Silly me I thought there will be minimal/no tax once you are over 65. But could still be paying similar tax bracket if you have multiple source of income - rent, outside super, super. And addition there will still be CGT if you sell your capital. Would it better off living on selling down capital than multiple income stream, ard 150k? still 20 years away, but started dreaming of exit strategy lately as we should have debt free ppor after selling one ip. Then the plan is to slowly build town houses on big blocks ip that we have.
Did you get confused by withdrawals from super being tax-free after retiring/TTR? You still have plenty of time to load up on that lolly.
People should always consider tax planning their retirement years and years before it occurs This assists for planning how to maxmise tax free income and even some CGT. And I dnt mean when you are 63 and planning to retire at 65. My suggestion is to commence the discussion with a tax adviser in your early to mid 50s. As you age the planning will shft from being vague to being more actionable. But its a plan. Contrary to what most think, putting it all into super is NOT a good strategy for most as this suggests deliberate realisation of CGT on all investments. Instead, good planning should consider a broad range of issues incl cashflows and income, ages, existing super and potential to increase that and much much more. Even potential inheritances should be aconsideration. It bizarre how often I hear people who plan eveything but ignore the expected inheritance of $1m or more from parents. Ideally a good strategy preserves CGT assets that are cashflow positive as retirement income at a low (or 0% !!) rate as well as maximising tax refunds through super were all the earnings are tax free for a couple. Then you may not even need to prepare a tax return unless you change your mind and decide to sell a CGT asset...Then the marginal tax rate may be very low in any event. There are three phases to investments. Retirees should not consider permanent accumulation as a sole strategy....Excpeting possibly the exceptionally wealthy. . And even then they should likely have not accumulated all in their own name/s. 1. Accumulation 2. Preservation 3. Utilisation
Thanks Paul for taking time to reply. I think we are almost done with accumulation although I always say one more! We are selling one ip now so that we will have almost debt free ppor (conservative 1.4m, at today’s $). If we sell 2 out of 5 ips, we will be able to build 6 town houses at very low lvr. But selling will be very expensive for us at current tax bracket. And we don’t need cash flow at this stage. Not sure whether it’s wise to put in smsf structure. We won’t have any inheritance and we don’t have kids so we don’t plan to leave too much behind. So far we only have 500k in super as we moved to Aus only 15 years ago. We still got two decades of working life but the big Q is timing - when to pull the plug and how…..
