Posts from the “Retirement” Category

5 reasons owning your own home can be a smart financial choice

Posted on October 6, 2014

It’s spring time, so the barbecues of Canberra are coming out of hibernation, and there’s sure to be a conversation or two about somebody’s new home. There aren’t many people that don’t love to live in and look at a nice home, but is it a smart financial choice? The answer of course is… it depends. There are a lot of personal factors that go into whether buying your own home is a smart financial choice, but here are some of the reasons that it can be a smart financial choice: 1. Home owners are financially well behaved Owning a home is no guarantee of good financial behaviour, but most people who take out a home loan to buy a home will do so…

Categories: Centrelink, Debt, Decisions, Family home, Planning, Property, Retirement, Social security

Robyn’s retirement roadtrip

Posted on September 18, 2014

Something that I’m often told by clients is that the best part about retirement is having the time to do some of their travel at their own pace, rather than trying to squeeze everything into annual leave or even school holidays.

In late 2012 our client Robyn took the leap and finished up work, and in 2013 we ran through her retirement projections to show her that yes she could afford the new car she had her eye on. Well she has put it to great use, very quickly putting 17,000 kilometres on the clock by going on a roadtrip down to Victoria, across to South Australia, up to the Northern Territory, back east to see friends in Queensland and then back home to Canberra via New South Wales!

Check out some of her beautiful photos below.

Canola Field in South Australia

Tenterfield Saddler

On the Great Ocean Road

Uluru / Ayers Rock

Standley Chasm

Great Australian Bight

Sunset at Robe

…and remember that if you’re wondering about your own retirement, the best time to start planning is right now!

Categories: Retirement, Travel

5 things you need to know about super

Posted on September 1, 2014

People often tell me that they find super too complicated. It’s true, there are finer points to check up on but this basic list will give you over 80% of what you need to know. 1. You can’t access it until at least age 55 There’s no escaping it – super is money that once you’ve put it in there, it’s locked away for quite some time, and can be withdrawn only in very dire circumstances. Examples of this are when you need to pay for medical expenses or a lender is going to foreclose on your house. Now if you’re over 50 at the moment that might not be so far away. If you’re just starting work and in your mid-20s it’s a much longer period…

Categories: Investing, Retirement, Super

Granny flats: be aware of Centrelink, tax and legal implications

Posted on April 7, 2014

A granny flat is a solution that is often turned to when an elderly parent is no longer able to live on their own without support, and a family member would like to look after them nearby.

Along with Rebecca Tetlow of DDCS Lawyers, I recently presented a paper on the treatment of granny flats to members of the ACT Law Society. Putting this paper together highlighted that there are quite a number of important considerations for both the elderly person and the person (often their son or daughter and their family) providing the accommodation. Some of the issues to be addressed are:

What documentation have you put in place, to protect both the elderly parent, and their child?
If the parent is providing any money to purchase or build a suitable flat, does it meet the requirements to not be treated as a straight gift for the purposes of calculating age pension entitlements?
Will the parent/resident be assessed under homeowner or non-homeowner limits for their pension entitlements?
If the child has received money for the construction and right to live in a granny flat, could they have a capital gains tax obligation? (Hint: the answer is potentially yes – so seek advice before acting).

All of the above are important to consider and sometimes the solution to one area (eg, Centrelink) can create a problem in another. The best step is usually to arrange a meeting with your financial planner and solicitor to explore the impacts from both angles. You may even be able to find similar solutions that meet the requirement to be able to provide care in a convenient manner.

If you’re considering how you can provide care and accommodation for an elderly relative, the best idea is to get the conversation started. You can call our office on (02) 6247 1233 if you’d like to book a no obligation appointment and we can explain how arrangements work in greater detail.

(image credit flickr user mattshomes)

Categories: Centrelink, Family home, Planning, Property, Retirement, Social security

The Future of Retirement – a report by HSBC

Posted on September 18, 2013

HSBC has produced a report into retirement based on a survey of over 16,000 people in 15 countries. As offered by the retirees surveyed, the best financial advice ever received was: Start saving at an early age Start saving a small amount regularly Don’t spend what you don’t have Buy your own home as soon as you can afford to Buy only what you need Develop a financial plan for the future We will continue to review the extensive report and update this post with more info as we progress.

Categories: Planning, Retirement, Super

Ph:	(02) 6247 1233
Em:	michael.miller@mlc advicecentre.com.au