Once a decision has been made to buy an investment, it is important to consider the best investment structure to use. An investment structure refers to the way investments are legally owned. Many people simply purchase assets in their own name or joint names, when other ownership structures may be more suitable.
There used to be a ‘traditional’ approach to retirement. It went like this.
On 7 August 2018 the Australian population has edged past the 25 million mark. What could this mean for the future financial wellbeing of everyday Australians? Hear from Certified Financial Planner® Professional Tony Sandercock of wetalkmoney about the potential impact on finances and retirement outcomes of a bigger population. (This article originally appeared in Money and Life)
There’s so much today about the financial side of retirement. Save more, invest more, have more, but for what? For you the answer may be financial independence, or maybe just the ability to stop working at a job you don’t like. There are legions of experts out there to help you figure out your asset allocation, how much you need to save, how much you can safely withdraw etc etc etc.
In a previous blog, I talked about 5 things that we can learn from happy retirees. One of these 5 was to honour something known as the ‘rich ratio’. I’ve had a couple of requests to dive a bit deeper with this so here goes:
The nature of retirement has changed. When the age pension was introduced in 1908, life expectancy was 55 for men and 58 for women. With age pensions kicking in at 65 and 60 respectively, politicians weren't expecting a significant tax burden, nor did retirees require a great deal of money – the “Golden Years” often didn't last long!
“A million bucks won’t get you much these days”.
I was taken aback by the comment.
We tend to use that number to decide who is rich and who isn't. “Oh, he’s a millionaire, he can afford it”.
This year’s Budget has an emphasis on retirement planning and contains several important considerations which may affect both retirees and pre-retirees, explored further below.
Remember, these are not Law yet, and could change because of the argy bargy of politics
A third of marriages end in divorce*. Relationship breakdown is an emotionally difficult time, that can have a significant financial impact as well, This impact can continue well into later life. For example, households with men and women aged 55–64 years who haven't divorced earn around $10,000 a year more than those households headed by divorcees**of the same age.
Many people avoid going to the dentist, because they expect it to be painful. You might know what I mean. That cracked filling - we never get around to doing anything about it until the darn thing falls out. Or even when faced with the choice of enduring a ‘sometimes’ sore tooth for several months versus going to the dentist, we generally try to ride out the bad tooth in the hope it will get better! And how does that work out for you? An ounce of prevention is worth a pound of cure.