Retirement series

The beginners guide to retirement part 12:Stress test your retirement plan

The beginners guide to retirement part 12:Stress test your retirement plan

he best retirements are planned. You know what you want to do in retirement. You know how much it will cost. You know how much you will need saved. Less surprises will mean less stress and a greater likelihood of outliving your money.

The problem is life doesn’t always work as planned. We may […..]

The beginners guide to retirement part 9:Do I need life insurance?

The beginners guide to retirement part 9:Do I need life insurance?

Life insurance deserves a topic of its own as it is such as a large amount of money. The cost of life insurance grows at a rapid rate once we hit the age of 50. Many of us don’t question this cost though. Yes, we know it is increasing, but many of us don’t believe we can […..]

The beginners guide to retirement part 6:The new retirement

The beginners guide to retirement part 6:The new retirement

The landscape for retirement is not the same as it used to be. James is retiring today (born in 1953) and has a life expectancy of 78 years. Kevin is born today and can expect to live to age 91.

James has just 13 years of retirement for his money to last. Kevin has almost double the time – 25 years. He needs […..]

The beginners guide to retirement part 5:More on sequence of returns

The beginners guide to retirement part 5:More on sequence of returns

Running out of money in retirement is a real concern for most. As discussed in the previous post, sequence of returns can be a major determinant of whether our money will last our lifetime. If we are unlucky enough to retire just before a recession, or worse, a depression, then our chances of outliving our money drop substantially. Particularly if we […..]

The beginners guide to retirement part 4:Sequence of returns risk

The beginners guide to retirement part 4:Sequence of returns risk

Let me explain using two fictional employees – Mike and Jacob.  They worked for Megacorp Inc and were identical in all aspects of their job. They both started working at age 25 and both worked for 40 years. Their salary and salary growth were identical, along with their Kiwisaver contributions. They made the same investments with their savings during which they both earned […..]

The beginners guide to retirement part 2:When can I retire?

The beginners guide to retirement part 2:When can I retire?

If I am being honest, I never thought that early retirement used to even be a possibility on an average middle-class income. I thought we HAD TO go to university, get a job for 45 years and then retire. End of discussion.

But I am here to tell you early retirement is a definite possibility and I have […..]