One of the things most people thinking about retirement are asked to consider is what they are retiring to.
Often we think about the money aspect of retirement only. Of course, vitally important, but we also need to consider […..]
Not too long ago I wrote about one problem rarely discussed with all in one encompassing managed funds in retirement, such as balanced, conservative, growth etc. Funds that hold a mixture of stocks, bonds and cash.
The gist of the problem being that with these funds you don’t get to decide whether to drawdown from stocks or bonds, because the fund doesn’t differentiate between the two. End result is the health of your investment balance will be worse off than otherwise.
Well today I have […..]
There is a well know rule of spending that is preached when planning for retirement. The preachers will say “you should plan to spend 70% of your pre retirement expenses in retirement”.
I am not a big fan of these rules. They work for some, but definitely not all. I wouldn’t even say this works for […..]
Annuities can seem attractive to many retirees. It is a regular paycheck into your account. It’s an easy way to turn your lump sum savings into a regular fortnightly income.
One of the main annuity providers in New Zealand is Lifetime Income. You invest your money with them and you are guaranteed a certain amount of income every fortnight for the rest of your life. Even if your investments lose money, Lifetime income will still pay you the same flat amount every fortnight. If your investment balance grows, so does your fortnightly income.
Sounds amazing right […..]
Up until about 5 years ago, I thought there was only one way to retire. Work for 40 plus years until my mid to late 60’s, until I had enough money to retire with some help for NZ Superannuation.
Since then, I’ve learned a lot about financial independence and how to achieve it. Simple concepts such as compound interest, index fund investing and high savings rates have helped me understand there are other options, one of which is early retirement.
But what if traditional retirement nor early retirement suit you? Are there other ways to approach your retirement and work life?
The 4% rule is the golden tenet in the FIRE community. It is a calculation that tells you how much you need to retire, based on your annual expenses. Spend $50,000 per year? You would need $1.25 million ($50,000 x 25). You can read more about the 4% rule here and how it comes about.
As a financial adviser I generally dislike […..]