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Wanderer Returns

How much do you need to retire in Australia in 2021?

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21 hours ago, Tulip1 said:

It is a tax that is largely avoidable with the right planning.  There are many wealthy people who won’t pay a small fee to see a financial advisor to look at options to avoid it.  They then go on to die and their estate ends up paying hundreds of thousands to HMRC.  Some people have little sense and can’t be told.   

The problem is that, for most middle class people, the family home is by far their most substantial asset. There is very little you can do to avoid IHT on that. A seriously wealthy person will have assets that can be gifted into trust and in that case a small fee to a tax advisor is worth it. 

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1 hour ago, DIG85 said:

The problem is that, for most middle class people, the family home is by far their most substantial asset. There is very little you can do to avoid IHT on that. A seriously wealthy person will have assets that can be gifted into trust and in that case a small fee to a tax advisor is worth it. 

There are strategies even for ordinary people.   My father sold the house to one of my sisters, on condition that he could live there for the rest of his life.  Then he split the proceeds equally between all of us.  Of course, the other obvious strategy is to downsize once the kids have left home and then work out a strategy for the surplus cash. 

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Scot by birth, emigrated 1985 | Aussie husband granted UK spouse visa March 2015, moved to UK May 2015 | Returned to Oz June 2016

My new novel, A Dance With Danger, is due out August 2022

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Don't die in the UK is a good strategy.

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Buy a man eat fish. The Day, Teach Man, to lifetime.      - Joe Biden.

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8 hours ago, Paul1Perth said:

If you were in Chesterfield a long time you'd remember the big Coking and Chemical plant on Derby road? That's where my Dad worked for 40ish years and where I started work at 16. Apprenticeship with the NCB was good though.

I remember it well - in fact I'm still trying to forget the stench!

Wasn't it close to the Hunloke Arms? That used to be a pretty rough pub at one time but it's been tarted up recently, and looks rather posh now. Well, posh by Chessie standards 😄 

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On 29/09/2021 at 10:58, Parley said:

Imagine if you died with an estate of £3M built over a lifetime and the government trousered £1M in tax from your estate.

I'm surprised some of these rich oligarchs want to live in London.

Because in the UK we don't any questions where they actually got their money from, including theft of state assets.   Even a 33% reduction is better than getting put in the Gulag or Putin making you an offer you cannot refuse.

https://www.cityam.com/top-official-warns-of-disturbing-amount-of-russian-money-laundering-in-uk/

https://www.transparency.org.uk/russia report money laundering professional enablers national security

 

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2 hours ago, Robert Dyson said:

Because in the UK we don't any questions where they actually got their money from, including theft of state assets.   Even a 33% reduction is better than getting put in the Gulag or Putin making you an offer you cannot refuse.

https://www.cityam.com/top-official-warns-of-disturbing-amount-of-russian-money-laundering-in-uk/

https://www.transparency.org.uk/russia report money laundering professional enablers national security

 

At least we'll never have to worry about being nuked by the Russians, and I think China and N.Korea are still a bit too far away!

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On 30/09/2021 at 13:04, Marisawright said:

There are strategies even for ordinary people.   My father sold the house to one of my sisters, on condition that he could live there for the rest of his life.  Then he split the proceeds equally between all of us.  Of course, the other obvious strategy is to downsize once the kids have left home and then work out a strategy for the surplus cash. 

Not sure when your father did this, but that wouldn't work today unless your father was paying market rent to your sister. If he wasn't, this would be a "gift with reservation of benefit" and the value of the house would remain in his estate for IHT purposes. Any rent received by your sister would be subject to UK income tax.

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On 30/09/2021 at 13:04, Marisawright said:

There are strategies even for ordinary people.   My father sold the house to one of my sisters, on condition that he could live there for the rest of his life.  Then he split the proceeds equally between all of us.  Of course, the other obvious strategy is to downsize once the kids have left home and then work out a strategy for the surplus cash. 

 

On 01/10/2021 at 15:52, DIG85 said:

Not sure when your father did this, but that wouldn't work today unless your father was paying market rent to your sister. If he wasn't, this would be a "gift with reservation of benefit" and the value of the house would remain in his estate for IHT purposes. Any rent received by your sister would be subject to UK income tax.

My mum and I were thinking of doing something like that about 15 years ago, and when we looked into it I recall the whole 'gift with reservation of benefit' issue cropping up. In addition, there's always the danger that the offspring might end up with financial problems, get sued, or simply decide to turf the poor ageing parent out on the street - stranger things have happened!

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4 hours ago, Wanderer Returns said:

My mum and I were thinking of doing something like that about 15 years ago, and when we looked into it I recall the whole 'gift with reservation of benefit' issue cropping up. In addition, there's always the danger that the offspring might end up with financial problems, get sued, or simply decide to turf the poor ageing parent out on the street - stranger things have happened!

My father did it a lot longer ago than 15 years ago.    I know what you mean about the offspring turfing the parent out though.   One of my husband's aunts (in Australia) sold her house to her daughter, on condition she could go on living with the daughter for the rest of her life.  It wasn't long before she was banished to an illegally-built, tiny granny flat in the garden.

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Scot by birth, emigrated 1985 | Aussie husband granted UK spouse visa March 2015, moved to UK May 2015 | Returned to Oz June 2016

My new novel, A Dance With Danger, is due out August 2022

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4 minutes ago, Marisawright said:

My father did it a lot longer ago than 15 years ago.    I know what you mean about the offspring turfing the parent out though.   One of my husband's aunts (in Australia) sold her house to her daughter, on condition she could go on living with the daughter for the rest of her life.  It wasn't long before she was banished to an illegally-built, tiny granny flat in the garden.

I can go one better than that. After selling the house with the granny flat in the garden, she bought a new flat where there was no room for granny and sent granny back to England. She did give her original investment back, but only the nominal amount, which was pittance because of inflation.

My mother in law lives with us, but she's good value. 

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Nearly there! Don't drop the ball now guys! Vaccines are weeks away. Stay safe!

 

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On 02/10/2021 at 20:08, newjez said:

I can go one better than that. After selling the house with the granny flat in the garden, she bought a new flat where there was no room for granny and sent granny back to England. She did give her original investment back, but only the nominal amount, which was pittance because of inflation.

My mother in law lives with us, but she's good value. 

My Sister is living with my niece and family in the UK. They have a huge house and she looks after the kids. My niece and hubby are both architects who have their own business, run from home, so it works pretty well for all of them.

Not that she needs to do it mind you. We still have my Mum and Dads house that's rented out and she has a house of her own, that she's never lived in, that's rented out. 

She doesn't like living on her own is her reason. She's a fit 62 year old who goes to the gym most days so it'll be a while yet till she needs "looking after".

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On 30/09/2021 at 12:10, Robert Dyson said:

Because in the UK we don't any questions where they actually got their money from, including theft of state assets.   Even a 33% reduction is better than getting put in the Gulag or Putin making you an offer you cannot refuse. 

https://www.cityam.com/top-official-warns-of-disturbing-amount-of-russian-money-laundering-in-uk/

https://www.transparency.org.uk/russia report money laundering professional enablers national security

 

He was beginning to get good at making offers you can't refuse. At least the price of gas in Europe...

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On 25/09/2021 at 08:16, MARYROSE02 said:

Replying to your earlier post! I love Woodside,  one of the two stocks I've held along with ANZ, after selling the rest when I bought the home in the UK. When I get the money from the sale I might buy Wesfarmers again. I think they still own Bunnings and Blackwoods? I've still got my Spurs shares which my Dad bought for me but they don't pay any dividends.

There's nothing wrong with doing nothing in retirement as long as you fill your day with different kinds of nothing rather than the same nothing.

That's my theory which I've put into practice. Yesterday I rose late at 1140, showered (proper not Pommie) breakfast, put some washing on then spent an hour reading and listening to 2GB (Sydney's 6PR?) followed by an hour watching Billions.

Then I went down to the park with coffee to go and did an hour or so of Japanese before returning home for late lunch before a second stint in the park walking and sitting. 

Then home to nap till 830 pm, dinner,  pizza to go, bit of TV then a marathon session  on the Times' cryptic Xword which, for the first time in 25 years, I think I finished,  with help from my brother in Surfers. (I text him a photo of the xword).

0100 to 0230 was another one and a half episodes of Billions. I should have gone to bed earlier but I'm addicted to Billions which has made the interminable lockdown easier to bear.

I really should emulate you and go to a gym and once they lift the 5km limit I might start going to the beach every eve to swim again. 

Have any long term studies been done on the effects of FIFO working? I'm sure I read something about it.

92 days of lockdown and 90 days of no alcohol but not an ounce of weight lost, nor any other benefits that the wowsers go on about but I feel good for doing it.

How long have you held Woodside for?.That would be the last company I would buy.

As a long term shareholder in Wesfarmers they are great,how many years have you got left?Once in a while they give CAGR.,this year they did,19% since listing in 1984.That means $1000 invested in 1984 is $669,000 by 30/6/21.All dividends reinvested etc The last time they did it was around 2014 or 15,then it was around $300K..For longer term the original £1 spent when the little farmers co-op kicked off is now around $3.9 million,1914 to 31/12/21,without reinvesting dividends Some wealthy farmers in the wheatbelt here.

If you pay tax  and get a UK pension then don't forget to claim the undeducted purchase price ( UPP) at question 20 L in the supplementary section,the UPP is 8%.

Otherwise claim back the franking credits from Woodside and ANZ from the ATO .The crossover point for paying more tax is approx $140K.Thus your net dividend will be $98K paid into your bank account for the year,the tax paid is $42K,so roughly no further tax to pay as the franking credits cover it.This does not include Medicare levy.More than $140K gross and you will get a bill from the ATO,and pay PAYG tax at their estimation,the old provisional tax.

If you ever want to have a problem then paying a lot of tax is the problem to have,it means you have a lot of money in your pocket.

Woodside,I'd be thinking long and hard about that,if you buy them I hope it works out for you.

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Just looked at Woodside ( WPL : ASX).The last 5 years they are down 28%,which of course is the time to buy IF they go back up .

You'd need to check out their constant disclosure with the ASX I think they have something cooked up with BHP for oil assets merging when BHP delist from the UK and become the largest company on the ASX pushing CBA down to number 2.There will be closing dates etc and adjustment in share prices so something may be going on there .I don't follow either company so you would need to check.Last time I looked at WPL was around 1998 I think,just finished a project,WA was in a bad way and the share price was around $6,I didn't buy them 

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On 05/10/2021 at 01:32, Paul1Perth said:

My Sister is living with my niece and family in the UK. They have a huge house and she looks after the kids. My niece and hubby are both architects who have their own business, run from home, so it works pretty well for all of them.

Not that she needs to do it mind you. We still have my Mum and Dads house that's rented out and she has a house of her own, that she's never lived in, that's rented out. 

She doesn't like living on her own is her reason. She's a fit 62 year old who goes to the gym most days so it'll be a while yet till she needs "looking after".

My parents are 84, living in Perth, and they got a letter saying that someone was going to come round and assess their needs to see what help they need. My mum was a bit miffed because she said she didn't need any help and she didn't want some stranger in her house. My dad still does over 100km a week on his bike and certainly doesn't need any help.

MIL is 82, and she's not as independent as she used to be as the NHS buggered up her cataract appointments, and she had to go back on the waiting list. I told her to complain and make a fuss, but she's British. On top of that she has macular degeneration, and the combination made it very hard for her to see, and it's reduced her independence. She's had the cateracts done now, but once you lose that confidence it's hard to get it back.

It's good to see people having long fruitful retirements. Wife's father retired at 65 and died 6 months later of prostate cancer. I never met him, which will was a shame as he was a top bloke by all accounts.

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Nearly there! Don't drop the ball now guys! Vaccines are weeks away. Stay safe!

 

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9 hours ago, Whey aye said:

How long have you held Woodside for?.That would be the last company I would buy.

As a long term shareholder in Wesfarmers they are great,how many years have you got left?Once in a while they give CAGR.,this year they did,19% since listing in 1984.That means $1000 invested in 1984 is $669,000 by 30/6/21.All dividends reinvested etc The last time they did it was around 2014 or 15,then it was around $300K..For longer term the original £1 spent when the little farmers co-op kicked off is now around $3.9 million,1914 to 31/12/21,without reinvesting dividends Some wealthy farmers in the wheatbelt here.

If you pay tax  and get a UK pension then don't forget to claim the undeducted purchase price ( UPP) at question 20 L in the supplementary section,the UPP is 8%.

Otherwise claim back the franking credits from Woodside and ANZ from the ATO .The crossover point for paying more tax is approx $140K.Thus your net dividend will be $98K paid into your bank account for the year,the tax paid is $42K,so roughly no further tax to pay as the franking credits cover it.This does not include Medicare levy.More than $140K gross and you will get a bill from the ATO,and pay PAYG tax at their estimation,the old provisional tax.

If you ever want to have a problem then paying a lot of tax is the problem to have,it means you have a lot of money in your pocket.

Woodside,I'd be thinking long and hard about that,if you buy them I hope it works out for you.

I can't remember how long I've had Woodside - 25 years maybe, before I went back to England in 1996, the same with ANZ. I bought all my shares in the 90s and sold most of them in 2005 or 2006 when I bought my parents' house. I could sell them I suppose. I guess my TA fills in all the right boxes.  

I've just about sold the house in England and intending to use the money to supplement my various pensions, maybe do my flat up,  maybe buy a new car, something "fancy" although living in the inner city I don't need a car,  and when I do I use Go Get. Had one last night to go to Clovelly in fact but the first time I'd driven in four days. A car will just sit in my garage. 

I have some super I've not accessed yet, just being slack. My only debt is when I use my credit card to supplement my income,  not good housekeeping I know but not a huge debt - $1200 I think. I must take some money from super, got some tax debts too, two thousand I think. 

I was sad when I put the house up for sale but, 7 months later, I'm glad,  no more assets in UK though I get two pensions. I probably need about $1,000 more a month to live happily.

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16 hours ago, Whey aye said:

Just looked at Woodside ( WPL : ASX).The last 5 years they are down 28%,which of course is the time to buy IF they go back up .

You'd need to check out their constant disclosure with the ASX I think they have something cooked up with BHP for oil assets merging when BHP delist from the UK and become the largest company on the ASX pushing CBA down to number 2.There will be closing dates etc and adjustment in share prices so something may be going on there .I don't follow either company so you would need to check.Last time I looked at WPL was around 1998 I think,just finished a project,WA was in a bad way and the share price was around $6,I didn't buy them 

What’s your thoughts on Westpac at the moment Whey aye ?

Edited by Wa7

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