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.
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.
In our 88th podcast, we made a statement about how you can turn $100 a week into $100,000 over 10 years by making voluntary contributions to your superannuation. The trick for most people, of course, is to find that sum of money each week and make sure they put it away.
Most people have another ‘asset’ up their sleeve leading up to retirement; their leave entitlements.
In some cases, you may also be able to choose whether to take these entitlements as a lump sum or have this paid as a regular income (i.e. go on leave and then retire at the end of the leave period).
So, which is best?
Picture your retirement. You might see yourself spending time with the grandkids. Perhaps picking up a neglected hobby.
You might even plan to pack up your worldly possessions and hit the road for greener pastures.
We love being financial planner's, and we absolutely love providing you with the best information. Here is a compilation of some of our favourites.
I like to conceptualize! Every time one of my clients retires, I like to picture the accumulated retirement savings of that couple waking up to an early morning alarm, getting dressed, and going to work on behalf of them. When you think about it, that’s precisely what happens. For the entirety of one’s working life, their living costs are met from their physical exertion, in getting up and going to work. In fact, retirement savings are boosted by the worker’s act of waking up and going to work, in the form of employer superannuation contributions and the worker’s salary sacrifice contributions. All of that abruptly changes when the worker retires. Not only do contributions cease (no more employer super or salary sacrifice going in), but money starts to come out to meet the living costs of the newly retired.
Dallas Davison, Michael Hogue and Ali Hogue.