Single Touch Payroll (STP), is an Australian Government initiative to reduce employers' reporting burdens to…
Can you spot the major flaws in the statements above?
If you were to ask anyone nearing retirement or in retirement, what would be the biggest single financial risk in retirement, you most likely get one of these three statements:
- My investment is not performing like I expect
- Another GFC
As much as we like to agree with clients, these answers wouldn’t be completely right.
The biggest threat to their retirement nest egg is a child, grandchild or significant other becomes ill or injured or worse.
Can you imagine the financial impact such an event would potentially have or your retirement nest egg?
Case in Point:
A 26 year old potential client had an accident with a truck and ended up a quadriplegic. From the TAC money bought a sign writing business but his business was not performing well, as he had never ran a business before and his mother needed to care for him full time. There was a strain on cash flow as his mother and the son needed to draw a salary to live. The business did not survive.
What could the financial impact be if something happens to a loved one?
As a bare minimum, we would be talking about breadwinner’s income (possibly on an ongoing basis) or the mum/home keeper’s E.R.V. (Economic Replacement Value) again possibly on an ongoing basis – and this takes no account of other potential medical or capital expenses like the quadriplegic needed above.
What could be the impact?
In this scenario, would you rather fund the potential financial shortfall yourself out of your retirement nest egg or would you rather protect yourself with insurance protection that the life company can fund the financial shortfall instead?
This information does not consider your personal circumstances and is general advice only. You should not act on any recommendation without considering your personal needs, circumstances and objectives. We recommend you obtain professional financial advice specific to your circumstances.