Financial advisors play a critical role when it comes to helping individuals to navigate their finances. Whether it’s personal finances, investments, retirement planning or anything in between seeking out the help of an experienced professional can be very beneficial. 

Whilst you’ve probably heard the term financial advisor before, there is often confusion about what a financial advisor actually is and what they actually do.

This is our comprehensive guide to what a financial advisor is, what it is they actually do and how they can help you get a better understanding your finances. 

Understanding the role of financial advisors

In short, a financial advisor is a person who provides guidance and expertise on a range of different aspects of your finances. A financial advisor's main goal is to help their clients to make informed decisions about managing their money, investing for the future and planning for significant life events like retirement. 

Financial advisors work closely with their clients to understand their financial goals, risk tolerance and their current financial situation to help develop personalised strategies to help their clients hit their financial objectives. 

The Services offered by our financial advisors

There are a number of different financial services available when you work with a financial advisor, these are some of the most common services you can expect to see financial advisors offering to their clients. 

Investment advice

One of the main things a financial advisor can help you with is to help you build and manage your investment portfolios tailored to your financial goals. This means helping with advice in regards to types of investments, asset allocation and ongoing monitoring to help optimise your returns and manage your risk. 

Financial planning

Financial advisors can help clients in creating financial plans that address their financial situation as well as their goals for the future. This can include budgeting, saving, retirement planning, risk management and more. These financial plans can help be the roadmap to help clients achieve their short-term and long-term goals.

Retirement planning

Planning for retirement is an exciting and daunting time in everyone's life and it’s a significant part of financial advisory services. Advisors can help clients assess their needs for retirement and help them build wealth and manage their super funds to maximise their income for retirement.

SMSF advice

Our team of financial advisors can help you manage your self managed super fund. They provide expert guidance on the creation, administration, and investment strategies for self-managed super funds. If you need some guidance on your SMSF, a financial advisor is a great place to start! 

How can Allied Wealth help you? 

At Allied Wealth, we know how important it is to have personalised financial guidance that is tailored to your needs and goals. Our team of expert financial advisors can help you navigate the financial landscape and reach all your short and long-term financial goals. 

If you want to find out exactly how our financial advisors can help you, you can contact a member of our team today to learn more about our comprehensive services and our transparent subscription plans. 

When it comes to retirement one of the number one questions we get asked is how much money should I realistically have to retire comfortably? And the truth is, there really isn’t a one-size-fits-all answer for every single individual. 

Working out exactly how much you will need for a comfortable retirement depends on a range of different factors including your lifestyle, plans for the future and the number of years you will spend retired living off your retirement fund. 

Figuring out exactly how much money you will need to comfortably require also depends on your Super and any investments or assets you have, here’s a rundown on how much you may need to retire, and the factors that you’ll need to consider whilst planning for your retirement. 

So how much is enough? 

As per the 2023 Association of Superannuation Funds of Australia (ASFA) Retirement Standard, there are two different budgets for households and living standards per year for individuals aged between 65 and 84 years old. 

For a couple, this means that for a comfortable lifestyle you will need about $72,150 per year and if you were happy living a more modest lifestyle, you would need roughly $47,000 per year. 

These figures are obviously a bit less if you’re a single, with singles needed around $52,000 per year to live comfortably and around $34,000 a year to live a more modest lifestyle.

If you’re not quite sure what the difference between a modest lifestyle and a comfortable lifestyle is, think of it this way: A modest lifestyle is considered better than living on the age pension,  but a comfortable lifestyle means you have a good standard of living and can partake in a range of leisure activities as well as international, and domestic travel. 

How do I know if my retirement expectations are reasonable? 

When it comes to retirement planning and figuring out how much money you’ll need to retire, it ultimately is a very unique and personal thing that also depends on how you would like to live and your lifestyle expectations for retirement. 

When trying to figure out how much money you will need to retire, it would be best to figure out exactly how much money you spend on everyday items, recreational activities and any hobbies you may have to factor those things into your considerations. 

How long will you be retired?

Obviously the amount of money you will need depends on how long you are planning to be retired, for example if you plan to retire when you are 65, it’s likely you’ll live for at last another 20 years so you will need to have enough funds to cover yourself and your lifestyle for at least that amount of time, plus some wiggle room! 

How will I get money during retirement? 

The money you use during your retirement doesn’t solely come from savings you have built up alone, there are a number of different sources you might receive money from during your retirement. 

Your Superannuation 

One of the number one things you need to know when planning your retirement is how much Super you have in your Super fund as this will generally be a very large part of your retirement savings.

The Age Pension 

Depending on your individual circumstances you may be eligible for a full or part age pension during your retirement. You will need to check the eligibility criteria though as some individuals may not be entitled to any form of government assistance or pensions at all. 

Investments, savings & inheritance 

There are a few different ways you can get funds to retire, whether it’s downsizing your home, selling investment properties or shares or using money you’ve saved in a savings account. If you have received any money in inheritance from your family over the years you may also be able to use this to fund your retirement. 

If you want to chat about your unique financial situation ahead of your retirement, seeking independent financial advice from a trusted advisor is a great place to start. 

I don’t think I’ll have enough to retire, now what?

If you’re facing financial difficulty ahead of retirement, there are a few different ways you can get your retirement on track. Having an idea of your current and projected retirement savings is a great place to start so you can work on improving your overall financial situation. The sooner you start putting money aside for retirement, the easier it will be for you to reach the financial goals you have for retirement. 

If you need any further guidance on retirement planning or how much money you should have for retirement you can contact a member of our team at Allied Wealth today to see how we can help you reach your retirement goals! 

Our tips & tricks to help you save for retirement

When it comes to the best age to start saving for retirement, it really is right away and if you’re asking yourself questions about when you should start saving for retirement the simplest answer is right now.

In an ideal world you should start planning and saving for retirement in your 20s so that you have ample time for your investments to grow before you reach retirement age. If you’re past that age though and you can feel retirement looming, it’s important to remember that it’s never too late to start putting money aside for retirement. 

Here are some of our top tips for starting your retirement planning and beginning saving for retirement, no matter your age! 

It has to be easy 

Regardless of your age, having a retirement saving strategy in place probably won’t work for you unless it is easy and seamless. One of the simplest ways to save for retirement is to make it automatic. 

The truth is if you have to manually move money into a retirement savings fund every single time you get paid, it probably won’t happen, but setting up an automatic transfer every time you get paid is an easy way that will ensure you are putting funds away every pay.

Chances are good after a few paychecks you won’t even notice the money coming out of your account but you will be building up an ample retirement fund without even realising it! 

Include retirement savings in your budget

When it comes to budgeting, most of us do have some wiggle room for some extra savings in our budget. When you take a look at your spending, ask yourself if there are any aspects of your spending habits that you can scale back to replace with saving for retirement. 

It’s important to make sure that you’re only saving the amount you can afford as any unreasonable or unrealistic savings will make it much harder to keep up long term. By including your retirement savings in your budget, you get into the habit of putting money away for your future. 

Visualise the life you want for yourself in retirement, whether you’re wanting to put aside a large sum for retirement to help set yourself up early or you want to save a couple extra dollars a week – rethinking your budget to include retirement savings will help you to get where you need to be for your future! 

Keep track of your progress

When it comes to saving for retirement, especially if you're a long way away from retirement age, it can sometimes feel like more of a hassle than it’s worth – but keeping track of your progress is a great way to help combat those feelings. It can be very satisfying to see your retirement savings grow as you put more into them. Whether you are saving in an account or you’re adding extra into your Super fund each month, keep an eye out for your statements.

Measuring your savings progress will help you stay motivated and that’s the number one thing you need when it comes to long-term saving goals. Staying motivated is the key to staying on track and keeping track of your progress is the perfect way to improve your morale and your motivation. 

How Can We Help? 

Whether you are in your 20s just starting your retirement savings journey or you’re a bit older but have neglected your retirement savings – it’s never too late to start! Our team at Allied Wealth can help you when it comes to retirement planning and financial planning for the future.

Our team can help you prepare for the future so that you can have a comfortable and financially free future even in retirement! 

Contact a member of our team today to see exactly how we can help you to future-proof your finances!

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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