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?

The Three ‘R’s of Retirement

The Three ‘R’s of Retirement

Just when you thought you were too old for learning anything new, along comes the age of retirement.  Yes, the golden years still have something extra to teach you!

The general school of thought is that, once you stop work, you can finally enjoy winding down without a care.  But that’s not quite right.  There are three defining chapters in your retirement story – each punctuated with its unique concerns.

As Australians are living longer than ever before, it’s essential to prepare for the lifestyle changes and hidden expenses that are likely to crop up when you least expect them.

So, let’s examine these three important phases of retirement and how they’ll affect you.

 

1. Ready

This is stage 1 – the early years.  You’re ready and raring to go.  This phase usually spans from your early 60s to your mid-70s, depending on your level of health.

At this point in the game, you can’t wait to soak up all your wonderful free time.  You may choose to continue to work on a flexible part-time basis (so you’re not drawing down as much on your super) or just give it up once and for all.

These years are likely to be the most expensive – when you have the energy and finances at your disposal to do the things you want.

 

2. Reduce

Stage 2 kicks in.  Here you are in your mid-retirement years, starting anywhere from your late 60s to your early 80s.  Your energy levels may begin to decline, and health issues may arise.

Your income is less likely to accrue from paid employment; more conceivably coming from downsizing and less general lifestyle expenses.  As you’re probably spending less on leisure and travel, your financial focus will likely shift towards taking care of your health.

 

3. Rest

The third and final stage may see you requiring extra support – whether it’s maintaining your home or taking care of yourself and loved ones.

Your accommodation and healthcare needs may change again, often resulting in a move to a retirement village or nursing home.  This sort of transition can be emotional and certainly needs considered financial attention.

During the closing stage of your journey, it’s also vital that you have all your affairs in order through proper estate planning.

 

Your financial consultant can help you devise a plan to ensure you’re as ready as you ever will be.  And if you want to hear more about growing your nest egg well ahead of time, get in touch with one of our investment strategists asap.  We offer an A+ approach to increasing your wealth and enjoying your lifestyle.