loader from loading.io

52. Asset Rich, Cash Poor

360 Money Matters

Release Date: 08/23/2022

138. Changes to Superannuation Limits show art 138. Changes to Superannuation Limits

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discussed the end of the financial year and tax planning tips, focusing on the effective utilization of superannuation. Key points included maximizing contributions, leveraging concessional and non-concessional caps, and using catch-up contributions before deadlines. Superannuation was emphasized for future financial stability through tax planning strategies like pre-tax contributions. We also discussed government co-contributions to boost super balances for low to middle-income earners, spouse...

info_outline
137. Changes to superannuation limits on 1 July 2024 show art 137. Changes to superannuation limits on 1 July 2024

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we explore deeper into the intricacies of year-end tax planning and the impending modifications in superannuation. We broke down significant adjustments like the transfer balance cap set at $1.9 million and the forthcoming increase in concessional contributions to $30,000 annually.  Additionally, we explored the bump in after-tax contributions to $120,000, accompanied by a three-year bring-forward option. We also examined the uptick in super guarantee contributions from 11% to 11.5% and the...

info_outline
136. Property Guest (Marcel) show art 136. Property Guest (Marcel)

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, Marcel Dybner, a Partner at Besser+Co Estate Agents in Melbourne, recounts his journey starting from a challenging rental experience that steered him towards making a positive impact. Initially focusing on sales, he entered property management before joining Dion at Besser & Co. He addresses the current property market dynamics, where increased interest rates and landlord pressures are prompting property sales. Furthermore, the strategies for selecting attractive properties are emphasized, highlighting...

info_outline
135. Protecting Your Assets  show art 135. Protecting Your Assets

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discuss asset protection strategies concerning personal and business finances. We stress the importance of segregating personal and business assets to shield against risks like creditors or business failures. Utilizing trusts, companies, superannuation for asset protection, and advising seeking professional guidance from financial advisors, lawyers, and accountants for legal compliance and tax planning. Lastly, we emphasize early planning and professional advice, noting the need for a comprehensive...

info_outline
134. Rentvesting show art 134. Rentvesting

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discuss rentvesting, a strategy where you rent your home while investing in other properties for income. This approach provides flexibility in your living situation while potentially generating returns from your investments. We discuss the tax advantages, such as mortgage interest deductions, and potential drawbacks like less security in your living situation and loss of first-time homebuyer benefits. We also touch on the need for careful cash flow management and alternatives like "own vesting." ...

info_outline
133. Market Wrap show art 133. Market Wrap

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast! We are back again with our monthly ‘Market Wrap’ segment. In this episode, we discuss the latest trends in global investment markets. We examine the S&P 500's decline of 2.47% and its connection to inflation, which came in at 0.4%, while addressing the shifts in interest rate expectations and potential recession signals such as the Mel and SAHM rules.  In Australia, the ASX 200 saw a minor decline of 0.79%, mirroring the US market, while rising inflation is outpacing income growth. There is also an increase in...

info_outline
132. Asset Rich & Cashflow Poor show art 132. Asset Rich & Cashflow Poor

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discussed the concept of being asset-rich but cash flow-poor in the context of retirement. The accumulation of assets without sufficient income, due to tax considerations, can lead to challenges during retirement. The options presented included liquidating assets for income-producing alternatives, downsizing the family home, considering reverse mortgages, or purchasing a downsized home early. Proactive financial planning, with advice tailored to individual circumstances, is crucial. It is essential to...

info_outline
131. Maximising Age Pension show art 131. Maximising Age Pension

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discussed getting the most out of age pension. We talk about who can get it, how it's been changing, and how the government decides who gets it based on what you own and earn. We also share tips on how to maximise the age pension also! Furthermore, we explain that there are limits to gifting money while still qualifying for age pension. That’s why it is important to plan early and get advice because living costs can be tough on just the pension. So, think carefully about your money to make sure you're...

info_outline
130. Equity to Invest show art 130. Equity to Invest

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discussed equity in property, focusing on its calculation, utilization, and implications. We explained equity as the difference between the property value and the debt owed, influencing the loan-to-value ratio (LVR). An LVR above 80% may incur mortgage insurance costs due to increased risk for banks. Utilizing equity can enable diversification into other assets or properties to further expand your wealth creation.  Another key point highlighted was structuring loans to ensure tax deductibility...

info_outline
129. Bought a Property, What is Next? show art 129. Bought a Property, What is Next?

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we advise listeners like Danielle, who has settled on a property and mortgage and wants to know what some of the things are that she should be considering next. We stress the need for a cash flow management strategy to ensure affordable mortgage payments and achieve savings goals. Insurance coverage is essential, including life insurance, permanent disability cover, income protection, and building/contents insurance. Building an emergency fund is crucial for handling unexpected costs. Also, seeking...

info_outline
 
More Episodes

Welcome back to another episode of the 360 Money Matter Podcast! One of the most common misconceptions in financial planning is the separation of the assets from cash flow. We often deal with the resistance of people when it comes to converting their assets into income.

 

While we understand the emotional attachment to the asset, especially when it comes to property, producing income to support your lifestyle is one of the most important things to enhance the quality of your life. We work with our clients to navigate these issues and make decisions that make them feel confident about their financial future. 

 

By the end of this episode, we hope to have widened your horizons when it comes to your choices in dealing with the crisis of being asset rich and cash poor. Plan ahead with your financial advisers now!

 

--

 

This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis &  Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorised representatives and credit representatives of AMP Financial Planning – AFSL 232706

 

Episode Highlights:

  • What being asset rich and cash poor means
  • Various options in converting assets into cash
  • Different types of assets
  • Why people resist selling properties
  • The importance of advance planning for your assets

 

Connect with Billy and Andrew!

360 Financial Strategists

 

Check out our latest episode here:

Apple Podcast

Spotify

Google Podcast