Why you might need to invest to have a comfortable retirement: Especially if you are a woman.
How much you need to enjoy your retirement is a complex question based upon your lifestyle expectations, your own risk appetites and how long you might live. What is certain is that for many people in their late 40s, 50s & 60s they might not have enough to enjoy a comfortable retirement.
Based on superannuation contributions from when it was first introduced those on an average wage will have about $131,000 in super. Those on median wages will have closer to $95,000. (1)
The hidden detail in these numbers is that women’s average wages are considerably lower – hovering between 15% & 19% over the past two decades. (2) For them, the picture is much worse.
Yet to enjoy a comfortable retirement the Association of Superannuation Funds Australia estimates that a person needs $545,000 with supplementary monies from a partial Aged Pension.
(3) Clearly for many people there is a considerable gap. Investment is one way to bridge that gap.
The 5 principles of successful investment
At Future Wealth we believe there are 5 fundamental principles for all successful investments.
Set clear objectives Get very clear on what your goals are and the type of investor you are. Why are you investing – what do you want to achieve; what timeframes and how much money will you want? Equally important is, what is your risk appetite? All investments involve risk – that is where the reward comes from – but how much risk can you bear?
Set an investment strategy that matches your objectives When strategy and objectives match it reduces your uncertainty and minimises the emotional fears when the inevitable market fluctuations happen. Always remember the investment truism: it is time in the market, not timing of the market, that determines your success.
Spread your risk No investment succeeds every year. There are natural fluctuations. Spreading your money over different investment classes and funds reduces risk and increases potential aggregate returns. Investing regularly also reduces risk.
Review your objectives Your investments are just there to create the money for your choices, your goals. As these change, so your investment should be adjusted to match them. A quick annual review will ensure you are on track.
Learn and get advice Investment is complex, challenging and immensely rewarding. The more you know about your investments and how they work the better your decisions. Impartial expert advice is also important.
Complimentary Personal Goals Audit to find out if investment is right for you
Money enables choices. It enables you to do the things you want. Without it you are dependent on government hand-outs, family assistance or a Lotto win: which can be humiliating or improbable. Investment can be an answer.
Cathy Rademeyer is offering a complimentary Personal Goals Audit to help you get clear on what your own personal money objectives are; whether you are on track; and if investment can help. It will be informative, enlightening and all about you. The reason it is at our cost is that Cathy has a passionate belief that the more financially independent you are, the more freedom you have.
To book your Personal Goals Audit call Cathy Rademeyer, Future Wealth Planners on 08 9269 5400 Cathy Rademeyer and Future Wealth Planners are Authorised Representatives of Synchron AFS Licence No. 243313 You have received this email because you are a valued client of Future Wealth Centre. For more information about what you have read, please feel welcomed to contact us on 08 9269 5400.
Our mailing address is: Future Wealth Centre, Level 4, 50 Oxford Close, West Leederville, WA 6007, Australia
Disclaimer The information contained in this email and its links/attachments are general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek the appropriate financial advice and read the relevant Product Disclosure Statement or other offer document prior to acquiring any financial product.
(1)http://www.aist.asn.au/media/15000/2015_Retirement_Incomes_Paper_FINAL_FOR_RELEASE.pdf (2) https://www.wgea.gov.au/addressing-pay-equity/what-gender-pay-gap. (3) https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/super-contributions/how-much-is-enough