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Passive Income in Retirement

Discussion in 'General Property Chat' started by dmb1978, 26th Nov, 2015.

  1. dmb1978

    dmb1978 Well-Known Member

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    Hi all,

    In reading a lot of these posts I am seeing lots of figures of "passive income" at retirement. These figures obviously have huge ranges but for those who have stated amounts, are you including your superannuation payments in these or are they derived purely from property/investments?
     
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  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You would have to address your question to the persons who made the relevant posts.

    But many people work on the basis that the super isn't there. Any super income received is a bonus to them.

    However it should be factored in, especially where the balance is high.
     
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  3. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    In my case, I will be "retired" well before my super is of any benefit so I don't factor it in at all.
     
  4. MTR

    MTR Well-Known Member Premium Member

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    Don't include super income at the moment, we just use this as a vehicle to create further income. I guess perhaps if we need its a bonus and a buffer:)
     
    Last edited: 26th Nov, 2015
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  5. dmb1978

    dmb1978 Well-Known Member

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    Thanks, I'm trying to figure out a possible property target amount but also have a set superannuation income depending on what percentage is lump sum or salary which i can claim at 60. So looking at figures was just wondering what percentage of it was super and which was from property but like you said it will be an individual case by case.
     
  6. sash

    sash Well-Known Member

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    This is a great point. Accessing super if you are under 45 is probably going to be at 65...so if you plan to retire before then...you will need to have sufficient funds to support yourself for those years before accessing super.

    I am over 45 so I will be able to access super at 60....but even I am vary of this. At the moment..I am pumping quite a bit into super..as I feel that it would be a great back to have. Also plan build a share portfolio outside of Super. Between the both of these I plan generate at least 60k in additional income.
     
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  7. Perthguy

    Perthguy Well-Known Member

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    I have super, property outside of super and shares outside of super. I will have income streams from all of these. I count all of them but I wouldn't want to rely on any one of them.
     
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  8. Rixter

    Rixter Well-Known Member

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    Just for clarification....
    Here are the Superannuation Preservation Ages as it currently stands..

    [​IMG]

    I did not incorporate Super. Superannuation will purely be icing on the cake.
     
    Last edited: 26th Nov, 2015
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  9. sash

    sash Well-Known Member

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    Thanks Rixter yes that is the current preservation age table.

    But via the transition to retirement you can access it from 55 years of age...but you will have pay some tax ...my limited understanding is there is 15% rebate.
     
  10. Travelbug

    Travelbug Well-Known Member

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    I'm not counting my Super but it's there as a backup.

    Yes @sash you pay 15%. It can be very beneficial as you can put money in pre tax then draw some out at 15% tax. I looked at doing it last year but I just put the max in and didn't need to draw any out.
     
  11. fols

    fols Well-Known Member

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    I have 2 scenarios modelled, one being pre (being able to access) super and one after. Post super modelling is throwing up more cash per month than I reckon I could spend, but I'm happy to give it a crack.

    May consider LOE style arrangement as a top up until super can be accessed- If I need to (which I hopefully won't). Still a long way off, so don't want to aim too low
     
  12. sash

    sash Well-Known Member

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    In your case you may not even have to pay tax base don the preservation...as it is age based ..if you were born before 1 July 1960...then no tax applies.

    I am being told that after that it works as per Rixter's table. The tax apparently (might need confirmation) offer a 15% rebate. So if you pull out less than 37.5k you pay not tax (assuming you have no other income). At the same time you could be dumping in more into your super.

    All this is of course assumes the govt does not fiddle with super again...which I have a feeling they will...
     
  13. fols

    fols Well-Known Member

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    Thought I was the only freak that ran spreadsheets for what may happen in 20 years time, but alas not!
     
  14. Random Username

    Random Username Well-Known Member

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    No, never had Super.
    Yes.
     
  15. Travelbug

    Travelbug Well-Known Member

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    Yeah 1958. I originally thought I would just leave it untouched but yes realised this option at a Super meeting I attended. I've got a meeting with them next week to discuss this.
     
  16. sash

    sash Well-Known Member

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    Let me know what happens....apparently for people my age you can pull it out at 55 yrs age but are up for a 15% rebate and then you have to pay tax at the marginal rate.

    I also asked if I can put money back from property income...the lady on the phone said I would need advice. But apparently it can be done....
     
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  17. HomePage

    HomePage Well-Known Member

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    My retirement income spreadsheet model considers both pre and post super access phases. The earlier you retire, the greater the risk of government policy changes that may move out or restrict what you can access from super, thus increasing the emphasis you should place on creating pre super access income streams.
     
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  18. sanj

    sanj Well-Known Member

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    If you're in pension phase in super I think you have to take out 4% or so every year anyway so it absolutely should be taken into account. I think it's crazy how little importance some people put on super, it can be an outstanding way to create wealth. So many investors will be bang on in general and completely ignore super/leave it up to funds.

    A friend had 40k in super, set up an smsf, invested in something and now has 200k. Sure he can't touch it for 30 years or so but why not maximise whats there anyway?? It is hugely beneficial tax wise and from an asset protection pov too but so many consider it more of an inconvenience than an opportunity.

    If someone has money in there doing bugger all there's so much that can be done with it, even buying into private businesses as long as it's under I think 20 or 30% of the overall business or something like that
     
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  19. sanj

    sanj Well-Known Member

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    Super advice, like most financial/legal/accounting advice, should be paid for and come from experts, not randoms on the phone with no accountability
     
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  20. sash

    sash Well-Known Member

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    Yes...I know...but if I get the full plan it will cost 5k....so want to find more about it before I drop this amount.

    That 5k is a deposit on 1 block of land!