How do you enjoy the last of anything? The last day in your home, the last day at a job you love. For many of us we imagine that the last day of something we enjoy will never come. But often the last day of something should really be enjoyed as the first, by immersing ourselves in the moment. Many of us over thinkers will spend only a moment in the moment and then revert to, thinking about how we got there. We will take stock of what we have. We will also start to think about protecting what else we have.
In my world, we think about optimisation and protection of our clients position, well before retirement starts to approach. When you have a good asset base and income, you will also tend to have options. Those options can wane as dusk approaches.
Key points to consolidate your position
- Weigh up what works
- Spread your debt
- Fine tune for tax and protection
- Make the cashflow robust
- Introduce flexibility
Weighing up works can mean reviewing the properties you have, in terms of cashflow and chance of a good gain. Local planning rules on the horizon can have an impact. Future maintenance requirements can be offset by any potential to improve cashflow through renovations. Obviously if there is a plan to dispose or swap an investment property for one more suitable a long lead time can help.
Split banking has many upsides. In later years if you decide to liquidate a property, having multiple banks can mean better control of the proceeds from the sale. Also at times when we need to borrow more it is nice to have many options instead of having to move everything just because a banks appetite is subdued.
Considering ownership structures to ensure that control is robust can involve your lawyer or accountant. At times this can lead to better tax outcomes.
Cashflow obviously can change in the decade approaching retirement. It is good to weigh up the pros and cons of stretching maximum home loan terms early while the banks still show you love.
Flexible products such as offset home loans and revolving credits can require a full application. It is important to have this in place if in the future there might be a large amount of cash available through liquidating assets.
