Dec 13, 2019  | Tags: retirement

Our Insights

If you often worry about whether you’ve got the right retirement plan then you’re not alone. Many people experience doubt in their own financial planning capabilities. And the tiniest market downturn can cause disproportionate and irrational panic.

What should you do when the waves of financial uncertainty hit?

The fact that you're working on your plan and are looking for certainty is a great start - you're proactive in your approach to your retirement.   

The key now is to gain your confidence in your plan and feel more secure about your future. Here's how.

Increase your knowledge

Knowledge is the key to confidence. It’s easy to fear what you don’t understand. Arm yourself with knowledge about your current financial situation and the plan for your future, and you won't be worried or spooked by any bad reports. In practice, what does this look like? Don't outsource your wealth plan - work with your advisor, ask questions and do your research. 

Do what you can, don't worry about what you can't control

Obsessing about the future and worrying the things you can't control, like the global financial market, world events and natural disasters, won’t help you maintain a positive outlook.

Instead, take care of the issues you can control each day. Celebrate the day-to-day financial successes. Remember that even small efforts to be economical now can make a big difference down the road.

Put your plans in writing

Having your retirement strategy in writing gives you something concrete to look back on in times of uncertainty. Your strategy should have specific deadlines for reaching specific goals over the course of several years. As you reach those goals, you can check them off and the success of reaching those milestones will boost your confidence that everything is going according to plan.

Diversify your retirement investment portfolio

Diversity is a financial lifeboat. There are bound to be ups and downs in the market as you save for retirement and invest your savings in a variety of assets. When your assets are diverse, you’ll always have one sector that’s performing well even when another area is suffering a loss. This will help you feel like you have a lifeline to hold onto and keep your confidence up. To our earlier point - if you are in the habit of worrying about big issues that you can't control, having a diverse portfolio should ease your concerns.

Expand your earning capability

As long as you have the time and ability to learn something new, do so. Learning a new skill can help you feel like you have something else to fall back on if you experience a major financial setback. For example, you might worry about your retirement plan in the event that you suddenly lose your job or become ill. If you have another craft or side business to turn to, then you need not fear the future.

Help others who have less than you do

There’s nothing like helping the less fortunate to make you feel more fortunate. You probably don’t have to look far to find someone who has less than you do. When you give of your limited time and resources to ease the economic burden of someone else, you’ll start to feel pretty rich.

Get advice

The best way to build your confidence in your retirement plan is to work with an experienced financial adviser. When you're side by side with a track record of success in the investment and retirement planning space, you can rest assured that your future is in safe hands. Your adviser will help you set the strategy, review performance, make adjustments as necessary and keep you accountable to your goals.

Calder Wealth Management will put you on the pathway to achieve your wealth goals.

Talk to the team at Calder Wealth Management. Call us on (08) 8373 3333 to schedule your free initial appointment. 

Written by Ben Calder at Calder Wealth Management.