Welcome to the October 2017 newsletter, in this month’s issue:
- The Four Keys to a Successful Retirement Life
- What’s On: “Taste of Auckland”
- Market Update
- Hot interest rate – 12 months at 3.85 pa %
Four keys to a successful retirement life
Someone once said:
“While there are lots of books available on retirement, the only book that really matters is the one that you write yourself!”
There are some things we can learn from others who have made the transition into the kind of life that they wanted. Some would say they were “happily retired”, while others wouldn’t even admit to being retired at all! That’s the point – this next phase of your life will be about living the kind of life that YOU decide. It might include work, it might be travel or it might be learning and doing new things, it’s up to you.
Below are four keys to help give you a structure and foundation as you create the picture of your retirement life.
1. Having a positive attitude towards your future
Your ability to ‘roll with the punches’ will dictate how you approach most areas of your future life. There are life changes that you can expect in retirement, both positive and challenging. In fact, sociologists have identified at least six separate “life transitions” that will affect most people as they move through their retirement life. Perhaps the greatest transition of all is the one you see each time you look in a mirror and see yourself change. It’s easy to forget that “getting older” is a physical issue, not a mental one.
As Satchel Paige once asked…..
“How old would you be, if you didn’t know how old you are?”
2. A clear vision of the kind of life that you want
When you think of the word ‘retirement’, what vision comes to mind? Is retirement a work issue for you, or maybe a financial and investment plan? Far too many pre-retirees make the mistake of thinking that the financial plan and the retirement plan are the same thing – that the life part will take care of itself.
This stage of your life deserves a more holistic look and plan than simply assuming that you are beginning a thirty year long weekend. What do you want your life to look like? What changes do you anticipate along the way? How will you get the most out of each and every day? These are important questions as you contemplate your move into this next phase of your life.
3. A positive definition of ‘work’
Your work is the thing that you do to contribute your skills, experience, labour or knowledge to society in some way. It is also a way for you to ‘self-actualise’ and create positive stress in your life.
Even when you leave the traditional workplace, you will still have a need to share your workplace strengths and transferable skills. If you have a positive attitude towards the workplace, then the desire to have a retirement free from any kind of work becomes irrelevant.
A wise person once said: “if you love what you do, you never have to work again!”
By the way, work doesn’t have to be full time, it doesn’t have to be something you don’t like to do, and it doesn’t have to be for pay!
4. Maintaining ‘Financial Comfort’In
Some feel that a happy retirement is guaranteed by financial security. However, there is no price tag on a successful retirement.
As someone once said, “having a million dollars is NOT a retirement plan!” Financial comfort refers to being able to manage your life in a satisfying and fulfilling way using the financial resources that you have. If financial discomfort contributes to retirement stress, then your financial plan becomes a negative rather than a positive.
The keys to achieving financial comfort are to have a clear understanding of the financial resources you have and the demands on your money that will come from the life you lead (both now and in the future). One good way to look at your financial situation in this next phase of your life is to think about the three ‘buckets’ that you will have to keep filled to achieve financial comfort.
- Your ‘essentials’ bucket, which will pay for all of your basic needs
- Your ‘lifestyle’ bucket, which will fund those fun things that you dream of doing in retirement
- Your ‘nest egg’ bucket, which will fund any emergencies that may arise, provide you with a sense of security through good and challenging times and ultimately will form part of your legacy.
Remember, whatever your stage in life, LIFE-TIME Financial Group can help you achieve your financial goals.
Taste of Auckland
The highly anticipated Taste of Auckland food festival is back. Prepare to celebrate the best in New Zealand cuisine from 16-19 November. For these three days, Auckland’s Western Springs will play host to the gastronomical gathering of the year.
Taste of Auckland promises to be a foodie’s dream with free live cooking demonstrations, a gourmet hangi, artisan food and beverage produces, wine tastings, craft brewers, cocktail bars and of course, food as far as the eye can see!
For more information, please visit www.tasteofauckland.co.nz
Market Update – September
- Share markets rose further in September, shrugging off the unresolved NZ election and war of words between the United States and North Korea. The positive underlying factors driving the world economy have continued, supporting investor confidence and fund returns.
- In a flashback to themes earlier in the year, Donald Trump launched a much-anticipated new plan to cut taxes for US businesses, adding a potential further positive for share investors. Given the positive economic outlook, Janet Yellen, chair of the US Federal Reserve, also reconfirmed expectations for interest rates to continue to gradually rise, which would be reinforced if Trump’s tax plan is implemented.
- On the KiwiSaver front, figures released in September show that KiwiSaver members have built up more than $40 billion dollars in total assets, equivalent to 15% of NZ’s GDP, since the savings scheme was established 10 years ago.