Your money with Noel Whittaker
Q MY wife and I are both 57 and have been blessed to have a current combined super value of $1.1 million. My wife still contributes to her super through work, but I do not as I'm semi-retired. To protect capital, would the total amount invested in quality dividend stock be a good way to provide an income stream rather than drawing down from our super?
A KEEP in mind that superannuation is not an asset class like property or shares, but simply a vehicle that lets you hold assets in a low, or even zero, tax environment.
Therefore the big question for you is whether to continue to hold the shares outside super, or leave the superannuation untouched.
An option to canvas with your adviser could be whether you should start a self-managed super fund and progressively contribute shares to it. After June 30 you could make non-concessional contributions of $100,000 by in specie contributions, and also make a concessional contribution of $25,000 a year. By timing the dates the shares are removed from your name, you could use the tax-deductible contribution of $25,000 to eliminate capital gains tax on the transfer.
A major benefit of this strategy is that you are moving shares to a zero-tax environment once you start to draw a pension from your fund, and increasing the non-taxable component of your super.
Q I AM a single homeowner and still owe $85,000 on my property. I receive an age pension. My brother has sold our mother's house and my share is about $70,000. I have super of $190,000, which I haven't touched yet; my assets are about $20,000 including $8000 in the bank. Can I receive the $70,000 to pay towards my mortgage without it affecting my pension?
A YOU can use the money to reduce the mortgage on your home without affecting your pension.
Q IS there some sort of ombudsman looking into Centrelink matters that take an awfully long time? I am awaiting a reply regarding an age pension adjustment first made in September 2016 and followed up with another letter in January 2017.
A CENTRELINK said it would like to follow up with this reader directly as they have been waiting too long for a response. A Department of Human Services spokesperson said feedback, compliments and suggestions were welcomed.
“However, our aim is to ensure updating changes to income is quick and easy, so we encourage people to take advantage of our online services. Of course, people can still get in touch by phone or visit a service centre for assistance.”
If you aren't satisfied, you can call the complaints and feedback line 1800-132-468 or send a letter, making sure to include contact details.
The department does not have an ombudsman looking into delays but if you are not satisfied with the response to a complaint, you can contact the Commonwealth Ombudsman – www.ombudsman.gov.au
- Do you have a question? Send to Q&A, PO Box 130, Wyong NSW 2259 or email edit@thesenior.com.au A selection of questions will be covered in this column. Personal replies are not given.
