Australian (ASX) Stock Market Forum

Retirement Stocks 2019

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Dividend income pa: $36,000 fully franked at 30%
Franking amount: $15,482
Total Taxable Income: $51,428
Tax on Taxable income: $7,981 including Medicare Levey, $228 low income offset and $1,080 Middle and Low Income Offset.

Subtract Franking.

Tax Refund: $7,447.



Just in general. Care to ensure if one does do the OS thing and have an SMSF it does not become a Foreign Superannuation Fund which could then be subject to a 45% tax rate.
The OS and non residency has some serious implication on real estate taxes, maybe even rates and stamp duties etc
Thanks for mentioning the smsf
I have none but it might have some implications on my super funds indeed.i will have to check that
 

Bill M

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And to add to the theme of the thread title, here are a few of my long term holdings.

Australian Enhanced Income Fund, AYF. (5%> Distributions)
At a net asset value (NAV) of a Unit of $6.00 the Fund's cash income yield is 4.66% per annum (assumes a $0.28 cents per annum distribution). The Responsible Entity estimates that the benefit of franking adds an additional 0.50% to the cash income yield on an annual basis.
Link: https://www.eiml.com.au/listed.php/53/212

Vanguard Australian Shares High Yield ETF, VHY. (5%> Distributions)
The ETF provides low-cost exposure to companies listed on the Australian Securities Exchange (ASX) that have higher forecast dividends relative to other ASX-listed companies. Security diversification is achieved by restricting the proportion invested in any one industry to 40% of the total ETF and 10% for any one company. Australian Real Estate Investment Trusts (A-REITS) are excluded from the index.
Link: https://www.vanguardinvestments.com...ct.html#/fundDetail/etf/portId=8210/?overview

RateSetter, Peer to Peer Investing. (Earning 7.7% Currently on the 5 Year Loan)
More info at the following link: https://www.ratesetter.com.au/investing/
 
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I think the replies that people are putting forward are priceless, you can't get better advice than from those who have already walked the path or are further down it than yourself.
I also started my accumulation early in life, my first son was born when I was a 22 year old electrician, i used my wife's finishing up pay as a deposit on a block of land.
By the time I was 25 we had three children, but we had moved to the bush to earn higher wages, at 26 I moved back and paid cash for a house to be transported and re stumped on the block. Best move I ever did, from then on it was invest any spare cash, in shares or in moving to upgrade the house or location.
I selected my first shares, by asking a couple of old blokes I worked with who were obviously investors, "if you were starting out right now, what share would you buy"? The answer was Franked income fund, it proved to be a real winner. They have since been bought out by Westfarmers.

With retirement, we travel about 4-5months of the year, usually involves a cruises and we spend $60-70k, that includes the running costs of 1 1/2 houses.:xyxthumbs
 
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There seems to be some interest here in "retiring young"... Is this an ambition for many? I am curious, if so, as to why.... Genuine question.

We have a son, aged 50, who has done well enough financially to "retire" but his intention is to find a position, next year, in the non-profit sector in order to give back. He already does this voluntarily but out of hours at the moment.

Financial security creates 'free will' in a way which is alluring to most.

We all have different ideas of what to do with our time and money.
 
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There seems to be some interest here in "retiring young"... Is this an ambition for many? I am curious, if so, as to why.... Genuine question.

Not sure about other's motives, but from my own point of view, the desire to retire early (which has already passed:() was just another way of saying I want to be financially self sufficient so I can do more of the things I would like to rather than simply work all the time.

After 40 years of being self employed I have come to the conclusion that work is over rated:D

ps What @willy1111 said … only he said it more succinctly.:)
 
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Not sure about other's motives, but from my own point of view, the desire to retire early (which has already passed:() was just another way of saying I want to be financially self sufficient so I can do more of the things I would like to rather than simply work all the time.
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I must say, personally I think you have nailed it, retirement itself isn't all it is crapped up to be IMO.
It took me four years to come to terms with not working, I very much enjoyed it, so when it was removed from my life I became quite depressed.
Now after eight years, I have filled my time with other pursuits and pass times, so I no longer have that overpowering feeling of worthlessness but initially it was a real struggle.
I think the main thing that got me through it, was being in a financially secure position, where my wife and I could enjoy the rewards of our life's labour and scarifices.
 
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Bill M

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There seems to be some interest here in "retiring young"... Is this an ambition for many? I am curious, if so, as to why.....

For absolute and total freedom of your life. To be able to do anything, anytime you like without external pressures like work commanding you should be at a certain place at a certain time. I had some really different and exciting jobs in the past but I always felt that the job was stealing my time on this planet away from me. From an early age I was hell bent on studying as much as could about investing just so I could retire early, it helped me achieve my goals. I am retired 18 years now and love every moment of it.
 
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Oh, if you wait for real retirees to answer you, they'll need to have their cup of Earl Grey, put in their false teeth, have all their pills labelled Tuesday, and have a potter in the garden before they'll get back to you.

See https://www.superguide.com.au/smsfs/no-tax-retirement-sapto

Firstly, what it's called:

View attachment 98109

And here's a table listing the offset:

View attachment 98110
It goes on, but you get the idea.
Thanks Zaxon, that's good to know there is this offset which will bring the overall tax for the retired couples. Have to plan now for retirement because as you mentioned there will be other important things that will take up the time and priority to do it at a later stage slowing you down ;)
 
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Dividend income pa: $36,000 fully franked at 30%
Franking amount: $15,482
Total Taxable Income: $51,428
Tax on Taxable income: $7,981 including Medicare Levey, $228 low income offset and $1,080 Middle and Low Income Offset.

Subtract Franking.

Tax Refund: $7,447.



Just in general. Care to ensure if one does do the OS thing and have an SMSF it does not become a Foreign Superannuation Fund which could then be subject to a 45% tax rate.
Thanks Belli.
 
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I knew there was something I was doing wrong …. I drink Dilmah … I'm destined to have to work forever:bigtears: .… nice tea though:D
I am already at earl grey at 52.....
Retirement is freedom, and freedom to work crazy hours in a chinese start-up if you want to as you do not care if you get paid or not and the experience is unique, and get out when you want to to retreat in your hobby farm
But i have never drunk so much tea indeed and try to stick to a single coffee a day
 

Country Lad

Off into the sunset
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This common theme is a critical issue for all people considering retirement, particularly those at a younger age.

I must say, personally I think you have nailed it, retirement itself isn't all it is crapped up to be IMO.
It took me four years to come to terms with not working

There seems to be some interest here in "retiring young"... Is this an ambition for many? I am curious, if so, as to why.... Genuine question.

Financial security creates 'free will' in a way which is alluring to most.
We all have different ideas of what to do with our time and money.

In our case I had a very lucrative business which gave me welcome challenges, as well as directorships on a number of government and public boards over the last 25 working years and a high public profile. My wife had a senior position which she enjoyed.

We are fortunate to have sufficient income/investments to be able to fund whatever we wanted to do, but even so, we were very careful about when we retired and particularly knowing how we were going to spend our time.

We travelled full time RVing throughout Australia and also travelling overseas for 9 years and now do it around 6 months of the year. We have never been bored or dissatisfied and thoroughly enjoyed things we never contemplated doing during our working lives with shoes under the board table, such as volunteering on outback properties, working with BlazeAid.

We have met numerous people who have retired early and became bored with it and many went back to work to retire later.

We had a plan how to spend our time, enjoyed executing the plan, and along the way have found other interests and enjoy being mostly busy. Camping out, cruising or socialising can be a tough hectic life you know.

To us that is how retirement should evolve – living life and finding things to enjoy.

Unless you have a definitive, well thought out plan of what you are going to do with your waking 16 hours per day for the rest of your life, my suggestion is don’t retire till you have that plan. The last thing you need is a boring unsatisfactory third age.
 
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This common theme is a critical issue for all people considering retirement, particularly those at a younger age.
.
I agree with your comments, I also had a plan, but it was scuttled by a convergence of redundancy, family issues and ill health. :roflmao:
 
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I don't drink tea at all, and I certainly have no interest in gardening. I fear, too, I'll never be accepted into the hallowed halls of the Grey Army.
"Grey Army" in Australia is actually a service provider of Handyman and Lawn mowing services. So if you are fit wouldn't be hard to get accepted there with $20-$30p/hr pay, not sure if you'll make the hall of fame though. You might need a cuppa tea for a pick me up after all :laugh:

Above is off track and just for a little fun, I knew Earl Grey was of UK origins.
 
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It took me four years to come to terms with not working, I very much enjoyed it, so when it was removed from my life I became quite depressed.
You have nailed it with the above comment with regards to work. I also wouldn't wish to give up work altogether for the sake of retirement. Even if I could retire I would like to have some involvement with the community in terms of charity/giving back or part-time or some casual work. Like you it's first hand experience where I am coming from due to a period of being out of work due to a retrenchment after which it took me around a year before re-training and getting back on a part-time basis. During those months when I didn't have any work, I did feel something was missing and it wasn't just financial as I had a savings buffer and a small payout from the retrenchment. I think it was the lack of involvement with other people that was hard since most of us tend to be social creatures. I also hadn't discovered ASF at that time or I would've had some comfort chatting to all you guys :D
 

Zaxon

The voice of reason
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"Grey Army" in Australia is actually a service provider of Handyman and Lawn mowing services.
Oh right. Then it's an appropriated term then. Traditionally, the Grey Army is the name given to pensioner voters who vote you out if you try and mess with their pension and benefits.
So if you are fit wouldn't be hard to get accepted there with $20-$30p/hr pay, not sure if you'll make the hall of fame though.
Actually, I'm quite handy. I fully rebuilt our bathroom from scratch. Looks like I'm OK after all. Phew!
 
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It also depends on how you see your work while working
Some people have no life outside work, the elevator army always too busy and finishing files on the week end
Retirement is death to them
I have never been like that
life is too short to exchange some of yours for $
This is what work is
If it is not then that's not work and you are lucky but very seldom do i see people employed and enjoying every minutes of it
Self employed helps but then you have some customers... And then the ATO, etc
When money is out of the equation, it changes everything or it should IMHO
Ok let's go for bowling and a cup of weak tea
 
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