“How much do I need to be able to retire in the lifestyle I want for me and my family ?”
The power of Compound Interest
- The earlier you start saving for retirement the easier and more effective it becomes
Take advantage of the power :
- Compound Interest – phenomenal factor
- Leverage – borrow from the bank to accelerate your own wealth planning or even lend your own money to your SMSF
Harness the POWER of compounding interest and leverage ...
Planning for Retirement
Planning for your Retirement begins with …
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- Setting your preferred retirement age (ie. 65)
- Working out how many years from now it is?
- Scaring yourself into reality by multiplying this number by 12
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- i.e. 24 years to retirement x 12 months = 288 pay cheques away from retirement !!!
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- Calculate how much in today’s money would you want to live on in 288 pay days time
- Example: If you decide you can live on $5,000 per month at retirement in today’s money
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- You would need a lump sum of $1.200, 000 to generate you $60k per annum
- Put in a buffer for inflation and plan to save $1.5 mil
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- Example: If you decide you can live on $5,000 per month at retirement in today’s money
- Next calculate how much you need to invest every month in order to save $1.5 mil at your planned retirement age
- i.e. If that is 288 pay days away you would need to save $2,800 every month in After Tax Dollars
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- Is that at all possible? DOUBT IT !
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- i.e. If that is 288 pay days away you would need to save $2,800 every month in After Tax Dollars
How many PAYDAYS do you have left until the day you plan to retire !??!
Investment Property
A time tested Investment Vehicle to help you accelerate your financial planning goals includes securing Investment Property, taking advantage of Leverage (using the banks money), having the tenant and tax man help your SMSF pay off the property and thus build your retirement wealth
Who Pays?
- You invest your Deposit (20% – 30%) as your contribution
- The bank lend you the balance (70% – 80%) to leverage your Retirement Planning
- Your tenant pays you rent and helps contribute towards your retirement
- Capital Growth is on the full 100% of the asset (the property) even though you only invested say 20%
Use your Bank and your Tenant to help pay off a large slice of your own Retirement Planning Goals!
Property in Australian Capital Cities has doubled in value every 7 – 10 years
enhancing your retirement planning strategy.
