Retirement Income Strategies

Hi

Has anyone considered or has purchased an annuity as a guaranteed fixed income source in retirement.

Would like to know if this is a worthwhile invetment compared to investing in an indexed fund or stock portfolio and drawing down to meet expenses.

Cheers

7 comments

Jag, look at the basics....

An Annuity is where you give all your hard earned cash to someone else and they let you have it back bit by bit, after they have taken out their "Management Fees."

You gotta be a mug to buy into this stuff.

 

Phil.

 

 

 

 

Phil

agree. i think its one of many options in an asset allocation strategy

did some research and through  some former contacts , found an excellent investment management company here in Oz

https://www.vanguardinvestments.com.au/retail/ret/home.jsp

i had dealings  with Vanguard (US) during my expat days. 

Once you are over sixty and do everything through your SMSF you have NO tax so if you are below sixty you should be organizing your affairs to be in this position 

yes - i need to get that bit sorted out.

its good that from this year the tax free threshold has increased significantly. 

also can't put everything into super until your 60 because the max withdrawal without tax implications is only $150k

There are no max withdrawals only minimum . But that 150 does ring a bell did the labor govt change the rules

yes - they even lowered the max salary sacrifice thresho;dto $35k. Remember when Costello raaised that to $75  some years ago.

there is a minimum withdrawal rate based on your age past 60. there is also a maximum withdrawal before 60. I think its designed to prevent withdrawals as gifts and then claiming pension at 65

I remember Costello allowed you to put in a million bucks one year 

yep - and that was in the heydeys of the property boom, so many sold their investment propertis and invested the proceeds in their smsf's or traditional super schemes

How much does it cost annually for SMSF.

A SMSF or an Industry SF is supposed to be for retirement income.  Why would a retiree want to pull out more than $150K in a lump sum?

7 comments



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