Retirement Looming?
Retirement looming then you need to focus on your future.
Retirement is finally on your horizon. We all look forward to the day when we can sack the boss or sell our business or maybe just walk away without selling.
We dream about previously unvisited locales where we can spend time traveling to, in our car, our caravan or maybe on a plane. We can post photos on Facebook of us, just living the good life.
No commitments, no early mornings unless we want to, our life, our way.
Retirement requires planning. We can no longer assume that the pension will cover us, we will still have bills to pay and the coffee at cafes won’t just pay for itself. There are concessions for Seniors (assuming you retire when you are over 60), stamp duty discounts and plenty of options – if you know about them and gear your future accordingly.
Before you leap into the wonderful and great retirement zone, I strongly suggest you talk to someone who understands the financial and taxation implications of your chosen life. An expert, not your children, brother, cousin, neighbour or person behind you in the Supermarket queue. You need advice that is personal, not general, advice that takes into account your personal situation, your entire personal situation. Hearsay and Facebook are not reliable sources.
Maybe you have had a beach house or mountain cabin for a long time and want to retire to it and sell the family home. Maybe you want to keep both and sell one or the other down the track. Maybe you want to buy a second home for whenever you feel like relocating for a change of air. Maybe you might rent this second home out as an airbnb so that you can use it too.
What impact will selling your second home have on your pension or on your tax? What happens to the income you derive from your second home? Yep, it’s taxable. Find out before you retire and see what your choices are.
Far better to find out before the tax bill arrives in the mail. Recent examples of Capital Gains Tax that I have heard of include a bill for $180,000 and another for $160,000. Selling that beach house or selling the investment property should not come with a massive tax shock. Plan, examine, ask.
Retirement usually means that you are no longer working full-time or even part-time so every cent counts. Any financial decisions you make will be coming out of your retirement funds, the money you scrimped and saved for, the money you worked incredibly long hours to gain.
Many of us intend to continue to work, albeit part-time. Understand the impacts this will have if your partner has retired. I have no intention of retiring for at least another 15 or so years. I love what I do and am building my business to make it more transportable with elements that may possibly be able to be sold off.
For some, retirement will mean they can no longer afford to rent and they will need to move in with their children or other family members. Emphasising the need for planning to ensure you always have a secure roof over your head.
Vitally important is getting the right advice from a specialist solicitor and financial planner before you make the move, any move that may have deeper impacts than you ever considered.
I have worked with many clients making these big decisions. Selling the family or holiday home, all the costs, time, and stress. Call me and we can work it through together, I can guide you and give you recommendations on the other experts you will need in your corner if retirement is going to happen and on your terms.
