Hi
We plan to retire in June at age 59 and 58 and be self funded.
The money to do this is from the sale of our main property and a small amount of super.
We have couple of investment properties which excludes us from any sort of low income health care card etc.
We will definately be using the FIS at centrelink which looks really helpful.
http://www.centrelink.gov.au/internet/i ... es/fis.htm
After reading this damming report on financial advisors, we feel we would be better off doing the investing ourselves.
http://asic.gov.au/asic/ASIC.NSF/byHead ... 20research
Sooooo can anyone tell me if they have allocated pensions that they have invested in themselves without a financial advisor?
What sort of returns is anyone getting on any sort of allocated pensions, cash, bonds, balanced, highgrowth etc?
Can you invest in bank shares with an allocated pension?
What about annuities?
Any other info along these lines would be helpful.
We have a new van due to be ready in August and are currently looking for a suitable tug. So it is all very exiting.
Cheers
Cliff and Di

dentoz,
I would not be seeking financial advice from any sites like these. You need to talk to a trusted accountant, your banking advisor etc, one on one -face to face about your actual circumstances.

I have found that for every person who has done it well, someone could have done it a lot better.

And remember, if it sounds to good to be true, it usually is.

Good Luck.

Hi Tripping Away
I dont know a trusted accountant. I have spoken to a CBA financial advisor and dont trust them either.
In life I have found the only way to get something done properly is to do it yourself.
It has been a long hard road to become financially secure and we dont want to go backwards.
I was looking for a few facts and figures.
Do you know of any current financial/retirement type forum?
Cheers
Dentoz

dentoz,
I am of the same opinion as you, if you want something done properly, then do it yourself. I do my own super fund and I am told that one third of money in superfunds now is in self regulated superannuation.

Be aware that there are a lot of rich people out there with now poor clients so BUYER BEWARE.
Having said that, you need to know what you are doing before investing your money in anything.
Remember the old carpenters rule, measure twice, cut once.

If you do not research your subject from a reliable trusted source, then, you may as well bet on a horse race.

So dig a little deeper than a caravanning forum. Sorry I cannot help you anymore as only you know where you are and where you would like to be down the track.

One thing I would never do is sell my base though, I would always ensure you have somewhere to come home to. But even that is my opinion only, your position is different to mine, I am sure.

Sorry you do not have an accountant you can trust, I would not be without mine as he always gives me honest answers, whether I like them or not.

Good Luck for the future.

Dentoz, just a thought for when you are both over 60

High dividend yield shares like Telstra should give you approx. 10% return with franking credits applied.

If you have your own self managed super fund, after 60 no tax is payable. You have to be very careful how much is put in as their are limits on lump sums, however, if you both put in $400,000 each from the sale of your properties, I think that is within the limits. You can easily buy/sell shares in the fund (we use etrade.com.au). There are accountants that specialise in setting self managed super funds up. It costs us $1,000 a year for the audit! That is the only real expense in our super fund.

Basic sums for consideration:
$800,000 invested in Telstra shares buys 246,150 shares. The dividend last year was 36.4 cents per share (with the franking credit applied ie no tax so the franking credits are refunded). This is a yearly income of $89,600. Enough to live on I think!

Also, don't forget your seniors card for great savings!

mikehannon,
you should be very careful about handing out this type of information, even with the best of intentions, unless of course you have all the right creditials to give financial advice.

What happens if Telstra shares don't give a dividend next year? And dentoz has spent the $89K already

hi
for what it's worth, I made an appointment with a financial advisor at Centrelink. I was very impressed with his impartial advise.

why not consider them?

cheers. Hans

That is why it is just a thought.......

However, now for the disclaimer. The information above is for general purpose discussion and the figures indicated are for illustrative purposes. Before acting on any forum information, qualified advice from experts in the field should be sought.

Cheers from Mike

Hi Cliff & Di...well I am an "allocated Pension" user myself, but not a DIY one...why?, cause I don't want the worry when retired.

My advice, look at a low fee allocated pension run by a large industry superannuation fund...I would recommend you look at Australian Super for a start (because I don't use them yet and I am looking for a good one and think they look OK). These let you choose what sectors you wish to invest in and you can change each day if you want...that way all the reporting etc is done for you.

They will pay you a fortnightly pension as well

Hi Cliff & Di,

I'm a retired Certified Financial Planner & I DON'T do my own Super or Allocated Pension.

I use a CFP & several Fund Managers.

Why you may ask, because I want to be able to pick up & go at the drop of a hat & just have the funds deposited in my bank account each month.

Apart from that, I’m retired & don’t want to have the hassle of keeping up with all the Regulatory Changes.

It's all well & good to DIY your Super & Allocated Pensions, however it's not just all "Beer & Skittles" & you as Trustees are totally responsible for the operation of the funds.

If you are not a Seasoned Investor, you will probably need to seek advice

Those who give you advice on operating your Funds have no responsibility, unless they are Trustees of your Fund & I doubt that an Advisor would be foolish enough to be a Trustee of your Funds.

It’s pretty much like you relationship with your Accountant, he/she gives the advice & does the work; however you are the one responsible to the Taxation Department.

I’ve been retired for eight & a half years & have nearly double what I started with, so I guess my Fund Managers are worth their money.

More to life than being able to say “I do my own Super & Allocated Pensions Pensions.

Take your time, open your mind & don’t be too quick to DIY, especially if you wish to spend plenty of time “On The Road”

Tar Trekka.

Any day above the ground is a great day.