When Michael was at the tile shop looking for renovation ideas and being asked to choose between an assortment of different designs, he left in a haste and joined his kids in watching a Disney show instead. When it came to choosing tiles for his new bathroom, Michael was overwhelmed – and simply couldn’t envision what the tiles would look like on a wall. All credit goes to his wife Suzie, who has done all the hard yards and put up with him at the shop.
In the previous podcast we discussed ‘bolting it all together’ while you are still working – meaning getting everything in order financially before you retire. We gave the example of a couple who earn $90,000 each in the final 10 years of their working lives, and their ability to claim $113, 505 in personal tax returns if they make voluntary super contributions in that time. If we subtract the 15% earnings tax from this, it would leave a benefit of $64,155. There are other benefits the couple could tap into while they are working, such as spouse contribution and government co-contribution. There are many small things you can do while you work to chip away at growing a larger amount of money for your retirement.
We often discuss owning the great companies of Australia and the world and how it benefits you in retirement. Today, we look at some things you can do while you are still working.
So why is it exactly that we get caught up with ‘the crowd’? We are surrounded by people in our everyday lives – friends, family, colleagues and so on. We try to listen to our own intuition and our independent thoughts, but often we’re influenced by those around us – sometimes without realising. Another factor is the abundance of information readily available to us.
It can be difficult to own a money-generating asset – historically speaking, too. You can’t drive past a successful business and just go in and buy part of it. On the flipside, you can buy a part of some very big companies online – in fact, you can simply get on the internet and buy a share in companies like NAB and Amazon at the push of a button. And the best bit about having these shares is that you can own part of the biggest companies around the world without having to know what they are or how they operate. To buy an asset and sell it later at a profit is the best way to make money – and this is often what happens with shares.
We find that tax deductions are often the least understood area of finance. People often spend money simply because it’s a tax write-off. But what they don’t consider is whether that expense will help them in some way in the future.
In this blog we look at how much money you’ll need to retire, and what you need to do to get there assuming you have ten years left of your working life. Note: the figures discussed today are simply a rule of thumb and don’t take individual factors into account.
In the third instalment of our biases series, we are asking: why do we believe fake news? Why do we believe stories or things that aren’t necessarily true?
Everyone knows Roger Federer is one of the best tennis players of all time. But he still has a tennis coach! It’s the same for a financial adviser. Despite how good they are, they still benefit from financial advice. At Money Over 50, while we are well equipped to deal with our own finances, we still value input from other advisers. Michael is Dallas’s adviser; Dallas is Michael’s.
Dallas Davison, Michael Hogue and Ali Hogue.