Brightstone C a p i t a l A d v i s o r s THE REALITY Retirees have had to increasingly shoulder the burden of seeing to their own financial wellbeing in retirement THE OBJECTIVE ID: 593617
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Slide1
CREATING RETIREMENT INCOME SECURITY
Brightstone
C a p
i
t a l A d v
i s o r sSlide2
THE REALITY
Retirees have had to increasingly shoulder
the burden of seeing to their own
financial well-being in retirement.
THE OBJECTIVE
To create a comfortable and secure
retirement income.
THE SOLUTION
Multiple risks and trade-offs need
a multi-step implementation strategy.
RETIREMENT PLANNING REALITY, OBJECTIVES & SOLUTIONS
Brightstone
C a p i t a l A d v i s o r sSlide3
Project
income and capital
usage ahead for individual retiree in
real terms
.
Work out Age Pension entitlements. Set payment duration conservatively.Set realistic target rate of return.
Measure resultant sustainable income
against desired and essential income.
STRATEGY STEP ONE – THE RETIREMENT PLAN
Brightstone
C a p
i
t a l A d v i s o r sSlide4
Income objective and liability driven
investment
strategies, designing portfolios that deliver:
sustainable income that meets basic needs and capital growth to meet other goals.
Establish
cashflow needs.Focus on minimising retiree risks (longevity, sequence, inflation, market risk).
Strategies must be customised
.
Evaluate
trade-off of return and certainty
. Active asset allocation strategies.
Flexible implementation through traditional managed funds, ETFs or Super Fund sector options.
STRATEGY STEP TWO – IMPROVING THE LEVEL OF SECURITY
Brightstone
C a p
i
t a l A d v
i
s o r sSlide5
Tune-up
investment strategy periodically
for unexpected deviations to expected
outcomes.
Analyse
and optimise retiree portfolios.Must be robust and cater for all eventualities
Establish offset contribution and capacity to withstand deviations
.
Maintain a dynamic
(not static)
investment strategy. Tilt growth/defensive sector allocations on market over exuberance .
STRATEGY STEP THREE – MONITORING AND MAINTAINING EFFECTIVENESS
BrightstoneC a p i
t a l A d v
i
s o r s