Frequently Asked Questions - Maher Digby Securities Pty Ltd

We provide a complimentary initial consultation where you can have all of your retirement planning questions answered.

In the meantime, here are some common questions we are asked when people are looking to retire:

How much money do I need to retire?

This is a common question that people looking to retire ask us.

During your complimentary initial interview will be explore things such as:  

How much money do you hold in superannuation?

Do you receive any other sources of income?

Do you own your home and what are your long term plans for your living situation?

Are you single or do you have a spouse?  What is your spouse’s financial position? Is there a way that your joint investments can be arranged to benefit both of you?

What is your age?

What is your retirement vision?  Do you wish to travel?  Does your home need renovations?

Will you likely be in receipt of an inheritance during your retirement?

Maher Digby are specialists in retirement planning so the answers to these questions will give us a view to your position for retirement and the potential income you can expect on a monthly or annual basis while keeping in mind maintenance of your capital.

 

How much does a retirement financial planner cost?

Financial planners can choose how they wish to apply their cost structure within certain guidelines set down by the Australian Governmental body, ASIC (Australian Securities and Investments Commission).

At Maher Digby we offer a complimentary initial consultation so that together we can assess your financial situation and then give you a view of possible investment scenarios for your personal circumstances.

If you choose to go ahead with engaging our financial planning services, we use a fee structure that is related to your investments. This will be outlined clearly in your initial consultation and is also laid out in the Financial Services Guide we give you at that appointment. 

In addition, it is a requirement by law that we provide you a yearly review of any fees you have paid, and these are also outlined in your regular investment statements. 

 

Are my retirement investments safe/secure?

Maher Digby have our own financial services licence. This means we are not tied to only specific areas or bundles of investment products that may limit your choices but rather we have access to a broad range of investments for you.

Usually by the time you are retiring, a more conservative investment strategy is undertaken to preserve your capital while allowing for income to be drawn on a regular basis. 

Our retirement investment strategies allow for a portion of your money to be held in cash type investments. This generally means that during any market ups and downs you are not withdrawing money from your share investments to provide for your regular income.  In this way, you can stay invested to take advantage of share price changes.

Your portfolio is reviewed regularly to ensure you are invested appropriately within current global markets and for your individual needs and circumstances. 

Maher Digby are governed by best practice laws under the Australian Investments and Services Commission (ASIC) compliance regulations.

 

When can I withdraw money from my superannuation?

Drawing on your superannuation is generally contingent on your age and your retirement status and can be a complex area best discussed with your financial adviser.  Following are some general age guidelines:

Preservation age is the age at which you are eligible to access your superannuation – this can be as young as 55yrs depending on your year of birth. If you retire between your preservation age and turning 60 you can have full access to your super but only if you meet certain conditions.

There are different rules when you are 60-65 such as being able to access your superannuation if you are semi-retired. Once you are over 65 your superannuation benefits become unrestricted non-preserved and you can access your super money regardless of whether you have retired or not.

Unrestricted, non-preserved money – this is additional money you have personally deposited to your superannuation and can be withdrawn at any time. However you may be taxed on those funds if you are under 60, and it’s important to keep in mind the annual limits of depositing money into superannuation may preclude you from returning these funds to superannuation at a later date.

You can read more details on When can I access my Superannuation?  at our blog.

There are some very limited circumstances where you can withdraw superannuation on compassionate grounds. This can be discussed with your financial adviser. 

 

How do I draw an income from my superannuation?

Once you are retired you can withdraw some or all of your superannuation. Any investment income within your superannuation will be taxed at 15%.  The purpose of superannuation is to provide an income in retirement. Therefore usually people withdraw a portion of their funds on a regular basis to fund their retirement over the long term, or to supplement their Age Pension.

Most people at retirement will transfer their superannuation into an Account Based Pension to benefit from the tax advantages, as any investment income and drawings from a Pension are tax free. You can then draw a regular income within very broad limits and also take lump sums if you need.

The most important factor here is having your Pension money invested in a way that maintains your capital and provides an income at the same time.  As specialist retirement investment planners, Maher Digby tailor an investment strategy that is specific to your retirement phase.

 

How do I arrange an Age Pension from Centrelink?

Once retired and you meet the age requirements, you may be eligible to receive a Part Age Pension or a Full Age Pension depending on your assets, investments and income. Maher Digby provide clients assistance with Centrelink to support you in receiving your full entitlement to any Pension or Allowance. 

There may be retirement investment strategies that suit your needs and at the same time increase your entitlements. Depending on your age, your partner’s age, your mutual work circumstances, and your total assets, the combination of these various income streams will determine our suggested strategy for your household. It may be that a simple restructure of your joint finances could lead to a higher level of income.

For more information you can read our blog:  Your Retirement Pension Entitlements

 

What happens to my superannuation/pension if I die?

Your estate planning strategy is part of the overall financial retirement plan we would discuss with you, and put in place for your retirement. This defines where your superannuation money goes if you should pass away to make it the simplest process for your loved ones.

In regard to your superannuation investments, these are not considered part of your Estate but are under the direction of the Trustee of your Superannuation Fund. The only way to secure the future of your Superannuation investments is by setting up a ‘Binding Nomination’.  This is a legally binding document that states your intended beneficiaries who can only be your spouse, children, or a dependant. You also have the option to place your superannuation under the direction of your Legal Representative (your executor) which then moves your superannuation monies into your Estate. Not having a binding nomination makes the disbursement of your Superannuation complicated and protracted and to the discretion of the Trustee of the Fund. 

For more information you can refer our blog here: What is the value of Estate Planning Advice?   

 

You can submit your question to us via the enquiry form to the right of this page or call us on the number at the top of this page.