Retire From Reading the Financial Press
One of the most important, and challenging, parts of enjoying our retirement is making sure our money lasts as long as we do.
As fairly recent retirees, we still have a lot of living to do. In our case, that means hitting the road and travelling to places far and wide.
And we are doing that on a Third World Currency (ZAR), so we have to make sure our money pot stays healthy.
(NB, this should not be construed as financial advice. It’s just our approach given our particular circumstances)
Back to the good stuff.
We keep our heads above water by:
a) Watching our pennies and
b) Making sure that the money we have works overtime for us.
We have found that managing our finances as retirees doesn’t need to be complicated, but it does require focus on a few key principles:
We have concentrated on:
- keeping fees low,
- sticking to a plan, and
- avoiding the distractions of market noise.
High investment fees – usually couched as “advice” – will quietly eat away at your retirement pot over time. Even a difference of 0.5 % in annual charges can mean thousands lost over the course of retirement.
That’s why we have generally chosen to invest in broad based, low-cost index funds bought as exchange-traded funds (ETFs). These investment vehicles operate on minimal charges and have us invested in thousands of companies around the world.
That way we spread our risk far and wide but our money is always working for us.
Equally important is having a clear retirement plan and sticking to it. Which can be difficult if you are too invested in the news of the day.
Markets go up and down and that’s normal and is best ignored.
Chasing fads, reacting to headlines, or trying to time the market is also not part of our strategy. We do your best to tune out the noise.
The financial media thrives on drama, but retirees thrive on stability.
So, we focus on our goals: steady income, capital preservation, and modest growth. A simple, diversified portfolio aligned with our risk tolerance and with minimal tinkering.
Yes, we check in on our investments periodically, but we don’t let daily news cycles drive our decisions.
Keeping the money flowing isn’t about predicting the market—it’s about discipline.
By keeping costs low, following a long-term plan, and staying calm through the ups and downs, we have given ourselves the best chance of enjoying financial peace of mind throughout our retirement years.
Take a Look (Resources)
Here are some resources that have given us some understanding, and direction, for dealing with our limited retirement pot.
planvision.com is well worth a look. An opportunity to work with a team with a different take on providing financial guidance.
If you are into reading, then there are a few books that I have found useful for providing perspective, critical thought and useful information that you can use.
Twenty Good Summers by Martin Hawes
The Psychology of Money by Martin Housel
Millionaire Expat by Andrew Hallam
Millionaire Teacher by Andrew Hallam
Take Control of Your Finances
And if you don’t want to take control, at least take an interest.
The Retirement Financial Industry would have you believe that looking after your retirement finances is amazingly complicated.
For most of us – it isn’t!
It’s just a case of learning the basics and sticking to them.
And if travelling is an important part of your retirement life, it’s worth doing the same for Travel Insurance.
Keeping a Level Head (With Help)
When the financial press is wailing and the markets are jiving, it’s all too easy to throw caution to the winds and either jump on the train or cash everything in and retreat to the sidelines.
History has shown that both reactions are almost always wrong!
But we (ageing) humans are often prone to irrational thought.
That’s where having some back up is so important. Another perspective. A more nuanced approach. Some unbiased, knowledgeable input.
The books I mentioned earlier will certainly give you that, but I like getting frequent reminders of what I should (or mostly – should not) be contemplating.
Take a look at this post by Sam Instone and if you like what you see, sign up to the newsletter. I have no business dealings or investments with his set up, but I religiously read his newsletter that pops into my inbox every week.
Why? Because it’s like a breath of fresh air in the normally helter skelter high pressure world of finance.
It simply makes sense – and it costs me nothing! 🙂
And it helps keep our investments fit & healthy
