Find Financial Freedom

Did you know that only 5% or less of the population who reach retirement age will be in a good financial position?   Of the rest 8% will have to continue working and 63% will be living on welfare.   The other 24% will unfortunately not even live long enough to reach retirement.

 

We are telling you this because there is something that we can do about it.  Please keep reading …

With average retirement payouts in 2009-10 were of the order of $198,000 for men and only $112,600 for women, it is clear that most recent retirees will need to substantially rely on the Age Pension in their retirement.

http://www.superannuation.asn.au/policy/reports Quote from page 2 of The Association of Superannuation Funds of Australia Limited, Developments in the level and distribution of retirement savings (2011)

 

And if you get the aged pension how can you survive on just $394.20 as a single person or $594.30 as a couple.

http://www.humanservices.gov.au/customer/enablers/centrelink/age-pension/payment-rates-for-age-pension

Middle aged couple looking worried 2

According to the Australian Bureau of Statistics in May 2015 the average weekly adult full-time wage was $1,484.50 ($77,194.00 per year) so how can you suddenly drop to $394.20 per week the day after you retire and still hope to stay out of poverty?

 

http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0/

If you want to roughly calculate how much money you would need at retirement in order to maintain just $57,895.50 per year income,  which is equivalent to 75% of the current average adult wage of $77,194.00, then consider this:

If you put your money into a lifetime annuity that earns 5% then you would need to have $1,157,910.

 

That’s over $1million!

 
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And we emphasise that this $1million is in addition to having full freehold ownership of the family home.

But even if you have this $1million at retirement if you struggle to make ends meet on $77,194.00 now then how will life be when you lose 25% of your income?

 

So maybe you need to receive more than $57,895.50 each year.   If so, you will need more than $1million.

 

A lifetime annuity is what, probably, a majority of financial planners will recommend you buy at retirement to see you through but you would do well to closely scrutinise such established options.   Although we don’t offer advice on decisions of this nature we say that where your future is concerned you need to ask the right questions.   https://www.intelligentinvestor.com.au/2014/06/dont-go-overboard-on-annuities

 

How far do you fall short of what you need to retire?

 

So where does Real Estate fit in?

Most people think of real estate when they need to sell a house they don’t want or need any longer or when they want to upsize or downsize.   And there are the inevitable sales when couples separate or if there is a death.   Or they will need the help of a real estate agency to rent a property when they can’t decide whether they want to keep it or sell.

But whatever they do most people see real estate transactions as a necessary evil at worst or temporary hiccup at best … it’s a bit like going to a dentist.

 

But the advice a Real Estate Agent gives you can be crucial to the outcome of your whole life.

 

We at Adelaide South Property say that, if done right, the purchase and rental of real estate can be a huge part of the solution to eliminating any shortfall you may have in your retirement funds.   If you are headed toward becoming not much better off than the average woman retiring on only $112,600 of Superannuation or the average man with $198,000 then you will need some solid alternatives to consider before retirement gets any closer.   And if you think you might still be renting at retirement then your need is even greater because rent will swallow up what little Superannuation benefit you get.

 

Real Estate agencies are in a unique position of having contact with people at times in their lives when they are making big financial decisions so they are well placed to provide timely advice that can make a big difference in setting their clients finances in a positive direction.

Most agents are well versed in advising their clients to take full advantage of ‘Negative Gearing’ when purchasing a rental property but there is a lot more to the real estate story than just that.

At Adelaide South Property we are able to go much further.

 

PLAN NOW OR POVERTY LATER.

 
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How is Adelaide South Property any different to other Agencies?

How we strive to be different is by providing a service to analyse your personal circumstances and provide you a report that will recommend precisely what you need to do.

In providing these recommendations we will at all times refer you to the appropriately qualified professions who can do what is necessary.   We have Accountants, Quantity Surveyors, Financial Planners, Finance Brokers, Insurance Brokers and others who can set before you all the alternatives.   Working in conjunction with these professions your new future can be mapped out with new predictions on where you will be at retirement.*

*You must meet specific financial criteria in order for us to assist you

 

The earlier you start of this road to planning your future the easier it will be and the bigger your rewards whether they are put toward living now or your retirement fund for later, or both.

Producing a report for you

In streamlining your finances there are many options available but to begin with we need to know about your current situation.

We can meet up with you in your home to explain what we do and start the process.   This includes compiling details of all your assets, liabilities, income and expenses.   We also need get an understanding of what your priorities and goals are.

 

 

We would take all of this information away to analyse so that we can produce a report on your whole financial circumstances.

 

This report will cover the following points;

  • Provide a forecast of how much you will have put away by the time you retire based on what you are doing now.
  • Make a statement of how much you need to retire depending on the lifestyle you wish to lead into retirement.
  • Make an additional statement of the shortfall in your current retirement plan, if applicable.
  • Make some key recommendations aimed at achieving your goals and securing your retirement.
  • Provide a number of possible scenarios you can choose from to achieve specific results.
  • Provide amended forecasts of your retirement status for each of the scenarios suggested.
  • Provide a number of professionals who can advise you in the key areas identified.

 

Some of the key strategies that could be recommended are as follows;

  1. As a part of working on your budget there can be big savings made through consolidating debt and refinancing to access the cheapest loans.
  2. Setting up salary sacrificing.
  3. Increasing superannuation contributions in specific circumstances.
  4. Taking advantage of ‘Transition to Retirement’ options.
  5. Purchasing a residential investment property to take advantage of ‘Negative Gearing’.
  6. Setting up Self Managed Superannuation Funds (S.M.S.F.)
  7. Using a S.M.S.F to finance the purchase of a residential or commercial property.

Couple with Financial Advisor - shaking hands

As incredibly useful as a report like this can be it can also be overly complicated so we will invite you into our office to explain it in detail and to find what may work for you.

 

 

 

What does Adelaide South Property get out of it?

The simplest way to put this is to say we hope to get clients who are very satisfied with the service we provide so that they will stay with us for the long haul.   It is a well know fact in business that the cost to keep an existing customer is only a fraction of what it costs to get a new customer yet most businesses will spend all of their time and money marketing for new customers.

Once we have you as our customer we hope to win all of your business whether it is to find you new rental properties to buy, act as your Property Managers or to help you with any sale.   And we hope to gain your trust to win your recommendation to all of your friends and family.

We hope this will be long term relationship built on trust earned and the good service we provide.

It is in this way that we hope to earn the claim to our company vision of;

 

YOUR INVESTMENT OUR PRIORITY.

 

If you would like to have a look into any of the aspects we have mentioned here them please ring us or email us using the form below.

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