stable, low-risk income in the form of a regular interest payment. 

  • Fixed Interest Investments: also known as fixed income or bonds, will usually have a set investment period (five years), and be able to provide you with a predictable income in the form of regular interest payments. 

  • Shares: is an option that involves investing in a company and in return, you gain capital growth and some income through its dividends. This is considered a high-risk investment option.

  • Managed Funds: You can choose to invest in a managed fund, where your money is pooled together with other investors and is managed on your behalf (fund Manager). A fund manager buys and sells assets, such as shares or bonds. 

Here are the different types of managed funds you can choose from:

  • Single Asset Managed Funds: this type will invest in a single asset class, such as shares, property or bonds etc.

  • Mixed Asset or Multi-sector managed funds: this type diversifies your investments, aligned with your risk profile. 

  • Investment Bonds: also known as an insurance bond, is a combination of an investment portfolio and a life insurance policy. It’s essentially a tax-paid investment, meaning the tax on the investment earning is paid by the bond insurer, rather than the bond owner.

Here are some benefits of Investment Bonds: 

  • Variety of investment options to choose from, 

  • You are able to withdraw money at any time,

  • The growth/ income generated (if held for a minimum of 10 years) won’t need to be reported in your tax return, 

  • If you are ineligible to contribute to your Super, this may be a useful option.  

  • Can provide an efficient and cost-effective solution for estate planning and wealth transfer. They sit outside your will and thus, can’t be challenged when given to your nominated beneficiary.

It’s worth noting that it is important to conduct thorough research on the investments you are wanting to make before you invest your money. 

You want to ensure you have a good understanding of:

  • How the investment works,

  • How it generates a return and an estimation of how much will be returned (capital gain or income),

  • Any risks involved and whether the investment matches your risk tolerance, 

  • Any fees you will need to pay before buying, holding and selling the investment. 

3. Estate planning

Estate planning is the act of planning out what happens to your assets after you pass away. While this may seem simple, there are a number of moving parts when it comes to estate planning. 

An estate plan is a collection of documents that protect your assets and personal property. Your estate plan should determine how your assets will be passed down in case you pass away. To add to this, estate planning usually entails appointing those you can trust and count on to make sure your wishes are covered if in the circumstance you are unable to make decisions for yourself. 

Effective estate planning can minimise the taxes your beneficiaries will pay upon your death. Taking the necessary steps are crucial in the estate planning process to ensure you take the most tax-effective approach and ensure your assets are best protected in the event of your death.

When it comes to the ones you love and care for, you don’t want to leave anything to chance.

Early estate planning can provide you with reassurance that you have done everything in your power to ensure your loved ones will be best protected and supported when you’ve passed. 

Poole Advisory estate lawyers are some of the best in the game to support your plans to deliver the best and desired outcomes for you and your loved ones. 

Considering all the complexities involved, it’s crucial that you start with estate planning early. This can allow you to have enough time to be as thorough as possible. It may be beneficial to seek professional financial advice when it comes to estate planning, so you can effectively manage the difficulties that can be involved with the process.

Retirement planning in bowral and sydney

We understand that this can be a lot for one person to handle. Luckily, you don’t have to do everything yourself. If you’re in need of financial advice for retirement, look no further than our experts here at Poole Advisory. We are an experienced advisory firm offering financial advice to help you achieve your financial goals. 

Get in touch with us today!


Compliance Disclaimer:

This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns

Poole Advisory Pty Ltd ABN 15 642 040 604 is a Corporate Authorised Representative (No. 001282603) of Prosperitas Partners Pty Ltd ABN 30 662 654 453 AFSL 544 917

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