My advice to up and coming retirees and for people in general is to make the effort to educate yourself on some fundamentals of investing. For example, pay attention to your super and understand which categories do far better than others over the long run and be ready to move your money around. Remember during the GFC, it took almost 12 months for the AU market to lose almost 50% so moving out early on the way down would have saved big $$$$ then getting back in when things started picking up was gold. Get your self some good up-to-date reading material on financial matters and read up. Many financial "advisors" simply sell you some package from investment companies they represent and take a hefty clip for the "sale", and sometimes the clip can last many years. People think that financial "advisors" are some kind of gurus ( yes some are) but in reality they are salesmen who immerse themselves in money matters with information that is readily available. Their objective is get you to depend on them saying "...Oh yes its far too complicated for you , just leave it to me. Trust me , I'm looking after your best interests..". The fact is many are worse than useless and people lose a lot or everything and the "advisor" gets his commission ( or more) on bad investments regardless. Whatever the investment, they get paid first. Its hard to know whether your "advisor" is any good or not. If he doesnt lose your money, that's a plus already. Of course most Australians don't bother too much with such matters and have to rely on the finance industry. If there is one thing that the finance industry absolutely loves is "choice". More choice ALWAYS means more confusion ( for the average Aussie) and more confusion is paradise for those calling themselves "advisors". Remember when there was no real choice in superannuation? When the government mandated that choice was required ( as lobbied by the industry) it was good for those who chose wisely and for the vested interests within the finance industry and its plethora of advisors , it was manna from heaven.

Advice from financial advisor: After producing this comprehensive report for you which costs $5000 , I consider that the market is most likely to to one of three things : It can go up, it can go down or it can stay about the same. The invoice is in the mail.

We pay tax every time we buy something.

And as if young people need more reasons to to give up.

$3 million, what a hoot. I don't care about people with that much money, they can take care of themselves. I certainly won't be worrying about that much money.

What you are saying applies to only 10% of the population. The other 90% are struggling to survive in the conditions over the last 20 years When I retired I visited a financial advisor and his best suggestion was to transfer all my assets to cash and put it in the bank. I left and never returned and will never visit or talk to a financial advisor again!!! I regard you the same as second hand car or insurance salesmen

How come i was legally allowed to cash in my whole superannuation at age 56 then ?

What happens if you have no job to retire from at 60? Eg redundancy and unable to find employment. What is needed in this situation to access super?

What happens if you reach $3m in an SMSF? Would you have to withdraw some funds? Thanks Drew.

Drew , I need to speak to u guys

Awesome again. Can you possibly add to what i imagine is a long list of topics you want to cover. The topic of self managed super funds as a stand alone topic? Pros and cons if you will? or a cross ref health check or highlight anything that could easily be overlooked if say you get thrown into it. And family trusts you often throw in mid speak, but park as a deep dive and extrapilate other areas. (Also excellent) I say that understanding both are complex as hell, so no worries if too hard. Thanks for such great info, explaonations and effort. Top notch 👌 the lot of them.

That was awesome. Id put it in my watch later file when i was more ready to apply my brain. Not reading trashy novels on the beach. But the downside is my brain doesnt want to shake itself off and ive screen shot your graphs and mug so much to look at later. You now appear in my phones photo stream search by face. Which is a bit wierd and creepy. 😂

This video says exactly what I have done and will be doing, it's all common sense really, I seeked advice from a financial advisor and he basically said to me I don't know why you're talking to me you've got this all pretty well worked out and he didn't charge me anything. I got to 54 and I saw chances for a redundancy in the next year, I'd not really done anything in regards to planning a retirement as I always thought my super would cover this comfortably and I'd always considered retirement at around 55 so I did my sums, looked at my financials and I easily had more than enough to live a very comfortable retirement, I set aside an amount to see me through to 60 and set about getting myself made redundant, it took just over a year, covid delayed things somewhat, but eventually got a nice package which I put into my super (with some extra from other investments) plus another top up 3 years later and I'll be able to give myself around $100,000/year well into my 90's. That was over 4 years ago, just a few months until I turn 60 and certainly the best decision I ever made

Hi Drew, is that 80-100k per person or per couple?

Not sure what the problem is with industry funds. They consistently outperform corporate funds and they don’t charge dead people fees. I don’t give a shit about knowing every nuance of how they work, or even what fees are charged, I just want the best return.

The government constantly fiddles with superannuation rules. What applies today may not apply come your retirement. Tread carefully...

You mention start the ttr pension after 60 (I’m 63). Should I do that even though I don’t need those funds? I know I can reinvest excess funds as non-concessional and the tax benefit that provides. Is that why I shld still setup a ttr pension?

My issue is I max3d out my 5yr consessional cap and therefore can't sell an investment property with a huge CGT bill until I retire

Big deal. If you have fully support this. If you’ve got a $3 million balance you’re just using it as a tax dodge. This is such a small change that will affect so few. As for indexation it’s quite likely that will be lifted at some stage. I’d rather have more money put into the age pension etc than have lower taxes for people with a balance that size. And the ‘500,000’ people have the ‘potential’tp be impacted by this change screams out that they are using some very dodgy assumptions.

Thanks mate.

As a Kiwi with franked Aust share dividends we get taxed again as income. So much for double tax agreements. Just buy gold and bury it.

Very helpful. Thanks.

Thanks. I am late 50s and have been advised to make some non-concessional contributions to Super to maximise my balance. That will mean selling shares and taking a Capital Gains hit outside of Super so that the proceeds can be tax free within Super. Have you run the numbers or know of any research that supports this strategy?

I have a SMSF, would i still have a concessional and non concessional component? I currently draw an annual income from my super.

Hi Drew, do you have a recommended budget planning / creation tool?

Your videos are very informative. I am interested to understand how to effectively reduce investment capital gains through contributions into super?

The best thing you can do, never vote Labor

If you need help in planning or accelerating your retirement, you can schedule a free meeting with Drew or one of our other licensed Financial Advisers here: www.wattlepartners.com.au/contact

As a counter to one of your rules, the reason why broad based passive funds are wildly popular is because active managers perform NO better during downturns Someone cynical would say but they charge higher fees! Instead of adding an active manager you would be better off adding other asset classes that don’t correlate highly with stocks🎉

This video is good but a little mischievous. The govt is not telling you how much to save for retirement, its merely limiting the tax concession thats on offer. Even so, for larger balances the concession is still well in excess of the cost of a pension so the retired well off are still doing pretty well out of the taxpayer. It was a rort needing to be addressed, and frankly the govt should have gone much harder (ie tax excess returns at full marginal rates, not at 30%). That said, taxing unrealised gains is going too far.

I retired at 58, been ten good years so far. A bit of careful homework, a conservative approach, don't get greedy. Own your own house is a big hurdle. I know several people who have been stung by financial advisers.

Govt need funds from somewhere. 😂

Smart wealthy people will still find a way around these new taxes

Vote Labor out and it won't be passed.

Interesting, thanks.

Taxing unrealised gains + no indexation means the bill is BS. ALP+Greens have only 36 out of 76 seats in the senate. Hope the crossbench will stop the bill.

In summary, dont invest in Australia.

Tax on lump sum withdrawals to force people to take an income stream will be next. Just wait! The bigger the super pot grows, the greedier the govt and vested stakeholders will get. 😢

Taxing unrealised capital gains is a form of theft. Not that I'm at those levels. And 3 million seems quite a arbitrary low amount.

This is just the beginning

Hope everyone who this effects voted Labor

I would absolutely love to have this "problem". This would be affecting the retirees sprogs far more than the retiree

YOU ARE LIVING OFF THE COMPOUND INTEREST, YOU MAY NEVER TOUCH THE PRINCIPLE

Send Employer Contributions into Future Fund. Lock it up till 60. Remove all tax free withdrawals in TTR. Voluntary Contributions etc can go into whatever fund people chose but the moment its touched early it gets Early Withdrawal at 22% tax. The APRA Bank Guarantee of $250k or the ASIC CSLR will not apply. SMSFs or "structures" will receive no tacpayer sdupport in event of loss by scams or risk.........😮

Australia becoming communist country P OFF pollies I paid 35 years into super how about the people protest reduce pollies super 50% see how you feel

The common person who could only dream of attaining such balances is struggling to find any empathy for the impacted few. I personally am not against the spirit of these changes as genuinely wealthy people can well afford them. Taxing unrealised gains though is utter BS.

Informative video, thanks. I always knew the Federal government would place additional taxes on superannuation. The temptation is too great. Who knows what additional taxes and fees will follow under both sides of the political spectrum.

Thank you, very useful information. I'd just add, the Gov wouldn't introduce a tax that wasn't going to earn them a significant tax collection going forward. So whatever bogus number of affected people they come up with now is just the tip of the iceberg. While super maybe the better option for retirement, it's fast becoming nothing more that the least dirty shirt in a pile of dirty shirts. Thanks to incompetent Gov.

Great breakdown, thanks!

Nice work, Drew!