Later this week some of us will drown our loved ones in attention, flowers, chocolates and positive messages.
Others will wonder why it’s so hard to get a booking at the local taverna on Friday night.
Yes, it’s Valentines Day on the 14th and a big day in many calendars.
Which led the team at Retirement Essentials to think about the two very distinct money personalities that we encounter on a daily basis; those ruled by their hearts – and those by their heads. Typical traits of the ‘heart-led’ members are:
they can be more concerned about the financial wellbeing of others than themselves,
they are concerned their money may run out but this just stresses them rather than understanding that they need to take action, and
they hope it will all work out, but don’t see a way to ensure that it does.
By contrast, those ruled by their heads tend to:
have more confidence in their ability to create and manage an income strategy
realise that the complexity of the Australian retirement income system requires a lot of knowledge of all pillars of income as well as the rules associated with super, Centrelink, property and tax, and
are often diligent about having an income plan but would like an objective review to ensure that they are on track.
You may think that being a rational ‘head not heart’ personality is ‘better’ for your retirement outcomes. But not necessarily. A problem can occur when a rational mind thinks it has a solution but due to complacency or over confidence, vital detail can be missed or misunderstood and solutions can go pear-shaped. Being open-minded is an important attribute when managing money and sometimes people who know less are more open to the right insights and assistance.
And this is why the advice team at Retirement Essentials has created a specific advice consultation – the Retirement Health Check – for both romantics and rationalists who are entering or part-way through their retirement journey. Typically such people are seeking one or more of the following three things:
demonstration that they will be okay, that their money will last the distance,
reassurance that their understanding of their options is both complete and correct,
a stronger sense of control that their plan is appropriate as well as doable.
