Dear Friends
Happy New (Financial) Year – again
Looking back at past issues of eGrow, as we enter the new tax year, there is always a theme of forward planning. And I’d like to keep it going.
There is a lot of joy to be found in having a long-term retirement strategy in place, whether we are in the wealth creation phase, or in the income draw-down phase. We don’t need to buy into the daily doom-and-gloom of the media. This we can let pass us by.
In this edition, I wish to shine a light on the problems which can face those of us who are heading towards retirement in the next five years or so – and I suggest you share these ideas with your family and friends in this category, as this is the time when we can ‘muck it up’.
In my experience, pre-retirees can face three hurdles – the biggest of these is “not knowing know what we don’t know” about retirement, and with the risk that we don’t know where to start to access the information needed to get it right. The second hurdle is one that I call ‘bullheadedness’ – a refusal to accept that it is worth spending money on quality financial advice, as we try to go it alone. The third is pessimism around whether we have sufficient savings to retire – at any stage.
I must admit I become excited when I can help a client extricate themselves from the mire of these three issues. It helps them transition into a point of financial relaxation.
For the majority of readers, I can assure you that you will have an affordable retirement – our Australian Super/Tax and Social Security system is complex, and sometimes daft and generous. This is the space where having an adviser becomes worthwhile, by helping you to navigate the system to get the best outcome for you – and your estate.
Now, the money side of retirement is only 50% of the challenge. The rest is the mental preparation for such a dramatic change from the workforce to retirement. Are your hobbies sufficiently rewarding, will you join Rotary or Lions or is there a bigger role at your Church or Synagogue? Will you travel or look after grandchildren? Or will you sit at home and lament being a feather duster, rather than the rooster you once were?
This needs work.
Planning ‘what’ in retirement is just as important as paying for it. I recommend both partners engage in this discussion. It may suddenly become rather annoying for a homemaker to find they are being followed around the shops with offerings of well-intended (but completely unwelcome) advice by someone who can barely boil an egg!
I read a psychologist’s advice which suggested that an individual who has the choice, should try to time their retirement for late spring – so each day the weather is improving. They also offered the recommendation to make physical activity a daily part of the plan (for example, go for a walk or a swim five days a week), and give your partner space.
It is not uncommon for new retirees to struggle for some time to find their new place in the world – as per the very real experience of my friend Paul, which follows. Sometimes retirement is forced upon us by career restructuring or poor health. Such situations can find us unprepared as well as feeling wounded that the organisation to which we gave our best years has turned its back on us. Bear in mind also that there is no shame in speaking to organisations like Beyond Blue or the Black Dog Institute about these feelings. It can really help.
The way to get the most out of your retirement is to be prepared for it as much as you can. Speak to a financial planner, speak to your partner, build some optimistic plans so retirement just doesn’t ‘happen’ to you, and that you are in control. That way, I can assure you that it will be a Happy New Year.
Paul’s struggle:
I worked with Paul in my Australian Public Service days; we were Superannuation Nerds together, and he was a legend. Nobody knew more than he, and nobody was better financially prepared for retirement. In fact, Paul had a higher income when he stopped work. The trouble was, he struggled to find purpose. The golden dream of retirement was empty. It took two years before he really found his place – and a big part of that was volunteering and exercise. A lifelong soccer player, Paul now referees children’s matches – he’s giving back to the sport he so loves. He also is the driving force behind a number of walking groups which help and support other retirees. His advice is to plan for both the financial and the emotional aspects of retirement – otherwise you will struggle.
And one more thing:
Share markets finished in record territory at the EOFY. This result was despite significant share market losses in early April 2025, with gloom, doom, and predictions of calamity around President Trump’s pronouncement of “Liberation Day”.
But with market valuations so high, are the returns of 2024-25 sustainable?
In the words of Shane Oliver, Head of Investment Strategy & Chief Economist at AMP, “The key for investors, including super fund members, is to maintain a long-term strategy and turn down the noise”.
While reinforcing the Marinis mantra “stay in your seats”, Shane’s outlook is for continued share market volatility, with ‘balanced’ super fund returns slowing from 3 years in a row of 9-10% pa to a still reasonable, but more sustainable pace.
If you would like to read the full article, please follow this link to “Oliver’s Insights” here.
And another thing – remember to stay cyber safe
Over the last 12 months or so I have been reminding everyone to be on guard against scammers and to follow the Federal Government’s scam watch: http://www.cyber.gov.au/protect-yourself
Don’t forget to stay scam smart. If something seems too good to be true, it probably is.
One of the layers of security our clients have is the personal relationship with their adviser and our team. We recognise voices, we know the individuals, we are business ‘friends.’
As always, if I or any of our team can be of assistance, please don’t hesitate to get in touch by either calling (08) 8130 5130 or email admin@marinisgroup.com.au
Yours sincerely
Theo Marinis CFP®, B.A., B.Ec., CPA., MCIFAA
Financial Strategist
Authorised Representative
