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Planning
for a
comfortable retirement ...
People contemplating
retirement face the inevitable questions: have
they accumulated enough money, and how do to they make the most of
what they have got?
There are countless issues
they need to consider. Here are just some of them.
When should you retire?
The first and simplest issue
is to consider deferring your retirement until July. The most obvious
benefit of this is to reduce tax (as your marginal tax rate may be
lower after retirement). This can be particularly pertinent with superannuation
investments.
Your employer may also provide
other benefits (such as bonuses, redundancies and other entitlements)
depending on whether or not you were still an employee at the end
of the tax year. Taking retirement a few days prior to 30 June may
result in missing out on potential benefits.
Getting the most from your savings
Once you have decided on
a retirement date, you need to determine how to get the most from
your nest egg. Your superannuation is likely to be your most significant
retirement asset, so it is important to maximise the benefits available.
The Government provides significant tax advantages to encourage you
to take out private pension products such as an allocated pension.
Rolling monies over into an allocated pension, such as Rothschild's
Allocated Pension Plan, can significantly reduce the amount of tax
you have to pay, as you can avoid lump sum super tax.
Early retirement
You may be taking early
retirement through a redundancy package. The tax situation can be
extremely complex, and often exacerbated by a superannuation surcharge.
The decision of whether to 'cash' or 'rollover' any superannuation
payments from your employer or from the superannuation fund becomes
critical. A wrong decision can cost tens of thousands of dollars
in extra tax. Tread carefully to ensure that your retirement
savings are maximised.
Benefits for your spouse
Consider also the retirement
income of your spouse. It is wise to build up your spouse's superannuation,
as this is very tax-effective for you as a couple. The Government
is keen to assist your spouse in accumulating superannuation and now
generally allows you to make superannuation contributions on their
behalf.
Retiring soon
For those of you who will
be retiring around 30 June there is a myriad of issues to consider.
You may well have already seen a financial adviser, and set the framework
in place to maximise the income from your retirement savings. If you
haven't yet done this then be aware that the financial issues are
complex. However, for those who organise their finances well the rewards
can be substantial and retirement very comfortable.
For
more information on the issues raised in this article, or
about Rothschild's managed investments and retirement funds,
please call 1800
672 222
between 8.00am and 7.00pm (Sydney time), Monday
to Friday,
or visit our website at www.rothschild.com.au.
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Rothschild
Disclaimer
Investment
in any Rothschild managed investment may only be made on the application
form attached to the current prospectuses which are available from
the Manager, Rothschild Australia Asset Management Limited (ACN 000
727 659) and which have been lodged with the Australian Securities
& Investments Commission. Rothschild receives fees from the issue
of units in these funds and from time to time holds units that it
has repurchased which it may resell at a price which is higher than
the price it paid for the units. Rothschild may also vote on such
units subject to the provisions of the relevant Trust Deeds.
Nothing in this
material constitutes an offer of any investment or an invitation or
solicitation to subscribe for or purchase any investment to any person
in any state, foreign country or jurisdiction where such offer or
solicitation may not lawfully be made.
The information
is based on Government laws and regulations current at time of issue
(April 1999). This information is not intended to be relied upon for
the purpose of making an investment decision. This material provides
general information only and does not constitute financial advice
or a recommendation in respect of any Rothschild product and should
not be relied upon as such. The material is made available in good
faith by Rothschild and has been derived from sources believed to
be reliable and accurate. However, it is not intended to be a complete
description of the matters described and Rothschild assumes no responsibility
for updating any information contained in this material or for correcting
any error or omission which may become apparent after the material
appears on the Internet.
Copyright in the
material reproduced on these pages is owned by Rothschild. Except
to the extent otherwise permitted by the Copyright Act 1968 (Cth),
the material may not otherwise be reproduced or displayed in public
and may not be distributed or transmitted electronically to any other
person or incorporated by any means into another document or material,
including other websites. Without limiting the generality of the foregoing,
Rothschild does not permit reproductions of its material in other
websites in conjunction with advertising, trade marks, logos or material
of other financial planners or competitors in circumstances when it
has not given its prior written consent.
Investments in the
funds are not deposits with or other liabilities of NM Rothschild
& Sons (Australia) Limited (ACN 008 458 366) or of any other company
in the Rothschild Group, and are subject to investment risk, including
possible delays in repayment or loss of income or capital invested.
Neither the repayment of capital nor the investment performance of
the funds is guaranteed by NM Rothschild & Sons (Australia) Limited,
the Trustee or the other companies in the Rothschild Group.
AFSD
Disclaimer Notice
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