Knowledge hub

How to future-proof your wealth during retirement

Back to insights

By Capital Partners Ambitious Retirees

Planning for retirement naturally evokes feelings of excitement and apprehension. Retiring signifies a change of routine. A change of pace. Even a change of identity. Not to mention the financial considerations. Unsurprisingly, the number one question we receive is “Can we afford to retire?”.  

Though, perhaps the underlying concern is, ‘can we afford to retire and stay retired?’. Because really, we all want certainty that our finances will support us long into our post-work life not just the first ten years. 

Supporting hundreds of Australian families over 25 years, our senior wealth advisers have identified three key considerations for future-proofing your wealth for retirement.  

Could you downsize your home? 

When your children move out, your home might feel too big. Downsizing can make life easier with less maintenance and a cosier living space. However, it’s important to avoid the common trap of ‘down pricing’—moving to a smaller but equally expensive property. This can happen if you choose a new home in a more desirable location or with high-end amenities, which can diminish the financial benefits of downsizing. 

Choose a location that fits your future lifestyle. Look for areas near community amenities, local shops, and parks. Being close to family and having easy access to daily needs can enhance your well-being. By choosing a more affordable property, you can lower your living expenses, increase your savings, and enjoy a happier life with a smaller, more manageable home close to your loved ones. Be mindful to avoid ‘down pricing’ by ensuring your new home is truly more affordable, if you’re unsure, consider a second opinion.

Balance your portfolio 

We’ve all had that friend at a barbeque who insists on investing in the latest high-performing stock. Their enthusiasm is commendable. But is it wise?  

A balanced portfolio includes stocks, bonds, real estate, and cash. This mix provides stability and growth while minimising risk. If one investment falters, others can offset the loss. 

Diversifying spreads risk across different asset classes, keeping your portfolio resilient. 

So, how do you create such a portfolio? 

Consider the following:  

  • Diversifying across different asset classes: Invest in stocks, bonds, real estate, and cash equivalents. 
  • Regular portfolio reviews: Schedule periodic check-ins with your financial adviser to reassess and adjust your portfolio. 
  • Balancing growth with security: Include high-growth stocks and stable bonds in your investment mix. 
  • Maintaining lifestyle flexibility: Be prepared to adjust your investments based on personal or market changes. 

By diversifying your investments, you can build a robust portfolio that balances returns and risks, ensuring long-term financial stability. It might not be the most exciting portfolio, but you’ll sleep peacefully at night.  

 Plan for your future needs 

Imagine being free to travel, explore new hobbies, and spend quality time with your loved ones. Of not worrying about market fluctuations. You’ve worked hard to build your wealth. Now’s the time to ensure it remains resilient. 

Planning for longevity is crucial. Have you considered the potential for a longer retirement? Think about a couple who planned for 20 years but enjoyed 30 years of retirement due to careful planning. 

Here are some steps to help you plan for your future needs: 

  • Goal planning session: Start by setting clear, achievable goals for your retirement. Consider your ideal lifestyle, holiday dreams, and any aspirations you have for this phase of life. 
  • Health considerations: Think about your health and how it might impact your retirement plans. Ensure you have adequate health insurance and a plan for potential medical expenses. 
  • Lifestyle flexibility: Be prepared to adjust your investments based on personal or market changes. This flexibility can help you maintain your desired lifestyle. 
  • Planning for loved ones: Consider how you might want to support your children or grandchildren, whether through education funds, special gifts, or creating lasting memories with them. This can add a meaningful dimension to your retirement planning. 

Life is too short to worry about money. Our team is always happy to chat about your circumstances with a complimentary discovery call. Even if we’re not the right fit, we’ll point you in the right direction. 

What’s the most fulfilling retirement? Is it the one with the largest bank balance? Or the one that lets you live according to your values and pursue what brings you joy? 

By focusing on wealth with purpose, you create a retirement that’s financially secure and deeply satisfying. To secure your financial future during retirement, start by asking yourself: What are your key goals during this phase of life? Do you envision travelling the world, exploring new hobbies, or spending quality time with loved ones? While these questions might seem overwhelming, small simple steps is the way to begin. 

Get your retirement planning on track. Sign up for our mailing list to receive weekly guidance and insight directly to your inbox. Have five minutes to spare for what could be, a life-changing conversation? Tell us how we can help and we’ll have one of our team get in touch.  

The information provided on this site is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each investor are different and you should seek advice from a financial planner who can consider if these strategies and products are right for you.

Ideas & insights

Knowledge Hub

Cognitive biases in decision making

Lifestyle • Article