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Your Guide to Retirement Investing

Updated: Nov 23, 2023

Investing is for everyone. ‘When’, ‘Why’, ‘How’ and ‘How Much’ will vary depending on each one of our circumstances. What is certain however is that every one of us are investors.


A hand holding a card with the question 'What can you do today that you couldn't do a year ago?' in focus, against a blurred background of a person. This image prompts introspection on personal growth and development, resonating with the concept of investing where one's financial capabilities evolve over time. It captures the essence of how investment skills and knowledge can expand, highlighting the universal truth that everyone is an investor at different stages and capacities.
Reflecting on Growth: How Far You've Come in Your Investment Journey.

Philosophically, it extends past monetary considerations and into our everyday actions and lives. We are always investing in ourselves, be it in our health, personal growth, job prospects or in our family or those around us. It all takes time and effort.


There may or may not be a written Goal or Objective. This may not matter for now. What matters is our pursuit of something greater - driving and motivating us forward.


As a Financial Planner, I am always exposed to both sides of the coin – both positive and negative, when it comes to investing.


These are some of the Key learnings over the years:


uNDERSTAND - Retirement iNVESTING


Photograph of a variety of road signs against a clear blue sky and autumn trees, including a 'no horn' symbol, a 'U-turn' sign, and a street sign for 'G.-Scholl-Str.' The diverse signs metaphorically represent the different rules and directions one might encounter when learning about retirement investing. This image visually captures the concept of navigating the various options and decisions that are part of understanding retirement investing strategies.
Decoding the Signs to Retirement Investing Success.

Know what you are investing for, “Your Goal”. A Goal according to the Cambridge dictionary is an aim or purpose. For most us employed, one Goal that we may all have in common is to retire. What needs answering then is by what age and how much.


Other common goals I come across are “I want to be debt free” and the finishing touch to this goal requires a target date to achieve this. Is this an investment discussion? You may wonder for a moment why do I include such a goal under the topic of Investing. Firstly, it is to assist with the clarification of how to approach the topic of a Goal and secondly there are investing strategies that may be incorporated to simultaneously enhance the efforts of debt repayment beyond the common strategies of paying more dollars, more often into your loan.


cash flow surplus!


A close-up image of a label with the word 'GOALS' on a textured grey fabric background next to a sleek, black pen. This image symbolizes the importance of setting clear, definitive goals in managing cash flow surplus for retirement investing. It reflects the meticulous planning and focus required to achieve financial objectives, emphasizing that successful retirement investing begins with a clear vision of one's goals.
Setting the Stage for Financial Success: Establishing Clear Goals.

Typically, there may be more than one Goal that needs to be maximised or addressed. You may need to target them separately or together in different orders of priority.


Have a Plan of Action! Documenting and monitoring its success may provide transparency to your efforts as you can easily see when you achieve milestones along the way.


TIP - Surplus cash flow + Available Investable Funds = Wealth Booster

Note: surplus cash flow may have other valuable benefits like targeting debt repayments etc besides investing.


Risks with investing


Photo shows a printed line graph titled 'Trends by Month' with various colored lines indicating fluctuations, alongside a light blue marker and sticky notes, on a white surface. This setup represents the analytical process of assessing investment risks, with the graph symbolizing the volatility and trends in the market that are crucial considerations in retirement investing.
Analyzing Trends: The Ups and Downs of Investment Risks

To Know is to Understand’. With understanding comes appreciation and engagement. All forms of investing – yes, even cash, comes with a level of risk and trade off.


The following link is from Moneysmart articulating these discussions:



Ready to invest

An image of a neon sign that reads 'THE JOURNEY IS ON' mounted on a grid-like structure against a grey wall. This visual metaphor celebrates the commencement of one’s investment journey, symbolizing the bright and hopeful beginning for those ready to embark on the path of retirement investing.
Embracing the Financial Path: The Start of Your Investment Journey

Consider if constructing a diversified portfolio is best for you. Next steps - what assets to include in this diversification. It is commonly understood that when diversification is embraced it may help to potentially enhance return, more importantly within acceptable risk metrics. The following link is from Moneysmart articulating the concept of diversification:



simple or complex investments


Image of a surreal pyramid with three distinct layers separated by visible gaps, set against a clear blue sky in a desert landscape. This artistic representation of a pyramid challenges the conventional and symbolizes the range of investment options, from the solid base of simple investments to the pinnacle of complex strategies, mirroring the decisions one faces when considering retirement investment choices.
Building Wealth: From Simple Foundations to Complex Structures

Simple

This may involve a broadly diversified investment solution that has a wide range of investment classes included, managed by one fund manager.


Complex

This may involve investing in direct property, direct shares, specialist fund managers or more unique and sophisticated investments. You may seek access to an investment platform with individual taxation reconciliation and centralised monitoring and transaction capability. You may seek to track and understand the individual manger / asset performance and selection and how they serve to assist in your investment goals.

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invested - is performance being monitored


A hand holding a smartphone with a stock market tracking app displaying a candlestick chart, against a backdrop of a larger blurred graph. The image captures the essence of actively monitoring investment performance, a crucial aspect of retirement investing. It highlights the modern approach to keeping track of financial growth and market changes in real-time.
Staying Informed: Monitoring Your Investment Performance

Did you know?

73.62% of Australian Equity General funds (managed Funds) underperformed the

S&P/ASX 200 (the Australian share market index of 200 top shares) over a 5-year period as at 30 June 22. The Underperformance decreases as the term is lower than 5 years and increases beyond 5 years. It adds merit to the important need for undertaking ongoing investment portfolio reviews.


The following Link is from SPIVA® - measuring actively managed funds against their relevant index benchmarks worldwide.


If you don’t have managed funds and instead have exposure to Direct shares, property, or other assets the finance industry produces data on benchmark performance for relative investments. As an example, if you have direct Australian Shares, a common useful benchmark is the ASX 200/300.


Regular Goals monitoring - are they happening?


Image of bold, metallic letters spelling 'NEVER GIVE UP' placed at the edge of a corner where two grey walls meet, under a soft gradient light. This motivational message serves as a visual metaphor for the importance of regular monitoring and commitment to one’s financial goals in retirement planning, reminding investors to maintain their focus and determination.
Steadfast Focus: Keeping Your Financial Goals in Sight

A great investment outcome is dependent on a good understanding of your goals, and a regular review of your position against these goals.


Do you work with a Financial Planner on the Gold Coast - Are your investment goals and options being regularly monitored to give maximum effect?



Do you need a second opinion with your current investing journey - maybe you are approaching retirement or retired or are focussed on wealth creation? Not sure if you have got the best investments and strategy for your situation? Enquire about my service and fixed fee advice options a Financial Advisor on the Gold Coast.

Chris D'souza



The information posted is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making a decision.

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