Advice Needed: how to help Mum with 10 years left to retirement?
- Thread starter antonio
- Start date
This is the bit that scares me.
$400k for a ONE bedder??
And only maybe a carport?? And, it's not even built yet.Run away. You want certainty; not risk at her stage of life.
For that money, I can buy a 3 bed house with subdiv potential, and a double garage, with depreciation.
My advice; she is not far off retiring; the last thing you want is a risky investment.
Don't muck around - buy an existing house in a reasonable position, built after 1987 so she can get some good tax deductions off her PAYE. If purchased well, this could turn a neg cashflow into a pos cashflow after tax.
If she can access some more equity, use a bit more to buy a good solid share portfolio with high yield dividends (preferrably fully franked). I wouldn't use more than 10% of her useable equity for this though.
Being 55 your Mum is eligible to implement a transition to retirement strategy through her super. This will likely allow her to save 10 to 15 percent without sacrificing any of her income. This could be a huge boost to her retirement pool.
What are her current assets and liblaities? There may be a lot of money tied up in her home or other assets that could be put to better use.
Whilst most people here are very anti-financial planner and pro property, I'd really suggest your Mum needs to talk to a good financial planner.
I do know some very good planners in Perth who are pro-property. Happy to PM you some contacts if you like.
What are her current assets and liblaities? There may be a lot of money tied up in her home or other assets that could be put to better use.
Whilst most people here are very anti-financial planner and pro property, I'd really suggest your Mum needs to talk to a good financial planner.
I do know some very good planners in Perth who are pro-property. Happy to PM you some contacts if you like.
This is the bit that scares me.
$400k for a ONE bedder??
Run away. You want certainty; not risk at her stage of life.
For that money, I can buy a 3 bed house with subdiv potential, and a double garage, with depreciation.
My advice; she is not far off retiring; the last thing you want is a risky investment.
Don't muck around - buy an existing house in a reasonable position, built after 1987 so she can get some good tax deductions off her PAYE. If purchased well, this could turn a neg cashflow into a pos cashflow after tax.
If she can access some more equity, use a bit more to buy a good solid share portfolio with high yield dividends (preferrably fully franked). I wouldn't use more than 10% of her useable equity for this though.
Pardon the delayed reply BayView and thanks for re-affirming the thought - "don't touch with a barge-pole!"
I'm not that familiar with shares and will have to look into it further. What's considered a "high yield dividend"?
Interesting! I didn't know about the super thing you mentioned PT.
I need to digest what you've said and understand it tho
Thanks for the enlightenment and offer of the planners.
Telstra - 14% grossed up. (Do your own research, its unlikely TLS can maintain this)
All depends tho if it is sustainable, their is a new ETF which has a focus on dividend yield
http://www.morningstar.com.au/article/inv/msci-launches-two-Australian-indices/10150
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