Managing market uncertainty. and plan for the future she wants. Brenda

Managing market uncertainty.
Brenda has delayed her retirement so she can build up her super
and plan for the future she wants.
Brenda
Assets
Two adult children not
living at home
Age:
Required
retirement
income:
$44,000 p.a.
Income:
$
Employed
100,000
Super:
House:
$500,000
$1.2 million mortgage-free
Three grandchildren
Retirement Risks
Market Uncertainty
Timing the Market
Poor market performance during the global financial
crisis severely reduced Brenda’s super balance. Brenda
has delayed her retirement to build up her balance.
Brenda could react to future market downturns
by changing her long-term strategy, locking in
losses and missing out on growth opportunities,
making it hard to meet her retirement goals.
Retirement Goals
Retire at 65
Downsize family
home
Overseas holiday
every two years
Leave an inheritance
for children
Reaching their goals and reducing retirement risks
To achieve her goals and manage her risk, Brenda’s adviser suggested the following strategies:
Review investments
Consider the best investment mix to deliver returns
and whether if it is more tax-effective to downsize her
home and invest in super.
Top up super
Continue to salary sacrifice a minimum of
$5,000 per year at least to top up her super until
she is ready to retire.
Consider transition to retirement strategies
Look at transition to retirement strategy, where Brenda
would increase her salary sacrifice contributions into
super and withdraw an income from the pension balance to make up for the reduced pay.
Protect your super
Consider investment protection to protect her capital
for a 10-year term. This way market falls won’t impact
her and she won’t lose the opportunity to benefit
from growth.
Find out how MLC can help
This communication has been prepared by MLC Limited ABN 90 000 000 402 (AFSL number 230694), registered office 105-153 Miller Street, North Sydney NSW 2060. This advice may not be suitable to you because
it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. MLC companies are subsidiaries of National Australia Bank
Limited ABN 12 004 044 937. An investment with MLC is not a deposit or liability of, and is not guaranteed by, National Australia Bank Limited. MLC is not a registered tax agent. If you wish to rely on the general tax
information contained in this document to determine your personal tax obligations, we recommend that you seek professional advice from a registered tax agent.