Three Ways to Increase the Security of Your Retirement Investments

Thursday, February 11, 2021

Good financial advice in retirement must cover several areas of investment strategy to maximise the security of your retirement nest egg.

by Maher Digby Financial Planners Sunshine Coast 

1. Strengthen your retirement investment strategy

This could include multiple underlying retirement investment management strategies including:

  • Diversification of your investments in a manner aiming to maximise returns and minimise risk within current markets
  • Make the most of compounding effects of dividends and reinvesting
  • Utilising the benefits of franking credit returns
  • Regular review of your portfolio to ensure it adjusts with market movements
  • Being clear on your level of tolerance to investment risk and having your monies allocated accordingly so you can remain calm and enjoy your retirement time
  • Maximising your Pension qualification to compliment your nest egg.
  • Being aware of Taxation pros and cons with your investment choices
  • Managing your monthly income in a way which maintains your capital investment as much as possible – there are certain benchmarks that can be fairly confidently followed.

2. Secure your Cash Flow

It is best to play the long game with your investments.  Your retirement will hopefully be a long one and it’s best to play the investment game according to that view.

The last thing you want is to have to draw down on your investments when the markets are low. This could mean significantly reducing your capital at the expense of income and finding it difficult to recover those losses.  A built in strategy of adequately held Cash in low risk assets to draw from when needed is a great foundation.  This will secure your share investments that are there for the capital gain and best left to go with the flow of the ups and downs that are inevitable in any market.

3. Secure Your Estate

Securing your retirement investments includes securing their future. It’s important to give consideration to where you want your monies to go on your passing. You want to keep it as simple as possible for your spouse and your children (or other beneficiaries) and abide by the rules of the relevant legislation.  This will require a Will and Power of Attorney to be in place.  For superannuation and pension investments the most legally binding option is a ‘Binding Nomination’ that can either go to your spouse or children or directly to your Estate.  There are pros and cons of these choices and your financial advisor will be able to explain your options and their implications.

Finally, any secure financial plan requires professional, experienced and reliable retirement investment management advice from a qualified Financial Planner. Please feel free to contact our Maher Digby, Nambour financial planners to discuss your retirement financial planning options for Sunshine Coast and Wide Bay area.  

For more Information contact Mark Digby Financial Adviser at Maher Digby Securities Pty  Ltd - Financial Advisers – AFSL No. 230559 Ph: 07 5441 1266  This document is to be used as general retiree financial information only and should not be considered a comprehensive statement on any matter and should not be relied upon as such. This document has been prepared without taking into account any individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making a financial investment decision.