Welcome back to another episode of the 360 Money Matters Podcast!
The downsizer contribution strategy is a great strategy for a selected group of people. The downsizer contribution is exactly what it sounds like, downsizing your family home.
In this episode, we talk about utilizing the money you release from selling your family home and putting that money into superannuation. We discuss the in’s and out’s, limitations, tips and traps and what the benefits of this strategy are.
Superannuation or ‘super’, is the money put aside by your employer over your working life for you to live on when you retire from work. Essentially, you’re selling your family home and you’re putting the proceeds into super.
So there you have it, a quick overview of superannuation downsizer contributions in Australia. Remember, this is just a general overview and if you’re thinking of making a downsizer contribution, it’s always best to consult with a financial advisor to ensure you understand all the implications and that it’s the right decision for you.
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This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis & Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of AMP Financial Planning – AFSL 232706
Episode Highlights:
- Why downsize contributions?
- What is downsizing contributions? How much can you contribute?
- The downside of downsizing contribution
- Benefits of downsizing contribution
- The impact of the pension and how far do you push it
- How many times can you downsize?
