FTO AUSTRALIA

My friend and I was going through the BRW Rich 200 today.

To make it to the list, you need to worth minimum of $180 millions and out of those 200 people, 32 of them are billionaire.

Anyway this list got us discuss on how much 1 million is really worth these days.

We both think its not much, because at the rate of properties and luxury cars are heading, its basically just 1 house and 1 car to most people.

So how much would you need to retire, if you want a comfortable lifestyle?

too much....

How much is 1 mill to you Mr Accountant?

for the 2007/2008 financial year

$429,600 tax paid to the australian government

owned!

You are a pretty bad accountant then.....

Gimmie 3 mil.... Hide myself away in the QLD hills. Be very happy....

Depends if you're still working or not.

If you want a modest lifestyle, chuck it into a CMT earning about 5.5% ($55k p.a.) and pay tax on the earned interest.

In my case, I still work, buy two houses one to live in the other as an investment and borrow more money to buy another investment, pay the interest only to claim tax deduction. Most likely going to be negatively geared, more tax savings.

FTO338 wrote: We both think its not much, because at the rate of properties and luxury cars are heading, its basically just 1 house and 1 car to most people.

Nup, its only worth 1 car to me

ferraris are expensive!

i was in the ferrari dealership in syd the other day just dreaming and taking photos and the salesman said:

"are you alright there? is there anything i can get for you?"
i was like "ill take that 1" *pointed*

JOeJOe wrote:Depends if you're still working or not.

If you want a modest lifestyle, chuck it into a CMT earning about 5.5% ($55k p.a.) and pay tax on the earned interest.

Well after tax, banking fees and inflating, your profit would be less then 2%, its pretty poor way to invest 1 million, if you looking for good return.

JOeJOe wrote:In my case, I still work, buy two houses one to live in the other as an investment and borrow more money to buy another investment, pay the interest only to claim tax deduction. Most likely going to be negatively geared, more tax savings.

Any half decent house these days is minimum $500k-600k, so with around $370k left, i would split that into 4 deposits of investment properties instead of just one, because you will able to claim more tax (don't forget if you fully own your investment property, you'll be paying a lot of tax for every dollar it generate) and also in asset term you at least tripled your money.

SchumieFan wrote:
Nup, its only worth 1 car to me

ferraris are expensive!

i was in the ferrari dealership in syd the other day just dreaming and taking photos and the salesman said:

"are you alright there? is there anything i can get for you?"
i was like "ill take that 1" *pointed*

Ferrari aren't expensive, its just the 7yrs waiting list (in Aus) is a bit too long, so not many people bother to wait for it.

How ever some Ferrari like the Enzo is a good investment, because their price goes up per year, especially there are few write off already

just throw it all into a hedge fund and get like fukn 10 - 20% return

I've met few Hedge Funds manager and i haven't seen any % like you said, but i do know they invest a lot into share Options.

Just out of curious, whos into Options here. KJ you can put you hand down hehee i know your answer already.

Property trusts been doing pretty good as well.

Been checking my super lately, past year it returned about 27%

Thats really a good idea, chuck most of the income, say 80% into super, with the new super scheme, my super should be tax free when i retire. And then use that 1 mill to invest into property, that should maximise the tax benefit.

Mr Wong, anything that you aware of for this little scheme might not work?

It'll work, you just can't take it out until 30 years later.

Also, from July the cut off amount is $50k which include salary sacrifice.

Just check with ATO

To be eligible for the super Co-contribution for an income year,
you must:

*have a total income (assessable income plus reportable fringe
benefits) of less than $58,000 per year

Theres go my little scheme.....

FTO338 wrote:Just check with ATO

To be eligible for the super Co-contribution for an income year,
you must:

*have a total income (assessable income plus reportable fringe
benefits) of less than $58,000 per year

Theres go my little scheme.....

There's income splitting if you want to reduce tax payments.

Throw the money into a geared managed funds and watch it grow. Look at someone like Colonial's geared shared funds. The last 3 or so years they have been returning about 30-40 percent pa. You would have doubled your money in the last four years or so

P.S there is ways to get around the maximum contribution, generally once you are over 60 there are ways to put in 600k in a period of 2 weeks, and way to put over a million over 5 years.