Your Money
How should I plan for retirement?
by Peter Switzer
I have $900,000 in my super and I am 55. The money has come from compulsory super contributions, salary sacrifice and non-concessional contributions. I plan to work to 65 but wouldn’t mind doing a transition to retirement pension for a few years just to work part-time but then I might do three to four years full-time again as I suspect I will get sick of doing nothing.
We have a rented property which is nearly paid off and I wouldn’t mind getting another one and was thinking about buying inside a self-managed super fund. My rental property is worth about $600,000 and I wouldn’t mind eventually rolling this into my super fund but if it makes sense to keep it outside, I’d do that. What do you think I should do?
You’re one hell of a complex character and have so many things going on and happening and that’s why I think you need to go to see a financial adviser who you can trust.
There are so many options that need to be tested out. For example, do you keep the rental property? By the way, if it’s not a commercial property you can’t roll it into your super but it could be tax-effective to sell it, pay the capital gains tax, roll this into a self-managed super fund and possibly buy another property inside your SMSF.
I would also need to know what your wife has in super to get the full picture and I would also need to know all of your goals and this is why someone like you needs to see a financial adviser. Sometimes the questions not asked and the options not tested can cost you a lot of money down the track.
If you had less in your fund and you were really struggling, I might have tried to give some firmer directions but you’re the classic person who could make a lot out of getting professional advice and you could lose a lot by not looking at all of your possible, tax-effective, investment-wise opportunities.
Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.
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Published on: Tuesday, November 15, 2011
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