The value of advice

I often get asked “What is the value of advice”?
We bring structure to portfolios which includes doing your homework on what are the best investments to ensure you achieve your investment goals. We often recommend self-managed superannuation funds as this allows clients to acquire investment properties and pay off these properties using their superannuation contributions.
Along side these properties, we advise on equities to ensure their superannuation is appropriately diversified and they have access to cash to pay pensions when they retire. Rent will not cut it alone and you must have other investments to ensure that you can meet the minimum pension requirements after you retire.
An investment property makes an excellent foundation to secure your retirement is as secure as possible, however you cannot eat bricks and mortar and without diversification you will be forced to sell your property at retirement to fund your pension.

 

Think that focus on super, smsf or otherwise, undermines the goal of early retirement, given the preservation age.

problem is, its rare for a young person to have a retirement plan, much less one that works a decent plan to achieve retirement by, say, 50.

so while those who want early retirement can only do so with investments outside super, most people wont commit enough to get there, and would be better off putting more in super.

irony?

 

I am not suggesting that you put more into super, but I am suggesting that they take control of the super and use it to grow assets that you prefer to own.
Many young people aspire to own an investment property and we can show them how to do it using a resource they often ignore.
We agree that having investments outside super is important, however for many young people, buying their first home is generally one of their highest priorities.
In a couple of years from now, your employer will be contributing 12% of your salary into your superannuation fund and why not harness this resource to acquire an asset that you want to hold.
On the question of early retirement, at present I am 73 years of age and I have no intention of retiring. I did that at 40 and after 3 months I was climbing the walls and eager to do something new. This lockdown will give you some idea of what retirement looks like and it is not pretty picture. Believe me early retirement is not all its cracked up to be and as you get older your need to be productive will only get stronger. There are many older people in powerful positions that are well past retirement age, so you should think about your investments in the same way.

 

You do it your way.
However, everyone should consider the bias of their advisors. Its like lifetime employees talking with serial entrepreneurs. Neither side is wrong, but the advice wont fit the other.

for most, super is a good investment vehicle.

but it comes with a lot of limitations.

 

We strive to understand the goals of our clients and then explain the opportunities available to them within the rules to achieve these goals. Our bias has nothing to do with our advice. You seem to lack an understanding of what advice means, it is NOT our role to tell you how to achieve your goals, it is our role to show you the various options available to you to achieve them.
I recently took on a new client who has been investing for years, and all he wanted was for someone to look after his investments as he was losing the capacity to do it himself. His portfolio was excellent and we changed nothing except to sell one stock that was in loss and sell another stock that was in profit. This was just good housekeeping. We gave him a client directed portfolio and all he does now is to ring me with his instructions on what to buy and what to sell.
For younger people, we offer the same service in retail superannuation, where clients can choose their own investments. This does not mean that we don't offer advice and suggestions to look into in line with stocks we think they maybe interested in investing.

 

Each to their own. My father semi-retired in his 50's and has never been bored and stays very active and does many things.. I plan on doing the same. You can stay very active without having to "work", and can mix up by doing many things, some paid, some not paid. Not everybody has the "work until you die" perspective.

Lockdown is very different to the usual circumstance!

 

Re early vs later refinement.


Well oh boy. There is tons to do without having to dance to the drum of an employer 50 hours a week or slog away in the office of your business.

Hey, if that floats your boat - go for it!.


I'm pretty much a free bird and pre covid, I never ran out of things to do.

Between the friends and exercising and boating, trekking, holidays, golfing, race car driving, cafes, restaurants, spending tons of time with family etc etc - never a bored moment.

I do run some renos and developments but that mostly takes less than 3 hours a week.


I ain't gonna be one of those folks who works till they drop and life passes you buy.

I think it's a personality thing. Do what's right for you. Thank goodness I'm predisposed to wanting to thoroughly enjoy my life with as little work as possible.

 

While it's definitely not a bad way, I'd like to change my vote to "Thank you but I want to become financially independent before I am able to gain access to my super. So I will be focussing on that instead."
Could you please add that option?

 

Yes!! This!!
My grandfather used to say "people that are bored are boring".

I loved my job but given the choice to work or do what I want, when I want, I choose the latter.

I retired in 2015. Travelled fulltime for 4 years. Been living the dream by the beach since lockdown. I love my life. I walk, go to Zumba, go to bookclub, the theatre, the beach, coffee, lunches.
And because I don't need to work I am free to do some volunteer work, which is something I've always been interested in.
I don't know why people assume retirement means you are sitting on a chair knitting. I've never been so busy. But busy with things I love.

 

Stopping regular work is something that you need to prepare for. Most people want it just because they dont like their job, not because they dont want to work.

Those who plan it properly will likely do it differently.

either way, if you want that choice before preservation age, super is probably not the best vehicle.

 

this is a great outcome. Quite often smart people have complex lives and they find it difficult as they get older. A good investment advisor to help out as you gradually decay is an important step in a families succession.

it is heartbreaking to give e spouse or the next generation an MBA in the families investments in a time of grief.

 

It comes down to what you want from life, to me sitting on a beach is boring and as far as travel is concerned, we have travelled extensively. What I enjoy is helping people and making a real difference, I enjoy my work very much and look forward to every day. I guess it is different when you are your own boss, and work is not a drudge.

 

You are misunderstanding what I am saying, yes you need to do those other investments as well, so that you have a choice, however you should not ignore your super as this is a significant asset and it should be part of your overall strategy.

 

But the Day job is going to get in the way of golf, art, fishing, weekly bike rides, afternoon lunches by the beach….

 

Life is what you make of it and I have the power to take time off to do what I want to do. I work because I enjoy it and right now I am better off than most because I can work.
I have grandchildren and I don't hesitate to take time off to spend time with them (pre-pandemic). My work has enabled me to travel extensively and to enjoy much of the world that we wanted to visit. By working I enjoy better health than most people my age and that is a common aspect of active people.
I see many older people on a regular basis and they often just stay at home and that's an existence, I am not interested in doing. I have a purpose to get up every morning as I have much to do and no time to sit around.