Transforming your investment with your advisor

Decisions made with your retirement funds often cannot be reversed. If you don't have an embedded retirement plan, you'll probably hear things you don't like from your planner.

- Dawn Ridler

They may say that your income from your funds is way below your expectations, let alone the replacement income you're used to.

Here are some things that you need to know before going into any discussion with an advisor who will help you "transform" your investment from growth to income-producing:

1. Expenses The first thing you need to do is get a very good handle on your expenses and, if necessary, start cutting out the things that are no longer necessary. What medical aid are you on - and can you afford it going forward? It really shouldn't be more than 10% of your monthly expenses.

What aspects of your life cover do you still need? Disability cover falls away at age 65, but do you need life cover? Perhaps - if you still have liabilities or your dependants cannot live on your "pension".

Dread disease cover is expensive, and if you have medical aid and gap cover, then it is another "nice to have".