5 Tangible Ways to Secure Your Financial Future
The future is coming, whether we like it or not. And the decisions we make today shape the way in which we can live tomorrow. Part of preparing for your future is taking care of your finances and at Finpro we are committed to preparing you for a brighter financial future. We are dedicated financial planning and investment experts who can guide you on the decisions to make with your income now so that your retirement is spent doing the things you love, instead of worrying about having enough money to pay rent. We have brought together some of our top tips to help you secure your financial future. Read on and take a look – and then when you are ready to take control over your tomorrow, give us a call to speak to one of our friendly team. You can reach us on 1300 943 454 or get in touch with us online.
Invest in Property
A key part of your wealth in the future is going to depend on the income that you have to support your lifestyle. Investing in property is a way to ensure that you have a reliable income from tenanted properties, while at the same time enjoying the value of a (hopefully) appreciating asset which grows in value over time. We are not suggesting that property investment is something trite that you may never have considered; we know that property investment can be complicated and requires careful planning. But as a strategy for retirement, property is absolutely one of the most effective strategies you can put in place.
Salary Sacrifice and Max Out Your Contributions
Did you know that you can put up to $25,000 into your superannuation account per year before being charged extra tax? That means that if your employer is currently contributing $13,000, then you can elect to contribute an additional $12,000 before tax without incurring extra charges. Even small amounts contributed to your super over time can add up to large amounts in the future. And If you’re a low-income earner, you may be able to seek bonus super contributions from the government. Your superannuation is a great way to boost your retirement, so speak to your employer about salary-sacrificing to your super account as a way to get more when you retire.
Treat Your Retirement Savings Like a Business
When you think about planning for your retirement
, how does it make you feel? Are you apprehensive about making savings, feeling like it’s curtailing your enjoyment of your day to day life? It can be as simple as making a shift in your mindset, but when you start to treat your retirement savings like a business where you must meet certain goals, you’ll find that your savings start to grow. If your retirement savings are your business, you have certain accountabilities that you must meet; you have to meet targets for earnings, and you need to be consistent. Set a goal that is realistic, and then ensure that you meet that amount every month no matter what.
Budget And Work Out What You Need to Retire on
When it comes to your retirement, do you actually know how much you need to earn each year to support yourself? Are you going to be comfortable on the pension, or do you need a bit more than that to achieve all the things you want to do? Is it just you, or is it your partner as well? These are all things to consider and it is important that you have a true figure in mind. The easiest way to do this is to work out how much money you (and your partner, if you have one) will need to live each year. Then work out the age you want to retire and the average age for Australians in your demographic. Times the number of years by your chosen figure and that’s your amount. For example, if you’re planning on retiring when you are 60 years old, and you’re going to live until you’re 87 years old, that’s 27 years of retirement. If you want to live on $50,000 per year you will need $1.35 million dollars.
Use Your Assets to Provide Your Income
This point ties into two strategies we have mentioned above, but it combines the amount you need to have saved (or to have as an income) for a comfortable retirement, with a strategy for getting there. We know that property investment is a solid way to gain an income for the future and offers a way to ensure a reliable income for the future. As is investing in shares, or using a managed fund. Whatever investment strategy
you decide to use, you need to have sufficient cash flow and liquidity to your assets to be able to access money when you need it. For example, if you or your partner need to go into care at any point, you want to know you have the cash available to fund this.
Contact Finpro Today
We know that some of these strategies may be new to you, and some may be familiar – but this much is sure: a professional financial advisor can help to ensure that the decisions you make with your money today lead to a brighter tomorrow. When you are ready to start planning a brighter retirement and future, give us call to speak to one of our friendly team. You can reach us on 1300 943 454 or get in touch with us online.