Pre-Retirement Planning

The two questions we get asked the most

1. “How much money do I need to save ? to preserve my lifestyle ? once I stop working?”
2. “How should I structure my savings?”

The answer is not $500,000, $1 million, $2 million or $5 million!  The answer depends on what it is that you plan on doing during your retirement and your tolerance for risk.

Everyone has different dreams and aspirations for their retirement; likewise everyone has different tolerance for investment risk.  We use True North, a sophisticated Monte Carlo modelling tool to calculate the probability of you achieving your lifestyle goals, taking into account the variability of investment returns and including your current and expected future expenses throughout your retirement.

True North - Monte Carlo Modelling Tool

We take:

• YOUR current position
• YOUR lifestyle needs
• The RANGE of possible investment returns
• A number of possible investment portfolios
• Our True North modelling tool takes 300 random possibilities and graphs them.  A bar chart is produced showing the likelihood of achieving all or some of your objectives:
  

• A graph of investment outcomes is produced over time showing the best and worst case:
  
• The modelling indicates the appropriate INVESTMENT MIX
• Research has shown that the investment mix delivers over 90% of the risk & return

A typical example of an investment mix with 35% defensive and 65% growth:

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Last updated: 21st January 2010 | 3:15 pm