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'Lotto' - dealing with the one off win! | |||
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| Typical one off wins! | Picking the 6 numbers in LOTTO Someone remembers you in their will You get a legal settlement Sell your business or an idea Redundancy payout Superannuation lump sums |
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| There are moving goal posts in taxation /capital gains tax legislation. Avoid giving financial advice at the BBQ - it can be illegal (Only licenced financial advisors should give/sell advice!) |
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| What's good for me! (My pecking order) |
1. 2. 3. 4. 5. 6. 7. 8. 9. |
Reduce debts: Pay off all the expensive credit cards Pay out any personal and car loans Cut away a big lump of the mortgage (if not all of it) Immediate matters: Family education planning including possible university fees Sort out outstanding family medical & dental issues Consider a welcomed holiday, but maybe not the big trip now Future planning: Consider early retirement Give yourself a reward Arrange for long term cash flow sustainability (See below) I am avoiding going crazy and creating a 'playboy' lifestyle that I cannot sustain .... avoids the embarrassment! |
and other assets |
If you have a piece of real estate or thought of a good idea many years ago, if it happended BEFORE September 20 1985, then the sale can be made free of capital gains tax. (GST is still payable on the sale, but the buyer can possibly get a refund of the GST, making it 'GST neutral'). |
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| * How much cash do I need to retire? (Seek own advice) |
The amount of cash needed is a personal decision. With any 'lotto' win, these are the dollars I need to set aside. Any superannuation may impact on funds available. As someone planning my own retirement this is *the formula that I am working on for the age I retire. Comfortable annual $35,000 budget for a 'retired me' |
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| Age | Annual amount | 'Multiplier' | Funds needed | |
| Other useful stuff .... |
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Assemble a list of the various 'pockets' of super funds that you might have received, particularly if you change jobs regularly. Usual link is your Australian Taxation Number. FIND LOST SUPER |
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