
Our Financial Specialists Explain Navigating Retirement Investing
Wednesday, November 06, 2024
Navigating retirement finances can be complex. This is where a retirement financial advisor can assist you to avoid potential pitfalls.
A retirement financial advisor brings expertise and objectivity to your financial planning process. They can help you see the big picture and make informed decisions based on your unique situation and goals. By working with an advisor, you're most likely to manage the common road bumps that may occur in investing during this phase of your life and create a solid financial foundation for your retirement years.
There are many aspects of retirement investment that need to be considered. Here are just a few:
1. Your longevity
Australians are living longer. A retirement financial advisor can help you plan for a longer retirement by:
Creating a financial strategy that extends the life of your investment capital for as long as possible and recommending ways to generate sustainable income throughout your retirement.
2. Managing inflation
Many retirees forget about the impact of inflation on their purchasing power. A skilled advisor can:
Suggest investments that have the potential to keep pace, or outpace inflation.
Help you adjust your spending and investment strategy over time to maintain your retirement next egg.
3. Exposure to Risk
As you approach retirement, it's crucial to balance risk and reward. Commonly your investment strategy will change during retirement as opposed to how you were invested while saving for your retirement. Your advisor will:
Recommend a mix of growth and income-producing assets suitable for your stage of life.
Assess your risk tolerance and adjust your investment strategy accordingly.
Diversify your investments in a way to spread risk.
4. Income strategy
Pacing your spending in retirement is something your retirement financial advisor can offer guidance with:
Calculate a safe withdrawal rate based on your specific circumstances.
Create a tax-efficient withdrawal strategy. For example, pension income streams can be tax-free.
5. Estate Planning
Estate planning is a vital part of any retirement investment strategy. Your advisor can:
Design an overall estate strategy that maximises benefits to your beneficiaries and establishes a simple administration process upon your passing.
Suggest strategies to minimize estate tax burden for your beneficiaries so they receive the maximum income from your estate.
Help you plan for funding of any long-term care needs for yourself or your spouse.
Remember, retirement planning isn't a one-time event. Your advisor can provide ongoing support, helping you adjust your strategy as your circumstances change and navigate the complexities of retirement investing. With their guidance, you can feel more confident about your financial future and focus on enjoying your retirement to the fullest.
For more Information contact Mark Digby at Maher Digby Securities Pty Ltd - Financial Advisers – AFSL No. 230559. This document was prepared without taking into account any person’s particular objectives, financial situation or needs. It is not guaranteed as accurate or complete and should not be relied upon as such. Maher Digby Securities does not accept any responsibility for the opinions, comments, forward looking statements, and analysis contained in this document, all of which are intended to be of a general nature. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend consulting a financial advisor.