Tim Brady Guest Speaker 31 July 2002
Tim Brady, from RetireInvest, an arm of ING spoke about investment for and during retirement.
He stressed a policy of Cash Reserve (for replacing the roof for example), Income (know where your money to live on is coming form) and Growth (to account for inflation).
To reduce tax, it’s a good idea to income split so there is equality of income in the family.
Annuities are a good idea for a guaranteed source of income. You can’t outlive an annuity and it pays income and capital over a lifetime.
Residential property is a good investment, but as a retiree you’ll only get about 3% interest and you will have to pay capital gains tax.
Terms Deposits are safe, but don’t yield much income. With Allocated Pensions, you choose your income, you’re in control and there’s no capital gains tax. They can be combined with an annuity.
Superannuation is the preferred vehicle by the government and salary sacrifice can be done through your employer.
You will need, on average, about $40,000 pa for retirement. At present, females can retire at 62, but it will soon go up to 65 to be in line with men.
Tim’s thorough preparation was evident in the huge range of slides he presented, which, however, did not confuse club members, and questions were still coming thick and fast at the close of Tim’s talk.