We all look forward to retirement for various reasons, but having a sustainable cash flow to take you through this new stage of life isn’t always ‘top of mind’ early enough. Whatever your goals may be, a financially secure retirement doesn’t just happen – it takes conscious steps – and sooner, rather than later.
Like all worthy goals, clever planning and ongoing management and reviews are the only way to get there. If you are not yet retired, it is crucial to take the time to think about the "what-ifs" of future cash management to ensure you are making educated decisions on how you'll be using your financial resources during a retirement that may stretch 30 years or beyond. Identifying your short term financial position leads straight into isolating your long term security. In both cases, peace of mind comes from having a strong cash flow that is independent of your current work situation. This, in turn, supports the necessary expectations of your ongoing lifestyle.
At some point, retirement planning goes into reverse and shifts from accumulating assets, to living off investment and other income – this is where cash flow becomes key in order to pay down any remaining debt and mortgage/s, as well as ensuring you have enough to retire on.
Typically, at this stage of life, cash flow comes from:
- Rental income (property),
- Dividends (shares),
- Interest (money in the bank)
- Business income/distributions
- Capital gains (selling an asset).
A well thought out, good cash management system now, pays off in the future. One size, however, does not fit all and Evetts and Allman are here to provide professional guidance and advice to make it easier for you to handle your finances as you grow older. We take the time to determine what assets you have and how much they are worth, as well as how much super you have and when you can access it. We also look into whether you may be eligible for part age pension.