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WHAT DOES RETIREMENT MEAN TO YOU?
Don’t they say the retirement years are the best years of your life?
Well, they should be.
You deserve it ... you’ve worked hard all your life. It’s time to sit back and relax … enjoy a slower pace of life perhaps. Or take that overseas holiday you’ve been planning and visit the children, build that dream house you’ve always wanted, buy a new car, play some golf, do more gardening … you have the freedom to choose.
HAVE YOU GOT A STRATEGY TO MAKE YOUR RETIREMENT A REALITY?
What’s your retirement goal?
If it’s financial freedom and security, then this is attained through creating wealth.
Wealth can do many things, but perhaps most importantly, it gives you the freedom to choose when you retire.
The building of wealth should not be left to chance. You may be thinking that retirement seems like a long way off and why should you bother about it now anyway?
If you can be bothered to take action now, your retirement will be a lot more secure.
You need a well thought out strategy.
STATISTICS TELL THE STORY
Statistics show that, unfortunately, most people do not have a strategy and take no positive action to acquire wealth for retirement.
Life expectancy rates are improving as well.
Did you know that the expected number of years of life remaining at age 65 for men is 18 years*? And for women it is 21 years*.
[* Statistics NZ, NZ Abridged Life Table 2005-2007]
That’s a lot of additional income you’ll need to plan for during your retirement.
Most people have a false sense of security in believing that a few hundred thousand dollars will allow them to enjoy a more than comfortable retirement.
In fact, if you followed the lives of 100 young people today through to 65, the results would look like this:
Retirement Statistics
Wouldn’t you like to be part of that 1% that will retire wealthy?
Wouldn’t you like to have whatever you want, whenever you want it?
HOW IS YOUR RETIREMENT FUTURE LOOKING?
Rosy ... if you’re in the 1% of people who will retire wealthy.
Comfortable ... if you’re in the 5% of people who will retire financially independent.
However, as we’ve seen, New Zealanders are among the least prepared for retirement, so what are your chances of being in the 1%? Or even the 5%?
Excellent ... if you do something about it … today.
Planning for total financial freedom starts a long time before retirement.
Click here … to find out more about our Total Property Investment Service.
WHAT ARE YOUR RETIREMENT INVESTMENT OPTIONS?
Your options include :
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Shares, Super Schemes, Managed Funds, Derivatives, Property Syndicates?
These options don't work for many people because they don't have the means to save at the required level - ask your financial planner!
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NZ Superannuation or KiwiSaver?
Will these be enough for your desired retirement lifestyle?
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A large Lottery Win or an Inheritance?
What are the chances?
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Working beyond 65?
This will be an increasing reality for many people.
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Property Investment?
The wealth of many New Zealanders is in their homes.
Most of this wealth has been created, not through mortgage reduction, but by capital appreciation.
Property investment also has other benefits to help people achieve their retirement goals.
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At Vantage we believe that property investment is the only realistic retirement investment option for many.
WHY PROPERTY INVESTMENT?
Residential property is an excellent way to build wealth for retirement.
The key attributes are :
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Capital growth – over the last 100 years the capital growth of residential property in Wellington has averaged just over 6% compound per year
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Leverage – use other people’s [the bank’s] money
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Income – tenants provide a steady, reliable source of income that is indexed for inflation
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Tax effectiveness – deductibility of property costs and depreciation
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Return on investment – excellent when you calculate the initial investment [outlay] with the equity built up in the property [end gain]
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Security – banks will accept up to 90% of your home’s value as a form of security
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Liquidity – you can borrow against the equity in the property
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Control - you maintain control via direct investment in the property.
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You might be thinking, if residential property investment has so many benefits, why don’t more people invest?
That’s a good question.
Here are some of the reasons why people don’t get started in property investment:
1. lack of knowledge and confidence
2. uncomfortable with debt
3. uncomfortable with being a landlord
4. lack of time - too busy in professional or family lives.
There are also a number of people who invest in property, but exit early as a result of:
1. poor cash flow
2. buying the wrong property or investing in the wrong area
3. poor property ownership and mortgage finance structures
4. stress – poor tenant selection and property management.
At Vantage, we’ve developed a plan to overcome these obstacles.
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