There is a lot of info out there for pre retirement advice but very little info for how best to manage your finances once you have retired. I have recently retired and find it hard to get good info on how best to manage your finances and options available to you to get the best outcome for you particular situation.
Here is a question A hypothetical SMSF has 80 to 90% of its assets in residential property in an outer Melbourne suburb bought off plan in 2017 with completion in 2020. The current rental yield is on the low side of 7%. The remainder of the SMSF has a cash component (Cash Management Account), a private credit component (MXT), a managed ethical fund, and ETFs (without resource stocks). When would be the best time to convert the property to liquid assets assuming retirement in 1 to 4 years? The decision to retire would most likely be based on selling the property so eliminate CGT. Perplexed SMSF holder
I'm a recent subscriber to your channel and appreciate the fact you go into more detail and practical examples than other channels. Being about 12 months from retirement I do appreciate commentary on having part accumulation part pension accounts and on keeping cash reserves in or out of super . Look forward to the rest of the episodes.
Awh, shucks. Thanks! This is a fantastic topic. Episodes 3-5 will be great for you. They’ll slowly be released over coming weeks. If you have any specific questions about strategies or anything, drop them here: bit.ly/3QtiY00
Hi, That is where I am at the moment retired 4 years ago and have just restructured my super to have mostly pension fund plus accumulation fund. I get pension amounts which are sometime surplus to my cash requirements so I recontribute these back into my accumulation fund knowing if I need a larger sum at some time in the future that I can withdraw cash from either fund. Hope this helps?
I am hoping in there future episodes you can 1. deep dive into the topic of DIY investment options inside super 2. Compare super funds for the lowest cost index/etf investment
Great topic! We’ll add it to the list. In the meantime, if you can think of any other specific topics or ideas, you can pass them to the guys here: bit.ly/3QtiY00
Hi guys, thanks for the Podcast. In a future episode, Can you show how to compare your super fund to others pls. I seem to be having trouble seeing a comparison so that I know I’m in a decent performing fund. Can you pick a super fund, any will do, and show its rating pls and how to compare it to others. One for example Mercer High Growth.
Love the topic of this podcast guys. Question: If you have reached your Maximum Transfer Balance Cap (TBC) because of another com super pension plus Non Concessional Contributions, bringing your Total Super Balance (TSB) to the current maximum amount. What or where would be a good investment opportunity outside of super to invest a reasonable amount of cash? I was thinking something similar to super ie Vanguard DIY ETF Balance fund (VDBA)? What are your thought's on this strategy?
Thanks for the question David, I’ll be sure to let the guys know about it. Episodes 10 onwards kicks off the weekly Q&A. In the meantime, this is a question I/we get a lot at Rask. I can speak only generally but my broad advice to our community has, for years, been to build a core portfolio out of ETFs outside of Super. Hence why we launched the Rask Invest service a few months ago. While we’re fans of things like VDHG/VDBA for beginners, we believe it can become tax and cost inefficient as investors age and balances grow. I spoke about it at length in the comments here: community.rask.com.au/c/etfs/rask-invest-vs-diversified-etf-funds Also, we’re going LIVE later today if you want more detail on that. ruclips.net/user/liveNOMUNRUsmyA?si=_GEWZ8g6iWyeCIE1 Hope you’re well, Owen
Absolutely. Shes delightful. She recently appeared at one of Drew/Wattle’s events in Sydney. We know her very well. Wonderful person :) Watch this space.
Looking forward to this. I’ve just turned 60 and have 4 properties and a super that’s better than the so called average on asic site. But still need advice on navigating when and how to retire. Thanks
This is a truly great idea. Well put it to the guys. In the meantime, you might like this article I wrote last week and presented in a podcast: www.raskmedia.com.au/guides/property-retirement-superannuation-shares/ Cheers! Owen Rask
I have an idea, get rid of super and scrap concessions for most who don’t need it and fund a higher level of pension for all. Simple is better. Those that can will save more anyway. And those that need the extra 10% like basically everyone under 55 can choose where to spend it. If super can compound, so can the governments ability to tax in other years. We all would save billions in fees as well. Am I right or wrong here? What’s the better way?
😂 they will spend the extra 10% on new cars and holidays, not put it away for their future and still have their hand out when they reach retirement age. I have worked as an employee for 51 years and have saved to be a self funded retiree. There is no future cost to the Australian taxpayer, and still pay tax at a reduced rate, you are now saying that I will be further penalised for looking after myself. If the tax concessions I receive for being diligent and taking care of my future are taken away, would see me and my peers spend like there is no tomorrow, as I'm sure our kids and grandchildren would love to be indulged. So we too would have our hands into the public purse. People are inherently lazy and out for they can get without effort. It would be better to scrap the welfare system altogether and reduce everyone's tax burden over a lifetime of working than increase taxation with the expectation that the someone else is going to save you from poverty. If people knew there was no safety net for their old age and could keep a greater percentage of their earned income over a lifetime, the motivation to care for themselves would be markedly increased.
@@sueschoers4974 you just mentioned you saved yourself, would others not also? They would if they could. Some would spend yes, but what the government would save on tax concessions for the richest 10%(they could near double the pension or perhaps create an universal income style pension for all) this would supplement and simplify and less gameify the system for all. I think the opposite, Centrelink is much more efficient and cost effective than super funds. We spend tens of billions on fees. It certainly doesn’t take that to administer the welfare system. We entail the government to build roads, infrastructure, hospitals and schools…why not a pension for all? After all of you want more at post work you can save more and there could be concessions for that to encourage those to save also like you and me. And perhaps a higher tax threshold for those over 65 etc.
@@RennieCacciola we are definitely better off than the rest of the world with compulsory superannuation but the difference is we pay greater taxes over our working life to support the welfare system regardless if you benefit from it or not. Countries without welfare also pay little individual income tax so it is up to the individual on how they will provide for themselves. damitrx2 is suggesting that those that have provided for themselves also provide more for those that haven't. It's the old adage of the 'more you give the more they want and it will never be enough.' I feel the only way out of the current welfare financial burden is to establish a sovereign wealth fund to reduce the reliance on individual taxpayers.
concessions for super cost more to the government than the aged pension. The top 10% get 34% of the total, this basically gets handed down through inheritance. There is no public good from tax concessions which only go towards inheritance.
![Dave Gow: Pay off mortgage or invest, debt recycling and more [Part 2/2]](/img/1.gif)
There is a lot of info out there for pre retirement advice but very little info for how best to manage your finances once you have retired. I have recently retired and find it hard to get good info on how best to manage your finances and options available to you to get the best outcome for you particular situation.
Here is a question
A hypothetical SMSF has 80 to 90% of its assets in residential property in an outer Melbourne suburb bought off plan in 2017 with completion in 2020.
The current rental yield is on the low side of 7%. The remainder of the SMSF has a cash component (Cash Management Account), a private credit component (MXT), a managed ethical fund, and ETFs (without resource stocks). When would be the best time to convert the property to liquid assets assuming retirement in 1 to 4 years? The decision to retire would most likely be based on selling the property so eliminate CGT.
Perplexed SMSF holder
That was really quite good. Look forward to the rest of the eps.
I'm a recent subscriber to your channel and appreciate the fact you go into more detail and practical examples than other channels. Being about 12 months from retirement I do appreciate commentary on having part accumulation part pension accounts and on keeping cash reserves in or out of super . Look forward to the rest of the episodes.
Awh, shucks. Thanks! This is a fantastic topic. Episodes 3-5 will be great for you. They’ll slowly be released over coming weeks. If you have any specific questions about strategies or anything, drop them here:
bit.ly/3QtiY00
Hi, That is where I am at the moment retired 4 years ago and have just restructured my super to have mostly pension fund plus accumulation fund. I get pension amounts which are sometime surplus to my cash requirements so I recontribute these back into my accumulation fund knowing if I need a larger sum at some time in the future that I can withdraw cash from either fund. Hope this helps?
I am hoping in there future episodes you can 1. deep dive into the topic of DIY investment options inside super 2. Compare super funds for the lowest cost index/etf investment
Great topic! We’ll add it to the list. In the meantime, if you can think of any other specific topics or ideas, you can pass them to the guys here:
bit.ly/3QtiY00
Great podcast as per usual. Thanks Gents
Hi guys, thanks for the Podcast. In a future episode, Can you show how to compare your super fund to others pls. I seem to be having trouble seeing a comparison so that I know I’m in a decent performing fund. Can you pick a super fund, any will do, and show its rating pls and how to compare it to others. One for example Mercer High Growth.
Absolutely! We’ll pop it on the list!
Awesome subject. Thanks guys. Do we just msg our questions in here to be addressed in the next episode?
Thanks!
You can drop them in here, this is the best way to reach the guys:
bit.ly/3QtiY00
Love the topic of this podcast guys. Question: If you have reached your Maximum Transfer Balance Cap (TBC) because of another com super pension plus Non Concessional Contributions, bringing your Total Super Balance (TSB) to the current maximum amount. What or where would be a good investment opportunity outside of super to invest a reasonable amount of cash? I was thinking something similar to super ie Vanguard DIY ETF Balance fund (VDBA)? What are your thought's on this strategy?
Thanks for the question David, I’ll be sure to let the guys know about it. Episodes 10 onwards kicks off the weekly Q&A.
In the meantime, this is a question I/we get a lot at Rask. I can speak only generally but my broad advice to our community has, for years, been to build a core portfolio out of ETFs outside of Super.
Hence why we launched the Rask Invest service a few months ago.
While we’re fans of things like VDHG/VDBA for beginners, we believe it can become tax and cost inefficient as investors age and balances grow.
I spoke about it at length in the comments here:
community.rask.com.au/c/etfs/rask-invest-vs-diversified-etf-funds
Also, we’re going LIVE later today if you want more detail on that.
ruclips.net/user/liveNOMUNRUsmyA?si=_GEWZ8g6iWyeCIE1
Hope you’re well,
Owen
You might want to look into having Bec Wilson from Epic Retirement as a guest.
Absolutely. Shes delightful. She recently appeared at one of Drew/Wattle’s events in Sydney. We know her very well. Wonderful person :)
Watch this space.
Looking forward to this. I’ve just turned 60 and have 4 properties and a super that’s better than the so called average on asic site. But still need advice on navigating when and how to retire. Thanks
This is a truly great idea. Well put it to the guys. In the meantime, you might like this article I wrote last week and presented in a podcast:
www.raskmedia.com.au/guides/property-retirement-superannuation-shares/
Cheers!
Owen Rask
Sounds like your set for retirement
I have an idea, get rid of super and scrap concessions for most who don’t need it and fund a higher level of pension for all. Simple is better. Those that can will save more anyway. And those that need the extra 10% like basically everyone under 55 can choose where to spend it. If super can compound, so can the governments ability to tax in other years. We all would save billions in fees as well. Am I right or wrong here? What’s the better way?
😂 they will spend the extra 10% on new cars and holidays, not put it away for their future and still have their hand out when they reach retirement age. I have worked as an employee for 51 years and have saved to be a self funded retiree. There is no future cost to the Australian taxpayer, and still pay tax at a reduced rate, you are now saying that I will be further penalised for looking after myself. If the tax concessions I receive for being diligent and taking care of my future are taken away, would see me and my peers spend like there is no tomorrow, as I'm sure our kids and grandchildren would love to be indulged. So we too would have our hands into the public purse.
People are inherently lazy and out for they can get without effort. It would be better to scrap the welfare system altogether and reduce everyone's tax burden over a lifetime of working than increase taxation with the expectation that the someone else is going to save you from poverty. If people knew there was no safety net for their old age and could keep a greater percentage of their earned income over a lifetime, the motivation to care for themselves would be markedly increased.
Look at the rest of the world
Qe are better off with the retirement system in Australia
@@sueschoers4974 you just mentioned you saved yourself, would others not also? They would if they could. Some would spend yes, but what the government would save on tax concessions for the richest 10%(they could near double the pension or perhaps create an universal income style pension for all) this would supplement and simplify and less gameify the system for all.
I think the opposite, Centrelink is much more efficient and cost effective than super funds. We spend tens of billions on fees. It certainly doesn’t take that to administer the welfare system.
We entail the government to build roads, infrastructure, hospitals and schools…why not a pension for all? After all of you want more at post work you can save more and there could be concessions for that to encourage those to save also like you and me. And perhaps a higher tax threshold for those over 65 etc.
@@RennieCacciola we are definitely better off than the rest of the world with compulsory superannuation but the difference is we pay greater taxes over our working life to support the welfare system regardless if you benefit from it or not. Countries without welfare also pay little individual income tax so it is up to the individual on how they will provide for themselves. damitrx2 is suggesting that those that have provided for themselves also provide more for those that haven't. It's the old adage of the 'more you give the more they want and it will never be enough.' I feel the only way out of the current welfare financial burden is to establish a sovereign wealth fund to reduce the reliance on individual taxpayers.
concessions for super cost more to the government than the aged pension. The top 10% get 34% of the total, this basically gets handed down through inheritance. There is no public good from tax concessions which only go towards inheritance.