Often when financial planners speak to clients about goals, the focus is all on the big stuff. Buying houses and retirement are usually top of the list, but there are lots of other things we all want in life that should not be forgotten.

Many of our short term goals, things like a new lounge suite or an annual holiday are usually funded through our ongoing cash flow, perhaps with the use of credit, and can be achieved with limited planning.

One of the outcomes from last week’s federal budget is that it will be more difficult to make large contributions to super immediately before we retire.  This is likely to present some challenges for many of us as we approach retirement.

It is very common in the last 10 or so years before retirement for clients to direct income that was previously being spent on the mortgage and the kids into Superannuation.  This presented taxation benefits and enabled clients to build enough wealth to provide for their retirement.  Reducing contribution caps $25,000 pa will limit this approach.