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Retirement is a time to enjoy your well-earned freedom and comfort, but choosing where to live can be one of the most financially complex decisions you’ll make. While retirement villages are a well-known option, they’re just one of several choices available to Australians, each with their unique lifestyle and financial implications.
As we transition from the working world into retirement, our financial perspectives undergo significant shifts. While we’re working, we have the reassurance of regular pay. This allows us to plan, save for one-off costs, and even extend our retirement timeline if something goes wrong. However, once we retire, the flow of a salary stops and we often face anxiety over the pool of money for retirement not being enough. Understanding the cognitive biases that affect us during these stages can help manage these transitions more effectively.
Whilst there is often no single cause for market volatility, there are some conditions that can lead to it. In recent times, we have seen concerns about when interest rates and inflation, the perception of a housing market bubble, and instability in global affairs affect the ability of investors to obtain a reliable picture of the future. While these kinds of stories are not new and may not have triggered the recent stock market fall, they are some of the forces at play in the current market turmoil.
During our recent radio show on 5AA (every second Thursday at 3pm), we outlined some of the implications of extending work beyond 67 on the Age Pension. The day after purchasing a coffee, I overheard a group of workers discussing the radio show. Whilst it was heartening to hear, the person leading the talk was instructing his companions on the specific course of action they should adopt. Regrettably, his recommendations were based on his own circumstances.
As a business owner, it is crucial to consider the financial implications for your business beyond your lifetime. Understanding what happens to your business when you pass away is essential for effective financial planning before and during operation to ensure a smooth transition. There are several ways our clients run their businesses, and each structure has a different outcome for estate planning.
Join us as we celebrate 30 years on radio with FiveAA Thursday 29th March at 3pm. Our advisers now join the fabulous Jade Robran every second Thursday at 3pm to shine a spotlight on financial planning topics and answer your questions. We are now being live-streamed via Facebook and Twitter. Follow the link on the FiveAA homepage.
Keys to de-stressing a mortgage “Don't sail out farther than you can row back.” This Danish saying is sound advice for anyone with a mortgage or other debts, particularly now that interest rates are rising and house prices softening. Most Australians have a tendency to be over-confident in our ability to repay loans. We also underestimate the likelihood of things that can wrong in our lives.
During times of volatility, some investors can be spooked and question their long-term investment strategies. Some, may find the worry too much and feel the best thing to do is pull out of the market entirely and wait on the sidelines until they feel safe to move back in. Often the emotive decision, ends up being the wrong move long-term. With any market fall, it’s human nature that the experience of a loss is more acutely felt than the joy of a gain (‘loss aversion’). A degree of volatility in the market will always be a constant; therefore, it is important for investors to keep perspective and be disciplined in their investment approaches. Below is an outline of the long-term fundamentals to bear in mind.

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Retirement is a time to enjoy your well-earned freedom and comfort, but choosing where to live can be one of the most financially complex decisions you’ll make. While retirement villages are a well-known option, they’re just one of several choices available to Australians, each with their unique lifestyle and financial implications.
From 20 September this year, deeming rates will increase for the first time since the Covid-era freeze. This change may affect people whose payments and benefits are determined by the income test. The announcement confirms that rates will gradually return to ‘pre-pandemic settings’ with staged increases to take effect in the future. Increases will be realigned from 1 July to the same time that payments are indexed (expected to be 20 March and 20 September).