DESIGN YOUR TOMORROW TODAY

PRE RETIREE

Goals focus on planning for a comfortable retirement and maximising super for retirement. The mortgage tends to be paid off or is at a manageable level at this stage.

Watch the video below to learn more about this life stage.

Do you have kids who have moved out?

Maybe you’re downsizing to that brand new unit to enjoy the city lifestyle.

Or you could be looking to invest in property.

Whatever you’re thinking about, now is the time to relax a little and focus on you again – plan for your future.

Whether you’re looking to make big changes or simply create a better work/life balance, talking to a financial adviser can help you make it happen. Understanding what you’ll need to live the lifestyle you want is just the start.

In the years leading up to retirement, there’s a lot to consider and you’ll want to make sure you don’t miss out on the great opportunities available to you. Your Adviser can help you make the most of this time in your life by giving you the information and confidence to make smart decisions and realise your dream lifestyle.

It’s about balance and control, and your Adviser is your guide to helping you maximise super and investments, and reduce tax and any debt you may have.

If you’re looking to protect your loved ones and assets, they can help you choose the insurance options that work for you. And importantly, they can work with you to adjust your plan in case life brings the unexpected. 

Contact us today to discuss how we can help you take control of your financial future.

  • BOOST YOUR SUPER

    Would you like to start contributing more to your super?

    Super can be one of the most effective ways to build a retirement nest egg. There are a range of ways you can increase your super contributions to boost your super savings.

    Some advice

    When considering any super strategy, it’s important to assess how much you are contributing to super in any one year. The government has set annual limits – known as contributions caps. Contributions over these caps maybe subject to additional tax.

    What you need to know

    • Salary sacrifice allows you to make contributions to your super directly from your pre-tax pay. For most people these contributions are taxed at 15%. You do not pay income tax on salary sacrifice contributions which can represent a significant tax saving, particularly if you are on the highest marginal tax rate.
    • Alternatively, make a personal contribution from your own money and claim a tax deduction for it. Personal tax-deductible contributions provide broadly the same tax benefits as salary sacrifice contributions.
    • Make an after-tax contribution (also known as non-concessional contributions) from your after-tax money. This for example, could include funds you receive from an inheritance, the sale of an asset or a gift.
    • If you have a spouse, you are permitted to transfer your pre-tax super contributions from the previous financial year over to the super account of your partner. Equalising super balances between you and your partner over time can help save tax in retirement.
    • You can get up to $500 tax free from when you make an after tax contribution to your super, if you are eligible for the government co-contribution scheme.

    Count on us

    A Count adviser can help you:

    • By providing advice to make sure your super strategy is effective
    • Boost your super using smart super strategies.

     

  • MORTGAGE OR SUPER

    Which should come first, mortgage or super?

    Paying off your home loan signals an important landmark in your financial life. However, it is always important to consider alternative investment strategies. Sometimes the best strategy may not be the most obvious.

    Some advice

    When considering any super strategy, it’s important to assess how much you are contributing to super in any one year. The government has set annual limits – known as contributions caps. Contributions over these caps may be subject to additional tax.

    What you need to know

    Most people still believe that they are better off putting surplus money into their mortgage before investing elsewhere. However depending on your circumstances it may be more beneficial to salary sacrifice rather than make additional payments to your mortgage.

    Salary sacrifice allows you to make contributions to your super directly from your pre-tax pay. For most people these contributions are taxed at 15%. You do not pay income tax on salary sacrifice contributions which can represent a significant tax saving, particularly if you are on the highest marginal tax rate. And when you pay less tax, you have more money to invest which gives you the potential to increase your returns.

    Getting started

    Both the mortgage interest rate and earning rate within super are important variables to consider in any comparison between reducing debt and making before tax super contributions. It is important to be aware of how the outcome would change if the mortgage interest rate and/or the earning rate within super changed.

    Count on us

    A Count adviser can help you:

    • Work out the most effective strategy for you
    • Boost your super using smart super strategies.
  • PLAN YOUR RETIREMENT

    What are the top 10 retirement mistakes people make?

    When it comes having enough money for a comfortable retirement, planning is key. It’s never too late to get your retirement plan in order.

    What you need to know

    Make sure you don’t make the same mistake. The top 10 retirement mistakes people make:

    1. Not starting to plan for retirement early enough 
    2. Failure to seek professional advice prior to retirement
    3. Investing inappropriately based on lack of understanding of risk and return
    4. Failure to save enough pre-retirement
    5. Leaving assets in non-income producing investments
    6. Timing retirement ineffectively for tax or investment purposes
    7. Selling investments when market falls and buying in peak
    8. Investing inappropriately due to lack of understanding of asset classes and suitable allocation
    9. Expecting to maintain similar income level post-retirement
    10. Assuming you will qualify for Age Pension.

    Count on us

    A Count adviser can help you:

    • Plan for your retirement
    • Boost your super using smart super strategies.

     

  • DIY SUPER

    Is an SMSF right for me?

    Self managed superannuation funds (SMSFs) are an increasingly popular option for investors seeking greater control and flexibility of their superannuation. At the same time, you need to consider the wide–ranging reporting requirements and compliance obligations when deciding if an SMSF is right for you.

    Some advice

    While there is no statutory minimum required to set up an SMSF, you generally need a minimum of $200,000 of assets to make it cost effective1. However, cost is only one consideration. Your obligations as an SMSF trustee are extensive.

    What you need to know

    Before deciding whether an SMSF is right for you it pays to consider the key advantages as well as the drawbacks of an SMSF.

    Advantages

    • SMSFs provide a greater degree of control and flexibility over you investments, making them suitable for sophisticated investment and retirement strategies
    • Increased estate planning and retirement flexibility
    • Potential for tax efficiencies.

    Drawbacks

    Establishing and maintaining an SMSF involves:

    • Making time to effectively administer the fund and monitor its assets
    • Paying the costs of auditing, supervisory levies and day-to-day administration
    • Taking on the risk of penalties if you fail to comply with your trustee obligations.

    Count on us

    A Count adviser can help you:

    • Decide whether an SMSF is the right choice for you
    • Boost your super using smart super strategies.
  • INSURING YOUR FUTURE

    Did you know you could get paid even if you can’t work?

    With a family to look after, you can’t afford to be off work. If illness or injury stopped you from working for an extended period, could you keep paying your bills?

    What you need to know

    Taking out personal insurance can:

    • Give you peace of mind that if the unexpected occurs, you will be able to manage your expenses
    • Pay you up to up to 75% of your pre-tax salary for a specified period if you take out income protection insurance
    • Help you focus on recovering physically and emotionally if the worst did happen.

    Count on us

    A Count adviser can help you:

    • Find the right insurance for your stage of life
    • Help you work out the level of cover you need
    • Advise you on taking out insurance through your super.

     

  • PROTECTING YOUR FAMILY

    Do you know who would get you super if you passed away?

    Many people wrongly assume that their superannuation will pass to their beneficiaries according to their will. In fact, this will only happen if your estate is the recipient of your superannuation death benefit. Legally, your superannuation fund can pay your death benefit to your spouse, and any of your dependants or your estate.

    Some advice

    If your assets are more complex and you would like to share your wealth with many loved ones, an estate plan is essential.

    What you need to know

    In many cases, in the event of death the trustee of your super fund will decide which eligible beneficiaries will receive your superannuation. Many (although not all) superannuation funds allow you to override this situation by making what is known as a binding death benefit nomination or non-lapsing death benefit nomination. This is a written nomination made by you, which directs your superannuation fund on how to pay your death benefit and must be followed if valid. This is in contrast to a non-binding death benefit nomination, which the trustee of your super fund must consider but is not required to comply with.Many (although not all) superannuation funds allow you to override this situation by making what is known as a binding death benefit nomination. This is a written nomination made by you, which directs your superannuation fund on how to pay your death benefit. There are several types of death benefit nominations, including non-binding options.

    As part of your estate plan, you also need to consider the taxation implications of how your death benefit is dealt with. Lump sum payments paid to dependants (as defined under income tax laws) are tax free. Taxable components paid to non-dependants are subject to tax.

    Count on us

    A Count adviser can help you:

    • Put in place a death benefit nomination
    • Get started on your estate plan.

     

  • MOVING INTO RETIREMENT

    How can I ease into retirement and still meet my financial goals?

    The years before you retire can be challenging. While you are probably looking forward to having more time to do the things you enjoy, you may not be ready to stop working. Many people are also concerned about whether or not they have saved enough super.

    Some advice

    By law, all super contributions are generally locked away or ‘preserved’ until you reach your preservation age. Your preservation age is between 55 and 59 depending on your date of birth. Once you reach your preservation age, you can only gain full access to your super if you retire. However, you can begin drawing a pre-retirement pension once your reach preservation age without needing to retire. You will need to check with your super fund as not all funds offer pre-retirement pensions.

    What you need to know

    Once you reach your ‘preservation age’, you may be able to draw pre-retirement pension – a regular income stream drawn from your super savings. With a pre-retirement pension you may be able to put in place a transition to retirement strategy to help you ease into retirement and boost your super in a tax effective way:

    • You could reduce the number of hours you work and supplement your income with payments from your pre-retirement pension. This would give you more time to do the things you want, while maintaining your lifestyle
    • Or you could continue working full-time but take advantage of the potential tax concessions on offer to boost your super balance. For example, you might keep working full-time while drawing a pre-retirement pension from your super balance. You could then salary sacrifice to super the same amount, or more. This could allow you to maintain your after-tax income while boosting your super balance in the lead up to your retirement.

    Count on us

    A Count adviser can help you:

    • Plan for your retirement
    • Put in place a transition to retirement strategy.

     

1. ASIC, ‘Information Sheet 206 (INFO 206)’, July 2015.

Important information: This web page may contain general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision. This web page has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Count Wealth Accountants® is the business name of Count. Count advisers are authorised representatives of Count. Information in this web page is based on current regulatory requirements and laws as at 7 September 2017, which may be subject to change. While care has been taken in the preparation of this web page, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on the information contained in the web page.

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