Many retirees who depend on their own investments for either part or all of their income have been hit hard with falling values in their super and allocated pensions over the last few months.
Retirees that have been forced to sell assets that have fallen in value to provide their immediate income needs are watching their capital being devoured before their eyes. Selling assets at a loss could and should have been minimised by sound planning and advice. There is absolutely no reason for investors in any fund that contains shares or property trusts to have been taken by surprise by these negative returns if they had followed sound retirement planning principles.
Negative returns from the volatility in share and property markets are perfectly normal and expected and are in fact an opportunity to create future profits.
Sound retirement planning includes a strategy to profit from volatile assets such as shares and property, while at the same time securing your income.
It is important for long term investors to have an exposure to shares and property to help combat the effects of rising costs.
It is equally important for retirees to sleep easy at night, secure in the knowledge that their immediate income needs are being catered for irrespective of the state of share and property markets.
Does this mean you can have your cake and eat it too? Does this mean you can have a secure income and still invest in shares and property?
YES it does!
If you are after peace of mind, if you want to sleep easy at night with the knowledge you have secured your retirement income, consult a Certified Financial Planner that provides a comprehensive planning service tailored to suit you.