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Make Your Retirement Comfortable With These Retirement Planning Tips

Retirement Planning Tips

Imagine living a life where there are no tight schedules, no deadlines; where you are free to pursue your hobby and do whatever you want with your time and still receive a good amount of money, every month!

Imagine living a life where there are no tight schedules, no deadlines; where you are free to pursue your hobby and do whatever you want with your time and still receive a good amount of money, every month!

Financial planning may not be an exciting part of the whole retirement preparations, but it certainly is one of the most crucial things that you shouldn’t ignore. The process of retirement planning is cumbersome, and hence requires meticulous planning at every step.

If working out on your retirement financial management conjures up feelings of confusion, apprehension and anxiety, we have got a solution for you. Here’s a step by step guide to make retirement planning smooth and hassle-free:

 

1. Know and Understand Your Retirement Needs

Defining your retirement financial goals is the first step towards making retirement planning easier. Therefore, it’s recommended to develop an overall financial plan that includes your needs during your post-work years.

Here are some questions you need to ask yourself to create a comprehensive plan of action:

 

  • The overall cost of living your preferred lifestyle post work:

One of the crucial considerations that will help you get a crystal clear perspective of exactly how much money you require to maintain a decent and comfortable lifestyle. The best way to gauge your expense is to keep track of your current

 

  • Determine your cash liquidity requirements:

Do you require easy access to cash in retirement or are you comfortable with all cash tied up to investments? Certain stocks, for instance, are sort of liquid investments which can be sold any time. Whereas investing in property means you require a buyer to have access to your money.

 

2. Planning a Meticulous Superannuation Strategy

Everybody is aware about the term superannuation and most of them have a general overview of how it works and what it has to do once you retire! However, an average Australian is likely to have zero details of superannuation. Since superannuation forms a crucial part of an effective retirement plan, it’s quite surprising how it’s not given much consideration. Superannuation doesn’t have to be mystery or rocket-science. There are various strategies that can make the superannuation planning successful and effective. It’s essential to understand the concept of making the most out of superannuation. Here are a few things you should keep in mind when planning super funds.

 

  • Isn’t employer’s super contribution enough?

No! Your employer’s super contribution is not sufficient. Employers are required to put in just 9.5% of your annual salary to the super funds, but that’s not enough to become completely self-funded.

 

  • How to Improve Super Balance?

For better superannuation, you have to follow a three-factor formula – the money contributed + return on investment – fees or taxes that need to be paid. While there are many ways to plan the right superannuation strategy, the main focus should always be on reducing the taxes and increasing the balance.

 

3. Always Take Professional Guidance

If you are soon going to be a retiree, it’s advisable to build a team of expert professionals who can guide you through the legal, tax and financial complexities and navigate your through challenging decisions. Seek out qualified professionals who possess the experience and expertise to understand the markets and your financial standing to ensure you get the best return on investment.

If you have any queries or want to know more, give us a ring on 0402895593 or email us on pallavi@sfadvisory.com.au.

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