Will I be able to afford my desired lifestyle once I stop working?

By Grace Ormsby

July 22 2020
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A financial adviser answers this most commonly asked question.

According to Stanford Brown private wealth adviser Todd Stanford, the answer really depends on a few factors, and the answering of a few questions.

Questions like: What is your net asset position now? Do you have the ability to save to add to your retirement capital? And what investment return is achieved?

It also is dependent on the level of tax you are paying (if any!), and importantly, how much it will actually cost to live your desired lifestyle.

“Some factors you can control – such as your level of savings and living expenses. But others are somewhat out of your control – such as the investment return,” Mr Stanford commented.

Importantly, it does depend on discipline.

According to the adviser, a lack of discipline is one of the most common mistakes people make when it comes to money. “That is, not having a plan to get where they want to be financially so as to achieve their other lifestyle aspirations.”

“More and more people are starting to realise that financial advice is not all about investments and portfolio management,” he commented.

“While this is naturally important, a key benefit is the peace of mind a long-term relationship with a professional adviser can bring where our role is that of a trusted ‘sounding board’,” Mr Stanford outlined.

Calling it “critical” that advisers are actually able to add “real value” to their clients, the chartered accountant and certified financial planner said that “as a trusted adviser, we must understand our clients’ financial/tax affairs, have their best interests in mind, be accountable to them and available to provide guidance on holistic financial matters as and when they arise”.

“We would generally assist in every material ongoing financial decision they make and help weigh up the benefits and risks. This extends more and more to helping their children as well,” he continued.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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