Thanks for the perfect update. Thinking about investment diversification is certainly key, How do I properly invest in the market and what strategies do I employ to make significant gains and stable cashflow?
in my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial specialist
Hi Chris, great information here, but I do think you should have added a seventh step as follows; 7. Be prepared to change your retirement plans. I think retirees need to be fully prepared to change the plans they have put in place if things don't work out quite as planned. Many retirees return to work for instance after retiring as they feel a sense of loss or find it wasn't as envisaged. I think the fundamentals mentioned like reducing debts and maximising super are always a great starting point and should be adhered to no matter what your plans may be but I would be a little more flexible on the age at which you retire etc and this may affect strategies like starting an account based or TTR pension etc. Things like parents or loved one's becoming ill and the need for you to be in a carer role is also something that is completely out of your control and can throw your retirement plans into chaos. Just be prepared if things don't quite go as you had originally intended. The average ACTUAL retirement age in Australia is around 56. The avergae INTENDED retirement age is 65. This seems like a huge almost 10 year difference between intended and actual retirement ages where things didn't quite go to plan ! Just some food for thought.
Chris, one thing I get confused by using these calculators is, do they account for inflation? I can live comfortably on $70k per year, so use that in the calc to determine what I need in retirement, but that is $70k in 2024. If the calc says you need say, $800,000 at retirement to cover that $70k for life, is that considering inflation? Thanks.
Also, I'm wondering whether people actually will want the same amount of income as they get much older. I'm just thinking of my parents and in-laws, and noticed that their wants and needs dramatically altered down as they got older. Maybe this fact counteracts or balances out the above question on inflation.
I think the answer is in the calculator’s fine print which sets out the assumptions and calc methodology. IMHO, the gov calc is simplistic, my super fund has a more nuanced and complex one (check your fund), but all these calculators do the same and bring things back into today’s dollars for the purpose of the initial calculation. That’s not a terrible thing as you have to assume that in a reasonably managed economy, a balanced investment option (50/50 - 60/40) will keep up with (normal) inflation (over the longer term), so the inflation aspect kind of cancels out. If your total balance keeps up, then so will your annuity.
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
@@SophieDubois-m8d I completely agree; 1 am 60 years old, recently retired, and have approximately over million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglect not rejected. Just do your due diligence to identify a fiduciary one.
@@MarieWentworth-p2h I think this is something I should do, but l've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you've got it all worked out with the firm you work with so i surely wouldn't mind a recommendation.
@@SamuelBradford-y5e I definitely share your sentiment about these firms. Finding financial advisors like Zoe Ann Wiest who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I want to retire from my full time job at the age of 50. Be able to afford working part time and do something else. I’m pushing 40 and we are on track with our retirement goals. We find it hard to maximise our super contribution. But at least we are putting in 15% of our income and will be paying off our mortgage early. 🤞🏻💪
i think "what expenses do you want to cover?" should come before "what age do you want to retire?". they go hand in hand but you can retire at any age if you are happy to accept any lifestyle.
my goal in retirement is to draw from the super balance the same (or more) after tax figure that I earn now. Also developing further passive income outside super "just in case". Just started my TTR, handy to pay for some big home repair items.
I was fortunate enough to be able to retire at 54 y/o on a (private company, not government) defined benefit. We could do that any time after 50 years old. Is that not a common thing any more?
Defined benefits are becoming much less common compared to a standard accumulation account, and are often closed to new members, so they will continue to shrink in size over time. At this point in time, the preservation age of nearly everyone in the super system is age 60, unless they have some special arrangement within a particular fund. But these arrangements are very rare.
I've been quite unsure about investing in this current market, but at the same time, I feel it's the best time to get started. I heard some guy speaking about making over a million dollars from a $300k capital, and I'm driven to ask what skillset and strategy can generate such profit?
You should avoid impulsive decisions driven by short-term fluctuations. It's important to prioritize patience and have a long-term perspective. Most importantly, consider financial advisory for informed buying and selling decisions. I think a lot of people minimize the importance of counsel until their own feelings become overwhelming. A few summers ago, after a protracted divorce, I needed a significant push to keep my firm afloat. I looked for licensed advisors and found someone with the highest qualifications. She helped my reserve increase from $160k to $890k despite inflation.
Her name is Jennifer Maria Lanza, a well known authority in this field. I would recommend looking into her credentials because she has a great deal of expertise and is a great resource for anyone looking for advice on how to navigate the financial market.
Thanks for the perfect update. Thinking about investment diversification is certainly key, How do I properly invest in the market and what strategies do I employ to make significant gains and stable cashflow?
in my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial specialist
Clara Burn is regarded as a genius in her area and works for Empower Financial Services.She is well knowledgeable about financial markets.
Clara Burn is amazing and the best crypto guard. 💯❤
She deserves more awards and I was looking through the comments and saw this. I tried it and never regretted it. She is the best.
I've been working with Clara Burn for about a year now. She is completely professional and delivered solutions that far exceeded my expectations.
Hi Chris, great information here, but I do think you should have added a seventh step as follows;
7. Be prepared to change your retirement plans.
I think retirees need to be fully prepared to change the plans they have put in place if things don't work out quite as planned.
Many retirees return to work for instance after retiring as they feel a sense of loss or find it wasn't as envisaged.
I think the fundamentals mentioned like reducing debts and maximising super are always a great starting point and should be adhered to no matter what your plans may be but I would be a little more flexible on the age at which you retire etc and this may affect strategies like starting an account based or TTR pension etc.
Things like parents or loved one's becoming ill and the need for you to be in a carer role is also something that is completely out of your control and can throw your retirement plans into chaos. Just be prepared if things don't quite go as you had originally intended.
The average ACTUAL retirement age in Australia is around 56. The avergae INTENDED retirement age is 65.
This seems like a huge almost 10 year difference between intended and actual retirement ages where things didn't quite go to plan !
Just some food for thought.
Is there a super fund that allows you to leverage?
Hi Cris. What software do you use?
Chris, one thing I get confused by using these calculators is, do they account for inflation? I can live comfortably on $70k per year, so use that in the calc to determine what I need in retirement, but that is $70k in 2024. If the calc says you need say, $800,000 at retirement to cover that $70k for life, is that considering inflation? Thanks.
Also, I'm wondering whether people actually will want the same amount of income as they get much older. I'm just thinking of my parents and in-laws, and noticed that their wants and needs dramatically altered down as they got older. Maybe this fact counteracts or balances out the above question on inflation.
@@cocomonky great point
I have wondered this too.
I think the answer is in the calculator’s fine print which sets out the assumptions and calc methodology.
IMHO, the gov calc is simplistic, my super fund has a more nuanced and complex one (check your fund), but all these calculators do the same and bring things back into today’s dollars for the purpose of the initial calculation. That’s not a terrible thing as you have to assume that in a reasonably managed economy, a balanced investment option (50/50 - 60/40) will keep up with (normal) inflation (over the longer term), so the inflation aspect kind of cancels out. If your total balance keeps up, then so will your annuity.
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
@@SophieDubois-m8d I completely agree; 1 am 60 years old, recently retired, and have approximately over million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglect not rejected. Just do your due diligence to identify a fiduciary one.
@@MarieWentworth-p2h I think this is something I should do, but l've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you've got it all worked out with the firm you work with so i surely wouldn't mind a recommendation.
@@SamuelBradford-y5e I definitely share your sentiment about these firms. Finding financial advisors like Zoe Ann Wiest who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I am not relying on my Super for my retirement. Its all invested in the market only to serve the wealthiest in financial meltdown.
I want to retire from my full time job at the age of 50. Be able to afford working part time and do something else. I’m pushing 40 and we are on track with our retirement goals. We find it hard to maximise our super contribution. But at least we are putting in 15% of our income and will be paying off our mortgage early. 🤞🏻💪
i think "what expenses do you want to cover?" should come before "what age do you want to retire?". they go hand in hand but you can retire at any age if you are happy to accept any lifestyle.
my goal in retirement is to draw from the super balance the same (or more) after tax figure that I earn now. Also developing further passive income outside super "just in case". Just started my TTR, handy to pay for some big home repair items.
I was fortunate enough to be able to retire at 54 y/o on a (private company, not government) defined benefit. We could do that any time after 50 years old. Is that not a common thing any more?
Defined benefits are becoming much less common compared to a standard accumulation account, and are often closed to new members, so they will continue to shrink in size over time. At this point in time, the preservation age of nearly everyone in the super system is age 60, unless they have some special arrangement within a particular fund. But these arrangements are very rare.
Very rare for anyone under 50 unless they got a public sector job a long time ago and joined the DB scheme.
Rare!!
I've been quite unsure about investing in this current market, but at the same time, I feel it's the best time to get started. I heard some guy speaking about making over a million dollars from a $300k capital, and I'm driven to ask what skillset and strategy can generate such profit?
You should avoid impulsive decisions driven by short-term fluctuations. It's important to prioritize patience and have a long-term perspective. Most importantly, consider financial advisory for informed buying and selling decisions. I think a lot of people minimize the importance of counsel until their own feelings become overwhelming. A few summers ago, after a protracted divorce, I needed a significant push to keep my firm afloat. I looked for licensed advisors and found someone with the highest qualifications. She helped my reserve increase from $160k to $890k despite inflation.
You seem to know the market better than we do, so that makes great sense. Who is the guide you worked with?
Her name is Jennifer Maria Lanza, a well known authority in this field. I would recommend looking into her credentials because she has a great deal of expertise and is a great resource for anyone looking for advice on how to navigate the financial market.
She appears to be well-educated and well-read. I ran an online search...
Brian Nelson scammer
they show up in every financial channel 🙄