"I am planning my retirement in 10 years and want to consolidate my multiple Super funds, can a financial adviser give me advice just in the area of Superannuation and retirement planning?"
- Question from Sando in Adelaide
Top answer provided by:
An adviser certainly can give you advice just in the area of superannuation and retirement planning. Essentially, the sooner someone embarks upon their retirement planning journey, the easier it will be for them to achieve their retirement lifestyle and income goals.
It’s akin to preparing to run a marathon, if you were planning to run a marathon in a month’s time, with absolutely no training, the chance of you achieving that goal would be remote. However, if you start a year out from the race your ability to prepare for that marathon adequately will be greatly increased.
Taking it further, if you were to prepare for the marathon five years out from the event you could gradually increase your training and effort over a longer period of time and enjoy the journey without making significant sacrifices in terms of time and training effort. This would reduce your chance of injury as well.
Whether it be training for a marathon, aiming to lose weight or saving for your financial future, especially planning for retirement, the earlier you start the less sacrifice you have to make on a daily basis. From a financial perspective this essentially means that you will be able to enjoy the years leading up to retirement without having to go on a ‘crash savings diet’ or run the risk of ‘financial injury’ by losing your motivation to save consistently because you have to do too much over a short time, if you like, to accumulate your retirement wealth.
This is why it is wise to consider embarking on a relationship with a financial adviser who can help you achieve your goals between now and to retirement, so that you can enjoy the fruits of your working life. Doing a little bit over a long time is the key to long-term success whilst minimising short-term pain and sacrifice.
An adviser will be able to help you find tune your goals and prepare a strategy for you to help you achieve them. This may involve various contribution strategies to consider, checking to see that your asset allocation is appropriate for your time frame and comfort level, And also provide the encouragement and accountability that a good sporting coach or dietician may provide in the areas of sport and health. Having someone alongside you on your journey they will be able to help you navigate the tough times, changing economic circumstances and legislative changes that in my face between now and retirement, enabling you to maximise your outcome and take advantage of changes and opportunities that you may encounter on your journey to retirement. In the end the responsibility to take action and stick to a plan will lie solely on your shoulders, however seeking advice sooner rather than later and taking action now will be the first and most important step to help you succeed with the achievement of your retirement income and lifestyle goals.
Finally, seek an adviser who is solely focused on what is important to you and most importantly someone with whom you can have a long-lasting relationship.
I hope this helps!
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