13 Apr 5 Most Powerful Actions to a Comfortable Retirement
Retirement in itself can be a daunting time and planning ahead can be invaluable. It’s the conscious realization of the end of an era and the beginning of the next stage of one’s life. Retirement, however, need not be always gloomy and lined with melancholy. All it needs is proper planning and a proactive approach towards retirement. Here are five basic things to do when looking forward to a fulfilling retirement life:
Estimate Cost of Retirement:
It’s easier to manage expenses with a constant income source and that is why it is rather important to calculate a tentative amount of retirement. It’s imperative to know beforehand the monthly or weekly expenses depending upon the size of the family and the life style that you live with. There are expense calculators available all over the internet but everything need not that mechanical in life. Make sure to take a good estimate of how well you need something in life and also how well can you live even without certain luxuries that your retirement can no longer afford. The idea is to know and to be prepared for what’s coming. The transition alone is enough for most people to cope with at one time.
Manage Tax Affairs:
Tax planning is a critical element of any retirement plan as every dollar you can save is another dollar you can reinvest, or pay for that well deserved holiday. The best tip I can give you is spend more time finding the right tax adviser. Find someone you really like working with, and who has a strong technical backup in people and resources. Too often people muddle along with an adviser from the distant past, without recognizing that the needs of someone transitioning or in retirement include upgrading the level of advice they receive.
Reviewing your Investments including Superannuation:
We have worked hard throughout our working lives and throughout the employment we have been accumulating bit by bit of your money (building wealth) and that perhaps has hardly been noticeable over time and it has been accumulating. It is imperative to focus on your super, and implement smart superannuation strategies by potentially seeking advice on whether to put in some extra money into the super fund instead getting taxed at your marginal tax rate after retirement because the super funds pay no more than 15% tax (sometimes zero tax) as opposed to your marginal tax rate which on average is a 32.5% tax rate.
Have a system in place to automate the process of monitoring my wealth and cash-flow:
The wise approach is to have an automated and holistic system to monitor and track your wealth. This will ensure that your finances are transparent for you and your advisers and provides a simple system of knowing how you’re tracking at all times. We can provide you live updates on every aspect of your financial world, including valuations on your home, investment properties, cars, shares, superannuation, allocated pensions, every aspect of your banking and Self-managed super funds. We also provide live reporting on your cash flow circumstances. This is the kind of investment that never goes out of fashion and keeps the monetary cycle going!
Seek expert advice:
Finally, an expert’s advice to guide through the technicalities and the legal, provisional rights of and duties towards the state makes the transition hassle free.
After all what’s better than a little part of your life dedicated for self exploration, let your retirement be that for you!
Speak to an Expert Financial Advisor
Theo Karoumbalis is director & senior financial advisor at iadvice Melbourne (a privately owned wealth management firm in Melbourne, Victoria). He helps successful individuals manage their wealth effectively. Theo’s graduated in Commercial Law, Commerce, Accounting and Financial Planning, is a best Advisor and have significant direct markets experience.
B.Law, (LLB), B.Comm, (Accounting & Finance)