How can Jan best set up for retirement?

Jan asks Noel Whittaker how to structure the couple’s assets before she retires.

How can Jan best set up for retirement?

Jan is just a year away from her planned retirement date and is considering how best to structure her and her husband’s assets. She asks personal finance guru Noel Whittaker for his thoughts.

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Q. Jan
I am 65 and planning to retire at 66. My husband is already retired. We have $350,000 in super, own our own home in the country (which is only worth $250,000) and have an investment property with $100,000 equity in it. I would like to keep the investment property and use rent to pay it off slowly in case we need to move to a more expensive locale when we get older and more infirm. But I wonder whether it would make more financial sense to sell the investment property and put the $100,000 into a tax-free super environment while we can. The investment property is not in a self-managed super fund. Your thoughts?

A. The major issues here are the potential of the property, and what capital gains tax (CGT) would be incurred if you sold it. If the property has great potential, and selling would cost you a big amount in CGT, it would make sense to hold it. However, if any CGT would be tiny, and future potential is not good, it may be better to cut your losses sooner rather than later.


Do you have a question you’d like Noel to tackle? Email us at newsletters@yourlifechoices.com.au

Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature, and readers should seek their own professional advice before making any financial decisions.

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    COMMENTS

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    Sundays
    21st Aug 2019
    1:57pm
    Jan needs to talk to a Centrelink Financial adviser. Noel might be a guru but he has not explained the intricacies of Centrelink treatment of Assets and the Aged Pension. With only $350k in Super, this couple are not fully self funded
    Chris B T
    21st Aug 2019
    2:50pm
    Centrelink ask Questions About your Assets/Momentary Up To 14 months before Claiming and There Disposal.
    Some say 12 months until you Had Actual Dealings With The Rigours Of Centrelink and Have A Reality Check.
    There are inconsistency's and Methodologies used, the Luck of the Draw.
    It is not like Using Mathematics and everyone comes up with the same answer.
    No Break Down or any Calculations used, Just What There Result Is.
    Challenge What, a Result.
    {;-(
    johnp
    23rd Aug 2019
    1:17pm
    Very poor answer by Noel !!


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