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Welcome To 'Your Advantage' Newsletter # 16
Advantage Retirees
Times change very quickly in the world we live in today.
The World Cup has come and gone (we are all Socceroo's fans now!), Middle-East unrest continues (Israel and Lebanon etc), terrorist plots continue to be exposed, higher oil prices and interest rates play on our minds what seems almost daily and another Federal Budget has been handed down.
Some might say thank God for the footy..... it provides a bit of banter and joy for some (depending on who you follow) and transcends socio-economic boundaries.
So what does the next year hold for tax payers and investors?
Lots of planning opportunities!
Peter Costello has provided the biggest revolution to Superannuation since the Keating years which will make hundreds of thousands of people revise their retirement plans and will ensure all of us look at super in a different way.
The changes make superannuation much more attractive but reduce the amount that can be invested by high-income earners.
They transform a very complex savings area to a simple set of rules.
The changes are welcome and long overdue, but create winners and losers. Those who plan to retire before July 2007 and / or before they reach 60 will need an urgent revision of their strategies.
At present, money invested in Super is taxed at 15% on the way in and 15% on the earnings of the fund. When it is finally paid to retirees, the super money is subject to a myriad of complex taxes.
Under the new plan, all super payments for those who retire after the age of 60 - whether they be lump sum or pension - will be tax free.
In this edition, we dedicate several articles "New Rules : New Opportunities" and "Double The Gain" to how you can take advantage of the new set of circumstances the Federal Government has presented to taxpayers.
Also, we feature another batch of "Coaching Tips"
May your footy side have success in September. GO .....!
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