Financial Independence After Retirement

Our last communiqué was wisely based on the fact that financial independence shouldn't have to start only at retirement.

At retirement the emphasis is to address the preservation of wealth while balancing that with living an enjoyable, financially independent life.

Too often we hear stories of people waiting for their day of retirement and then getting seriously ill or dying some six months later. Therefore, one needs to plan on two fronts to live a fruitful, full life before retirement and be in a financial position at retirement and thereafter to really enjoy the fruits of the labour from your working years.

Ironically very similar principles apply – as they do to those younger folks bringing up children and having a disciplined approach to proper financial planning. People who have reached retirement, or those already retired, who are looking for GFS [Guilt Free Spending] can change their habits by compartmentalising their money to suit their needs. All that is required is financial discipline.

We at Silke Financial Services are a case in point. Shane, my business partner, is 40 years old and I am turning 60 this year. The principles mentioned by Shane in last week's communiqué similarly apply to both of us :

1. Create a budget to control spending on unnecessary items
2. Create a budget to control spending on unnecessary items!!
3. Silke Financial Services offers a unique planning method to assist you to compartmentalize your investments, which is disciplined financial planning in action, for example: A cash management fund for emergencies. This means that every time you are confronted by a financial emergency you will not be forced to withdraw from investments that are earmarked as retirement capital. Large 'unnecessary' capital redemptions from money earmarked to fund your future lifestyle could potentially have severe long term capital preservation consequences. A fund to draw income from, be it a living annuity or a capital withdrawal plan. A future-needs fund to visit those kids in 'Australia', or for the replacement of a motor vehicle etc. A fund to accommodate increasing health care needs not covered by your medical aid.

Treat your retirement corpus as sacred.

Silke Financial Services has the skill and expertise to advise on all investments according to one's needs and time horizons.