Between geopolitical uncertainty on one side and the very real possibility of further interest rate cuts on the other, Australian real estate is in a strange place. So where to from here?
Regularly topping-up your super can make a huge difference...
The Power of Regular Voluntary Super Contributions
As the end of the financial year approaches, it’s a great time to consider boosting your super.
New research from Vanguard reveals that small, consistent contributions can significantly grow your retirement savings — and potentially reduce your tax bill.
For example, a 30-year-old who contributes just $1,000 annually to their super for 15 years could be nearly $80,000 better off by retirement at age 67. That’s the equivalent of contributing just under $20 per week. Even a single $1,000 contribution at age 30 could grow to more than $8,400 by retirement, thanks to compound interest.
“The key to boosting your retirement savings is the power of compound interest. So, the earlier you start, the better,” says Renae Smith, Chief of Personal Investor at Vanguard Australia.
The table below shows how annual contributions of $500 or $1,000 over 10 or 15 years — starting at age 30 — could impact your retirement balance…
How a Super Top-Up Before 30 June Could Reduce Your Tax Bill
Making a voluntary concessional super contribution may also reduce your tax bill. These contributions are typically taxed at a lower rate than most people’s marginal income tax rate, and you can often claim a deduction.
For instance, a 30-year-old earning $80,000 who contributes $1,000 to their super and claims a tax deduction would receive a $320 tax refund. This effectively reduces their take-home pay by $680. After 15% contributions tax, $850 is added to their super — meaning they’re $170 ahead overall…
Don’t Leave It Too Late
To make the most of these benefits this financial year, act early. Aim to make any extra contributions at least a week before 30 June to allow for processing.
Rick Maggi, Financial Advisor, Westmount Financial, Perth
Disclaimer
This document has been carefully prepared by Westmount Securities Pty Ltd (ABN 42 090 595 289, AFSL 225715) for general information purposes only. However, neither Westmount Securities Pty Ltd nor any of its affiliates guarantee the accuracy or completeness of any statements contained herein, including any forecasts. It is important to note that past performance is not a reliable indicator of future outcomes. This material does not consider the specific objectives, financial circumstances, or needs of any particular investor. Therefore, before making any investment decisions, investors should assess the relevance of this information to their individual situation and consult professional advice, taking into account their unique objectives, financial position, and needs.
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A Better Retirement
Today, with Australians living longer and healthier lives, the concept of retirement is much different to what it was only one generation ago. For each retiree, retirement is different.
Typically, there are four areas that need to be considered to help you better understand your retirement goals and objectives. These are...
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Probably ok, but worth keeping an eye on...
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For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
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Issues to consider...
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For more information, contact Rick Maggi at Westmount Financial on 9382 8885.
02/02/16:Super or the mortgage?
Many people wait until their home loan is paid off before investing more in super. However, if you are currently making more than the minimum home loan repayments, you may be better off when you retire if you make additional super contributions instead. Super or Mortgage?
For more information, contact Rick Maggi at Westmount Financial on 9382 8885.
29/01/16: The super savings gap
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For more information, contact Rick Maggi at Westmount Financial on 9382 8885.
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For more information, contact Rick Maggi at Westmount Financial on 9382 8885.
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Selling a small business can be a challenging, complicated and uncertain time. So too can retiring. Combine the two and you have a situation where early planning and advice is critical. Retiring from Small Business
For more information, contact Rick Maggi at Westmount Financial on 9382 8885.
Rick Maggi Westmount Financial Clear Focus. Better Solutions.