Yes that’s
the scenario we are grappling with for Jim today.
Many would argue that 100K is a good sum but
when you are aged 55 then as Jim enunciated he needs a million.
2. He can have his super released as he has reached his preservation age. However then if he is to invest it then any income is taxable. Has Jim retired?
3. So does Jim use an SMSF and invest in a property which according to recent news flashes is apparently all are doing. If he does then banks only lend on a much higher deposit say 50% then they ordinarily do. What sort of property can Jim’s SMSF buy for 200k or 300K?
4. We attended a recent seminar on super estate planning. Now that’s a minefield especially as Jim is separated with 2 grown up children. We have Douglas an estate planning solicitor client who says to his clients that ‘in the beginning you might love us but when you receive our bill you will hate us’.
Do you really understand what a trustee for a SMSF is responsible for?
Stephen on our professional development day described ‘DIY as Destroy it Yourself’. Stephen provides a SMSF solution with all, meaning everything, done for 1,500p.a.
That’s is what technology can do & we do have the presentation here if you wish to email us for a meeting here.
5. We have this month attended two seminars on investing in Real Estate in the USA. Now that is tempting as prices there are so low & another selling point is the 10%+ income returns. The Federal Reserve is pumping out 85 Billion a month to punch up RE & asset prices & they haven’t stopped yet. Maybe they never will although they have two defined parameters of inflation & employment rates.
Both emphasized that house prices can be bought from 60,000 up & currently might have another 50% upside in the next 2 years.
6. One seminar was all on the education side with apparently all the support you need to actually buy that first & subsequent properties.
7. The other is more tempting as it is all done for you & the 100K is a ‘playable’ amount. Why? Jim can buy a USA property & add other investments to satisfy both the super rules & the need to diversify.
8. Today we had Dan & Andrew ho have provided us with 10 reason s why you should invest in Brisbane apartments. They are selling many ,all of the plan, to Southern investors. Ask us for their contact details & a guided tour around their developments.
9. Maybe not a bubble yet but remember that Debt is like ‘tattoos & weight, very easy to get but hard to lose.’
10. As Jim is 55 then he is paying taxx of 1,407p.a. within his super & it could be zero if he needs a little income to supplement his redundancy payment of 77K. This is a conservative option if Jim finds a job ‘anywhere’.
11. Jim alternatively might take a more aggressive portfolio of shares or managed global property funds either within or without super where there are gearing options here also. There are high yielding shares but Jim can tell us which ones he wants to use. We will assist his research.
12. Of course there is another option for Jim is to start his own business. If it can provide him with a net 50K p.a. without him there then that is as good as a million dollar portfolio. ‘Easier said than done’.
13. When we mentioned our dilemma to Archie as we watched the All Blacks win again, Archie suggested punting it on the Caulfield Cup. Now that is a punt that might find touch.
Jim is better off than most as we have helped him
pay off his mortgage of 120K in 5 years. It is just as well.
What will
Jim elect to do?
We have
created this questionnaire as it is far more helpful that the useless ‘risk profile’ that Jim & we are required to complete for our
over regulated financial services world because the risk profile doesn’t answer
these 12 options.
Ideally the
regulators would help us to define what is Jim’s ‘best interests’.
We will
suggest to Jim ‘the same as what we would do if we were in his position so that he is better off in 3
years time.’
If you are
in a similar position then you are welcome to call us on 073848 1088 or email or
contact us through our websites
John McAuliffe
