The 'Financial Wizard of Oz' helping retirees out of money trouble

The 'Financial Wizard of Oz' helping retirees out of money trouble

Retirement is supposed to be the time when you can finally set aside your worries and enjoy what you've worked hard for.

But getting there and staying retired is getting harder - people are living longer, government budgets are stretched, and the pandemic has generated uncertainty on the stock market.

"I could see so many people making so many costly mistakes," financial expert Noel Whittaker told A Current Affair.

"The over 65s are now the fastest growing group in the country. They need advice badly," he said.

Mr Whittaker sat down with Gwynne and Gordon Meredith to help with their finances after a bad investment decision more than a decade ago unraveled their retirement dreams.

"We're probably half a million dollars worse off than where we thought we would be," Mrs Meredith said.

The grandparents are victims of Storm Financial - a controversial scheme that encouraged investors to borrow against their assets and buy indexed share funds.

In 2009 its collapse saw $4 billion lost, belonging to 14,000 mum and dad investors. Victims of the Global Financial Crisis.

"You maybe go into shock, but it didn't hit us straight away," Mrs Meredith said.

The couple had built and then lost a million-dollar portfolio.

After the dust settled they were left with a six-figure debt to their bank for borrowing against their assets.

"We were dealing with it. Never asked for hardship, never defaulted on a loan. Thought we can cope with this," Mrs Meredith said.

But a decade later, dealings with Storm Financial hit their finances again when they sold an investment property.

 

If Storm didn't cause them to go into bankruptcy, sell assets & forgive their debts, then those debts would still exist & be gathering interest.

Should they expect any other outcome?

 

So in the link Whittaker said he would focus on the 65+ age group.
Am I missing something????I think its a tad late

 

Sounds like he is giving advice to people 65+ who are struggling to understand how to make what they have last.

probably advice like:
how to juggle assets to get the most pension
downsizing advantages/disadvantages
super investment options
etc

 

Good to see the game doesn't change,only the player's..

 

Surely it’s never too late to be making money ...

I turn 65 this year and hope to still be making money in 20 years from now .

 

"Mr Whittaker's other tips include considering whether property is the right investment.
Insurance, maintenance, unexpected vacancies and capital gains tax can be costly."

It is not anymore costly compared to investing into Storm's indexed funds in the Merediths' case?

 

I have never seen anyone pay CGT on a property that didnt rise in value. CGT is costly when values rise a lot. Bring it on !! Only half the gain is usually taxable too.
I would welcome a massive CGT bill if I was a self funded retiree.

 

This! As a self funded retiree I am happy to see a tax bill. Like Kerry Packer I don't want to pay more than I have to but am happy to pay my share. I would never forgo income to avoid tax.