PRESS RELEASE
Posted on January 31, 2023
Many Australian retirees worry a lot about money, especially when it comes to having a decent life in retirement. It can be difficult to know how to get the most out of retirement assets, given the rising cost of living and the current state of the economy. Fortunately, there are plenty of strategies to ensure retirement funds go further, from making the best investment decisions to using government assistance.
Three Financial Planning Best Practices for Retirees
Retirement is a long-term financial goal that requires years of preparation and saving. It is crucial that retirees are informed about some of the best practices for managing their funds as they approach retirement. Retirement-age workers run the risk of depleting their savings or becoming unduly dependent on social security payments if they don’t put an appropriate strategy in place.
Here are some key financial planning best practices that retirees should consider, according to Mike Sikar of Australian financial advisory firm Delta Financial Group.
1. Determine what a successful retirement looks like
Asking when retirement can be granted is crucial for planning, as it should tell the future retiree exactly how much to prepare for. Most people plan for their retirement without knowing what a successful version of it looks like, so they end up unprepared. Quality of life varies from person to person, so a global retirement fund does not have to be established for everyone. Chances are, whatever needs and luxuries a person indulges in during their 50s, these will still be the things they seek after retirement. Some also double their hobbies as soon as they leave the hours that were previously spent working. Does a successful retirement involve lots of traveling and eating out? Does it involve moving to another country? It depends on the individual, but the target retirement fund should reflect their preferences. This is in line with the SMART principle of setting a goal. Clarifying what a successful retirement looks like for someone will help them set a specific, measurable, attainable, realistic, and time-bound goal.
Taking up the method of objectives, the realism of retirement is also often misinterpreted. People think they’ll live for a few decades, at most, after retirement, so they set aside just enough funds for that. Statistics indicate that there is a 50% chance that a member of a couple aged 60 will live beyond 90, and the current life expectancy for men is around 84 years and for women, she is 87 years old. This means that people are not preparing for at least the last 25 years of their lives, which creates all sorts of problems for them and their family members.
2. Don’t let the abundance of options scare you away
There are countless investment options today and it can be daunting to make the right choice when it comes to which vehicles will make or break a retirement plan. There is also a seemingly daily source of information about people who have lost their life savings to an investment scam. This either leads to analysis paralysis or procrastination, which day-to-day will be of no use for retirement planning. In fact, the longer a person waits before investing for retirement, the less money they will end up with. Remember that when not invested, the purchasing power of money decreases due to inflation.
However, to help retail investors navigate the abundance of options, financial planners have devised strategies and structures to increase client control over their investments.
At this stage of your life, you don’t want your investments to be derailed by external market factors beyond your control.
Investing your money in several different asset classes – stocks, property, bonds, cash – will help reduce your investment risk. This strategy – diversification – works because different types of investments perform well at different times, so if one area of your portfolio falls, another may rise. Having a variety of investments helps balance your overall risk.
Have a trusted financial advisorsuch as those provided by Delta Financial Group, who understand that a client’s financial strategy will make all the difference in the person’s confidence, which is crucial in the successful execution of an investment strategy.
3. Early succession planning is the key to a peaceful retirement
Their own well-being is not the only concern of retirees. Most people overlook the fact that their assets will be left to their children when they die, so they don’t do anything to make sure this process goes smoothly. It catches them off guard when the problem arises while they are still living as their children argue, often non-peacefully, about who gets what, especially for families where the distribution of financial capabilities among siblings is unbalanced.
All parents should take care of succession planning to ensure their loved ones have access to appropriate financial assistance, educational opportunities, and anything else they may need to ensure their quality of life when they are no longer there.
At a minimum, each parent with adult children should have a current willingness to distribute estate assets, a durable power of attorney to cover situations where they are unable to make financial decisions themselves, and appropriate estate planning arrangements to distribute specific assets that are not covered by the will, such as pension benefits, life insurance proceeds, and assets held in the family trust.
Not worrying about money is one thing, but not worrying about the family’s future is another.
Delta Financial Group: A Trusted Source for Financial Planning
Delta Financial Group provides financial planning services, specializing in retirement planning and superannuation. The company applies relevant financial information to the overall situation of its clients and finds opportunities to improve it, making Delta Financial Group a reliable partner for financial planning. Clients who have tried their services and benefited from his expertise say that working with them is like having their own personal CFO.
They help busy professionals, IT specialists, and entrepreneurs 5-15 years from retirement create income for life. They act as a sounding board, helping clients weigh their options and make wise financial decisions to enjoy a better quality of life.
About Mike Sikar
Mike Sikar is the Founder and Principal Financial Advisor of Delta Financial Group, an innovative and fast-growing financial advisory company that empowers Australians to make smart choices with their money. Sikar has over 25 years of wealth management experience in brokerage and financial planning, founding Delta Financial Group in 2011.
Its primary focus is investment advice and equity market education on a wide range of investments, both domestically and internationally. Sikar has a unique and broad skill set where he provides informed, strategic and holistic financial advice aligned with personal and financial goals.
Contact information for Mike Sikar
LinkedIn: https://www.linkedin.com/in/mike-sikar/
Youtube: https://www.youtube.com/@MikeSikar
Delta Financial Group
https://www.deltafinancialgroup.com.au/
[email protected]
(02) 9327 4338
COMTEX_423560326/2776/2023-01-30T23:14:45