Nope. Im 35yrs and spent much of my career living and working overseas earning a tax free salary. Unfortunately, putting super away was pretty low on my agenda when I was in my 20's and only something that Ive been thinking about more recently. Hopefully I can make up for it now..
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08-12-2014 15:46 #31
08-12-2014 16:03 #32
Do you have super....?
Nope. Can't say I really care for it TBH. Hubby has it. By the time I'm working full time it won't be much anyway. Investments in other areas though
We have other accounts that work like super and tax cuts. Through our financial advisor. Edited because I wrote too quickly
09-12-2014 05:03 #33Junior Member
- Join Date
- Oct 2014
Of course! DH and I are only early 30's but we have very specific plans for age of retirement and lifestyle. DH contributes 5% via salary sacrifice and employer pays 14% on top of that. I have standard 9.25% from my now reduced PT salary since returning to work PT after having DS3. I smashed the career in my 20's so my balance is rather healthy, which is great now that I am focused on kids and family for the next 5 years.
We monitor our super so closely (online accounts,etc) and we are converting to SMSF next year. We really don't think of 'my' super and 'his' super. It is 'our' super.
I am also a banker who specialises in SMSF property finance, so we will be buying a property next year via super (if Murray report recommendations are not implemented).
All I can say is I watched my parents manage their own super and retire at age 50. That coupled with my industry specialisation in finance has provided me with a strong desire to manage and understand all aspects of personal finance.
I feel worried for PPs who show no interest in their own super, when do they think they will retire? What type of lifestyle are you setting yourself up for? It is great to have investments external to super and paying down the mortgage of your owner occupied property should be a priority, but not at the expense of understanding and controlling your super.
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09-12-2014 05:59 #34
Jardia !! Please feel free to tell me you won't give out advice and I should go talk to someone else.
We are just starting to consider this, we almost have enough in super to buy a unit outright (ie with all super, none of our own extra cash), I understand we could also loan extra if we wanted to buy a larger property?
If outright, is the property still in the super funds name and a bare trust is created so that we are the beneficiaries? And also if we buy outright does the rental income get deposited in to the super fund as a member contribution and attract the same tax rate as a MV contribution?
09-12-2014 06:14 #35Junior Member
- Join Date
- Oct 2014
GM01. Yeah, of course in am going to say seek independent advice, but in response to your scenario:
1. You can buy outright (very simple process as it sounds like you have already established the bare trust and SMSF trust). If you do this you would want to ensure that you sufficient cash reserves for costs, unexpected periods of property vacancy, etc. also make sure that you have diversified fund assets (I.e consider a mix or property, cash, shares). As a general rule I would make sure I hold 15% of total fund assets as either cash or shares AFTER property purchase.
2. You can borrow somewhere between 70-80% of residential property value via SMSF loan depending on the type of trustee (I.e individual or corporate)
3. You should ensure you have a minimum $200k in total fund assets before embarking on SMSF (sounds like you have this covered)
4. Yep, rental income goes back into SMSF just like your contributions do now.
Good luck on what you decide to do! And again seek independent advice!
09-12-2014 06:35 #36
Thanks so much @Jardia!
That is a good point about diversification, we do have >$200k but not enough that we would have enough left over to hold a cash investment that wasn't in service of the property after what was set aside to service it .. So perhaps I need to have another look at the forecast timing and allow for that separate cash reserve.
Food for thought, thanks!
09-12-2014 07:10 #37
Question for anyone that knows. With the age limit rising to access the pension, is the age limit rising it access our superannuation as well?
The pension age limit will keep rising as well and I know we need to start paying more into super once I finish mat leave but am hesitate to if I can't access that money until a certain age.
09-12-2014 07:48 #38
09-12-2014 08:00 #39
09-12-2014 08:31 #40
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