Retirement planning

[JASA]

Hi, I am hoping I can get some advice. I have 2 questions:

1. Can someone recommend a good financial advisor in Adelaide?

2. CGT ..... I have ability to sal sacrifice my total wage from employment to my super. Can I avoid CGT if I sell an IP in a year that I sal sacrifice most of my wage?

I am 53.5 and plan to retire at 56 when I reach preservation age. I thought now would be a good time to start pumping tax free funds into super and to begin offloading properties that hold equity so that I can buy more.

Any opinion or advice would be gratefully received.

Jasa

 

[TPI]

There is a limit to how much deductible/concessional super contributions you can make each year to help offset capital gains, regardless of your salary.

How much capital gains are you anticipating?

And any reason why you want to sell properties then go and buy more properties after?

 

[Terry_w]

Since you are under 60 your max concessional contribution this financial year will be $30k. The non concessional cap is $150k but you cannot claima adeduction for this.

Assuming your income is just $30k and you get it down to $0 you cannot avoid CGT on property sold as any gain will go on top oof your $0 income. But if the gain was for less than $40k you could as it his halved to $20k and this added to the income which would mean zero tax payable

 

[travelbug]

The general concessional (before tax) contributions cap for 2013-14 is $25,000.

However, from the 1 July 2013 if you are 59 years old or over on 30 June 2013, additional concessional contributions will be able to be made to your super, with the cap increasing from $25,000 to $35,000.
From 1 July 2014:

the higher cap of $35,000 will also apply to people who are 50 years or over
the general concessional contributions cap will rise to $30,000.

But this includes employer contributions. I forgot that and received a "you're almost at your limit" letter.

 

[JASA]

Thanks for your replies, my income is around 75k pre tax. I have house in Cairns I am thinking off loading it because I bought it for $280 in 2003 it's valued at around $420k now and I owe $200 on it. I won't sell just yet, waiting to see what happens in Cairns as the situation up there does seem to be improving (first time since 2006 that I've had agents ringing and badgering me to sell). I would like to move the equity into multiple properties in the low to mid $200's price range sometime between now and the next 3 years. If I sold now I would pay CGT on 70k, that's why I figured if I could Sal sacrifice my wage, I would just pay my usual yearly tax. I understand that's not going to happen if the concessional contribution is limited to 30k. May be better to wait and sell after retirement and hopefully by then Cairns will have made up for lost time. I suppose it's better to pay tax on profit than not to have a profit ! just not happy about handing part of the profit to Abbott. (I support the liberals over labour but that arrogant religious zealot and his side kick may well cause me to turn). I need some financial planning advice because the thought of working until I'm 70 is making me soooo angry that I want to quit my job, I want my super contributions under my own control ASAP. Sorry for the rant, thanks for the advice and thanks for listening.

 

[The Fence]

(I support the liberals over labour but that arrogant religious zealot and his side kick may well cause me to turn).

So, I thought you edited out the offensive on TA...?