In general, I prefer that people have the double objective of paying the mortgage on a house Y retirement savings. But, as you can see, the later the mortgage, the more interest you pay, and this could be saved, as long as you control your expenses. Loose cash seems to disappear anyway.
So, if you both agree, withdraw $170,000 from your partner’s supermarket and put it in the loan account. You could even transfer $229,000 of the compensation to your loan account, making spending more difficult. If an emergency arises, use a redraw function.
Then use the old mortgage payments to supplement your employer’s 10.5 percent super-mandated contributions of $9,975 up to the maximum of $27,500 per salary foregoing $17,525. Ask your human resources department Make sure you don’t overdo it if you earn a raise, bonus or overtime during the year.
Your $17,525 is equal to about $11,480 after 34.5% taxes, which means you’re still saving ($22,080-$11,480=) $10,600 a year, which you could put into your partner’s pension plan without claiming a deduction.
If your partner can be defined as a spouse, you can also split your own contributions by having your pension fund transfer 15 percent of the post-tax amount (that is, 85 percent of $27,500 or $23,375 a year) to your fund. of pension. It would take her a little over seven years to rebuild her super.
Charging
As long as their combined wages exceed $86,154 a year, neither of them qualifies for an age pension. Continue working!
When my father died, his share of the family home automatically passed to my mother. My sister is the other name in the tenants in common title. My mother wants to give me my father’s share, making the three of us equal owners. The house was never rented and is valued at around $8 million. What kind of tax will we have to pay if we decide to sell? Will the sale affect my mother’s old-age pension? We want to avoid the capital gains tax (CGT).
The basic rules are simple. Her house, or her part of it, is CGT-free. If, after death, a beneficiary continues to live in the home, he remains exempt. If you or your sister does not live in the home, your share will be subject to CGT, if it is sold.
The old-age pension ignores your mother’s house, but if she gives it away, she will lose her pension. If you sell the house for $8 million, you won’t need an old-age pension.
Talk to a tax accountant. There is a lot of money at stake and you should seek financial help.
- The advice provided in this article is general and is not intended to influence readers’ decisions about investments or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
If you have a question for George Cochrane, please send it to Personal Investment, PO Box 3001, Tamarama, NSW, 2026. All letters have been answered. Helplines: Australian Financial Complaints Authority, 1800 931 678; Centrelink Pensions 13 23 00.
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