Superannuation can be considered a somewhat complex creature, and constantly changing legislation doesn’t help matters. Below I have compiled my top ten facts that I regularly find members are unaware of when it comes to their retirement nest eggs.
Categories for Superannuation
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.
If you already have a mindset of paying yourself first, you are more than half way to giving your future self the lifestyle you want.
Hudson clients are well aware that borrowing to invest in growth assets can be a magnifier when creating wealth.
We are often told in our working life to work smarter, not harder. This often involves better managing your time, knowing what needs to be done and focusing on a high priority task so you can focus on one task at a time. The same philosophy can be applied to investing: have a focused strategy, knowing the key to accumulating wealth is using your savings and surplus cashflow to invest growth assets and repeating the process over and over.
Retirement. I like what I do, I am good at it, so why would I stop doing what I like to do?
Written by Aaron Alston. you make when you have acquired an asset after 19 September 1985. There are exceptions to the rule: the main one being the family home.