Retirement planning is the most important aspect of wealth management, as individuals close in on retiring. Preparing mum and dad for their retirement will require sitting down with them and going through the motions. Look at identifying their needs and making sure that they have a source of income, post retirement.
A great way to ensure that your mum and dad have a source of income after retirement is by setting up an investment plan!
This guide will provide a basic template and some pointers to develop a retirement plan for your mum and dad. Here are some of the things to consider when looking at retirement planning:
Create a retirement plan for your parents
This will allow both of your parents to have an idea of what income is coming in as to what they can afford with their chosen lifestyle. Next is, calculate their expenses on a weekly, monthly and yearly basis. Generating consistent cash flow is critical for any budget!
Factor in health expenses during retirement
As we grow older, the chances of our medical costs increasing can become a burden later on in life. More visits to the doctor and increases in prescription medicines are just to name a few. These type of recurring incidentals can possibly rob you of your savings. Not factoring this into the financial plan will decrease whatever earnings or savings that you have. You must always factor in your future costs in order to understand the retirement planning process. Be realistic at all times!
Sparingly use your wealth in retirement and invest!
Post retirement, it’s important to remember to have some part of your wealth saved and invested. This will not only generate more wealth as time progresses but will also keep your parents insulated against inflation.
Generally speaking, one can do this can by keeping some money invested in safe investments such as government bonds, term deposits, and savings accounts. This way there will be a steady inflow of cash after retirement!
Make a difference and help turn your income into a sustainable wealth generator!
To sum it all up, it is important to create a plan, include all your outflows and have a good idea of your savings and assets. These are just some of the things to keep in mind when arranging a financial plan with a financial planner for your parents. Doing so will give them certainty and reduce the financial dependency they could have on you. It will also allow them to engage in some personal hobby or activity that they enjoy. After all, retirement is about been happy and making sure the money will not run out.
Start your retirement plan and be on your way to financial security for your aging parents!
Contact Justin Wyse today on 1300 850 902 and help your aging parents retire early, or simply leave your contact details below.