When you leave work for good and retire, where will your money come from?
So what is the differences between 'general' and 'personal' advice? There is confusion in the marketplace according to a recent ASIC research report.
Just as having a Will ensures assets are managed properly when you die, a Power of Attorney allows someone else to look after your finances when you’re unable to.
It's impossible to know for sure exactly how much money you need for retirement. There are simply too many variables that we either can’t control or can’t predict with any certainty. Such variables might include your health, your family situation, and legislative changes.
In a nutshell, the financial lifecycle is a model that provides a simplistic framework upon which to better understand the path you travel during your life. Namely, your progression from financial dependence to independence with regards to wealth accumulation and cashflow generation.
In this article we look at the concept of financial success and the fact that it will hold a different meaning for each and every one of us. For example: For some, financial success might mean having $1 million in investment assets and retired at age 65. Whereas, for others, it’s owning their own home and having enough behind them to live year on year.
We might think that having more money will solve our problems. But by spending less time and energy sizing up our situation against how others live, we can get clear on the goals that matter to us individually and take steps towards a better financial future.
Did you know that 45% of people are passing away intestate - this means that they failed to make a valid Will. One of the significant consequences of passing away intestate is that you don't get to decide how your assets are distributed.
"Mindfulness. If you’ve read anything to do with wellbeing recently, there’s no doubt you’ve already come across this term several times. But what exactly is mindfulness – and what does it have to do with our finances?"
According to the latest statistics, a 65 year old Australian could on average expect to live until 84.6 (Male) or 87.3 (Female)! In retirement terms, that is about 16.9 years for a male and 22.3 years for a female that needs to be carefully planned for.
From 1 July 2018, those aged 65 or over will be able to use the proceeds from the sale of their home to make a downsizer contribution of up to $300,000 each into superannuation (subject to complying with some finer details).
Retirement often involves a shift from employment income to income derived from a combination of your retirement savings (investments inside and/or outside of superannuation) and potential Age Pension entitlements.
When considering the subject of retirement, one of the questions often asked by wealth accumulators and pre-retirees is 'how much is needed to fund a comfortable lifestyle in retirement'. Another common question is 'what does a comfortable lifestyle actually afford (look like)'.
Check out this helpful article illustrating the importance of having your estate planning affairs in order.
Travelling in retirement can often be high on the priority list. You worked hard to accumulate wealth during your working years to live a comfortable lifestyle in retirement - and now, with time and resources at your disposal, you may want to do things that may not have been possible earlier in life.