Ask Paul: Can I manage my own retirement?

Dear Paul,

I am 63 years old and have $450,000 in super. I plan to retire at 65 with more than $500,000 in super.

We own our own home and have an investment property that has not been paid off yet.

My husband has his own business and his own super and does not want to retire when I retire. 

Do I need a financial planner to manage my retirement money, or is this something I can do myself?

Will I make more money than I outlay if I use a financial adviser? The financial adviser I have talked to says their company charges 0.88%. - Helen

Interesting question, Helen. And I like the way you have framed it. As with any other service, it is all about value for money.

Presumably the 0.88% would be on the $500,000 you would have in superannuation. I can't see an adviser charging you on the investment property.

If super is to be your primary asset - and, incidentally, super is a fantastic asset for your retirement - I can't see why you would not leave it there, presuming it is a well-performing and low-fee fund.

I suggest you chat to your super fund about this and how best to organise your pension payments.

I can appreciate that you may want additional advice. Your fund may be able to provide this, or it may refer you to advisers.

But I can't see value in having an adviser charging you nearly 1% on the $500,000 in super if you plan to leave it there.

I only have a few lines of information about you. There is so much complexity to each of us and our lives.

Speaking generally, I do think if you keep the investment property and simply draw a pension from super, you may well be able to do this yourself.

What I don't understand is an adviser charging a fee on your assets. An accountant or adviser charging you an hourly fee is likely to be able to help with tax structuring, your ability to receive a pension and so on.

My suggested starting point is your super fund. It will hold a large part of your retirement assets. Your accountant will also be helpful.

I would start with the bigger picture.

Advice is likely to be very valuable, but my view is that the starting point is fee-for-service advice, based on an hourly charge, until you establish your direction and strategy to meet your lifestyle goals.

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