Hot Issues
spacer
The global economy at midyear: How our views have changed
spacer
The biggest global corporations since 1998
spacer
‘Retrospective’ LRBA measures tipped to cause headaches
spacer
Downsizer Super Contribution
spacer
Keep track of how Australia is really ticking over.
spacer
Insights from the 2019 Vanguard / Investment Trends SMSF survey
spacer
What falling interest rates mean for investors
spacer
ATO releases ‘welcome guidance’ on death benefit income streams
spacer
Super growth reducing age pension drawdown
spacer
Big four firm outlines new financial year checklist for SMSFs
spacer
Asset allocation as you age
spacer
Australia - the story goes on.
spacer
Consolidate your super and save
spacer
Critical documentation steps flagged with switching SMSF loans
spacer
Good investment habits versus damaging biases
spacer
Control considerations flagged with death benefit pensions for children
spacer
Interest rate for SMSF loans set to rise under safe harbour terms
spacer
Recession on our mind
spacer
What it will take to close the super gap between men and women
spacer
Australia - How are we going as 2018-19 ends?
spacer
LRBAs, guarantees in need of review after property market falls
spacer
Average age for establishing SMSFs sitting at 48.9: Report
spacer
ATO updates valuation guidelines for pension reporting
spacer
ATO figures show jump in starting balances for SMSFs
spacer
Your personal financial register
spacer
Australia’s $4bn Super blackhole impacting self-employed most
The problem with getting to 53 years of age.

Here's some food for thought and another reason why getting professional help from a financial planner is worth serious consideration.

       

 

Previous articles in this series, which are based on research conducted by Vanguard Investments Pty Ltd, show that a financial planner adds around 3% to what would be the expected return of an investment portfolio. In other words, they provide the expertise and time needed to help you attain your retirement goals and they can help cover their costs at the same time.

However, more research from the Vanguard Investments stable focuses on the significance of the age of 53.

53 is when most of the costs of parenthood are on the decline, a cause for great celebration, but, sadly, it seems declining also is our 'financial capability'. This research has it’s fair share of confusing terms and definitions such as 'crystalised intelligence' (‘wisdom’ to you and I), 'fluid intelligence' (which peaks, unfortunately, in our early 20's); and 'financial capability'.

When all this is mixed together and the graphs and charts have been drawn the result is that 'the peak age for financial decision-making is…53!'. Ouch!!, and at a time when most of us need the opposite to be true, ‘c'est la vie’.

While many of us are still capable, this research indicate that after we reach 53 another benefit of employing the expertise of a financial planning practice is that their input is provided when we need it the most. That is, during the final 10 year run up to retirement, when there's still time to generate the retirement outcomes you want.

The following are some of the big decisions to be made around the age of 53.

  • How do we make the transition to retirement?
  • How do we structure our finances to generate an income and deliver capital gains?
  • How do we maximise our government entitlements?
  • What tax issues need to be considered?
  • Will we have enough given our current financial position?

These are big decisions and when relying on your own resources, it’s worth remembering that sometimes we just don’t know, what we don’t know!

Peter Graham 
BEc, MBA
General Manager
PlannerWeb / AcctWeb

 

Pattinson Financial Services Pty Ltd ABN 17 121 851 376 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd
ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523

Tel: +61 2 8850 6888 | Fax: +61 2 8850 6407 | Toll Free 1300 466 637 | PO Box 6253 Baulkham Hills BC NSW 2153

site By PlannerWeb