Do you have a plan for your retirement or want to learn on how to invest for retirement? Or is your only plan to rely on your superannuation to see you through?
Sadly, many Aussies simply don’t think too much about planning for their retirement, relying on superannuation alone or a pension. The problem is, many people have rather big goals and dreams for when they retire, such as indulging in hobbies and interests, regular travel and more. This all takes money.
Your Superannuation Alone May Not Be Enough
The amount of money you’ll receive from your super fund when you retire is not set in stone. Even if you receive the figure you’re expecting and hoping for, it still may not be enough for you to completely enjoy the retirement years. It may suffice if you plan to live a very basic lifestyle, but if you want to get more out of your retirement, you’ll want to start planning for it as early as possible so you’re not solely relying on your superannuation.
Seek Professional Help With Retirement Planning
If you’re struggling to come up with a solid retirement plan or you have no idea where to even start, the good news is that there are numerous financial advisors and retirement planners in Australia. When it comes to retirement planning, Sydney itself has many options.
Your retirement financial advisor will sit down with you and help you to develop a clear plan for your retirement, along with methods to achieve those retirement goals. It only makes sense to seek the assistance of an expert.
You will want to team up with a financial advisor that creates tailor-made retirement plans that suit your individual requirements. A one size fits all approach won’t do you any favours, so be sure to discuss their approach to retirement planning in the first instance. In fact, it’s wise to come up with a series of questions to ask your financial advisor before you have your first consultation. This way, you can be sure they are a good fit for you.
Should You Save Or Invest for Retirement?
You’ll ideally want to do both. In addition to your super fund, you’ll want to be putting money away as often as you can for your retirement fund. However, saving alone on one income might just prove to be too slow and too little. The accumulation of your savings won’t necessarily help you reach your retirement goals.
This is where investing your money can really bear fruit.
Sound investments are a way of amplifying your money and building up your retirement funds at a more rapid rate. Many Aussies have even managed to build wealth through a variety of investments and in particular, purchasing investment properties. You can receive regular passive income from rent with investment properties, as well as capital gains and profits when you sell them.
With the right investments, you won’t just accumulate enough money to reach your retirement goals, you can actually maintain a regular income throughout your retirement. This gives you a lot more financial security and the freedom to do the things you desire, such as traveling.
Consider a Self-Managed Super Fund
If you would like to have more control over your super fund so you have a more hands-on approach to your retirement planning, you might want to consider a self-managed super fund (SMSF).
What is a self-managed super fund and what are the benefits?
Rather than having a third-party super fund taking charge of your super, you can manage your own super fund and make the decisions on how your super money is invested. You’ll also discover that you have a wider pool of investment opportunities to choose from. You can even create one fund for the entire family. Self-managed super funds even have some tax advantages.
To fully understand the benefits of an SMSF and how to set one up, you’ll need to discuss this option with your retirement planner or financial advisor. Choose a retirement planner who offers the self-managed super fund option as part of their services.
The Wrap
If you combine your superannuation with savings and income from investments, your retirement will end up being everything you ever dreamed of. Consult with a retirement planner to ensure your dream becomes a reality.
