In the previous blog we discussed the benefits of becoming self-employed during semi-retirement. Taking this step suits some people more than others.
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.
Have you ever watched Gordon Ramsey’s Kitchen Nightmares? It’s actually one of Michael’s favourite shows, and he sees many similarities between failed retirement plans and failed restaurants. On the other hand, successful restaurants have a lot in common with successful retirement plans.
Michael’s son had his first day of school this year. In the week leading up to it, he was incredibly anxious about his first day – it was almost challenging to even get him into the car! But the afternoon told a different story, when he came home with a grin from ear to ear and spent the rest of the afternoon talking about how much fun school was. Life brings us many challenges – but Richie had conquered his fear.
Whenever we tell people we’re financial advisers, the first question we get asked is ‘what is a good investment?’ or ‘what should I invest my money in?
In the previous podcast we discussed ‘bolting it all together’ while you are still working – meaning getting everything in order financially before you retire. We gave the example of a couple who earn $90,000 each in the final 10 years of their working lives, and their ability to claim $113, 505 in personal tax returns if they make voluntary super contributions in that time. If we subtract the 15% earnings tax from this, it would leave a benefit of $64,155. There are other benefits the couple could tap into while they are working, such as spouse contribution and government co-contribution. There are many small things you can do while you work to chip away at growing a larger amount of money for your retirement.
We often discuss owning the great companies of Australia and the world and how it benefits you in retirement. Today, we look at some things you can do while you are still working.
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.
Most people have some money saved for their retirement. Whether this is in superannuation or across other investments, they have generally thought about their retirement and are preparing for it. The issue is that many people are not proactive about their super. Each year, or each month, they get a balance statement, and if they see it has gone up, they are happy and think ‘I’m on track’. Unfortunately, that is not enough. The fact that the balance has gone up is actually irrelevant to whether or not it will be enough for them to retire with.
When it comes to your retirement, your finances and your business: no-one’s coming to your rescue. In other words, all of those things are your responsibility. That might sound depressing, but it could also be viewed in a positive light. Imagine the possibilities when all those things are in your control.
Dallas Davison, Michael Hogue and Ali Hogue.