5 things to include in your financial plan
A financial plan is as important as any other strategic plan.
You wouldn’t try to build a house without a plan, and it makes sense if you’re aiming to build some financial freedom or wealth for retirement, that you would have a plan.
A good financial plan is one which clearly details your current financial situation, your goals and the actions you are going to take to achieve those goals.
In a very simple example, you might be renting and your goal is to buy your own home. You would then have to put in place some steps or actions such as ‘save a deposit of $100,000’.
Of course, you can engage a professional advisor to help you, but whether you create the plan yourself or get some help, there are some key things you’ll need to include:
Too few people retire with enough resources to have a comfortable retirement. A good plan will increase your chances of successfully navigating the journey to your financial goals and your eventual retirement.
For example, according to the Association of Superannuation Funds of Australia’s Retirement Standard June quarter 2021 figures, the income a couple would need to have for a comfortable retirement at around age 65 would be $63,352 per year. This amount also assumed that they would own their own home.
The current Aged Pension for a couple is $37,923.60, this leaves a deficit of $25,428.40 each year. This income would then need to be sourced from other avenues, such as investments, superannuation or continuing to work. Each of which can then further reduce the amount of Aged Pension a couple is eligible to receive, depending on various factors.
Retirement planning can be complex and difficult to map out. Don’t leave it to chance. Create and work your financial plan. And that is 5 things to include in your financial plan.
Call the team for a private, no-obligation discussion about your financial plan.
The information in this article is general in nature and does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.