Does your money bat for the other side?

Does your money bat for the other side?Yes you have 5 weeks to act & do something with your hard earned cash.
I.e. what are you doing before the end of the financial year to not pay out any more than you need to Black Duck & the ATO.

Yes it was suggested that maybe go out & get a new Ute & maybe collect a 5K rebate from the ATO.

It is often suggested to go out & prepay all your future deductible expenses or increase your vehicle costs & increase your novated lease.

You might want to prepay your ‘negative cashflow rental property’ loan but that can lock you in for another year.
We only heard on Wednesday from a fund manager who manages 3.5 Billion that they have a careful watch on such properties.
We heard this month from Jon who has been in Real Estate for 30 years that properties in his area are down 10-15%. Maybe you might want to sell now.

We have previously suggested that the baby boomers are retiring & find the 10K negative cashflow rental property’ a big negative on their relationship with the spouse.

But will these increase your capital for retirement?

Let’s face it the government is now suggesting that 500,000 is an objective for retirement capital which does suggest that you can survive on 25k or 500per week. Yes you might but it is survival only & you Have worked harder to deserve more than that.

True to form the government has yet to define when this 500,000 is to be benchmarked.

However the trade minister confirmed the view in Canberra that superannuation represented the budget's biggest single tax deduction.

It’s fairly simple why this is so. I.e. if you earn over 37,000 then paying 15% taxx on your super beats paying your marginal rate of 30% or more.

Of course if your spouse earns less than that then it makes no sense to pay into her super. However you could claim a spouse rebate which means no upfront 15% taxx or if you can split your supers.

It all depends where you are financially. If your debt is paid off then congratulations but now you have the challenge to fund the 1,000,00 that you need.

Will pouring 25,000 over the balance of your working live into your super achieve your retirement need. It will help & if you are over 50 then you have a year to salary sacrifice to 50,000.

The other side are all about that theirs is lower than yours. I.e. they are talking costs on their super funds. As a contemporary asked us last Wednesday
‘Where do they get the 18m to advertise?’ such lines.
It’s not often we say that lowest costs are best. Just check out your house or car or the diamond ring or the school your family goes to.?
Lets recall that you get what you pay for. When we talked to Adam on Thursday he believed his super was doing a good job.
He hadn’t looked at the website with its funds returns. We would suggest that there are many fund lemons out there not achieving what you hoped for.

It may be time to review your super & we are non-aligned as work for you. Have you looked at your bank fund returns closely?

Of course you could still have the average debt which frequently means you will have a debt on retirement. Then if you can access your super you use that to pay down your debt which means for you that you live on maybe a lot less.
This is certainly one risk i.e. government legislation which can easily change the rules.

We do have 13 different super strategies alone & you are welcome to contact us for the PDF file.

There is another way & it is our PCMS personal cashflow management strategy. This is particularly tailored for those with a high debt level & earning over 100K.

You are welcome here for an introduction to this strategy. May listened when we described the strategy ‘as the taxx man subsidising the debt’ & even more so when we added ‘ it was cashflow neutral’.

It’s action time & there are alternative strategies depending where you are financially.
We offer more than most & why not a free meal here to take the 1st step.

We promise not to waste your time as we hate waste as you have worked too hard for your money.

John McAuliffe