YspeopleExplore tab

A new approach to retirement planning


Thumb john cameron

About John

I'm a financial adviser/investor of 25 years, specialising in minimising the impact of black swan events. Black swan events such as the GFC can be devastating and very difficult to predict.


I’m going to stick my neck out just a bit and say retirees have had a raw deal over the past couple of decades.

Nothing new there, you might say. But what I'm referring to is the advice available to retirees when it comes to investing their superannuation to produce an income stream.

Retirees have copped a rough time in recent years.

Retirees have copped a rough time in recent years. Picture: Shutterstock

And no, this is not another diatribe against financial advisers. The problem lies much deeper.

Read more from John Cameron: Nasty redundancy surprise for the over-65s

The problem lies with the fact that the research and theory that advisers (and I am one) have has been developed with accumulators in mind.

The research has been conducted deep within the worlds of universities and academia, over several decades, and is heavily slanted towards accumulators.

The problem is, that when you retire and start drawing on your money, the dynamics and timeline change totally.

New approach

I believe it's time for a new approach to planning retirement income, which is based on four principals:

  • It must be based on evidence. This may sound self-evident, but many of the models currently used in planning are far more influenced by complex theory than hard evidence.
  • Common sense. Once again, current models often fail this simple test, and are far more the products of complexity and theory.
  • It should be as simple as possible, but not too simple.
  • It should provide a basis for strategic planning. In other words, a foundation for long-term planning that can withstand the day-to-day chatter of the market. Such chatter is often full of opinions rather than facts, and contains little new information.
  • ---------------------------------------------------------------------------------------------------------

    John Cameron is one of the best qualified, most experienced, respected financial planners in Australia. Call now for a no-cost consult. (08) 9322 7818.

    Banner 2
    | Your rating
    No ratings yet


    Related stories

    Do you have a canny tip for saving money.

    Share your money-saving hacks here

    Everyone loves to save a dollar or two when they can. Do you have any money-saving tips to share with your YsFriends?

    Money
    Expand
    3 months ago
    (Money & Business)
    Because you're never too old to pursue your passion.

    Your midlife career-switch advice is golden

    Have you started a new business or pulled off a major career switch in midlife? We'd love to hear from you.

    Ageing Money
    Expand
    3 months ago
    (Money & Business)
    Rejuvenate in Retirement.

    6 ways to retire from work, not life

     

    Are you ready for The Lifestyle Change? Retirement can be a more difficult adjustment than we realise.

    Retirement Health Relationships Money Ageing
    Expand
    4 months ago
    (Money & Business)
    James Packer: born with a silver spoon in his mouth.

    Bring back death duties for silver spooners

    Why should the privileged offspring of Australia's elite inherit their billions tax-free? Let's level the playing field.

    Business Ageing Money
    Expand
    4 months ago
    (Money & Business)
    Funeral directors prey on the vulnerable.

    Funeral directors are blood-sucking leeches

    Leveraging grief to up-sell expensive funerals to vulnerable families is a loathsome practise and must stop.

    Money Business Community Family
    Expand
    4 months ago
    (Money & Business)
    Trickle-down economics my arse.

    How big business is giving you the shaft

    Are you battling to make ends meet thanks to stagnant wages and lack of jobs? Here's who's to blame.

    Politics Social Issues Community Business Money
    Expand
    4 months ago
    (Money & Business)
    What impact will the eventual death of Queen Elizabeth have on us in Australia?.

    What happens to us when the Queen dies?

     

    As a part of the Commonwealth, the impact on Australia will be greater than you think.

    UK Australia Community Social Issues Politics
    Expand
    4 months ago
    (Money & Business)
    Myer - no Harrods.

    Good riddance to Myer's CEO!

    And there are plenty more who should follow him. Don't these obscene executive salaries make you furious?

    Business Money
    Expand
    4 months ago
    (Money & Business)
    New CBA CEO Matt Comyn.

    Why 'banker' should start with a W

    It's our fault that the big banks treat us with such contempt and arrogance. Time to hit back by taking our mortgages and...

    Community Money Business
    Expand
    4 months ago
    (Money & Business)
    The dingy alleyway that leads to 78 Records is full of bins and junkies.

    What it's like to work in junkie alley

    An alleyway that almost everybody in the city walks past everyday, directly opposite the entrance to our underground train...

    Politics Western Australia Social Issues
    Expand
    4 months ago
    (Money & Business)

    Have your say!

    Your Great Australians

    Trending stories
    Suzuki's cute little Ignis SUV has a lot going for it.

    Review: 2017 Suzuki Ignis GL and GLX

    Japanese car maker Suzuki,...

    (Pastimes) 11 months ago
    When it comes to great bloggers you can connect with, this list has you covered.

    20 mature bloggers worth following

    Looking for Australian...

    (Entertainment & Culture) About 1 year ago
    It's the base model.

    A sting in its tail - the 2018 Kia Stinger 200 S

    Unless you’ve been hiding...

    (Pastimes) About 2 months ago
    Top Indonesian chef Chandra Yudasswara will be cooking up a secret storm for Taste Great Southern.

    Celebrity chef set for a Secret Affair in Great Southern

    Take one of Indonesia's top...

    (Epicure) 5 months ago
    This mandarin duck has spectacular colours (Image uploaded to reddit by u/Danjv1234).

    Else>>>esome photos of nature from the internet

    The world we live in is...

    (Pastimes) 5 months ago
    Weekly Poll
    Photographic memories
    Hizgg0vzzqvwc9xicknk
    It's 35 years since the Ash Wednesday bushfires in South Australia and Victoria claimed 75 lives and more than 2500 buildings.