I want to plan and manage
my income in retirement
Build a Retirement Plan and see how long your retirement assets will last!
With longevity on the rise, many people will need to create a retirement plan to manage their finances for some thirty years or more.
If you are a retiree, (or soon to be retiree) you are faced with many challenges about how to map your income into the future. It’s common to live in fear of running out of money – or to not have a clear understanding of what you can afford to spend each year. This means getting it wrong by spending too little, or too much.
Have you invested enough money to live well off the income during retirement?
If you are relying mostly on your superannuation will find that over time, you’re obliged to draw down ever increasing percentages of the fund’s balance. As your capital decreases, so does your yearly income from your superannuation investments.
Financial Mappers lets you allocate how much you want to spend over different time periods in your retirement years.
You can now create your own retirement plan to drawdown or sell each asset you own! Financial Mappers assists you to discover how you may draw income from your investments, or live of the profits from assets sold. If you have multiple investments, you can customize in detail how and when you will access funds from each of them over time.
Financial Mappers allows you to plan your desired retirement income with precision.
You’ll know what steps to take, and when, so you can retire in exactly the way you want!
Detailed Mapping of Important Asset Decision Consequences
Financial Mappers calculates retirement income sources on a year by year basis.
This includes how much of your retirement asset income will be used, along with how much capital is being utilised for each year of your plan. In the Retirement Income specification area, you can calculate how much income you are likely to need each year in retirement. The Budget area shows these income amounts for each future year of your plan converted to today’s dollars (the Present Value). And if you’re planning for future large expenses you can even make special allocations, such as the replacement of your car or painting your house.
One of the most unpleasant surprises for real estate investors is the accumulation of capital gains tax liabilities.
When selling down assets, after paying the selling costs and Capital Gains Tax, your remaining investable capital may be less than you expected, and this could have dramatic effects on your retirement plans. Financial Mappers will make these calculations for you, so that you can carefully plan the timing of such events.
Retirement Fund Income Streams.
You can choose from the various methods of drawing on your Retirement (Superannuation in Australia) Funds. This includes drawing down from your account balance, taking lump sums, or rolling retirement account funds over into an annuity.
Stop guessing. Be informed so you can plan for any scenario.
What about ‘Risk Sequencing’, and is this very important concept factored into your retirement budget?
Risk Sequencing is the effect of an adverse event, such as falling income or investment value just prior to a critical time. For example, it’s the calculation of how much your weekly living allowance would suffer if the share market crashed just before retirement. Have you considered what may happen if your Superannuation Fund or Share Portfolio suffered a big drop in value over two or three years?
Financial Mappers lets you use previous economic cycles of falling prices to consider the effect and how long it may take for those prices to recover.
You can monitor whether or not you will have sufficient income to maintain the lifestyle you want or whether you may need to sell some assets in a time of poor returns. Built into the software is historical data and 10-year economic cycles so you can understand how situations like these might affect your retirement plan.