While many people are tempted to look after their own finances in retirement and risk a variety of potential pitfalls and missed opportunities, it is important to effectively manage and structure your super and investments to help maximise your income.
There are many ways you can maximise your income and depending on your situation will determine the right financial strategies and solutions for you.
Your Bernie Lewis financial adviser can assist you to identify your retirement goals, review your financial position and ensure you have the right strategies in place.
Good advice is worth its weight in gold.
As the graphs below show the value of advice can be measured in three ways:
- The cost of the advice compared to its value (the return on your investments and strategies)
- The amount of money you have for retirement
- The amount of time your money will last you in retirement
Whatever strategy you choose, the key is getting sound advice and sticking to a plan. If you are retired and want to know if you can enhance your financial position, then you need to speak with us.
Click on the graph to see a larger image
The information in the above graph is based on a case study undertaken by the IFFP. It assumes that a couple, both aged 55, earn a combined income of $90,000 a year. They need $60,000 a year to live on. Both receive standard employer superannuation contributions of 9% and their funds grow at 8% pa (nominal growth rate). They currently have a combined superannuation balance of $162,000. The grey line shows how they accumulate their retirement fund with this current scenario continuing as their retirement strategy. The red line on the graph shows the value of advice from a financial adviser who recommends a number of superannuation strategies including:
1. They both make non-concessional contributions of $1,000 each year to their superannuation funds.
2. The husband commences a Transition to Retirement pension using $99,000 from his superannuation fund (20% tax-free component). He draws the maximum pension each year, which is 10% of the account balance.
3. This additional income allows the husband to salary sacrifice $33,000 each year into superannuation.
The value of the advice prior to age 55 has been estimated by Bernie Lewis based on the strategies and advice generally recommended for a family acquiring wealth during these years.
