Retiring Early @ 55

Discussion in 'Superannuation, SMSF & Personal Insurance' started by luke83, 29th Sep, 2019.

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  1. luke83

    luke83 Well-Known Member

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    So i want to retire early @55 ( or at the very least only be working a 3-4 days per week). Are there any CONDITIONS to accessing your Super early as right now i am assuming i cant touch my SUper until 67ish so i will be force to also invest outside of Super to support me in my goal.

    Now if there was some Condition to getting it out early i would max out my Pre-Tax super contribution and build most within Super ( currently i am already matching my company contribution so it should end up a nice value on its current trajectory).
     
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  2. twisted strategies

    twisted strategies Well-Known Member

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    in 2011 i claimed 'hardship ' in 2010 ( i was between jobs at the time ) to liquidate my super , which i pumped into AMP shares ( which i exited in late 2018 )

    the right choice but maybe i should have selected a different company ( did make a profit but i still in hindsight , could have selected better .. maybe a major bank

    but yes i smelt such conditions coming .. so now just call it my 'investment portfolio ' what i lose in tax concessions i make up for with flexibility ( in decisions )

    i turn 65 at the end of the year , but pension age is now 66 ( as of July 1st this year ) for me , be careful of constantly shifting rules ( don't expect 67 to be 'the age ' in 10 or 20 years time )

    if i was still working now ( am currently on a desability pension ) i would be putting the 'surplus' cash into desired investments OUTSIDE my super ( unless your super offers some compelling reasons to pump up that contribution .. mine was fee-hungry and being an employer super fund focused on propping up the company leadership )
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Is that early!?

    To access super you need to meet a 'condition of release' - generally 60 years of age or more.
     
  4. luke83

    luke83 Well-Known Member

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    Lol, it will be the earliest i will be able to have one million dollars in Asset Producing assets OUTSIDE of super And that is assuming a consistent 5% return each year ( which i am hopping is easy to achieve). Sure if other factors change it could be quicker or longer but for now its my target range.
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    55 is earlier than most people retire so it is no small effort!
     
  6. Hodor

    Hodor Well-Known Member

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    Come on Terry you are better than that :p
     
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I should point out that was a joke.
     
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  8. twisted strategies

    twisted strategies Well-Known Member

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    i might call that adventurous , considering the 10 year period ( so far ) in my ' race to retirement ( and pension @ 66 years old )

    i would argue for keeping plenty of options open in your plan in the journey

    i would also suggest a FULL health check at the start of the adventure ( unlike i did, having one just after half-way )

    but GOOD WORK , trying to make plans early ,
     
  9. luke83

    luke83 Well-Known Member

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    I find it interesting, i mentioned to a guy at work who was asking me about investing and when i said i wanted to be out by 55 and he said it would never work :) so i showed him the numbers and he shut up. On here, 55 is "not Early" :) I guess it all comes down to your world view and how much effort your willing to put in to achieve it.
     
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  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Also comes down to when you start too. Some people get their first pay check and save 80% from day 1. Those smart people could potentially retire by 30
     
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  11. twisted strategies

    twisted strategies Well-Known Member

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    job security when you are saving plays a big part

    in 1972 when i started working many had ' a job for life ' ( a career if you were paid a salary )

    nowdays 5 years employed at the same firm classes you as 'dead wood ' ( liable to be cut in any restructure )

    when that attitude become prevalent i changed to casual jobs ( often multiple employers in the same week ) bad for the super but heck loyalty is a dinosuar , ( at least i had some work lined up for next week .. and grew my skills base )

    save , indeed i encourage you , but don't forget to work on your education as well ( say in financial matters

    thrifty is good

    thrifty and financially savvy is better ( you have that saved money working for you earlier )
     
  12. Aussie_Al

    Aussie_Al New Member

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    Don't confuse PENSION age with SUPERANNUATION PRESERVATION AGE. How old are you now?? You can access your Super from 55 depending on your age now! The oldest you need to be is 60 if you were born after 1964!

    PENSION age is different and is the age when you are permitted to access the STATE PENSION...NOT your Super!

    Withdrawing and using your super
     
  13. luke83

    luke83 Well-Known Member

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    Well, i have not been on for some time and we have since merged with property chat but I hope some of the old guys are still around :)

    So 2 years on and I am nearing completion of my Mortgage repayments and have had a few thousand dollars invested in the stock market directly just to see how I react to the Rise and falls of the market so it's almost time to Jump in with both feet.

    As a strategy, I will just DollarCost Average 3 times over the year to limit Buy and Sell cost ( plus with Work and the Side Business, I don't have a huge amount of time to research companies or time the market) So the question now is how much to people keep invested in Aus Shares vs International....I through some numbers together today and as soon as I realised It looked like a peace sign i was like Groovy :)

    Its worth noting, we also have another investment property here in Aus and with the business, to minimise tax it looks like i will max our the wife and my Super contributions on top of the $600 week i want to invest directly. With so much money already invested in Aus, i have increased my International shares to 40% but am still wondering if its too low? Thoughts???

    Final point, with the "Other" section, i may just save this up and if a crash, occurs, chuck it in also to try to catch a falling Knife, you know...For fun :) Otherwise, it may end up as physical Gold...not really sure yet.

    Not Super keen to buy individual shares so picture LICs and ETF for most of my purchases.

    Would love feedback on my simple strategy.
     

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  14. Scott No Mates

    Scott No Mates Well-Known Member

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    I didn't realise that your alias & Twitter handle was @therealronnytrump :D
     
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  15. Stoffo

    Stoffo Well-Known Member

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    Some don't make 55 either :(
    Make sure you have some fun along the way :cool:
     
  16. Lacrim

    Lacrim Well-Known Member

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    I buy every time the stockmarket has dipped a few days on the trot. Normally in chunks of $4-$5K. So that comes around about once a month.
     
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  17. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Super release is based on age nd is called a preervation age. It may be under 60 for some but otherwise aged 60 is the general test provided you also ALSO meet a condition of release.
    A person who merely turns 60 could be limited to a transition to retirement pension with a 10% limit until another condition of release occurs. Once preservation age is reached SOME of your balance could be available despite not meeting a COR. eg non-preserved benefits.

    Conditions of release

    Preservation age is explained here : Key superannuation rates and thresholds

    General rule is here :

    • under 60 years old – they can access their preserved benefits only when they
      • reach preservation age &
      • cease gainful employment &
      • have no intention to become gainfully employed in the future (They can later change their mind)
    • at least 60 years old – they can access their preserved benefits when they leave a job.
    Note that changing hours of work is not the same as changing jobs. A COR may not be met.
    Also note that until retired and aged 60+ a transition to retirement pension cant be commuted.
     
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  18. luke83

    luke83 Well-Known Member

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    Well its official, im officially debt-free ( however my wife is not), i can now redirect my mortgage payments to a high-interest bank account ( lol like 1%) until I have a chunk of money big enough to buy a bundle of shares ( target is $5K blocks). If nothing blows up in my face i could have enough funds to maintain my current lifestyle in 12 years (which is age 50), also this would also be around the same time my kids in their mid-20s and they SHOULD be moving out by then so it's a nice goal to aim at.

    Obviously whatever my Dad does over the next couple of years could impact my target ( see other post :Property Transfer before death) as i could be stuck with a large repair bill to get things rolling again and keep him afloat also but that will come down to which brothers get what and how many lost kids return.... Right now i am assuming I get nothing from Dad in my targets but i also assuming he sells something to fund himself.

    Its an exhilarating time indeed, time to do some refreshers on stock markets as right now i only have $2400 invested which i did 3 years back to see how i react to rise and falls in price :)
     
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  19. Islay

    Islay Well-Known Member

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    Great work @luke83! Look forward to your updates :)
     
  20. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Well done.

    You could help your wife pay off her debt instead. If you want to keep finances separate you could make a loan to her at 0%, or even at what your high interest savings account pays. that way you both win.
     
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