If you are over the age of 40 then you should really be thinking about preparing for your retirement. Surprisingly 44% of all Aussies over the age of 40 have not begun planning out their retirements and have little to no idea about how they will go about it. At this point it is advised that you start prepping in some manner and start saving up for a proper retirement fund. So to help you plan your retirement properly, we will be talking about a few things that you can do to help yourself with this process. We will primarily be focusing on the myths of retirement and how you can take better ways to plan ahead.
So the first myth we will be tackling is the idea that having a passive flow of cash from investments will be enough to keep you going if the investment returns cover your monthly cost of living. You really need to understand that the cost of living will most likely keep rising and that you will end up requiring a lot more money than you think you will. Add to that the fact that you will end up living longer than ever before with modern medicine and improvements in human health. Even without additional work, you are likely to live longer than you think.
Another piece of advice that goes about a lot is that each year you should take out 4% of your total savings and then just keep doing that every year. This is not a sustainable thing anymore and you cannot have a hard and fast rule to it. You will probably end up pulling out around 6% and even then there can be fluctuations. To find out more, visit https://masteryourmoneynow.com.au.