Saving for your future
Those people saving for retirement have a conflict that needs to be resolved. In order to save, you must forgo spending now. There are times when this may be difficult, putting kids through school, paying a mortgage, unforseen medical issues etc. Understanding your current and future cash flow needs is important. At McCabe Financial Services we help you make decisions about your cash flow that will assist you to meet all of your goals, both current and in the future.
When is the right time to get financial advice?
Quite simply, the sooner the better.
The sooner you set up your strategies the more time they will have to work, providing you with better outcomes.
For example the table below shows the results of saving $100 per month into a bank account earning 5% per year interest (paid monthly). You can see, after one year, $33 of interest has accumulated, making up 2.7% of total savings. After thirty years, over $47,000 of interest has been earned which now makes up 57% of total savings.
The table above shows the value of having long term plans. The sooner you begin a financial plan the better the results will be. However, it is never too late to get advice on how to improve your financial position.
Risk Management (Insurance)
Having a financial and lifestyle goal and a plan to achieve them is great if you are fit and healthy, but if something goes wrong with your health, your plans and goals may be hard to achieve. It is important to recognise this and put risk management solutions into place. At McCabe financial Services we help you assess your risks and then show you how you can cover them.
If you ask most forty year old people what is their most valuable asset, the answer is usually their house or their superannuation. However if you are working it is likely your most valuable asset is you, and the income you generate. Twenty years work earning $80,000 a year is $1.6 million – you are a very valuable asset.
Most people insure their house and car but many Australians do not insure their income from work. At McCabe Financial Services we can help you determine an appropriate level of cover and implement it for you.
The notion of retirement is changing. People are living longer (over half the people currently aged fifty will live past 85 years of age). Many are working in less physically demanding jobs and hence can work longer. Some people are looking for a twilight career in a field they have wanted to work in but have never tried before due to life commitments.
The retirement age at age sixty five was set in Australia in 1909 and most people did not live to reach this age (a person born in 1901 had a life expectancy of around 57). If you retire at sixty five now you may have over twenty five years of retirement to contemplate or over one quarter of your life.
It is becoming more common for older employees to be recognised as being reliable, hardworking and dependable and are valued by their employers. So the nature of retirement is changing. After sixty five, you may work part time, perhaps as a consultant or job sharing in your current job, or in a completely different job. Your income will be reduced due to less hours worked and may be supplemented with the income from your retirement savings, or a government Centrelink benefit, or a combination of the two.
If this sounds a little complicated, it is. At McCabe Financial Services we will show you how moving to part time work, using your super savings and government benefits, can all work together to help you achieve financial security.
Financial Services Provision
I am an Authorised Representative (No. 231225) and Director of McCabe Financial Services Pty Ltd (“the Practice”) which is a Corporate Authorised Representative (No. 419915) of Synchronised Business Services Pty Ltd (Synchron), ABN 33 007 207 650. Synchron is an Australian Financial Services Licence holder (No. 243313).
The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.