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P lanning for retirement can be a daunting task, especially as you approach your late 50s. The decisions you make during this crucial phase of your financial journey can significantly impact your retirement lifestyle. In this case study, we’ll explore the financial journey of a couple in their late 50s who decided to take control of their superannuation and make informed investment choices based on expert advice.

Meet Viktor and Sarah:

Viktor and Sarah are a couple in their late 50s, living in Melbourne. They have both worked diligently throughout their careers and have been contributing to their superannuation funds for many years. As they approached their retirement years, they sought advice from a financial planner and received valuable guidance on how to maximize the growth of their superannuation funds.

  • Assessing Risk Appetite:
    One of the key pieces of advice they received was to consider their appetite for growth investments. Their financial planner encouraged them to review their superannuation fund’s investment strategy and align it with their own risk appetite. It was emphasized that, in their mid to late 50s with around ten years of work ahead of them, they had a valuable opportunity to potentially enhance their retirement savings.
  • The Power of Compound Investing:
    The financial planner explained to Viktor and Sarah the concept of compound investing. They were told that by aiming for an annual return of between 7 and 10 percent, they could potentially double the value of their superannuation fund over a 7 to 10-year period. This was a powerful proposition for the couple, and they were eager to explore this opportunity.
  • Diversification and Asset Allocation:
    To achieve their investment goals, Viktor and Sarah decided to diversify their superannuation portfolio. They chose to allocate a significant portion of their superannuation funds to growth assets, which included shares and other high-growth investments. By doing so, they aimed to harness the potential of higher returns offered by growth assets.
  • Selecting Growth Funds:
    They also considered the performance of growth funds with 61 to 80 percent exposure to growth assets, which had an average 10-year return of 7.5 percent at the time. Additionally, they noted that the 10-year performance of the ASX200 was 9.2 percent. This information further convinced them that achieving an annual return of 7 to 10 percent was indeed achievable.
  • Monitoring and Adjusting:
    Viktor and Sarah understood that the financial landscape could change over the years, and they committed to regularly monitoring their investment portfolio. They were prepared to make necessary adjustments based on market conditions and their evolving financial goals.

Final thoughts

Viktor and Sarah’s case study serves as an inspiring example of how individuals in their late 50s can take charge of their superannuation and work toward maximizing their retirement savings. By considering their risk appetite, understanding the power of compound investing, and making informed investment choices, they set themselves on a path towards a more financially secure retirement.

It’s essential to remember that every individual’s financial situation is unique, and seeking professional advice is crucial when making significant investment decisions. If you find yourself in a similar stage of life, consider consulting a financial planner who can help you create a tailored strategy for your retirement goals. With careful planning and prudent investments, you too can embark on a journey towards a more financially comfortable retirement in your late 50s.

Click here to schedule your chat with a professional financial planner. Whether you’re in your late 50s, like Viktor and Sarah, or at a different stage in your life, expert guidance can make all the difference in achieving your financial goals for retirement.

 

References: Australian Stock Exchange (ASX). Retrieved 2nd November 2023 from https://www.asx.com.au/

Disclaimer: This article provides general information and does not constitute financial advice. It’s always best to consult with a qualified financial planner or advisor to understand your unique circumstances and needs.