We’ve seen significant volatility in the financial markets which has affected people across the globe.

Some of our retired members draw their income from a single investment option eg. the Balanced option. However, when markets around the world fall, as we saw recently, the effect on your balance, future income and longevity of your money can be significant.

TelstraSuper Financial Planning Advisers works with their retired members to help develop strategies to maximise their savings and longevity of their funds. One such strategy is a bucket or time horizon approach which aims to provide more certainty for short term income and helps clients to ride out volatile markets while helping to preserve their long-term needs. 

What is a bucket/time horizons strategy?

There are two ways of approaching a bucket / time horizons strategy. One is simple and one is more complex. TelstraSuper Financial Planning can help you with both approaches should you wish to discuss either of these. 

The simple approach is where typically there are 3 buckets of investments; for example some in cash, some in conservative assets, and the remainder in growth assets. The cash bucket provides enough money to meet short term income needs. The conservative option then provides for the medium term, and the growth option provides for the longer term requirements.  This approach requires regular investment rebalancing to ensure the short term income needs are sustained.

The complex approach differs for every client. With this approach we look to understand and match the required outcomes to individual risk profiling results, the amount of money invested and the level of retirement income required. This also takes into account future capital expenditure requirements such as for travel and any Centrelink considerations. The main complexity arises in the ongoing management of this strategy. 

TelstraSuper Financial Planning can provide you with assistance through times of volatility and help set up your finances so they can be prepared for future investment market volatility. With either strategy, members can benefit from having an ongoing relationship with a TelstraSuper Financial Planning Adviser who will work with you to manage your retirement income and longevity needs. 

How TelstraSuper Financial Planning can help you

If you’re unsure whether your retirement assets are invested appropriately to maximise the longevity of your income, now might be a good time to speak with TelstraSuper Financial Planning. To book in an appointment call 1300 033 166 or fill in the online form and an Adviser will call you back.