I absolutely agree Katherine, pay the bill when it's recieved, leaving it until due date is fraught with danger for us forgetful oldies, better to be "off your slate" than hanging over your head. The small amount of interest it'll gain you is far outweighed by the dramas of being a late payer. Sage advice Katherine.
One bill I refuse to pay early is the council rates! They offer a piddly little bonus for paying it early which is tantamount to a joke. I did the sums and if you have a mortgage or any form of interest bearing account your funds are better off sitting where they're saving (mortgage offset) or earning (term deposit, interest bearing etc) money for you. The pay the full amount mid-term beats the quarterly instalment and the early payment options, not by a huge amount but my council is not worthy of even one bonus cent of spending power. They have their CPI rates cap and they max it out year on year and show no signs of actually trying to save their rate payers any money.
hi Katherine - I'm spending a lazy afternoon catching up on months and months of your fabulous videos. I really love the ones where you've put the chapters - gives me much better control.. thanks so much
Hi Katherine, I really enjoy your videos and find them very useful to improve my understanding of an overly complex Super system. If possible, could you put a video together on a subject I am very confused by. I am currently in the accumulation phase of Super through an Industry Fund and use both Concessional and Non-Concessional inputs to Super as I am nearing retirement age. When I look at the allocation of those monies in the "On Line" reporting, I see that the Concessional monies are reported as "Taxable Component" and the Non-Concessional" inputs are reported as "Tax Free Component". Both elements make up my Super Investment, but by the end of the year, all Investment Returns are classified as "Taxable" and hence the only element that is classified as "Tax Free" is the amount of money I put in as "non-Concessional". Why is this? Also, what is the benefit of Having Super classified as "Tax Free" vs "Taxable"? Thanks
Hi Katherine, another helpful video - thanks. Questions :- Currently I contribute an additional $500 per month pre tax into my superannuation, during these times of poor returns should I continue and see the benefits further down the track, or should I do something else with this money ? Cheers, Julian.
Hi Julian, this is a difficult one, as we are going into a personal advice, and this is when we should be searching for adviser. It all depends when you need the money, what is the purpose of your savings and if there is any other money to keep you going if there is an issue (loss of work, sickness etc). If you are looking at investing long-term and you do not need funds, investing into super is always a good option, plus investing in the depressed market is very beneficial, as you keep buying new investment at a discounted price - kind of a bargain. But the main issue is, financial backup if things go wrong, and understanding that you will have no access to funds in super until you meet conditions of release (such as eg. retirement )
Thanks Katherine love your work! I just wanted to ask ..if retired and drew out all super to have as a lump sum ..is that money seen as an asset or income by Centrelink ?
Hi Leanne, depends how you withdraw it from your super fund. If you request a lumpsum withdrawal, then it is treated as an asset. If you withdraw as income, then depending on the type of pension you have (this could be complex), Centrelink might treat it as income.
Yep, I keep a budget spreadsheet for all expenses and each year between May and August I need 5K each month to pay the bills as a lot of large bills come in and bills are higher in winter too. If you want to maximize your returns, just put Putin in front of me face to face, he will not last 2 min and the Ukraine war will stop. The world economy will jump sky high.
I think al lot of people feel that way. Yes, the end of that dreadful war could change the market to be more positive and investors to be more optimistic.
Mine hasn't. Growth rate was reasonable right through to 2022 until Russia invaded Ukraine at which point I made adjustments including removeing all exposure to stocks. My super fund is still growing steadily. Much of this video is just stating the bleeding obvious but some of it was bad advice in my opinion. A lot of what to do but not much how to and some it pointless. But I will say, the point about balancing was pretty good.
yes, most super funds have, Just implement some of the steps recommended, your super fund is your long-term investment, so just keep in cash what you need for short-term and do not panic. 😀
Which of the introduced steps will you implement to secure your financial position now?
I absolutely agree Katherine, pay the bill when it's recieved, leaving it until due date is fraught with danger for us forgetful oldies, better to be "off your slate" than hanging over your head. The small amount of interest it'll gain you is far outweighed by the dramas of being a late payer. Sage advice Katherine.
Thank you, and I am glad to hear, I am not the only one 😀
First time I came across your channel and I quickly subscribed! I love the information you provide, thanks for that!🤗🙏
One bill I refuse to pay early is the council rates! They offer a piddly little bonus for paying it early which is tantamount to a joke. I did the sums and if you have a mortgage or any form of interest bearing account your funds are better off sitting where they're saving (mortgage offset) or earning (term deposit, interest bearing etc) money for you. The pay the full amount mid-term beats the quarterly instalment and the early payment options, not by a huge amount but my council is not worthy of even one bonus cent of spending power. They have their CPI rates cap and they max it out year on year and show no signs of actually trying to save their rate payers any money.
In
hi Katherine - I'm spending a lazy afternoon catching up on months and months of your fabulous videos. I really love the ones where you've put the chapters - gives me much better control.. thanks so much
Hi Katherine, I really enjoy your videos and find them very useful to improve my understanding of an overly complex Super system. If possible, could you put a video together on a subject I am very confused by. I am currently in the accumulation phase of Super through an Industry Fund and use both Concessional and Non-Concessional inputs to Super as I am nearing retirement age. When I look at the allocation of those monies in the "On Line" reporting, I see that the Concessional monies are reported as "Taxable Component" and the Non-Concessional" inputs are reported as "Tax Free Component". Both elements make up my Super Investment, but by the end of the year, all Investment Returns are classified as "Taxable" and hence the only element that is classified as "Tax Free" is the amount of money I put in as "non-Concessional". Why is this? Also, what is the benefit of Having Super classified as "Tax Free" vs "Taxable"? Thanks
Katherine, thank you for that. It's the advice I need NOW. Great video.
Happy to hear 😀
Hi Katherine, another helpful video - thanks. Questions :- Currently I contribute an additional $500 per month pre tax into my superannuation, during these times of poor returns should I continue and see the benefits further down the track, or should I do something else with this money ? Cheers, Julian.
Hi Julian, this is a difficult one, as we are going into a personal advice, and this is when we should be searching for adviser. It all depends when you need the money, what is the purpose of your savings and if there is any other money to keep you going if there is an issue (loss of work, sickness etc). If you are looking at investing long-term and you do not need funds, investing into super is always a good option, plus investing in the depressed market is very beneficial, as you keep buying new investment at a discounted price - kind of a bargain. But the main issue is, financial backup if things go wrong, and understanding that you will have no access to funds in super until you meet conditions of release (such as eg. retirement )
What a pity the young home owners do not consider this subject worth investigating and acting upon.
Thanks Katherine love your work! I just wanted to ask ..if retired and drew out all super to have as a lump sum ..is that money seen as an asset or income by Centrelink ?
Hi Leanne, depends how you withdraw it from your super fund. If you request a lumpsum withdrawal, then it is treated as an asset. If you withdraw as income, then depending on the type of pension you have (this could be complex), Centrelink might treat it as income.
seems crazy was saying on the news yesterday they expecting record household xmas spending so people cant be suffering that much
My understanding is that Australians have lots of surplus savings when comparing to other countries, so I am not surprised
Yep, I keep a budget spreadsheet for all expenses and each year between May and August I need 5K each month to pay the bills as a lot of large bills come in and bills are higher in winter too.
If you want to maximize your returns, just put Putin in front of me face to face, he will not last 2 min and the Ukraine war will stop. The world economy will jump sky high.
I think al lot of people feel that way. Yes, the end of that dreadful war could change the market to be more positive and investors to be more optimistic.
I wouldn't call the income test "quite generous"
Every year they say that there expecting people to spend heaps of $ over christmas,we will see.
Yes like everyone else my supperannuation has taken a big dive unfortunately
Mine hasn't. Growth rate was reasonable right through to 2022 until Russia invaded Ukraine at which point I made adjustments including removeing all exposure to stocks. My super fund is still growing steadily. Much of this video is just stating the bleeding obvious but some of it was bad advice in my opinion. A lot of what to do but not much how to and some it pointless. But I will say, the point about balancing was pretty good.
yes, most super funds have, Just implement some of the steps recommended, your super fund is your long-term investment, so just keep in cash what you need for short-term and do not panic. 😀
Another great video Katherine Thankyou. Looking gorgeous and stylish too!
@Yvonne Foley thank you so much 😀
Thanks for great content Katherine.
Most welcome Sam 😀
My pension pot has lost over 50k
Hi Terry, yes, lots of super and pension funds reduced in value, mine too. Not really thrilled about that, but I am not selling anything