We sometimes think about our future self as a different person. Of course, we know this is not actually true. But when it comes to borrowing money, thinking of our future self is important.
Many of our new clients come to us with around $700,000 in assets and about ten years left of their working lives. Their goal is to make sure they have enough money in order to live a good lifestyle during retirement. The first question we ask them is: how much money do you spend now? This is important, because we find that nobody wants to downgrade their lifestyle once they retire. So, to know what you need in retirement, first work out what you need right now.
If you own property, at some stage you’ve probably had to decide between variable and fixed interest rates. Today we discuss why you shouldn’t fix your interest rates when it comes to your home loan or rental property.
Who remembers the ad from 1994 about the average family having 2.3 children? It may be stretching the memory a little, but we clearly remember the little boy in the ad who certainly wasn’t a fan of being ‘the .3’. In the ad, he complains of never fitting in the backseat of their family car. Enter the Ford Laser – the car which all families must buy in order to fit all three kids! For a blast from the past, check it out here: https://youtu.be/jNNIJBiSyA
We decided to record a three-part series about setting up your own business in semi-retirement, because we have seen it working successfully for many of our clients.
We often have clients who want to put aside some money for their grandkids as an investment. The aim is for this cash to be a long-term investment – whether it’s used for education or as part of a first home deposit later down the track. In this blog we’ll look at how to successfully invest a small amount – under $20,000 – and in future podcasts and blogs we’ll discuss more significant amounts.
It goes without saying that there is a fairly broad spectrum when it comes to financial knowledge, just as there is a broad spectrum when it comes to financial stress. What we mean by the second one is the extent people worry about their current financial position.
Money is a lot like energy – it is simply shifted. It’s like an energy source. Money doesn’t care whether you spend it on a holiday, give it to your kids, donate it to charity or set it on fire (but please don’t do the last one).
We find that tax deductions are often the least understood area of finance. People often spend money simply because it’s a tax write-off. But what they don’t consider is whether that expense will help them in some way in the future.
In this blog we look at how much money you’ll need to retire, and what you need to do to get there assuming you have ten years left of your working life. Note: the figures discussed today are simply a rule of thumb and don’t take individual factors into account.
Dallas Davison, Michael Hogue and Ali Hogue.