Many SMSFs have used a “limited recourse borrowing arrangement” (LRBA) as part of a gearing strategy to build members’ retirement savings, allowing the funds to borrow to buy high-value growth assets, typically real estate. However, proposed new laws that seek to count a portion of an SMSF’s loan balance towards some members’ own “total superannuation…

The government has created a new opportunity for some recent retirees to make additional superannuation contributions. From 1 July 2019, a 12-month exemption from the “work test” for newly retired individuals aged between 65 and 74 years with a total superannuation balance below $300,000 means many older Australians will now have an extra year in…

Reverse mortgages are a credit product that allows older individuals to achieve their immediate financial goals by using the equity in their home to borrow amounts. The loan typically does not need to be repaid until a later time (ie. when the borrower has vacated the property or has passed away). For older individuals who…

New rules to benefit those downsizing for retirement Australians aged 65 and over who are downsizing for retirement can now contribute the proceeds from the sale of their main residence (up to $300,000) into super. We take a look at what this could mean for you, bearing in mind that like with all important financial…

Understanding different types of retirement pensions If you’ve heard the term ‘pension’ being thrown around, you may have picked up that there are many types of pensions available in Australia. We explain the difference between three commonly used pensions, including the government’s Age Pension, a transition to retirement pension, and an account-based (or allocated) pension,…

Maximising your retirement benefits After working hard for so many years, naturally you want your retirement to be as comfortable and enjoyable as possible. That’s why it’s worth knowing which types of government support you may be entitled to when you’re transitioning into this new phase of life. If you’ve been putting money into super…

How to avoid isolation and stay safe in retirement It’s a common enough scenario facing many older Australians: you find yourself living alone, due to divorce or the death of a partner, and the kids have moved away – often interstate or overseas – leaving you with no close family nearby. If this describes your…

Funding retirement income in a low interest rate environment While a traditional bank deposit is generally regarded as one of the safest forms of investment, it also currently offers amongst the lowest returns. For those relying on bank deposits to fund their retirement income, the current record low interest rate environment offers little reward. For…

6 tips for retiring earlier Are you dreaming about an earlier retirement, but unsure how to go about it? According to the Australian Bureau of Statistics, 40 per cent of Aussie men and 35 per cent of Aussie women are planning to work past age 70 because they are worried about their ‘financial security’ in…

© 2015 MARK BABBAGE | MADE FOR FUN!

Babbage-Transparent

STAY CONNECTED WITH US: