Money Talks

Q&A February 2024

Q&A February 2024

Q. We are in our late 70s and own our own home. We have three adult children. Two of our children are financially comfortable and own their own home. My youngest son however is single and lives with us. He would like to own his own home but property prices keep going up and he keeps missing out. He has found a place at quite a reasonable price but unfortunately, he does not have a big enough deposit. Would we be silly to offer to gift him the amount that he lacks because of our other two children, who by…
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Q&A January 2024

Q&A January 2024

Q. I am 78 and my wife is 72. We are both still working but now believe it is time to retire. We have kept on working as we have been paying mortgages on investment properties that we own. We have decided to sell one of our investment properties and this will leave us, after paying capital gains tax, with around $900,000 available for investing. How can we best invest to generate income to live on? We need around $60,000 per annum from these funds. A. There are various ways of investing these funds to generate the income you require…
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Q & A December 2023

Q & A December 2023

Q. I am 63 and planning to retire in a month’s time, around Christmas. My wife is planning to continue to work for a while longer. I have a superannuation fund with a balance of $550,000. Can I just use a part of it to commence an account based pension or do I need to use the full amount in super? A. As you are over 60 years of age, you are able once you retire to commence an account based pension with the money you have in super or leave it in accumulation. Therefore if you wish to just…
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Q&A November 2023

Q&A November 2023

Q. My wife is 71 and I am 74 and we have a holiday home in the country valued around $650,000. We are contemplating selling the property as we are not using the place much these days. If we sell, are we able to invest these funds in superannuation? A. As both you and your wife are under 75 years of age, you may both be able to invest up to $330,000 into super. If your total superannuation balance is above $1.68 million, then you will not be able to contribute the full $330,000 into super. If this is the…
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Q&A 308

Q&A 308

Q. I am 65 years old and recently lost my job. I am on Jobseeker Allowance and doing volunteer work. I need to make a lump sum withdrawal of about $5000 from my super to pay some bills. Am I allowed to withdraw money from super? A. As you are 65 years of age you have reached a condition of release and able to withdraw any amount of super that you need. You are able to go back to work once you have made this withdrawal which will be paid to you tax free as you are over the age…
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Q&A 307

Q&A 307

Q. I am 78 years old and my wife is 74. We have two account based pensions and we have to take an income of around $100,000 for myself and around $60,000 for my wife from these pensions. We do not need all this income. Are we able to reduce our payments from these account based pensions? A. At your age you need to take a minimum payment of 6% and your wife a minimum payment of 5% per annum. The amount is calculated on the balance of these income streams as of the 1 July each year. There are…
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Q&A 306

Q&A 306

Q. I am 25 years of age and have a reasonably high paying job. I have surplus amount of income and wish to invest some of this in investments generating both income and growth. Can you explain what type of investments are available for me and how to go about starting this procedure? A. Australian shares are a useful asset in generating both income and growth. You can access shares either directly or through managed funds. You need to be aware that these are long term investments and therefore if you planned to need these funds in the near future…
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Q&A 304

Q&A 304

Q. I am 78 years old and a pensioner. My daughter is a single mother and has two young children at school. They are both having private tutoring and this is costing my daughter $100 per week. Being a pensioner, am I allowed to pay for the tutoring myself as I am financially able to do so? A. Paying for your grandchildren’s tutoring will be treated as gifting by Centrelink. However, you are allowed to gift $10,000 per annum or $30,000 over a five year period. This amount of tutoring falls under these limits and therefore you should be able…
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