Page 11 - Wealth Adviser Newsletter March 2025

ISSUE 107
MARCH 2025
Ask a property, come with higher volatility and reduced accessi-

bility, which may not suit short-term liquidity needs. It can
Q&A: Question expose you to significant market risk. Instead, keeping the
funds in low-risk, easily accessible options—like a high-yield
savings account or a short-term term deposit—can help
Question 1 preserve your capital while still earning some return. This
I’ve heard that once I start drawing my pension, I can’t add way, you maintain flexibility and are better positioned to
further funds to it. Is this true? take advantage of the market when you’re ready to purchase
It’s a common misconception that you can’t boost your your next home.
income stream after you start receiving a pension. While A financial adviser can help you weigh the benefits and
pension accounts don’t directly accept additional contri- risks based on your timeline and financial objectives.
butions, there are strategies to “refresh” your pension.
For example, you might keep new contributions in your Question 3
accumulation account and when you retire, you can do a I’m self-employed. What’s the best way to save for
‘pension refresh’ allowing you to combine your super or retirement when I don’t have my employer making super
excess funds you contribute to super in the future, with your contributions like many others do?
existing pension balance. As a self-employed individual, you’re responsible
However, these options are subject to specific rules and for building your own retirement savings, which means
limits, so it’s important to consider factors such as your age, planning carefully to ensure your future income is secure.
transfer balance cap, and overall retirement plan. Consulting You should aim to make contributions to super on your
a financial adviser can help determine the best approach to own behalf. Making voluntary concessional contributions
ensure your retirement income meets your needs. (before-tax) can reduce your taxable income while boosting
your super balance. Additionally, if you have extra funds,
Question 2 non-concessional (after-tax) contributions may further en-
I recently sold my home and have received a lump sum. I’m hance your retirement savings. Each option comes with its
planning to buy another home very soon, but don’t need own rules and potential tax implications, so it’s important to
the funds in the meantime. Should I invest these funds tailor your strategy to your cash flow and long-term financial
alongside my other investments? goals.
If your intention is to buy a new home in the near future, A financial adviser can provide guidance to design a
locking your funds into long-term investments might not retirement plan that works for your situation.
be ideal. Long-term investment options, such as shares or

Future Wealth Planners

Level 1, 176 Main Street
Osborne Park WA 6017

P.O. Box 16
Osborne Park WA 6917

P: 08 9207 3844
W: www.fwplanners.com.au
E: clientservices@fwplanners.com.au

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