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John just retired at the age of 58 and has a balance in superannuation fund of $1000000, which contains of a taxable component of $700000 and a tax...

John just retired at the age of 58 and has a balance in superannuation fund of $1000000, which contains of a taxable component of $700000 and a tax free component of $300000. John has a partner, Jessica, who is also age 58, and who will retire when she turns 60 on 1 July 2017. She has $1500000 in superannuation, which is made up wholly of a taxable component.

John has come to you for financial advice on the most tax - effective way of structuring his superannuation. He and Jessica require about $75000 after tax to live their modest lifestyle. Currently, Jessica earns $35000 as a part time teacher. Their assets consist of a house which is not mortgaged, their savings is of about $25000.

Provide your financial advice how John's superannuation can supplement their income and provide a strategy that will provide the most tax - effective for both of them.

Top Answer

Both John and Jessica needs to consider annuity for more money... View the full answer

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