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The Retirement Investing Checklist
While retirement is still officially a long way off for us, in our grand plan it's only three years away! That's not overly long, and even though we've been planning and plotting and saving like crazy for years, to maintain our lifestyle during retirment we need to plan and plot and save more.
According to ASIC's Moneysmart website, a couple living a modest lifestyle need $39,353 a year to maintain that lifestyle during retirement. For a comfortable lifestyle that figure increases to $60,264 a year.
If you’re thinking about saving, planning and plotting for your retirement, you’ll want to ensure that you have the following steps completed in order to maximise your profits and retirement income. It's never to early to start saving and planning for retirement, and the earlier you start the easier your retirement will be. But even if you haven't thought about it and you are closer to retirement than you'd like to be, it's not too late.
1. Review your current retirement plan.
Have you made a financial plan for your retirement? When you do this, estimate your monthly income during retirement and see if this amount is feasible for you. Work out what your expenses will be. Some will go down, others may increase. It certainly shouldn't cost you more to live in retirement than it does now though. Plan how you can increase that income if you need to.
2. Finalise your plans for withdrawal.
After you've estimated your monthly income during retirement, determine a set withdrawal amount that is within your retirement budget. Remember, like all budgets, its not set in cement. It can be altered if necessary, but you'll need to allow for finding other sources of income if your retirment costs increase.
3. Contribute as much as possible to your superannuation.
If you haven't yet retired, contribute as much as possible to your superannuation plan. This will help you get the highest returns when you do retire. Speak to your paymaster or accountant and see just how much you can contribute without penalties.
4. Build an emergency fund.
Don't think for one minute that you won't need an emergency fund once you're retired. Things can still go pear-shaped, no matter how well you plan for the future.
5. Work to be debt free as soon as possible.
Starting retirement with debt makes it very hard to relax and enjoy not having to go to work each day. Aiming to be debt free as soon as possible, and definitely before retirement, is commonsense. It will free up more money for investing and saving, and ease stress and the burden of having to repay loans.
6. Hire a financial adviser.
This step could easily save you thousands of dollars. Go with a financial adviser recommended by a friend or family member you know to be financially stable and trust. Don’t be afraid to shop around, it’s important to be comfortable and trust the person who’s giving you financial advice. If you’re not comfortable or have doubts, keep looking.
7. Invest in your health.
Health costs are one of the largest expenses during retirement. Visit your doctor and follow beneficial eating and workout habits to keep your body healthy now, and start your retirment off as healthy as possible. Getting fit doesn't need to cost money. Changing to a healthier diet doesn't need to increase your grocery budget either. You can improve your health without damaging your finances.
8. Take action!
Take a step today that will move you in the direction that you want to go and plan to enjoy your retirement, not matter how far off it is.
According to ASIC's Moneysmart website, a couple living a modest lifestyle need $39,353 a year to maintain that lifestyle during retirement. For a comfortable lifestyle that figure increases to $60,264 a year.
If you’re thinking about saving, planning and plotting for your retirement, you’ll want to ensure that you have the following steps completed in order to maximise your profits and retirement income. It's never to early to start saving and planning for retirement, and the earlier you start the easier your retirement will be. But even if you haven't thought about it and you are closer to retirement than you'd like to be, it's not too late.
1. Review your current retirement plan.
Have you made a financial plan for your retirement? When you do this, estimate your monthly income during retirement and see if this amount is feasible for you. Work out what your expenses will be. Some will go down, others may increase. It certainly shouldn't cost you more to live in retirement than it does now though. Plan how you can increase that income if you need to.
2. Finalise your plans for withdrawal.
After you've estimated your monthly income during retirement, determine a set withdrawal amount that is within your retirement budget. Remember, like all budgets, its not set in cement. It can be altered if necessary, but you'll need to allow for finding other sources of income if your retirment costs increase.
3. Contribute as much as possible to your superannuation.
If you haven't yet retired, contribute as much as possible to your superannuation plan. This will help you get the highest returns when you do retire. Speak to your paymaster or accountant and see just how much you can contribute without penalties.
4. Build an emergency fund.
Don't think for one minute that you won't need an emergency fund once you're retired. Things can still go pear-shaped, no matter how well you plan for the future.
5. Work to be debt free as soon as possible.
Starting retirement with debt makes it very hard to relax and enjoy not having to go to work each day. Aiming to be debt free as soon as possible, and definitely before retirement, is commonsense. It will free up more money for investing and saving, and ease stress and the burden of having to repay loans.
6. Hire a financial adviser.
This step could easily save you thousands of dollars. Go with a financial adviser recommended by a friend or family member you know to be financially stable and trust. Don’t be afraid to shop around, it’s important to be comfortable and trust the person who’s giving you financial advice. If you’re not comfortable or have doubts, keep looking.
7. Invest in your health.
Health costs are one of the largest expenses during retirement. Visit your doctor and follow beneficial eating and workout habits to keep your body healthy now, and start your retirment off as healthy as possible. Getting fit doesn't need to cost money. Changing to a healthier diet doesn't need to increase your grocery budget either. You can improve your health without damaging your finances.
8. Take action!
Take a step today that will move you in the direction that you want to go and plan to enjoy your retirement, not matter how far off it is.