Long service - cash it in?

Discussion in 'Loans & Mortgage Brokers' started by ripas, 22nd Jul, 2015.

Join Australia's most dynamic and respected property investment community
Page 2 of 2
  1. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,022
    Location:
    QLD
    I have done this but I have only cashed in a few weeks at a time and spaced it out over a couple of financial years, it was very handy.
    I think it depends on your stability of employment and the amount of annual leave you still have available as well.
     
    HUGH72, 28th Jul, 2015
    #21
  2. Till Kingdom Come

    Till Kingdom Come Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    129
    Location:
    Aussie Aussie Aussie Oi Oi Oi
    Yeah but it all depends on what you want to do in life. As they say, All Work No Play makes a Cranky Old Retiree. What if you die 3 months before leaving? YOLO.

     
    Last edited: 28th Jul, 2015
    Till Kingdom Come, 28th Jul, 2015
    #22
    Terry_w likes this.
  3. JenW

    JenW Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    422
    Location:
    Perth, WA
    This basically happened to my dad.... well, he was 6 months from retiring. He and mum spent all their married lives working hard, I remember Dad taking two weeks' annual leave a year only, and running a strata management business in his spare time. (Mum ended up taking over the business, but as an accountant he still did the budgets for all the different complexes they managed.)

    They had brilliant plans for retirement - travel the world, spend time with friends, you name it. Then dad found out he had leukaemia, and, well, that was that - after becoming progressively sicker over time, he died about twelve months after his diagnosis.

    Nobody ever laid on their deathbed wishing they'd spent more time at work.
     
    JenW, 28th Jul, 2015
    #23
  4. Doraemon

    Doraemon Active Member

    Joined:
    24th Jul, 2015
    Posts:
    33
    Location:
    Australia
    so is AL payouts entitled to super? or you forgo super when you choose to cash out?
     
    Doraemon, 29th Jul, 2015
    #24
  5. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,022
    Location:
    QLD
    Entitled to super would be my understanding but you have to check your workplace agreement/ AWA etc. If you have a HR department they will know.
     
    HUGH72, 29th Jul, 2015
    #25
  6. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    14,015
    Location:
    Brisbane
    I am not saying it is the wrong thing to do but simply to think it through. If the poster can get funds from elsewhere and leave the nest egg alone and still get the ball rolling then the LSL can be a bit of a security blanket for a time she really needs quick cash.

    If it is absolutely stopping a purchase and cashing it in gets her over the line, then it is worth looking at.
     
    wylie, 29th Jul, 2015
    #26
  7. Steven Ryan

    Steven Ryan Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,656
    In your shoes, I'd take it and put it to use now.

    But I'm not you :)
     
    Steven Ryan, 29th Jul, 2015
    #27
  8. ripas

    ripas Member

    Joined:
    19th Jun, 2015
    Posts:
    24
    Location:
    Qld
    If i cash in the long service, superannuation is not payable as you cannot double dip. So a negative.

    Are you saying you would take the leave or the money?
     
    ripas, 29th Jul, 2015
    #28
  9. Steven Ryan

    Steven Ryan Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,656
    Steven Ryan, 29th Jul, 2015
    #29
  10. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    14,015
    Location:
    Brisbane
    Back to the very first post... will cashing in your LSL get you into a house you can afford?

    Is there any other way you can get into a house?
     
    wylie, 29th Jul, 2015
    #30
  11. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,524
    Location:
    Melbourne
    Do what I do - take leave and work a 2nd job :) Doubles the effective income - then go an see your mortgage broker while second job money is still coming in.

    The Y-man
     
    The Y-man, 30th Jul, 2015
    #31
  12. Magnet

    Magnet Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    375
    Location:
    Sydney
    I've done it in the past to increase our cash buffer whilst buying an IP. It was worth it. Still had plenty of annual leave saved up so felt like I wasn't losing anything. As long as you have some annual leave 'in case of emergency' I can't see the harm.
     
    Magnet, 30th Jul, 2015
    #32
Page 2 of 2