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In today’s episode we ask “How much do you need to retire?”
Most of us daydream about the day we can retire. Ask yourself: When do you plan to retire? For how long? How much do you need to make your dreams a reality? How will you get there?
We’ll give you some context from retirement standards, speak about Super and the Aged Pension, and provide a worked example with property as a primary wealth creation strategy to get you towards the goal of enjoying a comfortable retirement.
One caveat – we’re not giving financial advice here, so please contact appropriately licensed and qualified advisers to ensure you understand the best options for your own personal circumstances.
Time stamps are below and there’s plenty more in the recording. Enjoy!
[0:53] Why this topic is important… most people don’t have a strategy, they don’t have a plan, they just ‘hope it will happen’.
[1:10] Unfortunately, you probably need more for retirement than you think, and more than what you’re on track to actually have.
[1:40] The Association of Super Funds of Australia provides guidelines as to what a single or couple need to enjoy a modest standard of living in retirement. What do they say, what’s the figure?
[2:50] Definition of what a ‘comfortable’ retirement actually means.
[4:10] Best place to start – play around with online calculators to get a feel for what you’re on track to have (e.g. based on current income and super balance), then have a more detailed discussion with a trusted financial planner.
[4:50] Example of a couple with $150k in super, with $150k combined household income, 40 years old (27 years to retirement).
[6:40] How to supplement retirement income with additional super contributions. Consider combining funds to save on fees.
[8:30] Investment strategies to further compliment super income. (example included)
[9:30] Capital growth focused investments can build equity, which can give you options – there are many ways equity can be converted into an income stream for retirement.
[11:30] Anyone in their 30’s or 40’s probably has 20+ years to progress an investment strategy.
[12:30] Fundamentals of the Australian property market are potentially stronger than media is making out right now.
[12:50] Relevance of the Aged Pension, not necessarily something to rely on – it’s means tested, and most people would prefer being in control of their own retirement, rather than being reliant on the government.
[14:30] Sensible leverage combined with compounding growth and time – this is a time tested formula for wealth creation.
The Long Property Show provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Nothing in the Long Property Show constitutes legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
