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Archive for retirement planning Perth

Retirement Planning 101: Pros and Cons of Investment Property for Retirement Income

Our retirement planning professionals have been helping clients in the Perth area since 2005. We have more than 40 years of combined experience in the financial planning and advising field. Property investing is currently a popular form of saving for retirement. We would like to share with you some warnings from the Australian Securities and Investments Commission about property investing to help you decide whether or not it is appropriate.

Investment Property for Retirement Income

“Pros” of Property Investing

One of the more attractive benefits about property investing is that you can create rental income while also benefiting from capital growth over time, assuming that your property actually does increase in value. Another benefit is that property is a less volatile investment than shares. When you invest in a bricks and mortar rental property, it is a tangible asset that you can touch and see.*

There is also a tax benefit to property investing. You can use the costs of maintaining and managing your property as an offset against your taxes. The interest on your loan can also be used to lower your taxes.*

“Cons” of Property Investing

There is always a chance that your rental income won’t be enough to cover your expenses. This forces you to take money out of your own pocket to pay your mortgage repayments or miscellaneous costs. If interest rates rise, it also comes out of your pocket and can consume any profit you may be making from the property.*

During times of vacancy, you still have to make the mortgage repayments, even though you don’t have a tenant. Housing is not “liquid”; you can’t sell off assets to raise quick capital. Also, property investment is often someone’s sole source of investment income. That means that there is no diversity and you are at the mercy of the housing market and interest rates.*

Costs can be high, counting stamp duty, real estate agent’s fees and legal fees. If your property doesn’t appreciate in value, you can lose money.*

Call Approved Financial Planners Today

To talk to a retirement planning professional, call Approved Financial Planners today: 08 6462 0888.

*Australian Securities and Investments Commission (ASIC), MoneySmart: “Property Investment.” https://www.moneysmart.gov.au/investing/property. 6 October 2015

Important Factors for Investing in Retirement

Retirement planning can be tricky if you don’t know what you’re doing. Fortunately, we have helped numerous people in the Perth area get started on the path to a prosperous retirement. At Approved Financial Planners, we have a wealth of local experience, combined with the resources of AMP Financial.

While we are not allowed to give any specific advice on this blog due to the disparity in individual financial situations, we would like to provide you with some general information that both we and AMP feel is important when making investment decisions.

Factors for Investing in Retirement

Why Retirement Planning is Important

For many in the previous generation, an age pension was enough to provide a comfortable retirement. However, the Australian Government is now encouraging everyone to take control and save for their own retirement.*

As more baby boomers reach retirement age, the number of people drawing pensions will soon be too large for the current workforce to sustainably support them. Consequently, Australians are being encouraged to create their own sources of income to supplement their age pensions and ensure a comfortable lifestyle after retirement.*

Here are some factors to consider when planning your retirement.*

What Do You Absolutely Need?

This is the money needed to eat, keep a home, pay the bills and transport yourself from point A to point B. This should be a steady income stream that won’t be adversely affected by inflation.*

Discretionary Spending

You don’t want to work hard, retire and then have nothing left to enjoy your life. How much money do you need to live the lifestyle you want? This can include recreation, hobbies, travel and entertainment. Do you want a family room with a large TV for entertaining? A new car? A boat? This portion is often addressed by assets that grow over time.

Call Approved Financial Planners

It will take intelligent financial planning to maximise your retirement in the Perth area. Call Approved Financial Planners today for a free consult: 08 6462 0888.*

*AMP Capital: 7 April 2015: “Investing for Retirement: 6 Things to Consider.”

Close to Retirement? It Might be Time for a Financial Checkup.

Retirement planning is one of our specialties. We have more than 40 years of combined experienced helping Perth residents get the most out of their retirement years. Our financial planners can work with you to devise an individual plan that can help you develop and meet a specific set of goals. This can help ensure your desired retirement lifestyle.

Retirement Planning With Financial Planners Perth

While it is always better to start retirement planning as early as possible, we realise that a lot of people are too busy living their lives to think about it. We know that it’s easy to see retirement as something far off in the future, only to wake up one day and realise that the future is coming up pretty fast.

The Process

Basically, the sooner one decides to work towards retirement, the easier it is to help them reach their financial goals. We like to have our clients choose a specific retirement date and how much money they want to have waiting for them when they get there. From there, it is easy to make a solid plan and start executing it.

If Retirement is Coming Soon

For those who are approaching retirement age and didn’t follow a plan or for those who just want to make sure they maximise all of their resources, we can help. No matter what you have done in your past, we can help you maximise what you have.

We do this by employing tax reduction strategies and maximising your Centrelink entitlements. We can also help with your superannuation fund and help you figure out the lifestyle you will be able to afford on the assets you currently have.

Call Approved Financial Planners

We can’t provide any specific advice here because every individual financial profile is different. But we can offer a free consult and a “financial checkup.” For more information or for a consult, call Approved Financial Planners today: 08 6462 0888.

Pros and Cons of Downsizing

One of the biggest questions in retirement planning, especially in a market like that in Perth, is whether to downsize or stay in your family home.

Remember that we can’t give any individual advice here because everyone’s situation is different. So, don’t constitute any of what we are saying as “advice.” That being said, here are some factors to consider when thinking about downsizing.

Downsizing Pros And Cons

The Numbers: Who is Downsizing?

Our parent company, AMP, has some pertinent numbers on their website. According to research cited on the AMP website, approximately 25% of Australians between the ages of 55 and 64 relocated in the last five years. (1)

Four popular reasons were cited. 23% said they wanted to live in a smaller home. 22% said they moved for family reasons. 20% said they moved because they wanted a lifestyle change. 23% said they moved for reasons related to health. (2)

Pros and Cons

Ideally, downsizers who move into a smaller home enjoy their lives, happily ever after. They have less maintenance and smaller monthly bills because there is less space. They may have a nice addition to their “nest egg” from the profit of selling their old home and buying a smaller, less expensive one. They find it easier to get around. Some even opt for “sea change” and its more relaxed lifestyle.

However, “happily ever after” doesn’t always happen. Some people miss their old homes. There is also the stress and hassle of buying one home, selling another and moving. A lot of the “profit” from downsizing can be negated by taxes and fees. Some people move and don’t like their new home after living in it a few months.

We Can Help

At Approved Financial Planners, we can look at your individual financial situation and help you come up with a firm retirement plan. Call 08 6462 0888 for more information.

Downsizing Sources

Approaching Retirement? You May Want to Try These Money Moves!

If you have talked about retirement planning to a financial advisor in our Perth office, you probably know how diligent and thorough we are in helping our clients leave nothing to chance when planning their futures. While we never give specific financial advice in blog posts due to the individual and unique nature of every financial situation, we would like to present some general actions that are worth consideration for anyone approaching retirement.

Retirement Planning with Financial Advisor in Perth

Pay Down as Much Debt as Possible

Ideally, you could start your retirement with a “clean slate,” owing nothing. We know that life is not always ideal, but paying off debts is a great place to start for most Australians.

Pay Off Your Mortgage

If you own your home free and clear, you are free of what is usually the largest monthly financial responsibility for any family. It is a lot easier to enjoy retirement when you don’t have to make a house payment every month

Set Your Affairs in Order

This means filing a last will and testament. In the event of your untimely death, your heirs will need access to your money. Lack of a will can cause it to be tied up in court. It will save a lot of grief for your survivors.

Determine How Much Money You Need to Retire On

How much money will you need to live off of when you retire? What happens if you live longer than you thought you would? Will you have enough funds?

Create a Budget

This is best done by listing what you want and need every month. Then figure out how much it costs. This will give you a great idea of how ready you are financially for retirement.

Determine How Much Income You Will Have

How much will you receive from your super fund and pension?

Call Approved Financial Planners

Don’t try to organise your retirement alone. Call a qualified financial advisor today: 08 6462 0888.

Tips for Retirement Planning

How to ease the transition to retirement pension by maximising what you already have.

Although we can’t give specific advice due to the individual nature of investing, we can provide some tips for easing the transition to retirement pension. As more Australians born during the baby boomer era reach retirement age, it is becoming more important to maximise your retirement opportunities. Here are some helpful tips.

Tips for Retirement Planning

Send Your Tax File Number (TFN) to Your Superannuation Fund

This is a fundamental, but failure to execute it can cost you thousands. If you fail to supply your super fund with your TFN, you pay a penalty tax on your concessional or before-tax contributions and you won’t be allowed to make non-concessional or after-tax contributions. Additionally, you won’t be eligible for the co-contribution scheme.

Combine Your Super Accounts

If you have different super accounts, you may be paying fees on each of them. Combining them into one fund could save a lot of money.

Create a Succession Plan

It is never too early to make plans for who will receive your super and non-super assets in the event of your death. It can save untold time, money and heartache. There are many implications here that only a conference with a professional can fully explain.

Consider Concessional or Non-Concessional Contributions to Your Super

Whether your contributions are concessional or non-concessional, they are determined by a number of factors, with income being a large part. Whichever the case, extra contributions will help your fund grow faster.

Get Professional Help to Determine Whether a Self Managed Super Fund (SMSF) is Right for You

There are many kinds of super funds, but many Australians like an SMSF because they feel it puts them in charge of their own destiny. An SMSF can be a complicated process and it isn’t for everyone, but if you have the help of a professional financial planner in Perth, it can be a great option.

Call us today for an obligation-free consultation: 08 6462 0888.

Avoid These 4 Retirement Planning Mistakes

Retirement is a lot tougher than it once was. Gone are the days when a family could pay off the family home, put away some savings and maybe a small investment or two and live happily ever after. In this era, it takes careful planning to have enough money to retire. At this point, we like to see people in their 20’s start planning for their futures.

If you want a comfortable retirement, you need to start early. You should also avoid these crucial mistakes.

Retirement Planning with Financial Planners Perth

Failure to Plan

As the old adage goes, “If you fail to plan, you plan to fail.” The fourth edition of The ANZ Survey of Financial Literacy in Australia, which was conducted in 2011 and is their most recent, showed that among adult Australians, only 37% had come up with an estimate of how much money they would need for retirement. A good plan should include what risk you deem acceptable, which investment vehicles you want to use, how much you have to invest, your preferred cash flow and what insurance you need to protect your investments.

Failure to Formulate a Budget

You should formulate a budget and stick to it if you want to have investment success. A budget accomplishes two things; it lets you know where your money is going and earmarks a set amount for your future.

Failure to Invest

Putting your money in the bank may not keep you abreast of inflation. Investing in property or shares generally generates better returns. How you invest depends on your personal risk profile and the goals that you have.

Going It Alone

You need a team of professionals on your side to truly maximise your retirement investments. Financial planners are trained to consider a plethora of factors that pertain to generating wealth for one’s retirement. At Approved Financial Planners, we are firmly committed to securing the futures of our clients.

Our services include retirement planning, superannuation, self managed superannuation funds, mortgage broking, cash management, estate planning, wealth protection, investment planning and business solutions.

The process is easy. First, call us for an obligation-free consultation. Then, we ask for enough information to identify your goals and develop strategies. We provide you with a Statement of Advice (SOA). If you want to implement the plan, we will help you.

Call (08) 6462 0888 today.