When running a few km's, the whole time you think about how far left you have to go until you're done. When you are doing a few short sprints, all you think about is the small distance you are running right at that moment.
There's not a person on this planet who hasn't made a mistake in their life before, especially when talking about financials.
A large part of what we do is taking the time to understand the legislation involved in the financials of Australians and figuring out ways for us to use it to the advantage of our clients.
Retirement sounds great, no more work, and the freedom to do whatever you want. But why do we sometimes fear what is yet to come?
I’ve just had my first child just before I turn 30.
My father was 30 when I was born and his father was 30 when he had him. Based on this anecdote let’s assume the average 50-year-old has 80-year-old parents and 20-year-old children.
Out of these three, I believe that the average 50-year-old is in the toughest spot.
“Each generation imagines itself to be more intelligent than the one that went before it, and wiser than the one that comes after.”
George Orwell said that in 1945. It was true then, is now and will probably always be true.
The last article in this series covers the remaining major risks that can affect planning for retirement.
We have already covered market risk, purchasing power risk, business risk, and sequencing risk.
Some of the other major risks include the following.
We spend a lot of time thinking about what can impact someone’s retirement.
Most people are focused on the risks associated with the market crashing, or Brexit, or Trump getting elected… or any other number of factors well outside of their control.
In reality the biggest risks lie in whether you have a plan, and whether you stick to it.
These are some of the main dangers that can stop you having the retirement you want.
A major part of pre-retirement planning is focused on growing or increasing retirement savings using available cash flow. Two of the main ways to do this include paying down debt, or contributing to superannuation. To compare these properly we need to look at all of the factors that will affect this decision, such as:
I recently read a couple of interesting article discussing some of the potential flaws in our standard view of retirement planning. One of the main points the author made was that we tend to think about retirement in a very one dimensional way i.e. we save as much as we can, for as long as we can, until we can afford to stop working forever, and live happily ever after. One of the problems is that this doesn’t accurately reflect what we know about the way that we actually experience this change.
Dallas Davison, Michael Hogue and Ali Hogue.