Retirement Planning: 9 Tips For A Successful Retirement

Retirement Planning: 9 Tips For A Successful Retirement

Financial planning for retirement is incredibly important if you have certain retirement goals or a specific lifestyle you would like to uphold in retirement. You may like to deepen your knowledge before consulting a financial advisor about retirement strategies. The following are 9 valuable tips that have the potential to lead to a successful retirement.

  1. Establish Where Your Wealth Comes From

What you do or don’t do contributes to your financial success. Wealth creation occurs when you provide goods and services to others. Services that provide lasting value tend to provide better returns. 

 

The way in which you add value is entirely up to you as an individual. It is just imperative that you do so. If you would like to read more about where your wealth comes from here is a previous blog that shares more in-depth information on the topic.  

 

To have power over your wealth you need to take responsibility for it. Establishing where your wealth comes from sets a solid foundation for creating financial goals and planning for your future.

  1. Discover Your Money Personality

 

Your personal financial management is a leading contributor to your wealth creation. The more informed you are about your personal financial needs, wants and financial behaviours the more chance you have for a successful retirement. Here is an overview of the four money personalities:

  • Owl

Known as the logicals individuals with an Owl personality prefer to collect information through patterns and connections. They then use this information to explore possibilities. They value competence, logic and reason. Without defining logic or reason behind planning and recommendations they may find it difficult to value decisions that are made without them. 

  • Dolphin

This money personality is known as the humanities who tend to desire meaning, harmony, purpose and connection. They are most philosophical and from a financial perspective, they are generally more interested in how money can be used to support others rather than themselves.

  • Labrador

Known as the custodians people with this money personality have an appreciation for structure, order and belonging. Money tends to represent security so while stability is a strength, rigidity can be a potential weakness.

  • Monkey

This money personality is known as the adaptables who desire freedom and action. People who have this personality are adventurous and may prefer to lose money instead of miss out on an opportunity to create it. 

 

Discovering and understanding your money personality can help you to make informed decisions about your financial situation and any financial products that you take out. An Australian financial adviser such as Michael at Ethica may assist you in identifying your money personality. 

  1. Find Out Your Money Beliefs

Money beliefs are ideas, thoughts or opinions that contribute towards your money behaviour. A money belief can be protective or liberating. There are numerous factors that influence your beliefs including your parents, peers, education and the media. Identifying your personal money beliefs can assist you in making retirement planning decisions that work for you.

  1. Control Your Cash Flow

Cash flow can greatly impact your financial effectiveness and success in retirement. There will be points in life when you have more cash flowing in than out and sometimes it could go the other way. Cash flow is all about how your money moves. 

 

Understanding how your cash flows, how it is subject to change over your lifetime and how to set goals accordingly can lead to improved cash flow. Here is how cash flow can be generated:

 

  • Employment
  • Self-employment
  • Business Interests
  • Investments

 

Identifying the sources of your cash flow and setting goals to control it effectively can set you up for success by the time you reach your desired retirement age. 

  1. Manage Your Debt Effectively

There is a growing choice of debt products for consumers in Australia. For example, you may have a mortgage, a car loan, a credit card or buy now pay later services. These are all forms of debt that should be managed effectively in the lead up to your retirement. 

 

When you are assessing debt, borrowing and their risks it is important to consider cash flow, costs and flexibility. Making financial mistakes in regards to debt can be costly and damaging for a successful and content retirement.

  1. Build Your Investments

There is an abundance of investing information available, which can be confusing or overwhelming if you have little knowledge in this area. There are different investment options including different investment classes and investment methods. The four main asset classes that monies can be invested in are:

 

  • Cash
  • Fixed Interest
  • Property
  • Shares

 

There are a number of methods to invest in the asset classes, which each have their advantages and disadvantages. You may choose to use only one method or all of the methods when you invest. Here are four investment methods:

 

  • Direct
  • Syndicate 
  • Managed Fund
  • Platform

 

You may like to use this information about investing as a starting point to learn more about the topic or you may choose to speak with a financial adviser, such as Michael at Ethica who has a wealth of knowledge and experience around investing for your desired retirement lifestyle. 

  1. Keep Your Superannuation On Track

Superannuation is an ever-changing area and as a result of this many people don’t understand the key principles or have little interest in their superannuation fund. Most Australians have superannuation savings, therefore it is important to be aware of what it can offer you in your retirement. 

 

Superannuation gives you an income stream in retirement from contributing money, during your working life, instead of relying on the age pension. Keeping your super contributions on track has the potential to lead to a more successful retirement.

 

  1. Obtaining Adequate Insurance Cover

 

Insurance allows you to plan for the unexpected. Just like insuring a car, there are plenty of other areas within your life that can be insured in case of an adverse event. Being proactive with insurance can provide peace of mind personally and financially throughout adulthood and into retirement. Types of insurance you may like to consider:

 

  • General Insurance
  • Personal Insurance
  • Life Insurance
  • Total And Permanent Disability Insurance
  • Trauma Insurance
  • Income Protection Insurance
  • Business Expenses Insurance

 

Obtaining adequate insurance cover can help to protect your assets during your retirement in the case of any adverse life events.

  1. Estate Planning

 

Estate planning is about planning who your assets go to in the event of your passing. Being proactive with your estate planning can make a significant difference when it comes to the financial wellbeing of your next of kin or dependants. Having a plan in place could make sure that your assets go to the right place, minimise family feuds and improve the management of taxes. Therefore estate planning can contribute to a positive retirement experience.

Financial Advisers In Australia

There are plenty of things to consider that could contribute to a successful retirement experience. From identifying your money beliefs to building your investments and making sure that you have adequate insurance cover to suit your personal needs. If anything that you read in this article resonates with you personally, you may like to consult Michael at Ethica for your personalised financial needs in retirement planning.