Test the water before diving into trading
IS IT possible to experiment with share market trading in a small way and not lose any profits in fees?
If you’re a successful share trader, the fees should not be of great importance. Maybe a simpler strategy would be to start by doing pretend trading on paper and see how you go.
Just keep in mind that trading shares is extremely difficult, and you will be pitting yourself against other more experienced people.
Make sure you learn as much about it as you can before you even consider doing it. I AM 60, working four days a week and earn $70,000 a year. My husband is 61 and retired. We own our own home, and an investment property, have no debt and have about $100,000 in savings and a total of $450,000 in super. My employer pays around $6700 in super contributions for me. Am I able to salary sacrifice up to $18,300 a year to super? I could then make up any shortfall in living expenses by having my husband make taxfree withdrawals from his super fund. Because the investment property is in joint names, the rent of $16,000 a year is split 50-50. Would our overall tax bill be reduced by my increasing concessional contributions to super, which should increase our aftertax income.
You don’t need to salary sacrifice; since July 1 last year anybody can make concessional contributions to super, irrespective of whether an employer is contributing or not. Therefore you could simply make a contribution of $18,300 to super each year and claim a tax deduction.
This would certainly reduce your taxable income, but keep in mind that concessional contributions incur an entry tax of 15 per cent, so you are saving the difference between 15 per cent and your marginal rate.
You could talk to your adviser about having your husband’s superannuation moved to pension mode.
The fund would then fall within a tax-free fund, but he would be required to draw a minimum amount each year. I AM an age pensioner and living in a de facto relationship. My partner is 21 years younger than me, and has a full-time job paying $2899 a fortnight. We are paying off our home. We don’t have any other income and I am only earning an age pension of $37 a fortnight. This to me seems very low. How do I know if I’m receiving the correct pension.
Just go to my website, www.noelwhittaker.com.au, and enter your numbers into the age pension calculator.
I entered your figures and the computer tells me your pension should be around $24 a fortnight but the excess may be due to supplements.
The amount you are getting appears about right, but if you have any doubts, don’t hesitate to talk to Centrelink.
We don’t have any other income and I am only earning an age pension of $37 a fortnight. This to me seems very low