Planning for semi-retirement / structuring

Discussion in 'Financial Independence, Retire Early (FIRE)' started by JK200SX, 20th Jan, 2022.

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  1. JK200SX

    JK200SX Well-Known Member

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    Hello All,

    Here is a hypothetical scenario I would appreciate your input on. Lets assume the following:

    - PPOR owned outright
    - Amount owing on investment properties is ~$1,600,000
    - Gross Investment rental per annum is ~$101,400
    - Investment properties value total is ~$3,050,000
    - Net cash proceeds from sale of shares $5,000,000
    - Approx $1.2m in super

    Assuming you want to reduce the amount of working hrs and be reliant on passive income, what would be the best way moving forward to structure the investments/cash to minimise/reduce the level of tax payable on the above?

    Thanks
     
    JK200SX, 20th Jan, 2022
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Not enough info. Cash could be loaned or gifted to a discretionary trust which invests with income diverted to a bucket company
     
    Terry_w, 20th Jan, 2022
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  3. JK200SX

    JK200SX Well-Known Member

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    What other info do you need?
     
    JK200SX, 20th Jan, 2022
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  4. The Y-man

    The Y-man Moderator Staff Member

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    I can think of immediately:
    • Interest rates - variable, fixed? If fixed, how long for?
    • IO or PI? If IO, how long IO for?
    • Age (for access to super)
    • Anything in offset?
    • Any other income? (for CGT and other tax impact)
    • Value of PPOR
    • Any loan against PPOR?

    The Y-man
     
    The Y-man, 20th Jan, 2022
    #4
  5. JK200SX

    JK200SX Well-Known Member

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    • Interest rates - variable, fixed? If fixed, how long for? 3.1% variable
    • IO or PI? If IO, how long IO for? $1.2m IO, $400k variable, about 25 years left
    • Age (for access to super) 51
    • Anything in offset? 200K
    • Any other income? (for CGT and other tax impact) No
    • Value of PPOR $1.4m
    • Any loan against PPOR? Yes 800K, but all offset maxed
     
    JK200SX, 20th Jan, 2022
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  6. kierank

    kierank Well-Known Member

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    Too busy to comment on hypotheticals :eek:

    if it was a real scenarios, then i would probably put more thought into it ;)
     
    kierank, 20th Jan, 2022
    #6
  7. JK200SX

    JK200SX Well-Known Member

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    Melbourne

    Let me rephrase and say the situation is a real one. What would you recommend?
     
    JK200SX, 21st Jan, 2022
    #7
  8. kierank

    kierank Well-Known Member

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    I already guessed that. My original post was tongue-in-cheek ;).
    Now I am …
    Leave it with me.

    I will try and come back to you over the weekend.
     
    kierank, 21st Jan, 2022
    #8
  9. samiam

    samiam Well-Known Member

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    Following this thread with interest although we don’t have 5 mil in shares :)
     
    samiam, 21st Jan, 2022
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