Decide on your retirement expectations with the help of Financial Service Providers NZ Ltd who can provide you with investment advice and retirement planning guidance
While retirement might seem like a long way off to you now, you are never too young to start planning for the day when you become financially independent. If you have big dreams for your later years, then you need to make sure you have the right plan in place to make them happen. If you don't make the happen, who will?
When you seek retirement planning guidance from Financial Service Providers NZ Ltd we'll consider your current situation and work with you to put the steps and actions in place to achieve the retirement you want.
What you want to do in your retirement - do you have plans for overseas trips, hobbies that will require funding or a bucket list that needs ticking off?
When you want to retire - do you want to work for enjoyment rather than income, retire at the average age when your Super will kick in or do you want to get out early?
When you retire, where are you going to live - will you continue to live in your current home, will you chase the sun or relocate so you can be close to your children and grandchildren?
Once you have your vision clarified then you need to make plans and put actions in place to achieve the retirement you desire.
During your consultation we'll discuss your budget and look at your different investment options such as KiwiSaver, shares or property. We also recommend diversification, instead look at a range of options with differing risk profiles. We can also offer advice on mortgages, usually one of the largest debts our clients have, and how you might be able to manage your debt and invest your savings.
Face the future with confidence - arrange a meeting with us to discuss your retirement dreams and start planning today. If I had a dollar for every client that said they wish they have met me five years ago, I would be financially independent now.
When it comes to funding your retirement one of the easiest things you can do is to join a KiwiSaver scheme or another Super or pension scheme as soon as possible. You are never too young to begin saving with KiwiSaver - you can even open a KiwiSaver account for children.
You can enrol in KiwiSaver whether you are an employee or self-employed but the process is slightly different.
If you are an employee, your employer will likely already have a KiwiSaver provider that you can sign up to. However you can choose to ask for your funds to go into a different scheme. Your contribution will be taken out of your pay and your employer will match your contributions.
If you are self-employed you can choose whichever KiwiSaver provider you want and choose how much you want to contribute.
In both cases, currently the government also makes a contribution each year up to $521.43.
You cannot access your KiwiSaver funds until you reach NZ retirement age which is currently 65-years-old. At that point you can withdraw all the funds or just some of them. However you can access some of your funds for specific purposes before then such as using KiwiSaver to buy your first home, or if you are in financial hardship.
There are many different KiwiSaver providers, offering a mix of low, medium and high volatility investments, so it is important to choose a fund that you feel comfortable with and will provide you with the right return on investment for your needs.
We'll talk through the different scheme options with you and present you with the best providers.
Property investment has always been a popular choice, although with higher market prices and changes to regulations and tax breaks for rental properties, it may need to be more carefully thought through than previously.
There are two options to use property as an investment. One is to choose property for the best rental income and the other chasing capital gains and focusing on property that is expected to grow in value faster. To realise this you will need to sell your property. Financial Service Providers can talk to you about the bright line test and tax implications as well as ownership entities (personal names, joint names, company or trust)
Whichever option you choose you need a clear strategy both for how you are going to finance the property initially, mortgage finance may be more complicated for a second property, make the cashflow work and how it fits into your overall goals. We can advise you on the best mortgage structure and offer property investment tips based on our years of experience.
Shares, bonds and investment accounts
One other way of creating wealth is investing in shares, bonds and other investments. Options include:
Shares
Shares give you the opportunity to own a small part of the company you are buying shares in. If the company turns a profit, then shareholders are usually paid a dividend.
Bonds
Bonds are like an IOU from a company or a government. You buy bonds to help them raise money and they pay you back fixed interest.
Investment accounts
Investment accounts (on call or term deposit) are among the easiest and safest ways to save money. They can be set up with banks and can be set up in varying time periods. Usually the interest rate is higher for longer terms.
- Experienced advice on the best investment options
- Enrol in KiwiSaver as a basic retirement option
- Set your retirement goals and then work towards them
- Is repaying your mortgage faster the best option for you?
Financial Service Providers NZ Ltd is based in Christchurch and works with clients throughout New Zealand and internationally