Planning for your future
Tips to help build your wealth
- Consider having part of your salary regularly deducted from your savings account and transferred to investments with a higher rate of return
- Invest for the medium to longer term which will help smooth out the short term volatility of some investments
- Growth investments such as property and shares, although higher risk, generally offer a higher return over the longer term than lower risk investments such as cash and fixed interest
- Avoid investments that sound too good to be true, as this is often the case
- Consider investments that are more tax effective such as Australian shares
- Contribute more to super as this is one of the most tax effective investment structures available
- Diversification helps to reduce risk by investing across a range of asset classes
Why not take a look at our savings calculator which can give you an idea of how much your savings will be worth over time so you can work out how much you need to save. A financial planner can help you identify strategies to build your wealth and can provide advice tailored to your particular circumstances and goals.
For more tips on how to build your wealth view the Bridges online videos. They cover a variety of topics including ‘Getting to know your super’, ‘Investment fundamentals’ and ‘Protecting your assets’.
Retirement is a time of life for you to relax and do the things you have always wanted to do. Therefore, careful planning can help ensure you are financially comfortable.
Prior to retirement, there are some important questions you need to ask yourself, including:
- What do you want to do in retirement?
- How much money will you need to do it?
- Do you need a regular income?
- Where will this income come from?
- When can you retire?
- How and when will you be able to access your super?
- What Government support will you be eligible to receive?
Planning ahead can assist you in making the most of what you have and help you achieve financial security, reduce uncertainty and enjoy your retirement.
There are many different options available to help fund your retirement. These include taking your super as a cash lump sum, purchasing an income stream product to give you a regular income or a combination of both.
A regular income in retirement
An account-based pension is purchased with super monies and provides a flexible, tax-effective, regular retirement income stream. It is not guaranteed, however the payments are flexible and can be any amount over the minimum limits set by the Government. Any capital remaining upon death is distributed to your estate or dependents.
An immediate annuity on the other hand is an investment of a lump sum, usually with a life insurance company, that provides a regular guaranteed income for a specified period. The income will depend on the initial investment, frequency of payments and the prevailing interest rate. The income you receive is generally set at the time of investment and may be indexed.
Each type of income stream has different features. The vast changes to superannuation for July 2007 made by the government affect income stream products and your retirement. A Bridges financial planner can help you with these changes and your retirement planning by identifying income options that best suit your circumstances and goals.
Is there a gap in your retirement savings? Why not take a look at our retirement gap calculator which can help you compare how much you have and how long it will last, compared to the lifestyle you want. A financial planner can help you identify appropriate strategies to get you on track for a super retirement.
For more information view the Bridges online videos? Choose the ‘How much super is enough’ or ‘Retirement income options’ to find out more about planning for your retirement.