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5 Health Checks For Your Retirement Portfolio

The business of retirement portfolios

Retirement portfolios are like small businesses. They generate income from their assets, pay all kinds of bills, and make income payments to their beneficiaries. Some perform well, while others languish, depending on their strategy and the broader environment.

Like small businesses, retirement portfolios come in all shapes and sizes. Some are conservative, highly diversified, and really quite boring. Others are geared to the gills, invested fully in mining town rentals bought sight unseen, or neck-deep in crypto and micro-cap stocks.

Reviewing your retirement portfolio

From a financial planning perspective, the most important ‘health checks’ for your retirement portfolio are:

#1  Do your investments align with your risk profile?
#2  Is there a sensible amount of diversification?
#3  Is there sufficient cashflow and liquidity to fund ongoing and unexpected expenses, as well as pension payments?
#4  Are your assets “high quality” and priced sensibly?
#5  Is your portfolio aligned with the times and the broader market environment?

2025: A year of change

2025 looks like an interesting year for small businesses around the country. Tough operating environments have started to weed out unsustainable businesses, seeing a rise in insolvencies and more practical decision-making (particularly compared to Covid times). But we haven’t seen the serious recession that many feared, and Australian consumer confidence is on the rise again following the lows of last year. Many believe that the re-election of Donald Trump in the USA will herald a new era of prosperity for ‘main street’ business, and that this will have ripple effects around the world.

This macroeconomic backdrop flows through to retirement portfolios directly. It influences the type of investments that are likely to perform well and those that will struggle. But it also applies more practically to the ongoing management of retirement investments, particularly as it relates to cashflow and liquidity.

Planning for the unexpected

Like any good small business owner, investors need to have contingency plans for unexpected setbacks and periods of underperformance. “Hope for the best but plan for the worst” comes to mind in this instance. While we’ve enjoyed strong investment returns over the last couple of years, the year ahead promises to take many unexpected turns. Point #3 in the checklist above is a key consideration in our view.

Ready to review your retirement portfolio?

If you would like to book a complimentary appointment with one of our Financial Advisers to review your retirement portfolio, please contact us today.

Picture of Peter-James (PJ) Cameron

Peter-James (PJ) Cameron

Financial Adviser at Synectic. PJ provides proactive, strategic advice to help you invest with confidence, structure your affairs intelligently, and get the most out of your unique circumstances. (Sub-authorised Representative No. 1266801)
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About Synectic Wealth Synectic

Wealth Pty Ltd is the financial services division of the Synectic group of accountants, auditors, business advisers, self-managed super fund (SMSF) specialists, and financial advisers. We are based in Devonport, Launceston and Hobart and provide services across Tasmania.

 

Synectic Wealth Pty Ltd ABN 24 615 317 194

Corporate Authorised Representative No. 1250871 of Alliance Wealth Pty Ltd AFSL 449221 | ABN 93 161 647 007 | Financial Services Guide

Information on this webpage has been prepared on a general advice basis only. We have not considered your objectives, personal or financial circumstances. You should consider the appropriateness of the advice for your circumstances before making any decision.

Where the advice relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain and consider the relevant Product Disclosure Statement and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.

Self-managed superannuation funds are not cost competitive for lower balance accounts and are not appropriate for all investors due to the time, cost and responsibility involved in managing an SMSF. For these reasons, it is imperative that you seek advice from your financial adviser before making any investment decisions.

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