Investment Services - Investing in your Future

What kind of lifestyle do you foresee for you future? Comfortable home, reliable cars, presents for the grandchildren, or maybe even a boat for a little fishing? Unfortunately the reality is that most retirees live on less than $248 per week (less than $12,000 per year)

Just How Much is Enough to Retire on?

To retire at age 55 on an income of $30,000p.a. (inflation indexed) up to age 80, you will require savings of approximately $500,000 to $550,000, in addition to owning your own home.

Retirement by age 60, with $30,000 p.a. (inflation indexed) up to age 80, will require minimum savings of approximately $450,000 to $500,000.

By delaying retirement to age 65, with an income of $30,000p.a. (inflation indexed) up to age 80, will require minimum savings of $350,000 to $400,000.

To maintain a way of life enjoyed during your working years, most Australians want to enjoy an income in retirement of between 60% and 80% of the income they earn during the latter years of their working careers. This can require considerably more capital than these figures.

And. as the BABYBOOMERS, the LARGEST POPULATION in history, makes its way through the workforce and begins to approach retirement, the Aged Pension will become little more than a safety net designed to keep a bare minimum standard of living for the very poorest of the population.

Retirement planning is of utmost importance.

Careful planning early in your working lives can mean the difference between YOU having your own CHOICE versus a life of meagre, frugal subsistence.

Financial choice means being able to undertake all the things you want to do rather than being hamstrung by not being able to afford those things you enjoy.

Westpac and Association of Superannuation Funds of Australia media release of 3 February 2004 : A detailed study by Westpac and the ASF examines standards of living applicable to both 'modest' and 'comfortable' budgets for a retired single person and a couple respectively. For some budget items two can live as cheaply as one, but for others costs go up with the size of the household. The result of this analysis is:

• a modest lifestyle in retirement (better than the Age Pension, but still only able to provide for basic activities)
• to achieve a comfortable retirement lifestyle, a couple needs an annual income of $43,350 and a single person needs $32,800.
• to achieve a modest retirement lifestyle, a couple will need $23,550 each year and singles $16,930.

The items allowed for in the "comfortable" budget include:

• eating out from time to time
• better quality clothes from department stores instead of discount chains
• entertaining at home fortnightly (with a family roast)
• private health insurance at the top rate
• a better quality (but still mid-range second hand) car
• a few alcoholic drinks, including wine, per week
• being able to replace worn-out whitegoods with reasonable quality ones
• some kitchen or bathroom renovations, or alternatively house modifications to accommodate a mild disability.

"The detailed budgets show that while the 'comfortable' lifestyle allows for more activities, better personal care and home maintenance, it is not extravagant."

"It's the difference between driving a 4 year old Corolla instead of an 8 year old one - or having a glass of wine a couple of times a week with dinner instead of a glass of water."

Why join BROADSWORD ROUNDTABLE?

• Have you ever wondered why banks rarely encourage you to streamline your finances to enable you to repay debts more effectively?
• Have you ever checked whether the interest charged on your mortgage or loan account is correct or excessive? Banks do make mistakes!
• Have you ever wondered why some people your own age and in apparently similar financial circumstances seem to be much better off than you?
• Have you ever considered you might be paying too much tax?
• Do you wish to know why some people do well from investing either in shares and securities or real estate and others lose?
• Do you wish to ensure that your money is working as hard as it can for you and not lining others' pockets?
• Do you wish to make sure your superannuation is effective and you are not being ripped off?