Do Your Retirement Plans Need A Review?

The current economic climate make it mandatory for  many pre-retirees intending to retire this year (2009) to review their plans.

It may be wise to see your financial planner  to re-assess your financial situation. Just about all retirees wish to avoid the situation where their funds expire before they do. Thus they need to examine their savings for retirement in terms of their estimated retirement expenditure. This may require a revision of your  drawings and./or a discussion with Centrelink to see if you are now entitled to a part age pension arising from a drop in asset values.

Some retirees may be enticed to consider a reverse mortgage. If you are considering this road then  ensure that you speak to a competent  financial planner, who will put your interests ahead of any other considerations, and your  Elder Law lawyer first. Good advice  is worth paying for so always check how your adviser is being paid.

If you are considering talking  to a mortgage broker ensure that  he or she has industry accreditation. Again you may need to consult with Centrelink  to see that your age pension entitlements are not affected and last, but not least,  have a family gathering and talk over your proposal.

The recent failures of some large financial planning groups  serves to confirm that your adviser is providing  you with an adequately diversified investment portfolio spread across first class investments.

Like many investors I have suffered by the downturn in share prices (  23% in my case against the market downturn of 41%). I review my portfolio each October whereas many investors leave it until the end of the approaching. financial year.  Share investments should usually have a longer term objective in view ,for example, 5 years thus  reviewing your financial situation once a year  may also need review. Many investors are implementing a twice annually review to stay reasonably  abreast of market movements. This may be very wise because every market has a low point before a new bull market and while few can pick the lowest point it is possible that  many good buys will be around in the next few months.

Alan Greig is  retirement consultant and columnist  specialising in lifestyle issues.
Alan may be contacted at 07 3376 4190 or Mob: 0407 377715

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