- By Peter Burke
We prefer not to use the ‘retire’ word as it can suggest stopping living a full life. We prefer to think of moving onto a new phase of life where you can choose what and when & have “passive income” generated regardless of whether you get your “fingernails dirty” or not.
SOME OF THE KEY QUESTIONS THAT NEED TO BE ANSWERED OR TALKED THROUGH
- What do you see this “post work life” situation looking like for you?
- What is your motivation to consider an earlier exit from the work force?
- What will you do with your new free time?? (7 day weekends are great for a few weeks BUT are you ready for 52 of them a year?)
- Should you consider “transition to retirement” – easing yourself out of the work force gradually?
- What net income do you need? (note the tax impact is a key consideration)
- For weekly normal, not negotiable expenses/living costs.
- For additional capital expenses
- For lifestyle additional choices
- Could you, or are you ready, to “downsize you home”?
- Where is the ideal location for you to base yourself/selves for these post work life years?
- What do you feel is your reasonable life expectancy and could your personal health situation impact this?
- As well as potential life expectancy what is your potential “window of opportunity” timeframe for maximising new free time?
- What would happen if one or the other of you (assuming a couple) at some point lose the capacity or passion, to live a full active post work life?
- What capital and income generating capacity do you have via investments etc?
- Are you keen to live off returns and retain capital? If so WHY?
- Are you OK to use income returns and utilise capital accumulated whilst working, to now provide the best possible, post work lifestyle choices?
- Do you want to be busy “post work” focusing on a complex range of investment assets or are you looking to simplify and create predictable income that meets your needs?
Unfortunately many of us do not have actual control over when our work life may come to an end (boss decides, health issues, family issues etc) so it is a really good idea if you tackle these potential questions proactively, well before you reach the “end of work life” situation.
Even if you have complete control over this decision, these questions (and many more that arise when discussions begin) can be worked through proactively as part of logical planning and thinking about what the ideal “post work life” may look like for you.
As noted above this post work life discussion and planning decisions really raise more questions than providing answers and so it is critical that it is not delayed.
REMEMBER,
- WE CAN BANK DOLLARS FOR LATER
- WE CAN FILL OUR CUPBOARDS WITH ITEMS FOR USE LATER
- BUT WE CANNOT BANK TIME
- THE MINUTES, HOURS AND DAYS WE DON’T USE TO THE FULL, ARE GONE FOREVER
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PB Financial Solutions Pty Ltd ABN 67 097 381 523 – trading as Burke Britton Financial Partners & Securelife Financial Solutions is an authorised representative and credit representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee.Peter Burke
