These platforms on superannuation and other incomes regarding pensioners are no help . Especially if you have money that can be invested because you will find yourself losing money from pensioners' income . But there is no question about millions of dollars to aborigines. What was supposed to be $1116.30 per fortnight has dripped to $643.80,a loss of $482.50.
You recommend we have an emergency or contingency plan/fund for unexpected bills. Say $50k for a replacement car. With your love of banks and their high interest accounts what is your recommendation for keeping this money relevant and CPI not reducing it as time marches on. Thankyou in advance for your knowledgeable answer.
It is not the case that I love banks, but I think that they serve the purpose and as long as we use them to our advantage, they can be a beneficial partner in the financial set up of your overall portfolio. My point is to keep all the money in a high interest account of term deposits. this is for your emergency and "rainy day" backup savings, the rest keep invested either in super/pension, shares or similar. I hope this answers you quesiton
Katherine, I've been following your videos on About Retirement. Just want to say thank you, as it is most informative and helpful. One question on my mind regarding annuity. Is 40% of annuity exempt from the Age Pension asset test? If so, it would help to reduce the total asset assessment and potentially increase the pension payment if one's asset exceeds the maximum amount for full pension. I'd wonder this would be a good reason to move super to annuity if one's in such situation. Thx so much. Leander
Yes, this is one of the strategies to have funds invested in an income stream but reduced value under the assets test. I would never recommend to invest all your savings in annuity, this needs to be well calculated to know in advance the benefit, as in most cases, you are losing access to those funds. Honestly the best thing is to get the full advice with the full calculations, so you are on a safe side and you don't over-invest into annuity.
Thank you very much Katherine . Excellence explaining videos .
😀
Fantastic, just what I needed for our circumstances.
👏
These platforms on superannuation and other incomes regarding pensioners are no help . Especially if you have money that can be invested because you will find yourself losing money from pensioners' income . But there is no question about millions of dollars to aborigines. What was supposed to be $1116.30 per fortnight has dripped to $643.80,a loss of $482.50.
You recommend we have an emergency or contingency plan/fund for unexpected bills. Say $50k for a replacement car. With your love of banks and their high interest accounts what is your recommendation for keeping this money relevant and CPI not reducing it as time marches on. Thankyou in advance for your knowledgeable answer.
It is not the case that I love banks, but I think that they serve the purpose and as long as we use them to our advantage, they can be a beneficial partner in the financial set up of your overall portfolio. My point is to keep all the money in a high interest account of term deposits. this is for your emergency and "rainy day" backup savings, the rest keep invested either in super/pension, shares or similar. I hope this answers you quesiton
Katherine,
I've been following your videos on About Retirement. Just want to say thank you, as it is most informative and helpful.
One question on my mind regarding annuity. Is 40% of annuity exempt from the Age Pension asset test? If so, it would help to reduce the total asset assessment and potentially increase the pension payment if one's asset exceeds the maximum amount for full pension.
I'd wonder this would be a good reason to move super to annuity if one's in such situation.
Thx so much.
Leander
Yes, this is one of the strategies to have funds invested in an income stream but reduced value under the assets test. I would never recommend to invest all your savings in annuity, this needs to be well calculated to know in advance the benefit, as in most cases, you are losing access to those funds. Honestly the best thing is to get the full advice with the full calculations, so you are on a safe side and you don't over-invest into annuity.
Are you in a pension phase and still adding to your super?
Thanks for answering 😊 yes I am in pension phase and no longer contributing (thanks to my accountants reminder)