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Keep your investments on track this new year

Date: Jan 13th, 2015

This is especially true for retirees who are largely reliant upon their financial assets to fund their lifestyle. As a result, advisers are fine-tuning their advice frameworks, and seeking investment strategies better matched to client goals and expectations. With the new year upon us, we explore the importance of goal-setting and retirement planning.

Boost your income retirement

As the baby boomers begin to wind back their work commitments, an increasing number of Australians will need to draw on financial assets as a source of income to supplement any government support. In the context of constrained economic expansion and people now living longer, retirement planning becomes critical.

A few things to consider:

  • Once you stop working, how will you meet your cash-flow needs to cover everyday expenses such as food and energy?

  • What kind of lifestyle do you want to lead? How do you visualise your activities in the early stage of retirement – going to the cinema every month or perhaps an overseas holiday every year?

  • Do you anticipate setting some money aside to support long-term aspirations such as providing financial assistance to grandchildren or making a large contribution to some other cause close to your heart?

There are a lot of moving parts when it comes to planning for retirement. You need to identify and prioritise your goals, estimate how much income you may need and assess your likely financial capacity in retirement. Then you are better positioned to work out what saving and investment decisions to take today that could help you boost your income in retirement. A financial adviser can help you through this process, considering your objectives, your personal circumstances and prevailing market conditions to design a strategy that is most suitable to you.

Keep your investments on track

Planning for retirement is an ongoing process that requires periodic review. Throughout your working years, your planning may progress through a series of stages in which you will clarify your investment objectives, evaluate your progress and make decisions to build confidence that you are on track to reach your investment targets. Even after retirement, with market conditions and your personal circumstances subject to change, you should periodically review your investment strategy to ensure you remain on track to realising your dreams.

Final thoughts

Entering the new year, we encourage investors to reassess what they want to achieve from their investments, and to take action by speaking to their financial adviser to bring about these changes. While thinking of investing for retirement can seem overwhelming, it should encourage you to map out a clear path to success.

About the Author

Jeff Rogers, Chief Investment Officer, ipac Investment Management at AMP Capital, joined AMP Capital in 2011 from ipac securities following its acquisition by AMP Ltd. He has over 27 years of investment management experience. Jeff holds a Bachelor of Science (Honours) from the University of Melbourne.

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