As we approach the end of the tax year (June 2022) it’s time to start thinking about superannuation strategies that you can use to your advantage. The often forgotten but by far the biggest payoff exists for those in the lower to mid tax brackets (with income less than $57,016) with what I term a ‘free hit’ where you can receive up to a 50% return on your contribution.
I wrote an article in the Hudson Report March last year with the minimum annual cost of a comfortable or modest standard living in retirement for singles and couples. The figures are reviewed regularly and updated quarterly in line with inflation.
If you have clicked the article to read more, then the answer is probably yes. For most this is one of, if not the biggest financial decision you will make. Australians retiring today can expect to live until their mid-80s. For retirees in early to mid-60s, that means finding a way to pay for a further 25+ years of life.
Does anyone remember all the superannuation promises declared in the Federal Budget announcements in May last year? It feels like a lifetime ago, particularly when considering all the other events that have transpired between then and now.
Just as how we have an instinct to flee from danger or brace for an impact, falling markets can cause an instinctive response to sell shares and get away from a seemingly bad situation. The difference with share investing however is that the reality of the danger is often already incorporated into prices.
Hudson had the opportunity to recently attend an Economic Indicators Conference held in Brisbane on the 4th February. Paul Bloxham, Chief Economist at HSBC was the key speaker. There was also a panel discussion following Paul’s update which included figures such as: Ross Israel, Head of Global Infrastructure at QIC, Leigh Warner, National Director of Research at JLL and Josephine Sukkar AM, Principal at Buildcorp.