We get asked this all the time, and there is no single answer. One thing we can say is that it all depends on your preferred standard of living.
A few questions to help you work out how much retirement will cost you include:
Do you own your own home?
Will you still have dependents living with you?
Do you entertain regularly?
Do you eat out regularly?
Do you like to travel?
Do you have pets?
Are you healthy i.e. do you have pre-existing conditions that may affect your lifestyle
What do you currently spend on groceries, fuel and incidentals
What about insurance?
All these things don’t go away, just because you retire. If anything, you will probably want to do more of these things with all that spare time you’ll have!
Preparing for retirement
With all the questions buzzing around in your head, preparing for retirement can be a daunting thought. How will you make sure you have enough income to support yourself and your family? A discussion with a financial planner can help you structure your situation to get you the best possible outcome for your retirement.
Investment Options to help with Retirement
Rental properties can provide a regular source of income. A specialist property investment advisor or financial planner can help you to calculate all the possible expenses for the duration of property ownership. This will help you decide whether it is a good fit for your portfolio.
Investment property is a long term venture, not a get-rich-quick opportunity, so it is probably not something you would look at if you had less than 10 years left in your working career. You will need to do your homework and seek advice to gain further insight into the property market.
Self Managed Super Funds
Thought of switching to a Self Managed Super Fund? One of the advantages of having a self managed super fund is that it gives you the ability to purchase an investment property with your super, this is favourable because:
You use employer contributions to reduce the mortgage
Rental income is only taxed at 15%
It gives the opportunity to eliminate capital Gains Tax
You can combine partner and family super contributions
Need help with your property investment plan?
PEB Property Group can help you get the edge and become a smart property investor with a free consultation or if you’re not sure, arrange to speak with our Financial Planner for an overall review of your financial situation.
We come to you!
PEB Property Group is a complete financial planning advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer - Financial Planning · Finance Broking · Property Management · Real Estate Sales · Property Investment · Development.
Disclaimer: Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this edition is correct as of the date of publication and is subject to change.