Business of Men

6 tips to plan for future wealth

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Western governments face one of the biggest challenges in the history of humanity: older people are living for longer. There are more than 2.3 million people aged 65 years and older in Australia, and 84% of them receive the pension. This number is expected to double to 5 million by 2040. As research shows, in the next 25 years, the Australian Government will be unable to afford to pay the pension and related health and after-care costs without negatively impacting the economy.

What can we do as more people retire without adequate retirement savings?

We must plan for a future without the pension

The solution lies in shifting from a culture of entitlement to one of self-determination. This may, at first, seem overwhelming. But self-determination is incredibly empowering and exhilarating: the individual has the amazing capacity to make more change, more quickly than a government bound by red tape and politics. My vision is for Australia to have an increase in its number of self-funded retirees – from 16% to 50% in the next 25 years.

What do you need to get ready? money intelligence (MQ), of course!

6 tips to plan for future wealthNot everyone is born with a Money Intelligence gene. But, as I show in my book, Money Intelligence® – Anchored in Values, Money Intelligence is learnable. Anyone can improve their MQ and, as a result, their quality of life.

I often hear interesting ideas from my clients on how they plan to deal with their retirement. Some imagine going bush and some want to live in Bali. They want to reduce their living costs to the absolute minimum so they can live on the pension.

But the majority of people, especially my generation – Gen X, want to stay put in their capital cities. So how can a single pensionerlive on $22,721 per year and a couple live on $34,252 per year? How can women, who often outlive their partners,survive on just $22,721 per year? Could this be your fate? Indeed, it could –unless you become financially liberated.

How can financial liberation be achieved?

1. Shift your money mindset

You cannot build your wealth without shifting your money mindset into high gear. An advanced money mindset is the basis of a high MQ. In my book, I present the 18 values and 48 money mindset principles that form the basis of the Money Intelligence® model, so you can become money smart and take control of your financial outcomes.

2. Shift your consumerholic habits to investorgetic behaviours.

Investorgetic is a term I coined that refers to someone who is passionate about investing responsibly for their financial future. Don’t worry – you can still go shopping! But when you are saving and paying off an investment property, being Investorgetic means you will think twice about buying another pair of shoes when you already have 10 pairsin the cupboard!

3. You need to know how much money is enough

In my line of work, I meet two types of people: people who don’t worry about money and don’t even consider their finances for the long term; and people who think$5 million is not enough to retire on.

But there is a middle ground. There is a life beyond indifference and beyond greed. After I go through my “investment philosophy of enough” with my clients, and explain that the income needed at retirementdrive the amount you will need at retirement, most tell me that they would be happy to retire on $1.5 million to $2 million.

The philosophy of enough encourages people to re-evaluate their retirement possibilities. People who think, “I couldn’t possibly save $5 million for retirement,” soon realise financial independence is possible for them – not just something for the rich.

4. You need a financial strategy to execute your plan

Your financial strategy must be flexible enough to take into account your life cycles and needs. A financial strategy for a 40-year-old mum juggling home and work with a big mortgage is different to that of a couple in their mid-50s whose children are financially independent to some extent (I hear that most 25-year-old kids are still at home!).

A financial strategy also helps you focus on the long term. People who don’t have a financial plan are easily lured into “exotic” investments and schemes a “friend” told them about. You cannot afford tomake financial mistakes while you are working. Your retirement plan is at stake.

5. You need a money mentor

A Money Mentor is someone who is professional and well versed in all areas of investment and tax structures. Most importantly,they must be caring and genuine – someone who respects you, who doesn’t talk down to you or ignore you in meetings while talking to your male partner! Look for a qualified and licensed female accountant and financial planner. You will feel like you’re talking to your sister or best friend. There are a few female financial advisers who are trying to break down the stereotype of what a financial planner is. We certainly don’t wear brown suits!

6. Become a money anchor

A Money Anchor is someone who adopts the values of contribution, empowerment and compassion in order to help others thrive. Money Intelligence® is complete when one shares his or her wealth of knowledge, money and time to make the world a better place. If you strive to become a Money Anchor, money making becomes meaningful. When you feel inspired at work, when you feel you part of your community, you know you are supported as you work towards your goals.

So, are you ready to begin your financial future without the pension?

About Susan Wahhab

Susan Wahhab —CPA, SMSF Specialist, Entrepreneur, Working Mum, Small Business Supporter— is Australia’s leading Financial Strategist and Money Mentor. Susan is the founder and managing director of Accounting and Financial Services firm Winner Partnership Pty Ltd (www.winnerpartnership.com)Susan is the author of the transformational and practical book Money Intelligence® - Anchored in Values. She believes that people can become financially liberated by developing a healthy relationship with money. Learn more about being money intelligent www.moneyintelligence.com.au

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