A 40% discount on your assets might assist you with more pension & & less stress.

Are your assets earning what the deemed rates are or are they earning very very little?

 

I was asked this week would a retirement amount of 700K mean they qualified for the pension?

The suggestion that they wanted to do was to be a part owner in a commercial building.

It is certainly NOT what I would do as the risk is too high.

Ask anyone who has had tenants & with a forecast recession in 2020 then as in the past I have driven past many ‘for lease’ signs.

Another risk for me was they intended to go into partnership with another work colleague.

What happens when they break up or there is a death or other events?

Not for me.

Then there was the question of using their super into A SMSF.

Not for me as I don't want to be a trustee & all the compliance & other requirements.

What about borrowing for a larger building?

Good luck if within a SMSF structure.

But they might be lucky says the caller.

Here is the current tables for the asset test & what is the optimise mix of income & asset for you?

 

Full pension

From 1 July 2019, pensions reduce when your assets are more than the amounts below.

If you're                      Homeowner                                       Non-homeowner

Single                           $263,250                                            $473,750

A couple, combined         $394,500                                     $605,000

Part pensions

From 1 July 2019, part pensions cancel when your assets are more than the amounts below.

If you're                             Homeowner                                     Non-homeowner

Single                                 $572,000                                        $782,500

A couple, combined

                                         $860,000                                        $1,070,500

A couple, separated due to illness, combined

                                        $1,012,000                                       $1,222,500

 

If you have assets that are not performing then I have 500 other options on our approved list that are worth considering & if within your comfort zone

eg. Investors with units in **** **** cash received a net rate of return equivalent to 4.72%p.a2

. All figures are based on unaudited figures as at 31 July 2019 and are subject to change.

2 Net rates are net of management fees and costs and assumes no reinvestment of distributions. Past performance is not a reliable indicator of future performance.

In addition the government announced significant changes to the asset & income tests for lifetime income streams.

This can discount both the income & assets by 40% to age 84.

It is worth a chat here to Model &  optimise your position today for the future.

PM NOW as time lost is forever.

John McAuliffe