Retirement Management

 

Retirement is arguably the time of life you will gain more value from a financial plan than any other.

Ideally you have planned with purpose up until this point, but even if you have not, it is the time in life where you need to assess what you have accumulated and deploy these assets to achieve the best retirement outcome they can for you, to last the rest of your lifetime.

While there can be great differences in how we approach your retirement plan the common threads include:

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  • Define what you value most in life and build your plan around this – The only way we can know how to deploy your funds is to focus first on what you want. What do you want most for your retirement? What do you value - Your health? Simplicity? A particular home? Travel? Understanding you and what matters to you is the first and fundamental step towards mapping out your retirement.
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  • Structure your assets so you pay little or no tax throughout your retirement – Tax saving = net return to you. The less tax you pay, the less return you need to make in order to achieve your needs.
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  • Define where your income is coming from – We will help you understand where your income is coming from. One way we do this is to break down the income you receive from each individual investment or investment strategy into virtual ‘income buckets’. This approach gives clarity and confidence on how your retirement income will be funded. A diversified income source that includes direct property and / or shares is a great option for this approach.
  • Endeavour to achieve the best investment outcome possible – Investing within your risk comfort is part of the puzzle here, but now you are relying on your assets to fund your income needs, it is essential to ensure you have adequate defensive assets that are liquid and can be used to fund retirement income needs. This way we can help you ensure you are not forced into a position to sell off growth assets at the wrong time. This is vitally important, as selling assets at the wrong time locks in losses or curbs potential gains, depending on the state of the market at the time.
  • Maximise Centrelink entitlement – Approximately 76% of retirees receive some Age Pension benefit. Planning for eligibility to Centrelink is smart, as any Centrelink payment you receive becomes a guaranteed investment outcome for you, in the same way tax savings are. We aim to maximise the Centrelink entitlement that is available to you.
  • Consider your Estate – how you structure your assets can have significantly different outcomes for your estate, yet it is our experience that many advisers do not fully appreciate or consider ways to improve estate outcomes. Planning to effectively structure your assets to benefit your estate, does not mean you need to have a worse off position while you are living, so why wouldn’t you?
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  • Consider Longevity of Assets – One of the biggest concerns retirees have is whether their assets will last the distance. For this reason, all our planning starts with the end in mind! Determining how long your financial assets could last from here is the first part of an ongoing effort to manage your finances to see you through the retirement years of your life. Managing your asset allocation, along with adjusting your position (considering the points above) will help to ensure you can maintain peace of mind your assets will continue to support your financial lifestyle in the years ahead.

Retirement management is not a set and forget strategy. Once your retirement plan is created and implemented, its really important to manage the changes that inevitably come. Partnering with Yield means we will regularly meet with you to keep your plan on track. As change happens in legislation, investment markets and your own personal circumstances, you can depend on us to help you make the most of it.

 

Read our step by step guide to achieving a comfortable retirement below.


Special Report: The step by step guide, to achieving a comfortable retirement

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Retirement is arguably the time of life you will gain more value from a financial plan than any other.

Ideally you would have planned with purpose up until this point, but even if you haven’t, it is the time in life where you must assess what you have accumulated through your working life and deploy these assets to achieve the best retirement outcome they can for you, to last the rest of your lifetime.

Read our step by step guide to achieving a comfortable retirement.

Read more →