Published by Brent Kelly, Financial Planner and Principal, Kelly Wealth Services
The Planning Process
It doesn’t matter if you’re a doctor planning for retirement or a teacher planning for retirement or a tradie planning for retirement, the principles are all the same.
The planning process starts with discovery, asking a lot of questions and answering those questions with thought and consideration.
The key to a successful Retirement is to plan for one.
Questions To Ask
The following are a simple set of questions everyone can follow to help the planning process.
- Do you have hobbies? How will you spend the hours you currently spend at work?
- Do you know what it will cost you per year to live?
- Do you have any travel plans or bucket list plans in the first five years of retirement?
- Do you know how much they will cost?
- Do you need to buy a new car, upgrade or renovate the home?
- Do you still have obligations financially to your children’s university or helping them buy a home etc?
- Have you calculated your total asset value or the income that your retirement assets will provide you?
- Do you know what impact inflation will have on your assets and living expenses over the next 20 to 30 years in retirement?
- Do you know if you will be eligible for Centrelink or the Age Pension?
- Have you prepared a Will?
- Do you want to leave a legacy behind for your children? Will you be able to look after yourself and take care of your retirement?
A lot of these questions, you should find fun and joy in answering. Some of the questions do require calculation and an understanding of things like inflation and what asset growth percentages may be. For example: what property asset will grow each year, what amateur share portfolio will return each year and what your superannuation may grow by each year and what you’re also contributing to superannuation. These technical questions can generally be answered by a financial planner who specialise in retirement planning.
Retirement is a journey not a destination
But if you can answer these questions, you generally have a great start towards planning for your ideal retirement.