ADVISER INSIGHT: NAT WEBB
Nat Webb is a Principal and Financial Planner in the Ipswich office. Nat forms great relationships with his clients and provides a trusting and safe space to get you on track. One of Nat’s special interests is setting people up for retirement. He loves to uncover financial opportunities and to see his clients achieve financial milestones.
We spoke to Nat about his top tips for anyone starting to think about retirement.
Create a clear vision for retirement
Be clear on what you want to do in retirement
Being fed up with work is not a good enough reason to retire. It can lead to irrational decision making with undesirable consequences. You really need a clear picture of what you want your lifestyle to look like in retirement. Even if we’re not working we still need a purpose.
Some may decide on semi-retirement. Reducing your workload to 2-3 days per week rather than fully retiring in the initial stages can be a good start. For others, with a clear plan, transitioning to full retirement is rewarding as it allows for those long-awaited bucket list items such as travel or renovations that often get put off when busy working. Volunteering is also a popular, post-retirement activity for people wanting to give back to the community.
Whatever the goal or retirement journey, just ensure there is a clear plan with purpose. Once you know what you want we can help identify the cost and what you need to do to make it happen.
Having a vision is really about goal setting and it’s motivating!
Optimise surplus money
Make your surplus money work harder
Look at your current expenses and if you have surplus look at ways of investing this. A financial planner can explore ways to grow your nest egg through investments, the right superannuation fund and tax minimisation strategies.
If your super is not tracking as well as you would like, there are ways to give it a kick along. When your budget allows, or you receive a windfall, consider putting a little extra in super. Even better, set up a direct debit or salary sacrifice arrangement.
You may also be able to make a tax-deductible contribution up to the $27,500 annual concessional cap (this cap includes your employer Super Guarantee Contributions). You may be eligible to contribute up to $110,000 a year after tax, or $330,000 in any three-year period. You can’t claim these Non-Concessional Contributions as a tax deduction, but earnings will be taxed at the maximum super rate of 15 percent rather than your marginal rate and you can withdraw the money tax-free from age 60.
- Click here to use our intuitive budgeting template so you can identify any surplus funds.
Review your investments
Talk to your adviser about your investment strategy
Make sure that you are invested appropriately so that it aligns with your goals. Work with your financial planner to review your portfolio's fees and performance to ensure your current investments are tracking in the right direction and that you are getting the best returns. Diversification across various asset classes is critical in retirement. There are many options including managed portfolios, managed funds, shares, fixed interest investments, term deposits and property. It’s also important to understand your appetite for risk so that you are still getting a good night’s sleep!
Consider a transition to retirement
Get used to working less before launching into full retirement
This is a great way to get used to working less so that you can adjust. While you are still working you can pay off any remaining debts, save on tax and continue to grow your retirement savings. There may also be the option to draw a Transition to Retirement (TTR) pension from your super fund. Once you reach preservation age, you can start a TTR pension by transferring some of your super to an account-based pension. The rules stipulate that you need to keep some money in your super account to continue to receive your employer’s compulsory contributions or any voluntary contributions you make. This is a great strategy that enables access a tax-effective income stream to supplement your salary.
We take the guesswork out of your retirement journey. A solid financial plan that provides an accurate picture of where you are now, identifies your vision and creates achievable goals to get you there is the best way to ensure you really will be living your ideal retirement. Get in touch.
General Advice Warning: The information provided in this article is general in nature and does not consider your particular investment objectives, financial situation, or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Dobbrick Financial Services (Gympie) Pty Ltd ABN 48 931 205 109 and Dobbrick Financial Services (Ipswich) ABN 86 100 184 521 & DFS Oakland ABN 64 340 527 395 and their advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
