Do you have a share portfolio, other investments, or savings as well as super?

Are you planning on downsizing your family home and investing the equity for your retirement? Have you thought about how these pieces will fit together?

Many people have a range of investments. It pays to consider all of your investments in conjunction with one another to make sure they’re working together to achieve the results you want. Certainly, having a range of investments in addition to your super can place you in a strong position as you head towards retirement.

You may already be aware of the importance of diversifying your investments; spreading your funds over a range of different asset classes creates a buffer, minimising risk and smoothing the returns you receive over time. But you may also benefit from comparing your shares, other investments, and savings with your super investments. Considering all of your investments together can help you achieve true diversification, further minimising your risk. After all, you’ve probably heard the phrase, 'don't put all your eggs in the one basket'.

To help you consider your portfolio, it's a good idea to work out exactly what your assets and liabilities are outside of super so you have a thorough understanding of your financial position. The Australian Securities and Investments Commission (ASIC) provides the useful Statement of financial position in the calculator section of its website (www.fido.asic.gov.au) for this purpose. Once you are comfortable with your investment diversification, it's important to review it regularly as your circumstances can change as you travel through the various phases of your working life and retirement.

Your budget

Budget can be a frightening word, and many people would rather walk over hot coals than have to create a budget. However, it doesn't need to be so hard. Remember, you're creating this financial plan for yourself – no one is telling you how to spend your money.

When you use our budget planner, consider these ideas to help make the planner work for you.

• Dig out all your paperwork – pay slips, bank statements, bills, and credit card statements. If you don't have them, start saving them now and come back to your budget in a month.
• Identify all your sources of income – your salary, interest, dividends, and rents.
• Identify all the expenses essential for everyday living – these would include rent or mortgage payments, electricity, rates, car registration, phone bill, groceries etc.
• Identify all your discretionary spending – this includes entertainment, clothes, holidays, and other incidentals. This is most likely to be the area where you can make savings.

You can use the QSuper budget planner to help track your income and expenditure.

Of course, knowing your position now is what helps you identify any surpluses you could save towards retirement.