How do we go about setting up a retirement fund here. New citizens since 2017 have 20,000,000 in assets in Europe and a house here in Oz. We have a super with about 70k in it. Best course of action?
Stephen S in Brisbane
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thank you for your question and congratulations on becoming a citizen. As an Australian citizen, the only other major impediment for setting up a retirement fund (Superannuation) is age related. If you are under 65 then you are good to go, if you are over 65 there is a “work test” you must pass to commence a fund or make contributions.
There are literally thousands of different retirement fund options available, so the real question you need to be asking yourself is “What kind of retirement fund suits you, your goals and objectives?”. They range from simple low cost funds all the way to complicated self-managed style funds where you can act as the Trustee with a very broad range of investment options. There are also funds that are a combination of the above (ie flexibility on investment options without being a Trustee).
When thinking about your overall retirement plans you will also need to give consideration to the following points:
- Will you be residing in Australia permanently? If not then moving assets to Australia might not be the best option.
- Are you considered a resident for Australian taxation purposes?
- Does Australia have a tax treaty in force with your home country?
- Have you considered Estate Planning and the impact on your assets in Europe and Australia?
Stephen, due to the complexity of your circumstances on having assets abroad I strongly believe that the best course of action would be to arrange a couple of appointments with several Advisers to discuss your overall retirement plans goals and objectives. That way you can have a range of professional opinions and will then have the information at hand to make an informed decision. I have written articles in the past for migrants and you can read more information about retirement savings in Australia here.
Bridges Financial Services Pty Limited (Bridges). ABN 60 003 474 977. ASX Participant. AFSL No 240837. This is general advice only and does not take into account your objectives, financial situation and needs. Before acting on this advice, you should consult a financial planner.
While the Adviser Ratings Website facilitates the question and answer functionality, all such communications are between users and authorised financial advisers, of which Adviser Ratings has no affiliation. Adviser Ratings is not the advice provider and does not provide financial product advice and only provides information that is general in nature.