Financial Independence, Retire Early

If you’ve been hearing FIRE AKA financial independence, retire early floating around but you aren’t quite sure what it all means, you aren’t alone. The FIRE movement has gained traction in previous years and if it’s something you’ve been considering adopting but you’re not sure how, this guide is for you. 

Our team of experts at Allied Wealth have extensive experience in the world of retirement planning and we have broken down where FIRE came from and what exactly it is. 

What is Financial Independence, Retire Early (FIRE)? 

FIRE is a movement of people that are committed to a life of extreme saving in the hopes to retire far earlier than other individuals may be able too. It’s not known exactly where FIRE originated, but a core premise of the movement is that you should be evaluating every single expense in terms of the number of hours you had to work to pay for those expenses.

What’s the purpose of FIRE? 

The FIRE movement aims to get individuals to retire early, instead of the regular retirement age of 65, the FIRE movement encourages people to dedicate a majority of their incomes to savings so that they can retire and live off their savings years before they reach the traditional retirement age. 

FIRE is an extreme saving lifestyle that encourages people to save up to 70% of their yearly income. When their savings reach 30 times their yearly expenses, they are able to leave their jobs or retire all together. 

The movement also encourages people to make small withdrawals from their savings after they retire early, roughly 3-4% of the overall balance a year. This requires diligence and extensive budgeting to ensure the success of their efforts. 

Who is FIRE made for? 

You wouldn’t be alone in thinking that FIRE is designed for individuals who get a substantial income and can afford to save a majority of their salary and if you’re trying to retire by your 30s or 40s, that’s probably true. BUT there is also a lot to be learnt from the movement that can help people save for their retirement and achieve an early one, even if it isn’t quite as early as retiring in your 30s. 

What are the variations of FIRE? 

There are three variations of the FIRE movement, Fat Fire is a more laid-back approach that encourages people to save more while giving up less. Lean FIRE will require individuals to be devoted to a very minimalist lifestyle and Barista FIRE which is for people wanting to quit their 9-to-5 and are willing to cut back on their spending and only work part time. 

What can Allied Wealth do for you? 

At Allied Wealth we are committed to providing you with a financial plan that best suits your needs, goals and expenses. If you’ve been considering undertaking the FIRE movement as part of your retirement planning, contact us today to find out how we can help you achieve your goals and plan for your future. 

What Every Retiree Should Consider

When you’re nearing retirement age, it’s vital to understand your finances so you can live comfortably during the later years of your life. At Allied Wealth we know how complex and confusing it can be to understand all the nuances of financial planning for retirement. We know there are a different set of challenges faced by individuals who are planning to retire and our independent financial advice is tailored to make your retirement financial planning as easy to navigate as possible. 

I’m thinking of retiring, where do I start? 

If you’ve been thinking about retirement for a while now but you’re just not sure where to start on your financial planning journey, you aren’t alone – and we are here to help! Financial planning for retirement is crucial and we know there are a whole range of considerations you have to keep in mind.

When you’re starting on your retirement financial planning journey you’ll need to regularly  assess your financial situations as well as your ongoing needs and goals. 

At Allied Wealth we know that there are different financial concerns for Australians that are at different stages of their lives which is exactly why we provide retirees with specialised guidance. 

One of the biggest concerns for Australians considering retirement is ensuring that you have the funds to be comfortable and secure. At Allied Wealth we do it all, from evaluating your current savings to helping you invest, our advisors help you every single step of the way. 

Consider health care costs 

It’s no secret that as you age, the cost of health care needs to be included as a significant part of your budget. At Allied Wealth we can help you plan for these potential costs to ensure you have the finances to cover any medical procedures or appointments and the cost of private health insurance. Planning for health care expenses (whether expected or unexpected), ensures you have the finances to handle whatever life may throw at you! 

Estate planning 

When you are in the midst of planning for your retirement, estate planning cannot be overlooked! We can help you to create a comprehensive plan for your estate that respects exactly what you want and protects your assets. Our advisors can help you with your estate planning so you can pass on your assets to future generations.

Think about potential tax benefits 

Navigating possible tax benefits within retirement can be a difficult thing to do, but it’s an important part of any financial planning process. We can help you explore tax-efficient strategies that help you to make the most of your finances. Our advisors provide you with personalised insights and potential tax benefits that can make a significant difference to your financial situation. 

Why Choose Allied Wealth? 

When you’re beginning to plan for retirement, checking over your finances and ensuring they align with your future goals is crucial. With Allied Wealth at your side, you can handle your retirement with confidence knowing that you have experienced advisors who provide personalised guidance to help you navigate the Australian financial landscape. 

Retirement is a significant life milestone that many look forward to finally achieving – after years of hard work retirement offers a reprieve where you can start spending your days exactly how you like! BUT proper financial planning is crucial when considering retirement to ensure that you have a comfortable and secure retirement. 

Whether you're nearing retirement age or you’re just starting to get your ducks in a row for when that day comes, it's never too early to begin your retirement planning journey. 

At Allied Wealth, we specialise in providing financial advice for would-be retirees, and we're here to help you navigate this exciting (and sometimes daunting) phase of your life. 

With over 60 years of combined experience, we've gathered valuable insights into effective retirement planning. In this blog, we'll share our seven top tips to help you kickstart your retirement planning journey.

1. Define Your Overall Retirement Goals

The first step in retirement planning is to clearly define your retirement goals – take some time to envision your ideal retirement lifestyle and what that looks like for you. Ask yourself: What do you want to do each day? Any activities you want to pursue? Where do you want to live? What do you envision as a day in your life during retirement? 

Setting specific and achievable goals will provide you with a clear sense of direction for your financial planning. At Allied Wealth, we work closely with our clients to understand their unique aspirations and create customised retirement plans for every unique individual that aligns with their plan for retirement.

2. Assess Your Current Financial Situation

To plan effectively for retirement, you need to have a clear understanding of your current financial situation and the finances you need to retire comfortably. Calculate your current savings, assets, and debts as well as analyse your current income sources and various everyday life expenses. 

This assessment will help you determine how much you need to save for retirement to live comfortably and how close you are to your financial goals. Our team at Allied Wealth can assist you in conducting a thorough financial review to identify any areas that may need some extra love.

3. Create a Retirement Budget

Once you have assessed your current financial situation, it's time to embark on creating your retirement budget. A retirement budget will help you allocate your resources and funds to ensure that you have enough income to cover your expenses in retirement. 

Consider factors such as housing, healthcare, travel, and any fun hobby activities you wish to partake in during your retirement. At Allied Wealth, we recommend a proactive approach to budgeting, to ensure that your retirement income aligns with your desired lifestyle.

4. Diversify Your Investments

At Allied Wealth, we believe in a proactive, discretionary, and personalised asset allocation approach. Diversifying your investments is a key component of this retirement strategy. 

Spread your various investments across different asset classes, such as stocks, bonds, and real estate, to reduce risk and optimise your overall returns. Our experienced financial advisors can help you design an investment portfolio that suits your risk tolerance alongside your long-term financial retirement goals.

5. Take Advantage of Retirement Accounts

Maximising your retirement savings is crucial, and taking advantage of retirement accounts is a smart way to do so. In Australia, options like superannuation funds and self-managed superannuation funds (SMSFs) provide tax advantages and investment opportunities for budding retirees. 

Our team at Allied Wealth can guide you in selecting the right retirement accounts and optimising your contributions to secure your financial future.

6. Review and Adjust Your Retirement Plan Regularly

Retirement planning is not a one-time task – it's an ongoing process that changes frequently. Life circumstances, financial markets, and economic conditions can change, all of which may impact your retirement plan. 

It's essential to review and adjust your plan regularly to stay on track. At Allied Wealth, we maintain an in-depth knowledge of our clients' financial environments, allowing us to be highly responsive and effective when adjustments are needed.

7. Seek Professional Financial Advice

One of the most important tips for successful retirement planning is to seek professional financial advice. At Allied Wealth, we have a team of senior advisors with over 60 years of combined experience in looking after clients and their needs. 

Our expertise allows you to benefit from ongoing advice at a transparent flat fee, with no extra costs or commissions. We provide ethical and independent financial advice for retirement planning, to ensure that your best interests are always at the forefront of our recommendations.

Get Your Retirement Plan Started Today!

Retirement planning is a critical aspect of securing your dream financial future and ensuring you live the life you’ve always dreamed in retirement. At Allied Wealthwe are committed to helping you achieve your retirement goals with our proactive and personalised approach to financial advice for retirees and individuals looking to retire in the future. 

Plan today with Allied Wealth, and secure tomorrow with ease, our dedicated team of senior advisors is here to support you every step of the way, ensuring that your retirement years are filled with financial security and peace of mind. Contact us today to start your retirement planning journey off on the right foot – it’s never too early to start planning for your future!

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