55+ Working

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TRANSITION TO RETIREMENT

Retirement needn’t be an all or nothing proposition. You can choose when you want to activate a pension and ensure that you are in a secure financial position.

You may wish to reduce the hours you work and utilise your Super to supplement your income, via a tax-effective strategy. You may also opt to salary-sacrifice towards your Super to continue to grow your retirement benefits. Perhaps you just want to continue as is, but work out the most effective way of building your nest egg.

The great news is that there are many different ways of managing your Super and your transition to retirement. At Edge, we enjoy seeing clients achieve their financial goals and gain more clarity around retirement.

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Super Contributions

There are many types of Super contributions and it is important that you are aware of those that you can capitalise on. It’s also important to be aware of the limits, so that you don’t pay penalty tax.

Did you know you can transfer shares and/or managed funds in to your Super fund? You can also salary-sacrifice into Super at a reduced income tax rate. If you are a lower income earner and you choose to salary-sacrifice, the government will also contribute money to your Super fund. In addition, you can make a contribution for your spouse to help boost Super savings.

Be aware of the different types of Super contributions and ensure that you take advantage of any concessional contributions that apply, so you can increase your retirement savings and receive a boost from
the government.

Contact us to discuss your options today.

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TRANSITION TO RETIREMENT

Watch our short video above to discover just some of the strategies you can use to plan an effective financial transition to the next stage in your life and career.

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Estate Planning

Estate Planning can be as simple as establishing your Will or it can be extended to Trusts and Powers of Attorney. Putting your wishes in place now ensures peace of mind in the future.

Keeping your Will up to date is vital. It should set out how your assets are to be divided, as well as the guardianship of your children and the dispersal of any insurance payouts. A well planned Will ensures a speedier settlement of your estate and minimises disputes.

Power of Attorney
Estate Planning is not however, only limited to the execution of your Will. It is also important to nominate the person who will make decisions on your behalf if you become incapacitated. By appointing a Power of Attorney you can decide who will make important decisions for you in the event that you cannot.

Discretionary Trusts
You may wish to provide for your children’s education or leave them a gift. This can be done in a tax effective manner via a Discretionary Trust.

Many of us are not prepared for the unthinkable. Edge financial planners work carefully through your desired structures with you, so you can feel prepared and secure that your affairs are in order.

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Helping your children

Have you thought about giving your kids a financial leg up? Would you like to see them own their own home? 
The rising costs of housing means many children require the assistance of their parents in order to purchase their first home.

There are several ways you can help them. Perhaps you’d be willing to be a guarantor on their mortgage, or you may wish to use the collateral in your own home to help them with their deposit.

In addition, there are the ever increasing costs associated with a wedding. As a parent, you want your child to enjoy their special day and if you have an idea how you would like to help them, we can assist you with planning to make sure you are doing it in the most effective manner.

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Insurances

If the unthinkable happened and you could no longer work, would you be able to look after yourself? Could you still pay the mortgage or rent? Car repayments?
Grocery bills?

Insurances can often be the first sacrifice when juggling budgets. But the good news is that with the right advice, you can provide yourself with a safety net with minimum financial impact on your lifestyle. Consider:

  • Total and Permanent Disability Insurance
  • Trauma/Critical Illness Insurance
  • Income Protection Insurance
  • Death Insurance

Our advisers can help you interpret complex policies and make the right choices for your circumstances:

  • Will your premiums stay the same or increase
    with age?
  • Are they calculated on an agreed value?
  • What is your claim stand down period?
  • What are you NOT covered for?

We’ll assist you to determine how much of each type of cover you need and if the policies should be considered in isolation or as part of a total package.
Don’t delay peace of mind, protect your future today.

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Using Equity

Have you ever wondered if your finances are working hard enough for you? You may own your home, but now what? Did you know that you can use the equity in your home for other investments, like:

  • Renovating
  • Buying another investment property
  • Purchasing shares on the stock exchange

NEGATIVE GEARING
At Edge, we work with you to maximise your assets and equity. We’ll help you determine if negative gearing is an appropriate strategy for your current situation and future goals, by establishing whether:

  • You are seeking a cashflow-positive asset, or
  • You are looking for long term growth as a trade-off

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Debt Structure

Have you checked your debt’s vital signs lately? Understanding good versus bad debt and how to structure your loans is crucial to tax deductibility. Whether for your own house or investment property, the right debt structure could save you thousands.
We’ll help you to decide:

  • Should you choose an interest only loan, or consider principal plus interest?
  • Is a fixed loan right for you, or would a variable  rate
    be cheaper?
  • How can you use the equity in your home to pay  off higher interest debt?
  • How can you make your credit cards work harder and start saving you money?

OFFSET ACCOUNTS
We all love to reduce debt, but is paying debt the best option when effective use of an offset account can provide the same financial outcome, while allowing greater flexibility for lifestyle choices? An offset account can take years off your home loan. Ask us today.

It’s never too early to organise your financial affairs. Understanding that death does not erase debt and being clear about how your estate and assets are structured will ensure that you leave a positive legacy to those you love.

  • Who will execute your Will and ensure funds  are appropriately distributed? Do you need a Trust set up to ensure your wishes are adhered to?
  • Who will be your Power of Attorney?
  • Do you need to review your Life Insurance?

Talk to us today to discuss your estate plan and ensure peace of mind for you and your family.

Edge Financial Planning