OverSixty January 2023 Issue

16 YOURMONEY ISSUE 3 | JANUARY 2023 | OVERSIXTY.COM.AU The key to launching a business after re- tirement is to make it work for your lifestyle, says Rachael Palmer, of Transitioning Well. “It’s important to plan for your wellbeing, work, wealth and health,” she says. “Think about home and family – your par- ents, partner, kids, grandkids and also the money side. It’s a whole package, it’s not just about money, it’s about what do you want to do, what are your values?” Matt and Julie have deliberately kept their operation small so that it is manageable for the two of them, without the stress of em- ployees. Matt built the equipment so that he can operate it easily as his body ages. Julie, who used to complain whisky burned her throat, now is the chief taster; she hand- writes the labels and chooses the bottles. “We had no idea it was going to take off as well as it has. We never know what’s coming round the corner from hour to hour, but we don’t look at it as being busy. We don’t have to start at 7 and work until 6, we can start at 9 and knock off at 2 if I want to,” says Matt. “We built it with what we had, and now I can see myself doing it for quite a few more years. Everything is achievable in more than one way.” HELEN SIGNY YOUR MONEY B efore Matt and Julie Cooper started their internationally award-winning whisky distillery eight years ago, all Matt knew about the drink was that it tasted good. Today, his artisan whisky distillery Fannys Bay is making 3,000 litres a year of high-end product that is attracting attention through- out Australia and internationally. The idea started when Matt, a former die- sel mechanic and auto electrician turned TAFE teacher and manager, and Julie, a hair- dresser and artist, were thinking about what to do after retirement. “I’m not the sort of person who can stop and not have something to do. Three hours in the garden a day doesn’t work forme,” he says. The couple live in Tam O’Shanter Bay, on Tasmania’s northeast coast, right across the road from the Bass Strait. Matt started to re- search how he might distil whisky from their house, using similar processes to those used in Scotland. He spoke to other distillers, undertook thorough market research, and wrote a busi- ness plan. “It’s important to do your research A taste for business and think carefully about what size you’re going to be, where you’re going to fit in the market, how is it going to be sustainable and what is the fallback. Then you can do your fi- nancials and work out whether you can real- ly afford this,” he says. Matt built all the equipment himself, in- cluding the still. It took the couple 12months to get their licence, and in November 2014 they put down their first barrel. Matt tasted it so often that Julie wondered whether any was going to be left to sell. It turned out the whisky was good – very good. Their product has a unique flavour that they attribute to the salt-infused rain- water they use, straight off the weather- battered roof, and their process that allows the flavours to develop over weeks rather than days. Eight years later, at age 66, the couple are now living the dream. They can surf and swim in the morning and make whisky when they get home. People travel from all over Tasmania for tastings at the distillery, and their product was recently launched in New York. “I’mnot the sort of person that can stop and not have something to do” Despite being complete novices, Matt and Julie’s whisky has been turning heads worldwide. Photos: (Including cover image) Rob Burnett YOUR MONEY  Inflation danger for older Australians Continued from page 15 Matt and Julie Cooper prove there’s no time like retirement to start your own business Technically, a recession is only called when the economy reports two successive quarters of negative growth as measured by the gross domestic product or the domestic output of goods and services. While Australia’s trade balance continues to climb, largely in response to inflated prices for iron ore and coal exports, this seems un- likely. What is more likely, is unemployment, currently at record lows, could step up. Higher employment rates, combined with higher interest rates, could put real pressure on Australian households, particularly those who have recently bought a home, who have a significant mortgage or substantial family commitments. This, in turn, could prompt domestic de- mand for goods and services to fall, dragging down the returns on many investments, par- ticularly the level of returns for many listed companies on the Australian stock exchange. While it is important to watch how you spend your dollars, it is equally important to watch your investments closely and en- sure your funds are returning a reasonable income given the overall investment environ- ment. Apathy is the investor’s greatest enemy. Review your term deposits and make sure any funds you have invested for less than 12 months are returning at least three per cent or more and those funds you’ve invested for longer should be returning between four to five per cent. Be careful though, not to be enticed into products that might appear to be term de- posits but are instead backed by real estate as typically these are high risk investments that are ultimately financing property devel- opers, who cannot obtain funding fromother sources. Also, limit how much money you do put into term deposits. Remember, money in bank accounts never achieves any capital gains, whichmeans these assets will bemore deeply impacted by inflation than other in- vestments. Review any money you have tied up in property. Now might be a good time, for in- stance, to consider downsizing to a property more suited to your current lifestyle. While the price for your property may have eased, you might find the price of properties you want to buy has fallen by even more. By downsizing, you will also be able to free a significant amount of capital to invest and earn income at a time when generatingmore income will become a premium, while living in a home better suited to your needs. Finally, review any investments you might have in companies listed on the Australian stock exchange. Look to sell any company likely to be impacted by a fall in consumer confidence and lower spending prompted by higher interest rates. The focus on every portfolio held by those on fixed incomes should be about generating as much income as possible as safely as pos- sible in the years ahead. So, it is very much a case of finding those companies with a track record of paying high-yielding, fully franked dividends. Ultimately, though, it is a matter of taking some simple steps to keep your savings as safe as possible and remembering that while the next year or twomight be tough, they will pass, and things will get easier. Note: This is general advice only and you should always seek advice specific to your circumstances. According to the 2016 Census, 40% of small business owners in Australia are aged 45 to 59 and more than 19% are over 60. Matt and Julie Cooper’s whisky business has been more successful than they ever could have imagined.