Want to retire rich?  Here’s what to do in your 20s, 30s, 40s & 50s to make it happen

Want to retire rich? Here’s what to do in your 20s, 30s, 40s & 50s to make it happen

We all dream of winning the lotto and sailing away on our luxury superyacht.  Or maybe flying around the world on a private jet.  Whatever takes your fancy, there’s no denying that striking it rich is a long-held fantasy of many.

But why place all your bets on such exceptionally slim odds?  What if you could save enough money over the years so that, by the time you’re ready to retire, you can still live the life of Riley?

To make that happen, you’ve got to plan, plan, plan.  And the younger you start, the closer you’ll be to making those millions. By using each decade as a milestone, you can simply budget your way to prosperity.  Of course, no one said it would be easy – but it’s entirely doable.

So, here are the golden rules for living your best golden years.

 

In your 20s

Make the most of your time in the workforce – and put aside 20% of your income in a compound interest account.  As soon as you get paid!  Otherwise, you run the risk of blowing it all on a couple of big nights out.  But deducting a percentage first not only helps you to save; it also sets you up for good spending habits in the future.

 

In your 30s

As you get older, you’re likely to be earning more.  But you’re also likely to want to spend more.  And that can often mean racking up credit cards and plunging into debt.  But this is the prime time to curb your spending habits and start living below your means.  That way, you know you can still feed the kids and pay the mortgage without compromising your savings plan.

 

In your 40s

Most people in their 40s have done the partying, and the travel, and the marriage, and the babies.  But now it’s time to focus on the career.  It’s when you need to step it up a notch by upskilling for your best chance of nabbing an income review or even a promotion.  Get an accountant to handle your finances while you handle your cashflow.

 

In your 50s

Don’t let all your hard work go to waste by handing out wads of cash.  Even to your children.  Especially to your children!  As much as your heart bleeds to see them scrimping and saving for their first car, you’re better off leading by example.  So, instead of doing it for them – show them all the budgeting skills you’ve learned over the years.  That way, you’re not only setting them up for success, you’re also not eating into your precious retirement fund.

 

Of course, before you make any firm monetary decisions, you’re always best to seek financial advice first.  To learn how to save, talk to an accountant.  To learn how to invest those savings – come and talk to us!  We can help you double your money in just half a decade.  Sound a bit rich?  Isn’t that the plan?

Back to the future

Back to the future

Many a retired Aussie once dreamt of the day they could finally hang their hat and relax.  After years of long hours and arduous working weeks, they finally landed the opportunity to enjoy their freedom.  And there would be no looking back.

Or would there?

It seems that older Australians are living much longer than their predecessors, which means more time on their hands.  Ultimately, this sees a greater desire for extra money and revived activities.  A 65-year old can expect, on average, 20 more years of life.  That’s a fair wicket.  It’s no wonder retirees are getting a little restless.

With the years stretching out before them, golden agers may have a hankering to boost a dwindling nest egg, beat the boredom, or rekindle a career.

The solution?  Return to the workforce.  A growing number of seniors are seeking employment years after they stopped “for good”.  They’re figuratively stepping back in time to better their future.

But when a retiree starts earning money again, it’s not exactly a joy ride in some pimped-up DeLorean.  The reality is, there can be low-lying tax, pension, and superannuation issues afoot.

 

TAX:

Beware the tax threshold.  A single person of pension age can earn up to $33,000 per year – tax-free.  Start earning any more than that, and they may end up in a bit of a tax pickle.

 

AGE PENSION:

The pension income test allows seniors to earn $174 per fortnight and still be eligible for the full pension.  Once they become ineligible, however, they would then need to reapply.

 

SUPER:

Many retirees do the smart thing by switching their super to a tax-free account.  The problem is – they can no longer deposit new funds.  They would need to open an accumulation account to accept ongoing contributions – or start paying tax again.  They have till age 74 to make personal contributions.  After that, they can only receive money from their employers.

It’s certainly a balancing act.  One must first stop and ask if there’s value in working?  Is it worth their time and financial effort to jump through all the hoops?

Of course, there’s a less taxing way (both financially and timewise) to boost your super.  And it can be done way ahead of time to ensure your nest egg will generously see you through an extra 20 years.  It’s called property syndication.

Give us a call to find out more about this unique investment model and get back to planning your dream future.

3 super traps that will snare your savings

3 super traps that will snare your savings

If you’re like most Australians, you go to work and get paid, safe in the knowledge that your employer has your back.  That is, they’re taking an ample cut of your pay packet and plonking it into your chosen super fund.

And that’s where most people leave it.  They know their super is accumulating out there somewhere, but they don’t really give it another thought.  After all, they don’t need it right now.

But your poor super doesn’t like being left in the corner.  If you continue to ignore it, you could be slugged with a plethora of extra taxes and hidden fees.  And this means you’ll have way less than you bargained for when you eventually retire.

Recent rule changes to the super scheme have unearthed a series of savings sappers, putting you at risk of a whopping 90% tax hit.

So, here’s where you need to watch your feet:

 

Too much life insurance

It’s great to have enough life insurance up your sleeve, but many Aussies have more than they need.  Some funds are just wasting money that would see better growth elsewhere.  Check the level of your premium to determine if it’s working in your favour.

 

Excess contributions

It might sound like a good plan to keep topping up your super.  After all, the more you put in, the more you’ll have when you need it most.  But if you contribute more than the higher capped amount, you may have to pay up to 94% in tax!

 

Bad bosses

Some bosses ignore their super obligations, especially if they’re facing financial difficulty.  Protect yourself by checking your super fund transactions every six months.  Don’t simply rely on your pay slip as these are not always accurate.

 

And if you’re looking for a way to top up your retirement fund without all the added drama, then GSA’s property investment model is just the thing.

Give us a call today and set your savings free.

 

Feeling Frugal?

Feeling Frugal?

That’s ok.  Things are tough out there right now.

As many households pull the purse strings a little tighter, the realisation gradually dawns that every penny counts.

And with thousands of Australians now hovering in financial no man’s land, how is it even possible to think with a clear head about monetary matters?

If this pandemic has taught us anything, though, it’s that life goes on without all the non-essentials.  It’s become increasingly apparent that we don’t really need that new tv or a holiday in France.  What we do require, however, are the important elements like food, water and shelter that are necessary for survival.

When you strip it all back to basics, there is one other significant necessity that will sustain a comfortable and secure life ahead.  That’s having enough money for retirement.

If you are currently out of work due to the health crisis, the thought of having to press pause on your super instalments is enough to set you into a panicked tailspin.

But, take a deep breath – because you don’t need to worry about that.  Not when there is a better deal on the table.

What if you could keep topping up your super fund without the need for extra cash?  Imagine if you could invest your super and walk away with double your money within a few short years.  It’s unlikely that your current fund is doing that.

The way forward is to take advantage of the right strategy. And GSA has worked all that out for you.  It couldn’t be simpler!  With the heavy lifting already taken care of by our senior investment team, the rest is up to you.  You don’t need to do anything else other than use what you already have.  No fluff.  No catch.  No bells and whistles.  Just common sense.

If you’d like to hear more about how to go from frugal to flourishing in a flash, get in touch today.

The ebb and flow of recession, and what it means for you

The ebb and flow of recession, and what it means for you

Economists say housing prices could fall as much as 20% if a recession lasts longer than six months (or two consecutive three-month periods).

With the imminent ebb in market growth thanks to the current global pandemic, it’s an alarming realisation for homeowners. Market experts have reported a rush to sell amid the mounting crisis.

While minimal interest rates provide some welcome home loan relief; a dwindling asset value is less than desirable.

If you were looking to sell your home or use it as investment equity in the near future, you might find you’re left a little short-changed.

It could be good news for buyers – though, with many currently being forced out of their jobs, the prospect of snapping up cheap real estate loses much of its sheen. Rather than researching lucrative property options, many households are having to scrape their pennies together just to put food on the table.

When the economy eventually starts to bounce back, it will be happy days for income earners, yet a slow process to full recovery. Even though housing prices may remain low, other essential daily expenses will soar in an effort to stimulate economic growth.

It’s a difficult time for many Australians, most of whom are battling to pay the bills and looking for a way out.

Though cash flow may be tight in this financial climate, there is still a way to generate wealth for the roads ahead.

Rather than relying on salary instalments, you can use your existing superannuation to boost your future comforts.  It’s a transition to a prosperous retirement that doesn’t require any extra funds.

Instead of dipping into your nest egg for immediate cash flow, think long-term gain over short-term relief.  By using your super to invest in GSA’s property syndication plan, you can generate fast and high-yielding rewards and give back to your future self.

Get in touch with our investment team today – and sail the tides of change to a buoyant tomorrow.

Pay and receive at the same time?

Pay and receive at the same time?

Yes, it is possible to pay your mortgage and earn a passive income from investment in one fell swoop.  Even with regular loan repayments, you can still boost your wealth and set yourself up for a financially secure future.

Never thought this was a viable option?  You’re not alone.

Many homeowners feel stuck in a perpetual cycle of income in – bills straight back out.  It seems beyond their comprehension that they may ever be able to break even, let alone get ahead.

There are several strategies employed by those in financial turmoil, each hoping it will give them some much-needed leeway.  But they’re quite probably doing more harm than good in the long run.  Methods like extending the mortgage to free up cash or shuffling shares to self-managed super funds may end up costing them more in taxes and interest.

So, what’s the plan, Stan?

By the time you’re in your 40s, keeping your financial life on track is more important than ever.  With retirement on the not-too-distant horizon, it would be prudent to start looking at all the feasible alternatives.

The current economic climate provides the perfect springboard to financial success.  Although it may sound counter-intuitive, now is the time to pay down your home loan sooner, rather than later.  Instead of extending your mortgage period to access more investment funds immediately, take advantage of the near-zero interest rates to knock your debt on the head faster.  By doing so, you will own more of your asset.  You then have more at your fingertips to use as equity for investment.  And this cycle creates escalating growth and paves a smooth path to retirement.

The fastest way to earn a passive investment income is to inject your funds into a high-yield, low-risk scheme like property.  And with GSA’s property syndication model, you can expect desirable returns over a short-term investment period.  This means you’re paid generous and consistent rewards, without being locked into long-term contracts.

Want to find out more?  Get in touch with one of our senior consultants as soon as possible.  Why choose between your house or your lifestyle – when you can have both?