Investing for

Why it's essential to invest for your retirement

The Association of Superannuation Funds of Australia maintains a benchmark called the AFSA Retirement Standard, which outlines the expenses required to maintain a ‘comfortable’ or ‘modest’ lifestyle in retirement.

Comfortable LifestyleModest LifestyleAge Pension
Couple (Annual)$62,435$40,719$31,995
Home MaintenanceCan afford renovations to home over 20 yearsNo budget for improvements, but can afford repairs.No budget for home maintenance
Heating/CoolingCan run air conditioning and heater with no worries.Limited use, need to watch costs.Cannot afford heating and cooling.
Dining & Eating OutRegular dining at nice restaurants, wide range of food.Takeout and occasional restaurant dining.Cheap takeaway only.
HolidaysRegular domestic and occasional international trips.Occasional domestic trips.Day trips within local area.
Health InsurancePremium private health insurance.Basic private health insurance.No private health insurance.
Cars & TransportComfortably own a mid-range vehicle.Own a cheaper, but still decent car.Public transport, or own a vehicle but struggle to afford repairs.
Lesiure activitiesRegularly take part in a range of leisure activites.Infrequent leisure activities, such as the cinema.Only low-cost or free leisure activities.
Based on these expenses (which were updated in 2018), the ASFA recommends that Australian couples should have at least $640,000 in savings at the time of retirement in order to fund a comfortable lifestyle throughout their retirement. The ASFA also reports that the average superannuation balance at the age of retirement is $270,710 for men and $157,049 for women, or a combined $427,759 for a couple—a significant shortfall from the minimum requirement for a ‘comfortable’ lifestyle.

How to secure your retirement with our investment model

Investment strategies that revolve around retirement are generally known as fixed horizon strategies, because the time horizon is locked in and the investments must mature and be fully realised by that time.

If you know that you want to retire in, say, twenty years, and you know exactly how much you’ll need to fund that retirement, then you have a specific window of opportunity to get from where you are now to your retirement goal.

The types of investments that you’ll be investing in will also change as you get closer and closer to your chosen retirement age. When you’re just starting to invest for retirement, you don’t really care about any immediate benefits. And you can be more tolerant of risk, because you’ll have decades to make up for a bad investment.

But as your retirement age gets closer, that changes, and you’ll become more conservative. If your time horizon is only five years out, that may not be enough time to recover from a risky investment that goes wrong.

We have two types of payment options for our investors, and both of them can be used to assist your retirement strategy, depending on how close you are to retirement.

End Payment

Our End Payment option is excellent for investors who aren’t close to retirement. It offers the highest performance, and by consistently reinvesting and taking advantage of compounding growth, can grow an initial investment of $100,000 to over $1 million in twenty years.

Passive Income

On the other hand, our Passive Income option is great for investors who are closer to retirement, or are even already retired. The return isn’t as high as End Payment, but the extra liquidity from regular distributions will allow you to have a passive income without working.

How does our model stack up?


Australia 10-Year Bonds

This is the ‘coupon rate’: the amount of interest that bondholders will receive on an annual basis. Government bonds are generally considered the safest possible investment option.


S&P/ ASX 200 Stock Market Index

This is an Index Fund of the 200 biggest companies on the Australian Stock Exchange (ASX), managed by Standard & Poor’s. It is a commonly used indicator of the performance of blue-chip equities on the ASX.


Average Property Price Growth

This is the change in dwelling values according to CoreLogic’s 5 capital city aggregated figures. This figure is gross and does not account for the ongoing costs of owning a property, which reduce net returns.
Figures refer to FY19-20.


Our Model

Read below to see how our model can generate you a 14% return on your money, every year.

Are you eligible?

Some of our investment offers are restricted to investors who meet certain criteria. Please complete a quick eligibility test so we can offer you the appropriate investment options for your financial situation.

Retirement investing example

Let’s use an example to better showcase how our investment models can serve to fund your retirement.

Let’s say you are thirty years out from retirement, and that you have $100,000 to invest. You decide to invest that capital into one of our property development projects which is offering a 30% return at the end of a two year investment term.

Asset 17
At the end of the investment, you reinvest the entire amount in another investment with the same performance.
Asset 19

At this point, you’ve received a total return of $69,000 from an initial $100,000 investment in four years.

So your ROI looks like this:

Asset 10

So you have a total ROI of 69%. If we want to annualize that result, we can use this standard formula where n represents the number of years invested:

Asset 11
Asset 12

Which shows that so far your annualized investment performance is 14% per annum.

But the longer you invest, the more significant the effects of compounding will be. So let’s keep going. You invest another three times bringing the total term to ten years.

Years InvestedAmount InvestedReturnNew Total

Which brings your ROI to a whopping 271%!

Asset 21

But let’s repeat the annualization equation, to see what the annual performance is:

Asset 14

Still 14%, which shows that this strategy doesn’t lose effectiveness over time.
So now let’s see what happens if you invest another ten years, for a total of twenty years.

Years InvestedAmount InvestedReturnNew Total

After twenty years, your total ROI would be 1,278% from your initial investment of $100,000, leaving you with $1,378,584, at a consistent 14% per annum throughout the entire twenty year term.

Asset 20

With $1,378,584 in your retirement account, you can fund a ‘comfortable’ retirement for 22 years!

But you still have 10/30 years to go until retirement—what do you do for those last ten years?

Switch to our passive income model, which pays a distribution of 1% per month!

Let’s say you put the full $1,378,584 into a passive income investment.

Asset 16

You’d be getting $13,785 in income per month, which is $165,420 per year in passive income—more than enough to indefinitely fund a comfortable retirement!

Project Overview - Zenith Construction

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