Over 50 Investing - Specialist wealth management services for investors over 50

Wealth management is an essential factor for investors as they approach retirement. For investors in their 50s, ANIG WM advisors offer expertise in tax planning, asset allocation, estate planning and income planning to ensure investors’ assets are managed effectively. Tax management, diversified portfolios for capital preservation, and estate planning to transfer assets to beneficiaries with the least tax implications are all important considerations.

Families Investing

Medical Professionals

Business Owners

Retirement Planners

SMSF Investors

First-time Investors

Our over 50 investors have many questions when it comes to wealth creation, tax mitigation and retirement & TTR planning. Here are the top FAQs we have encountered:

Wealth management for investors heading into retirement is an important area of focus for ANIG WM financial advisors. Several important considerations exist as investors transition from the accumulation phase to the income distribution phase of post-retirement. These include tax planning, asset allocation, estate planning, and income planning. From 50, investors need plans and investment strategies that provide a degree of certainty and protect their assets.

Implementing structures focused on tax management to reduce taxes on investment and passive income is important. Asset allocation should consider portfolio diversification and capital preservation and estate planning to transfer assets to beneficiaries in the most tax-efficient way.

An adviser should consider creating an investment and asset allocation strategy that incorporates income planning to develop an income stream that meets their retirement needs while considering risks and inflation.

When choosing an adviser, working with one with the right resources and relationships is important. An experienced ANIG WM adviser can provide tailored advice and point you in the right direction, utilising vehicles such as Managed Discretionary Accounts (MDAs),  separately managed accounts (SMAs), self-managed superannuation funds (SMSFs) asset allocation advice, and more.

In Australia, individuals can access their superannuation when they reach their preservation age and retire from the workforce. Preservation age is determined by an individual’s date of birth. The preservation age is 60 for individuals born after 1964, who must meet a condition of release to access their superannuation savings. The Age Pension eligibility age is 67 for those born from 1 January 1957.

For investors in their 50s who plan to continue working for the next 5-10 years or longer, we suggest making adjustments and investments to improve their overall financial well-being in this last phase of their working lives.

Ask the right questions to the right advisers to ensure you are maximising all opportunities available. With the right advice and investment solutions, you can confidently plan for retirement. Click here and work out ‘when you can access your super and Age Pension‘ with the federal government and ASIC’s Moneysmart Super and Pension age Calculator.

No, there is no set age to retire or be financially secure in Australia. Retirement age and financial security levels vary from person to person depending on their level of income, savings, investments and other factors.

Retirement is when people can choose their lifestyle and use their investments, including superannuation savings, to cover their living expenses. To access these funds, investors must meet the condition of release. Generally, this occurs when they reach their preservation age, normally over 60. Before retirement, individuals should assess their debt situation and if they can become debt free by retirement. Additionally, they should evaluate if they can generate enough passive income from their investments.

Our services for business owners and medical professionals are focused on connecting you to what you love and helping you turn that into wealth.

Our specialist advisers, SME and SMSF accredited advisors can help you balance your objectives with solutions to benefit your business, practice, yourself, and your family. We provide advice on tax planning, insurance, superannuation, investing, and wealth management, as well as helping you assess your eligibility for the Small Business Entity Concession if you’re looking to sell your practice or business.

Over the past 20 years, an individual who started working full-time at age 30 and earned an average salary of $120,000 per year until age 50 has earned a total of $2,400,000. How this money was spent depends on their lifestyle and financial decisions.

How much have you paid in tax?

This suggests that an individual would pay approximately $34,000 in taxes annually, which would amount to $680,000 over 20 years.

How much went into mortgage and interest repayment?

Assuming you own a home acquired in 2000 with a mortgage at an average 5% interest rate, and you focused on paying it off in 20 years with a principal, and interest repayment term, the examples illustrated in the table can be applied.

Purchase Price

Original Loan

Rate

Mortgage Cost – 20 Yrs

Interest Paid – 20 Yrs

$300,000

$240,000

5%

$380,000

$140,000

$400,000

$300,000

5%

$475,000

$175,000

$760,000

$600,000

5%

$950,000

$350,000

How much went into superannuation savings?

Assuming a contribution rate of 9.5% for the last 20 years, you would have accumulated $136,800. This is only if you solely relied on your employer’s contribution.

How much was left for lifestyle, family, children’s education, and other expenses?

After purchasing a house, there was an estimated $1,203,200, $1,108,200 or $633,200 available for lifestyle, family, children’s education, and other expenses. This equates to approximately $60,160, $55,410 or $31,660 spent per year over the past 20 years.

If you have been too busy with career and family responsibilities to focus on your financial wellbeing, your superannuation balance may be below $300,000. We should look into using your assets and implement specific investment strategies to maximise them. This could help you avoid relying on the Age Pension, which should be a last resort.

An SMSF can be an effective long-term financial planning tool, offering investors exceptional possibilities that a traditional super fund cannot. Qualified advisors can help you understand the SMSF structure, its potential benefits, and your trustee obligations and ensure compliance.

Self-managed super funds are best suited for individuals with a high level of financial knowledge and experience who are able and willing to commit the necessary time and resources. A minimum of $200,000 in total superannuation assets is generally advised before setting up an SMSF, as an annual cost is associated with running it.

Self-managed super funds (SMSFs) offer investors a tax-effective environment with a maximum tax rate of 15%. CGT is capped at 10% for assets held for over 12 months, allowing investors to benefit from a lower tax structure. Additionally, SMSFs provide flexibility and total control of superannuation assets, with the option to invest in fixed interest, shares and property. In some situations, SMSFs can also offer direct real estate investments.

Contact ANIG Wealth Management to find out how our SMSF-accredited advisers can help you.

Investing in property through superannuation can be a great option for investors looking to diversify their portfolios and take advantage of lower taxes on rental income and capital gains.

Generally, an investor could consider SMSF property investment when there is sufficient cash flow, liquidity and the SMSF has a long-term investment approach.

Therefore, if an investor wishes to pay minimal or no taxes on rental income or capital gains from their property investments until retirement, investing in property within their superannuation fund is a great solution. This will allow them to benefit from the tax advantages that superannuation offers and also ensure that their investments are secure and managed professionally.

By default, an SMSF does not come with life/TPD insurance. Unlike retail or industry super funds, an SMSF does not automatically provide life or total and permanent disability insurance. You must arrange insurance coverage for yourself and any other fund members if you have an SMSF.

Sometimes, redrawing from home equity and contributing the money into super can be a good idea. This strategy involves redrawing from home equity and injecting the capital as a non-concessional contribution (NCC) to super. However, the interest on the loan amount drawn from the home and contributed into super is not tax-deductible at the marginal tax rate. Therefore, cash flow is essential to ensure the strategy is successful.

This strategy may only be suitable if there is sufficient surplus cash flow. The loan should be paid off within the strategic investment timeline if this strategy is pursued. The primary benefit of this strategy is that the investment is made in a lower tax environment (max 15%), with CGT capped at 10%. However, the investor loses out on tax credits on interest payments.

Over many years, people become accustomed to their habits and lifestyle, so adjusting to a new one can be difficult. Our observation suggests that retirees require around 60-70% of their pre-retirement income to maintain a comfortable lifestyle. Therefore, individuals with an after-tax income of $120,000 would need to generate between $72,000 and $84,000 of passive, tax-free income.

Downsizing is a smart strategy to free up capital or equity from a house that is draining cash flow or is costly to maintain. This is an important consideration for homeowners and investors alike.

Downsizing can be a great way to improve your financial situation. It can help you free up cash or equity, reduce or eliminate debt, or even increase your savings. It can also provide flexibility and freedom to pursue other interests.

Before taking action, investigate the options available to you for investing with the equity in your home. Home equity can be used to generate significant returns from investments. Consider investing in a super fund or self-managed super fund, as well as in assets such as property, shares, ETFs, managed funds, or a combination. There are numerous paths to explore.

Deciding whether to keep your house is mainly a financial and lifestyle decision rather than an emotional one.

Investors aged 50 or above with enough resources may opt to maintain their residence for lifestyle purposes. Generally, these people have minimal or no mortgage, have built up considerable superannuation funds, and have other resources that could generate an income to maintain their lifestyle after retirement. To protect and preserve their assets in the future, these investors should have low-risk strategies.

Over 50 investors living in a house of value and having difficulty making ends meet may need to consider alternative options, such as downsizing or accessing equity for another home and other investments.

Consulting a financial advisor can help make the correct decision and save time and money. The choice should be based on one’s financial position, plans and lifestyle.

Superannuation re-contribution strategy is a tax-effective strategy used to make additional contributions to superannuation funds.

A re-contribution strategy is most useful for estate planning for people over 60 and retired. It can result in significant tax savings to your beneficiaries upon the member’s death.

The strategy involves withdrawing excess or unused concessional or non-concessional contributions from the fund and then re-contributing them as another type of contribution. This strategy can be used to take advantage of concessional contribution caps and to help with estate planning.

ANIG WM is the home of professional Financial Planners and SMSF-accredited Advisers. With our personalised approach, you can trust that your financial future is in good hands.

Navigate your future with our Financial Advisers & SMSF-Accredited Advisers

Experience our expertise in SMSF advisory and investment services by making us your specialist SMSF advisers. We offer unlimited access to our knowledge and professional SMSF service solutions. We can also assess an SMSF borrowing strategy with you, helping you determine your borrowing capacity and advise if it is a viable solution for you.
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