The post A safe bet for retirement savings appeared first on All Mum Said.
]]>With the increase in the retirement age, changes to our superannuation and the anticipated reduction in the asset limits for retirees, saving for your retirement is not easy.
On top of the challenges given to retirees from the government, there are so many different packages and ways to invest your money that sometimes you just don’t know which way to turn. Then again, you hear of so many people losing their money, due to poor investment choices, that just finding an honest to goodness investment is fraught with an unhealthy amount of stress.
That’s why it is good to know that you can still put together a sizable nest egg for your retirement, which will help you out of a tight spot in later years – and it’s all about bricks and mortar.
Save for your retirement with real estate
There is no better time to purchase real estate than in today’s financial market. With interest rates so low, it seems daft to put your money anywhere else. After all, Aussies have always loved their homes and the property market is always a safe bet.
Yes, the market cycles up and down, but if you keep your eyes open and your ear to the ground, you can easily purchase the right property at the right price. So long as you don’t buy at the height of a real estate cycle and try to sell at the bottom, then over time, capital gains will continue to grow your nest egg nicely.
With a few properties under your belt, you will have a much more positive outlook on life and a much better foundation for your retirement. One of the positives about buying investment properties is that the rent pays off your mortgage and if there is any difference between the two, then you just negative gear it at tax time.
You can also claim a lot of improvements against your tax, so the out of pockets might be either non-existent or very minimal. Once you retire, then you can decide whether or not to sell one or more of your investment properties and realise the gains or just continue on and accrue more capital gains.
Fixed rate loans vs variable rates for your investment properties
When the interest rates are so low, it just makes sense to go with a fixed mortgage and lock in a really low rate for the next 3-5 years. With a low fixed rate on your investment property loans, you can focus on the capital gains and with low $ loan repayments (due to fixing at a really low interest rate), then the rent quite often covers all of the remaining expenses.
So if you want to set up a sizable nest egg for your retirement, check out the fixed rate interest home loans found at NPBS and look forward to a bright future.
What are your tips for saving for retirement?
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]]>The issue of pocket money has always been a popular topic of conversation for parents. Is it really a lesson in money management, or has it just become an expectation from children? The biggest question of all though usually revolves around what an appropriate amount really is and when it should be given. Below are some helpful questions to ask yourself when trying to determine how much is enough.
What Is Your Budget?
Before you decide how much pocket money your child should be receiving, it’s important to take a look at your own budget to make sure this cost can be incorporated. For some people, the budget can be relatively tight to begin with, so you may be limited in the first place. If you are unsure on how much will be suitable based on your own budget, try speaking to a financial institute such as Heritage Bank to help clarify some of the complicated details.
What Do You Expect It to Pay For?
What you actually want your child to use this money for will have a great impact on how much you give them. If you want them to learn to save in general, smaller amounts may work a treat. However, if you want them to learn to save as well as how to put money aside for toys or activities, then you may have to look at increasing the pocket money to accommodate both objectives.
What Do You Want Them to Learn?
Material rewards are one thing, but what do you want your child to learn in regards to life lessons? This question revolves around what money means to you, and this can certainly affect how much your child gets. For example, you may want them to learn that bad behaviour is not rewarded. Pocket money can effectively teach children the importance of patience, so you may prefer to associate it with how saving small amounts over time will result in a large positive outcome, as opposed to the instant and short-lived gratification of immediately spending every dollar they earn.
How Much Pocket Money Do Other Children Get?
You may not want to give your child a certain amount of money just because that’s what their best friend is getting, but it’s not a bad place to start when working out your own base rate. Chatting to other parents to scope out what they see as an appropriate amount is a great idea, especially if you’re not even sure of a ballpark figure at this stage.
Will They Earn It?
To determine a price, it’s important to make a decision about what has to be done to get it. For example, you may wish to only provide your child with an allowance if they are earning it through chores. Or you might like to provide it at a set amount and not offer it as a reward at all. However, a great idea could be a happy medium between the two where you provide pocket money at a base rate and bump it up when extra jobs get done around the house.
Pocket money can provide children with an abundance of life lessons including working to achieve, how saving is the way to buy something you want, and how money definitely doesn’t grow on trees. It’s important to enforce these regularly, no matter how much pocket money you decide to give.
How did you decide how much pocket money your child will receive?
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The ways you can save the extra cash are endless! I will be sharing ways to do it from the kitchen by using some cooking tips I’ve picked up from being a chef, cleaning, power saving, lifestyle, leisure, entertainment, tips for around the house, freebies, plus so much more.
TODAYS TIPS
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