The superannuation balance of Kiwis is dismal. According to a Massey University study, the average kiwi over 65 years old spends $590.44 per week on living expenses, while the average superannuation is $200 short of that, at only $390.20 per week after-tax.
Clearly, relying on solely on your Kiwisaver to fund your retirement, is not going to give us the retirement lifestyle we long for. So it’s becoming more important than ever to set up a strong retirement plan to support you and your family throughout your golden years.
What are your dreams?
What do you want from life? Maybe you’d like to travel the world, set your kids up in business or just relax on your private beach, greeting the sunrise every morning?
Maybe you’d like to do them all!
No matter what you want to do, you can do it with the right plan guiding you along the way. In fact, your dreams are the fuel that will fire your imagination when rough patches come along.
One thing is certain. Unless you establish clear and actionable goals designed to help your dreams materialise, you’ll still be dreaming after earning the proverbial gold watch at retirement age.
Let’s get started:
1. Evaluate your situation
What is your financial situation right now? Do you live paycheck to paycheck? How much do you have in your Kiwisaver? What about your rainy day fund?
No matter where you’re at right now, there’s an investment property strategy you can follow that will deliver the retirement you desire.
Consider speaking with a finance specialist to learn tips and strategies to quickly pay off your debts and build wealth using the income you’ve got right now!
2. Set specific, actionable goals
Set down in writing what it will take to reach your goals.
For example, if you have a home mortgage and/or consumer debts (a.k.a bad debt), focus your efforts on paying these obligations off as a first priority.
This will free up the funds you need to supplement your super, add to your emergency cash and perhaps buy your first (or next) investment property.
3. Set and follow a liveable budget
A budget is only a good one if you follow it. Start with keeping track of every dollar you spend for at least two weeks – one to three months is even better.
Once you know where the money is going, you’ll be able to spot patterns. Not only will you see the money you’re wasting (e.g. late fees), you’ll also see areas you can cut to increase your expendable income.
Design a budget that will let you have those indulgences which mean the most to you, while helping you cut back on unnecessary or frivolous spending that doesn’t help your financial situation at all.
4. Pay off debt
To ensure a stress free retirement you need to eliminate all of your debt – both the good and the bad – before you put in your notice.
5. Buy investment property(ies)
Clever management of your investment property portfolio can help you pay off your debt much more quickly than simply making extra payments when you can.
If you’re after more tips related to Property Investment and retirement, you should join us at our next Property Investor Night and meet with our wonderful Coaches. You’ll be able to ask them any question you want and it’s a free event! Book your seat here.
Positive Real Estate NZ