‘John, I’m just tired’

Yes that was Gerald* when we rang him on his birthday as we do.

Gerald* tells us that as he has both business debts & his wife has health challenges then he needs to sell his house.

As selling a house is a huge emotional & costly step we suggested ’why don’t you retire’

‘I can’t’ says Gerald.

Yes you can as you are now 60.       

But I can’t afford to stop working’

You can retire & then change your mind as others do.

Confirm that with your accountant just to be sure.

Which is what Holly did& also addedyou only need to retire a day.

So Gerald rang us back & said “John thank you for helping us so much”.

We meet so many who are just ‘tired’

We were referred to Nick* & Ruth* who were very similar.

Nick* self employed Painter at the age of 69 had slowed down as way back lead was added to paint & that catches up with you.

Ruth at 64 was just ‘tired of doing BAS’.

And ‘we have paid always all our taxes’

When you have a 6^th Grandchild weighing in at 9lb 14oz then Ruth* wants to be not in her office.

So big questions need to be answered.

Who stops work first?

How much will Centrelink pay?

Do we cancel our ABN?

We asked ‘Do you sell the house as valued at 1.2m’?

Maybe downsize as

Scott Morrison is canvassing bold tax reforms designed to persuade retirees to downsize to smaller homes. 22/11/2015

This would release say 600K but then where do you invest it & neither had any interest in other than term deposits. It also adds to Centrelink assessable assets.

They did have 123K in a good super fund but how much income will that produce?

Can Nick* work part time & how much can he earn as a painter is always going to have some work?

We also asked

What if you have a homestay in your big house?

No

What about a reverse mortgage ?

No

 

When you are tired and you do get to that stage then these are questions that need to be answered.

The easiest process is step by step.

·         Lets Ruth* retire first

·         Let’s use that nominal income from your super

·         Lets then fill out 28 pages with Centrelink

·         Then the house sale when emotionally ready to sell.

·         Then Nick* plays at work.

·         Or some other order.

Step by step & maybe year by year.

As Antony has just stated then all need to start 5 years earlier & overcome their Inertia.

But we can’t & won’t make those emotional decisions for them & nor are we proposing a solution on our first meeting as most expect.

Linda* & Francis* who we have guided are also tired & are into & that step by step process. They retire in March 16 living on the income they were on before they retired.

Linda’s* concern was to qualify for the health card.                                            

We wrote

Commonwealth Seniors Health Care Card

Health Care Card, please see the eligibility criteria outlined below:

·     To be eligible for a Centrelink benefit you must meet certain residency Linda* and Francis*, you have requested details of eligibility for the Commonwealth Seniors requirements.

·     Centrelink must be notified within 14 days of any change to your income or assets.

·     To qualify for a Commonwealth Seniors Health Card you must:

·         have reached Age Pension age but not qualify for a payment from Centrelink or the Department of Veterans' Affairs

·         provide us with you and your partner's tax file numbers, or be granted an exemption from doing so

·         meet an income test, and

·         meet residence requirements

·         You should have an annual income of less than:

·         $52,273 for singles

·         $83,636 for couples combined, or

·         $104,546 for couples combined, couples separated by illness or respite care, or where one partner is in prison

·            Based on this criteria above it would seem likely that you will be eligible for this benefit on Francis’s* full retirement from the workforce therefore meeting the annual income test limits to be eligible for this benefit. We strongly recommend that you contact Centrelink to confirm any benefit which is available to you based on your position at the time of application.

What’s the message??



As we discussed with 2 very helpful call centre ladies today.



& suggested to both that if they didn’t want to end up as one in three ladies =39% do in poverty that they read ‘Rich Dad Poor Dad’.



It suggests that as James & Nick* & Ruth* are now discovering that you can have too much house & that doesn’t earn an income when you retire.



As we have asked when you are tired do you want a million house or a million in super?



Yes & very rightly you don’t trust our rulers & hence property must be in your portfolio.

Yes Liberals aren’t liberal in our interpretation of the word.

As others do then if you care for our care then why not our 5 minute financial health checkup


Or contact us on 07 3848 1088 or email or visit our website.

We believe that we can generate significant financial certainty for you throughout our relationship & importantly add substantial value to ensuring you achieve all that is important & valuable to you as you have articulated to us.

If we were to sit down in three years time & looked back what do we need to do today
so that you are financially & personally better off & happier.

John McAuliffe