I am 62 years old, my partner is 66 and we are both reducing our working hours to two days a week. We have about $ 600,000 in retirement and investment properties worth $ 1 million and $ 610,000, with mortgages of about $ 500,000 and $ 200,000, respectively. Our house is worth $ 1.5 million, with a $ 300,000 mortgage. In a few years, we’ll probably get a $ 400,000 inheritance. We are considering selling one or both investment properties. Do we have to put that money in super, and / or buy another investment property? We have a financial advisor, but he is paid a percentage of our super, and therefore has an inherent interest in advising us to improve our super, rather than continuing with the property. We are considering finding an advisor that offers guidance at an hourly rate, rather than an expensive ongoing rate. OW
The two main goals I like to set are to retire with enough money to live on, in addition to a fully paid home where you want to live in the foreseeable future.
Credit: Michael Mucci
You’re in the process of retiring, but you don’t have enough in super and you still have a home mortgage.
Not to mention how much you need to cover your ongoing expenses, but the estimate of the Australian Retirement Fund Association’s annual expenses for a couple who are retiring comfortably at age 65 is $ 64,771 a year.
You could expect to spend between $ 1.3 million and $ 1.5 million over the course of your life, depending on whether you rate your superpension at 2% or 3%, and assuming you live five years longer than average while your super earns 5% a. course.
Property continues to be overvalued in terms of the ratio of average home prices to average income, and at some point is likely to return to average.
If you sell your property, expect to be able to top up your concessional contributions up to a maximum of $ 27,500 each (to minimize capital gains tax), pay off all mortgages, and add the rest as non-concessional contributions. You can later use your inheritance to recharge your super further.
If you are not satisfied with your advisor’s fees, you will be asked annually, possibly around June 30, to sign an advisor service consent form, which will allow you to make a different choice.
I am 64 years old and work as a contractor and earn $ 250,000 a year. I have an interstate home, rented for $ 620 a week and valued at $ 650,000 with a $ 350,000 mortgage. I have no outbuildings and rent in Sydney for $ 1800 a month. I would like to buy an apartment for $ 1.2 million near the CBD. I have $ 560,000 in super and plan to work for the next three years. My initial plan was to keep my house until retirement, then pay off my super mortgage and live in it. However, my preference now is to keep both properties and divide my time between the two. I have the prior approval of the bank for a $ 1 million loan and the rest of my super. What are your views on this strategy and what are the implications for my old-age pension eligibility when I retire? Should I sell the now-given house, the stock market volatility? ET