{"id":1245,"date":"2020-01-28T01:36:10","date_gmt":"2020-01-28T01:36:10","guid":{"rendered":"https:\/\/trustedagedcare.com.au\/?p=798"},"modified":"2020-01-28T01:36:10","modified_gmt":"2020-01-28T01:36:10","slug":"asset-rich-and-cash-poor","status":"publish","type":"post","link":"https:\/\/trustedagedcare.com.au\/newsite\/2020\/01\/28\/asset-rich-and-cash-poor\/","title":{"rendered":"Break Free from being Asset Rich and Cash Poor"},"content":{"rendered":"

How to Boost Your Income in Retirement: 4 Smart Strategies<\/strong><\/h3>\n

Are you asset rich but cash poor<\/strong>? If so, you\u2019re not alone. Many older Australians find themselves with significant wealth tied up in their family home and other assets<\/strong>, but limited cash flow to cover everyday expenses.\u00a0 Many wish they could break free from being asset rich, but cash poor.<\/p>\n

According to the Australian Bureau of Statistics (ABS)<\/strong>, nearly one-third of older Australians in low-income households<\/strong> face this exact challenge.[1]<\/p>\n

The good news? There are several ways to unlock financial flexibility<\/strong> and boost your income<\/strong> in retirement\u2014without sacrificing your long-term financial security.\u00a0 The Team at Trusted Aged Care<\/a> explore four options to assist.<\/p>\n

1. Leverage the Value of Your Home \ud83c\udfe1<\/strong><\/h2>\n

Your home is likely your biggest asset<\/strong>, but if it\u2019s costing too much to maintain or limiting your financial options, it may be time to consider downsizing<\/strong> or using its value strategically<\/strong>.<\/p>\n

Ways to Unlock Property Wealth:<\/strong><\/h3>\n

\u2714\ufe0f Downsizing to a smaller home<\/strong> can help free up cash for retirement while reducing maintenance costs.
\n\u2714\ufe0f Using home equity<\/strong> through the Home Equity Access Scheme<\/a> (HEAS)<\/strong> allows eligible retirees to access extra funds.
\n\u2714\ufe0f Considering a reverse mortgage<\/strong> may provide needed cash flow while letting you stay in your home but be sure to weigh the interest costs carefully.<\/p>\n

\ud83d\udca1 Important Consideration:<\/strong> Selling your home may affect your Age Pension<\/strong>. Some sale proceeds may be assessable under the Age Pension assets test<\/strong>, potentially reducing your entitlements. Always seek financial advice<\/strong> before making a decision.<\/p>\n

2. Supplement Your Income with Part-Time Work \ud83d\udcbc<\/strong><\/h2>\n

Earning additional income\u2014even just a few hours a week<\/strong>\u2014can boost cash flow<\/strong> while keeping you active and engaged. Many retirees turn hobbies or past skills into profitable side gigs<\/strong>.<\/p>\n

Ideas for Generating Extra Income:<\/strong><\/h3>\n

\u2714\ufe0f Leverage past work experience<\/strong> by offering freelancing or consulting services<\/strong> in your area of expertise.
\n\u2714\ufe0f Turn your skills into an income stream<\/strong> through teaching, tutoring, or mentoring<\/strong>.
\n\u2714\ufe0f Help others with everyday tasks<\/strong> by providing handyman work or cleaning services<\/strong> on a part-time basis.<\/p>\n

\ud83d\udca1 Pension Impact:<\/strong> You can earn up to a certain amount<\/strong> before your Age Pension is affected<\/strong>. Speak to a financial adviser<\/strong> to understand how working part-time might impact your benefits.<\/p>\n

3. Rent Out a Room or Holiday Home for Extra Cash \ud83c\udfe0<\/strong><\/h2>\n

If you have extra space<\/strong>, renting a spare room<\/strong> or holiday home<\/strong> can provide a steady income stream<\/strong>.<\/p>\n

Ways to Generate Rental Income:<\/strong><\/h3>\n

\u2714\ufe0f Opening your home to a tenant<\/strong> can bring in extra income, whether it\u2019s a student, professional, or short-term guest.
\n\u2714\ufe0f Turning a holiday home into a short-term rental<\/strong> through Airbnb or similar platforms can be a great financial move.
\n\u2714\ufe0f Sharing living space with a friend or relative<\/strong> may help reduce expenses while providing companionship.<\/p>\n

\ud83d\udca1 Tax Considerations:<\/strong> Renting out part of your home may impact capital gains tax (CGT)<\/strong> when you sell the property. Always consult an adviser<\/strong> to understand tax implications before proceeding.<\/p>\n

4. Review and Optimize Your Investments \ud83d\udcc8<\/strong><\/h2>\n

If you\u2019ve invested in shares, exchange-traded funds (ETFs), or other assets<\/strong>, a financial check-up can help improve returns while managing risk<\/strong>.<\/p>\n

Smart Investment Strategies for Retirees:<\/strong><\/h3>\n

\u2714\ufe0f Spreading investments across different asset classes<\/strong> reduces risk and improves financial security.
\n\u2714\ufe0f Investing in income-generating assets<\/strong> such as dividend-paying stocks, ETFs, or bonds can provide a stable cash flow.
\n\u2714\ufe0f Regularly reviewing and rebalancing your portfolio<\/strong> ensures it aligns with both your retirement goals and risk tolerance.<\/p>\n

\ud83d\udca1 Get Professional Advice:<\/strong> A financial adviser<\/strong> can review your portfolio, suggest tax-efficient strategies, and help you maximize income without unnecessary risk.<\/p>\n

Understand the Risks & Seek Expert Advice \ud83d\udd0d<\/strong><\/h2>\n

You can break free from being asset rich but cash poor.\u00a0<\/strong> It doesn\u2019t mean you have to struggle financially. With the right strategies<\/strong>, you can boost your income<\/strong> while maintaining long-term financial security.<\/p>\n

Before Making Any Financial Decisions, Consider:<\/strong><\/h3>\n

\u2714\ufe0f Consider how your decisions<\/strong> will affect the Age Pension<\/strong>, as certain income strategies may lead to reduced benefits.
\n\u2714\ufe0f Understand potential tax implications<\/strong> before renting out property or selling assets.
\n\u2714\ufe0f Evaluate risk factors carefully<\/strong>, especially when dealing with investments or equity release loans.<\/p>\n

\ud83d\udca1 Need Help Navigating Your Options?<\/strong>
\nWe\u2019re here to assist. Contact us today<\/strong> to explore the best strategies for your personal financial situation<\/strong>.<\/p>\n

\n

Reference:<\/strong><\/h3>\n

[1] Australian Bureau of Statistics, March 2016, \u2018Many older Australian households’ asset rich, income poor\u2019<\/em>, accessible at: ABS Report<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Here are four ways to try to boost your income…
\nAre you asset rich but cash poor?\u00a0 Turns out, you\u2019re not alone. Data from the ABS (Australian Bureau of Statistics) shows that almost one-third of older Australians in low-income households were asset rich but cash poor.[1]\u00a0Most wealth is tied up in illiquid assets, in particular the family home.<\/p>\n

But you need not scrape by on so little. There are ways to try and boost your income.<\/p>\n","protected":false},"author":3,"featured_media":799,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[8],"tags":[78,79,80,81,82],"class_list":["post-1245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-cashflow","tag-income","tag-money","tag-retirement","tag-wealth"],"acf":[],"_links":{"self":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/posts\/1245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/comments?post=1245"}],"version-history":[{"count":0,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/posts\/1245\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/media\/799"}],"wp:attachment":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/media?parent=1245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/categories?post=1245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/tags?post=1245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}