As we get into 2022, it’s important to assess your financial situation and determine your goals for the coming year and beyond. This month we want to share some thoughts on navigating your retirement.
We all know the saying “make hay while the sun shines”. Well, Kiwis aren’t great at this when it comes to retirement savings. Retirement Commission (or CFFC) surveys found many of us start our retirement planning too late. We know life is busy, and retirement can feel like a far-off fantasy, until it isn’t.
The earlier you begin to plan, the more prepared you’ll be when you do retire, and the greater the potential is for a better-quality outcome.
Get the right advice at the right time
It’s all about timing, and a financial adviser can be a great sounding board to ensure you’re on the right retirement track.
Everyone’s situation is different. So, there is real value in finding someone who takes the time to understand your life and investment needs. Generic tips and tricks will only go so far.
Getting some personalised advice takes the hassle out of retirement planning, giving you more time to do what you enjoy.
Mix it up a little
Keep your options open. For retirement investing, the saying about “eggs in one basket” rings true. Spreading your savings across a portfolio of investments is a sensible idea. Financial markets are never static, so to weather global economic peaks and troughs it’s wise to spread the risk.
You will probably have KiwiSaver to help cover your fixed costs, but chances are you’ll still need other savings, investments or released equity from the family home, to enjoy those golden years in comfort.
Property, stocks, bonds, shares – what’s key is finding the right fit for you in terms of risk versus return.
Know who you’re dealing with
It’s important that you understand exactly what you’re investing in. In the words of Warren Buffet, “never invest in a business you cannot understand”.
Research costs nothing and could save you the regret of putting your money somewhere that will not yield healthy, regularly paid dividends. There’s no such thing as a silly question, so find out as much as you can about the companies you are thinking of investing with.
At Southern Cross Partners, we are very used to fielding a myriad of questions. So don’t be afraid to ask us about specific investments or how our offering works.
And if you are using a financial adviser, don’t be afraid to ask questions until you understand what your plan is. Having a plan is the key.