Tell me about the Pension Bonus Scheme
June 28, 2008 by admin · Comments Off
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Q. On your radio segment on the 1st June 2008 I only heard the end of a comment about pension age people who are not taking the pension but are being rewarded somehow.
As I missed the bulk of the conversation would you be able to provide some more information or direct me to a website. Some background for you.
My pension age parents and myself are farmers and as my parents have a large asset base they are inelligible for the age pension amongst other benefits.
As the farm is to be handed down to me, the “asset” is really a business. They refuse to give any asset away before the execution of their will and as such haven’t planned ahead for this situation.
A: You are referring to the Pension Bonus Scheme (PBS) which has been in operation since 1998 and just like yourself very few people have even heard of it.
The PBS is to reward people who work past age pension age, currently 65 years if Read more
I was born in 1964. I heard they will be stopping the age pension?
June 21, 2008 by Josie Kay · Leave a Comment
Q. Can u tell me, at what birth year does the aged pension stop. I was born in 1964 and need to know whether I will receive the aged pension.
A: A great question and I suspect many people reading this question will think you have gone bananas. Most Aussies have the attitude that it is their god given right to receive the age pension as they have paid taxes all their life.
A fair point, but there is only so much money in the Government kitty. Remember they are simply managers of the tax we have to pay them.
A huge problem facing most Governments is Read more
Retirement planning help and investing $50K
June 11, 2008 by Josie Kay · 4 Comments
Q. My Husband and I need help with “financial planning for retirement“. We are both over 50 and We’ve sold our home & have $50,000 leftover. We have a $250,00 new mortgage with $30,000 in offset accountant.
We’re currently spending offset money on improving our house to use for selling when retire. We have no superannuation (self employed).
We have no great aspirations when retire, family around just want to live & pay bills no liabilities except mortgage & business vehicle.
How can we use $50,000 wisely now. My Husband is able to do all renovations to home himself…..current value of home approx $500,000. thanks
Josie’s Answer: Assuming I am interpreting your question right, your main question is that you have $50,000 sitting in a savings account. On top of this, you have $30,000 in an offset account which effectively means you are paying interest on $220,000, rather than $250,000.
My initial thoughts include:
- Why haven’t you topped up the offset account by $50,000? If you do this, your bank will be charging interest on $180,000 ($250K - $30K - $50K). I particularly like this strategy because the interest on the home that you are living in is not tax deductible. Also, you are paying in ‘after tax dollars’, i.e. your net pay.
- If you invest the $50K you need to think about your time frame and what you have to do with the funds e.g. term deposit, managed funds. Investment markets are Read more
Struggling with Budget
June 4, 2008 by Josie Kay · 2 Comments
Q. Hi Josie, my husband and I are really struggling putting together a household Budget. Any suggestions?
Josie’s answer: Maybe you are setting unrealistic goals. Can’t believe I am saying this, but maybe you are foregoing too many luxuries and you are extremely bored.
Just like dieting, if you ate that piece of chocolate cake, it doesn’t mean you have to throw away the whole diet.
For example, you don’t have to give up going to the movies, just go when they have cheap nights. Your budget Read moreI am separated and never received First Home Owner’s Grant. Do I qualify?
June 1, 2008 by Josie Kay · 4 Comments
Q. I’m 56 years old, separated and I want to buy a unit. My husband brought a house before we met. When we brought a house together we were not entitled to the first home buyers grant because he used it when he brought his first house. My question is: am I entitled to the grant, because I have never technically had one.
Josie’s answer: I can understand why you are keen to explore the possibility of obtaining the first home owners grant which is currently $7,000. It would certainly help to buy the unit you are interested in purchasing.The First Home Owner’s grant is a Federal government initiative and administered by each State and Territory. From my understanding of the rules, if your ex-husband owned a home before you were married, technically you did not hold a relevant interest, i.e. your Read more
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