We often find ourselves discussing some issues repeatedly.  So, in this section we include those items for your interest.


How much is enough?


A common question is : How much in savings do I need for my retirement?

The answer really depends on where you are now and what you want to do.

So the question can be broken up into a number of sub-questions. For example, how much do you intend to spend in retirement? What assets do you hold now? How much do you have in superannuation? Do you want to leave anything behind? Will you be eligible for the Commonwealth age pension?

We will help you navigate through these questions, and so determine how much you will need and how to get there.


What is the relationship between risk and return?


Generally, the higher the risk (or variability) in the returns of an investment, the greater the possible return. Investments such as Australian listed shares will show highly variable returns from year to year compared with bank term deposits – but they will also generally provide a higher overall return in the long run.

Therefore, it’s important to know how much risk you are prepared to live with and what are the returns you require from your investments. Different types of investment assets have different risk and return characteristics. Deciding where to place your savings amongst competing investment options is known as asset allocation.

We work with you through your investments and superannuation to ensure that an appropriate asset allocation is chosen for your particular circumstances.


Where should I hold my funds?


When we say “where” we’re not talking about the particular investments you should make – though we do help you with that as well. What we are saying is “What is the appropriate structure in which to hold my funds?”

Currently, the Australian government has put in place a unique structure the taxation of retirees drawing a superannuation based pension. It’s the only place where all earnings are taxed at zero, regardless of the amount of dollars received. So the super fund has a tax free income. Not only that, but where the super fund pays out a pension to a person of eligible age, then the pension is also totally tax free to the recipient, regardless of the amount received.

There are restrictions around superannuation pension eligibility, contributions, and other rules. This is where we as financial advisors will be able to assist you.

Of course, you may not be in a position to have a superannuation account based pension. We will examine other options for you of where to hold your funds.


How The Economy Works


Ever wondered how it all works? 72 Financial advisers are often asked, ‘doesn’t investment feel a bit like gambling?’ So we wanted to find a relatively straightforward presentation, that covered this broad topic. While the economic ‘machine’ looks very complex and open to manipulation, we like the way Ray Dalio in this video, explains it. The presentation has a duration of about 30 minutes. So relax and enjoy what is one of the clearest and easiest presentations on the matter of economics in so-called layman’s terms, that we have found.

NOTE: The presentation will take you to YouTube. 72 Financial cannot be responsible for your viewing within YouTube. Any advertising is of course not at 72 Financial’s control and therefore please use your discretion when viewing both YouTube and YouTube advertisements.

The Presenter: Ray Dalio, is founder and co-chief investment officer of Bridgewater Associates, L.P. 72 Financial does not have any interest or link, direct or indirect, with Mr Dalio or Bridgewater Associates. This presentation is not a recommendation to invest with Mr Dalio or Bridgewater Associates. Investment recommendations can only be made after consideration of your personal goals and objectives.

If you have any further  questions, please contact 72 Financial directly.