Making the right Superannuation Decisions is critical when trying to get it 100% right!
- Are You Age 55 and Over?
- Less that 10 years to go until retirement?
Invest for the long-term, even if it’s hard to do
Research suggests investors feel a financial loss around twice as much as a financial gain, and are willing to take on more risk to avoid a loss.
But history tells us that over time, share markets do gain back their previous losses and rise to new highs. So if you’re concerned, instead of taking on more risk to try and halt the falls, perhaps the best option is to focus on your long-term retirement goal and seek advice.
When in doubt, seek Financial Advice
If you’re nervous about your super and the impact of market falls, make sure you speak to your financial adviser to discuss your specific situation and long-term savings goals.
Buy yourself some time & keep working!
Working longer gives you three potential advantages:
- You buy time for the markets and your super balance to recover.
- You can delay drawing down on your super.
- You add more to your Self Managed Super through ongoing employer contributions.
Save now, spend later
Adjust your short-term spending, which could mean delaying big expenditure items such as house renovations, an overseas trip, or an upgrade to the family car.
Instead, consider moving this money into super’s generally tax effective environment, where it will have the opportunity to grow and earn investment returns when Financial Markets do recover.
Seek Professional Advice in relation to making Superannuation decisions
Regardless of market conditions, it makes sense to regularly review your investment strategy and make sure it is appropriate to your retirement savings goal and investment timeframe.
Your Financial Adviser can help you do this, as well as help you work out how much income you need in retirement and your plan to achieve it.
Adjust or delay your spending plans
If your assets and investment value have changed, you may have to adjust your spending or delay any big spends in the short term.
This will help you to avoid dipping into your income stream, while maximising the amount of your benefit that is kept invested a giving it the opportunity to grow once financial markets recover.
Review your cash flow and investments
If you’re drawing down more than the minimum payment required on your retirement income stream, consider drawing less money or just the minimum amount in the short-term. This way, you will have more money in your account to benefit from any upturn in the market.
This will mean you will have a reduced income, so make sure you are comfortable with this prospect.
Learn from our specialist Self Managed Super Advisers prior to Retirement!
Consider returning to work part-time
If you recently retired and are drawing down more than your minimum amount, you could consider reducing your payments to just the minimum and returning to work to supplement your income.
While this strategy won’t suit everyone, it may reduce the extent to which you draw down on your account, while you buy yourself some time for the markets to recover.
Arrange your no obligation free meeting to discuss your Superannuation decisions.
Call today on 1300 850 902.