Jim Gleeson - Financial Planner
"I cannot direct the wind but I can help you to adjust the sails."
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"No advice" Ezicover Insurance
Ezicover insurance offers:
- A lump sum payment of up to $500,000 on death or terminal illness.
- A lump sum payment of up to $150,000 on diagnosis or occurrence of a heart attack, stroke, cancer or coronary artery by-pass surgery.
- A monthly payment of up to 75% of your average monthly pre-tax income if you are unable to work due to sickness or injury.
- A lump sum payment on accidental infection of HIV (Human Immunodeficiency Virus) or Hepatitis B or Hepatitis C while working in specified occupations.
- "Do It Yourself" insurance.
What are Retirement Income Streams?
During working life, and certainly well before retirement, we become used to earning a regular income. For most people the regular income comes in the form of a salary or wage which is paid at least monthly. Because of the regularity of income during our working life, we usually adapt our spending to fit in with our income patterns.
We might for example, buy the groceries on payday, or pay our major bills monthly. And for most of us, managing our tax is not a big issue as our employer will have deducted income tax installments from our pay before we receive the net amount. At the end of the year we receive a group certificate and lodge this with our personal tax return. All in all, this is a relatively straightforward process. We get a regular income and we don't have to budget for large tax bills at the end of the year.
By the time retirement comes around we usually have our income and spending patterns well practiced, although these may change a little in retirement. At retirement, or at some stage before, we also need to plan what we are going to do with our retirement savings. Usually this will involve looking at what to do with our superannuation money and any other savings that we may have accumulated along the way.
One of the things you can do with some or all of your superannuation and/or other money is to invest it in a retirement income stream. When dealing with superannuation money, this may mean nothing more than receiving an income (instead of a lump sum) from your current superannuation fund, or it may mean using that money to purchase an income stream from a new fund. Using a retirement income stream is simply a way of dealing with many of the financial issues to which you have become accustomed before retirement.
Retirement income streams are simply investments which allow you to obtain regular income and capital payments, and thereby provide you with a basis for managing ongoing income and spending patterns. And with most income streams, tax installments will be deducted from the payments providing you with the familiar 'take home pay' concept.
Retiring does not mean that your need for regular income payments suddenly stops, so it's wise to consider this form of retirement income as part of your options in retirement. There are various types of retirement income streams, some of which may suit you and others may not. However, the basic principle is the same, investing to obtain a regular tax paid income.
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