Will you live a financially free and fulfilling retirement?
When traditional managed super funds and commodities proved their volatility during the 2008 GFC, many Australians faced their own financial crisis, staring down the barrel of impending retirement after having lost a significant portion of their ‘nest egg’.
While the GFC was a difficult lesson, with dire consequences for some, it did highlight the need for every working Australian to take action when it comes to personal financial management and forward planning, with the goal of creating a secure income stream beyond our working life.
The immense value of time
Most of us believe we’re immortal until around the age of 45, when we suddenly realise that the years are marching on and we’re already half way along our career trajectory.
Suddenly we feel the need to take stock and secure our future, recognising that one day we won’t have the opportunity to survive paycheck to paycheck.
Often by this stage however, you’re also in the midst of building a family and/or your career. And far too busy to think about the ‘little things’…such as what you might do to secure an income beyond the current wage you take home each week.
But the fact is, the longer you leave it, the more critical planning becomes. Because delaying the inevitable only means you have a lot less of the one thing you need to build sufficient wealth through investment…time.
The cold hard facts about every Australian’s financial future
Statistically speaking, those of us who make it to retirement and manage to live a long, healthy and prosperous life with enough wealth to see out our days in a happy state of financial independence are very much in the minority.
Data from the Australian Bureau of Statistics indicates that by the age of 65 years:
Where will you be by 65?
So where do you see yourself when you look at these cold, hard facts? Are you one of the fortunate few, or will you continue living on Struggle Street until the inevitable end catches up?
Why don’t more of us plan for a brighter financial future?
Money management generally isn’t discussed openly within Australian culture. Traditionally, it falls on parents to manage the day-to-day running of the household and financial planning certainly isn’t on the syllabus at school (although it should be!).
As such, taking the time to sit down and devise a carefully measured financial plan is not something that comes naturally to us, with money matters generally considered something of a taboo subject. Meaning we often only talk about it and seek help when faced with a dire problem.
But following a financial plan is crucial if we hope to avoid becoming one of those scary statistics, and instead realise future financial success.
The old adage, “When you fail to plan, you plan to fail” is no more relevant than when we talk about money management.
Without establishing clear goals and a strategy to achieve them, thereby acknowledging the need to plan for our future, it’s all too easy to spend everything we earn and simply get by living in the ‘here and now’.
But if the GFC and continuing economic challenges in the US have taught us anything, it’s that shortsighted money (mis)management is a surefire recipe for financial ruin.
Where will you be when retirement looms?
It might seem unlikely that in a developed, progressive country such as ours, over half of the retired population could essentially be living in relative poverty. But the following table clearly outlines just how little money some of us will have to try to survive on when it comes time for that ‘golden handshake’.
Why is it that after spending half of our life working, 87% of us will still retire on less than $31,200?
Time for change…
Because Majestic Property is so committed to seeing more Australians realise true financial independence and wealth through real estate, we’re here to make the journey that much easier.
We’ve done all the hard work for our clients in researching and identifying the best possible opportunities with which to create your own unique investment portfolio.
Planning a prosperous, healthy, happy future is a choice that each and every one of us must make. What will you choose? Contact Majestic today and choose a life of financial freedom and a lasting legacy for your family.