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.

 

Fail safe is an oxymoron

Fail safe is an oxymoron

There’s no sugar-coating it.  Investment fails leave you feeling anything but safe.

Yet, many an inexperienced investor has gone in all guns blazing without having done their homework.  Unsurprisingly, they tend to accomplish little and lose big.

But someone has to do the hard yards so that others know what they should and shouldn’t do.  One such someone is Sydney’s savvy real estate investor, Lloyd Edge.

Lloyd went from low-paid freelance music teacher to multi-million-dollar real estate mogul in just over a decade.

So, when it comes to property investment, he knows a thing or two.  He knows it literally pays to do some solid due diligence, for one.  And he cites several common investor mistakes on their road to financial freedom.  Here are 3 of the top contenders:

 

1. Buying in the wrong location

There are a few key locational factors that can determine whether market values will increase.  Get this wrong, and it could mean your property is worth less than you thought in years to come.

 

2. Having the wrong financial structure

You don’t want to give the banks too much control by crossing collateral.  All loans should be stand-alone to prevent one property fall affecting another investment.

 

3. Using one bank for everything

Expanding your “empire” by putting all your financial eggs into one basket is a risky move.  Limiting yourself to a maximum of two properties with the same bank is a better way to go.

 

Lloyd has even written a book on this stuff.  If you want to hear more about his journey, you can find his works online.

If you want to hear more about premium, well-honed property investment opportunities, talk to us!  One of our senior consultants is standing by to take you through the steps and set you up with everything you need for financial abundance.

Think of us as your safety belt as you confidently venture into your prosperous future.

How rushing your taxes could slow down your cash flow

How rushing your taxes could slow down your cash flow

With all that’s going on in the world, it’s easy to see why people would want to get their hands on a bit of extra cash asap.

So now that the financial year has clocked over once again, it seems only natural for taxpayers to want some hard-earned dollars back.  After all, that mortgage isn’t going anywhere soon, let alone life’s daily expenses.

But the Australian Tax Office has buckled under the weight of thousands of Australians trying to file their tax return as soon as possible.  And it warns that rushing to complete forms could end up costing you.  It could leave you missing out on key deductions or making errors that may amount to fraud.

There seem to be several traps that could catch out some taxpayers this return season.  Here’s what to look out for:

 

1. Lodging as fast as possible does not guarantee you’ll receive your refund any sooner

While most will receive their refund within two weeks, the ATO still needs the relevant information from employers, banks, and private health insurers. Jumping the gun could hold you up.

 

2. Double-dipping work from home costs

You can use the ATO’s general “short cut method” of claiming 80c per hour for every hour you worked from home.  Or you can claim specific items like laptops and desks.  You can’t do both.

 

3. Outdated bank details

Your bank details don’t automatically update with the ATO if you make any changes with your bank.  They will only have what was on file from the previous year’s return.  Make sure you check this before lodging.

 

4. Claiming travel from home to work

You cannot claim the cost of driving or catching public transport to work.  You are only allowed to claim travel from one place of business to another.

 

5. Not having proof of expenses

While the ATO confirms that you don’t have to show receipts for claims of up to $300, you must have actually spent the money and be able to show how you worked out your claim, if requested.

 

6. Claiming expenses not directly related to work

Either confusion or deliberate rule breaking is responsible for making claims for the cost of private expenses.  Many taxpayers take liberties when it comes to these outlays, and they quickly present as red flags.

 

So, forget the mad dash to the finish line.  It’s bound to do little but knock the wind out of you.  Slow and steady always seems to win the race in the end.

It can literally pay to take your time and devise a well-planned strategy when it comes to managing your finances.  It’s not something you want to bungle on a whim.  Remember – rushing is not the same as expediting.

And, although any extra money in your pocket is a bonus, a few thousand dollars in tax deductions are unlikely to make a huge impact.  But a sophisticated investment strategy just might.

If you’d like a way to really pack a punch in the belly of your finances, give us a call asap.  It could be the rush you’re actually looking for.

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.