By Michael Rambaldini
You have built a good career, raised a family, seen your kids grow up and done a little travel.
Then before you know it, time has flown by and you’re just ten years away from your retirement. The panic sets in and you ask yourself the questions: Should I have more in my super account than my current balance? Should my mortgage be lower than what it is? Will I have enough to live on when I stop work? And can I afford to stop work?
What can you possibly do at this stage? Below are some useful ideas:
Determine if you are right on track with your Super Fund or not.
It is good to get a clear assessment of your financial position so that you will have an idea of what your retirement fund looks like. Whether you need to catch up with extra contributions, it’s always a great idea to know what capital you will need in retirement. You can ask the help of a Financial Planner whom you can trust to provide you with clarity.
Make a list of your possible expenses when you retire.
Knowing what your expenses will be when you retire allows you to get a full scenario of your required budget. You can try a monthly budget calculator in order to take control of your spending.
Ensure that you’re debt-free.
Debt will most likely consume your retirement funds if you are not careful enough to minimise it. Remember that the wealth you have acquired over the years is at risk if you cannot manage your cash flow well. Talk to your Financial Planner on strategies to pay off your mortgage sooner.
Prioritise your investments.
Your attitude to various investments is important so you can choose the right investment option for you. Are you comfortable with cash, term deposits, shares or property? It should suit your goals in preparation for retirement.
Consolidate your Superannuation.
Superannuation fees can be a burden if not managed well. Pull together all the funds you’ve accumulated through different jobs. This can save money on fees. It also makes sure all your super is invested in the strategy that suits you.
For further information on how to prepare for your retirement, you can connect with us at www.verante.com.au