As someone who works with clients to make sure important transfers and contracts involving lifetime investments and relationships are carried out correctly, I’ve watched debate around the government’s Intergenerational Report closely.
In my reading of the situation, the report’s findings contain mixed news and challenges that all of us would be prudent to think through from our own perspectives.
Just one aspect that brings this into focus is the impact of making superannuation decisions for real estate investment against a backdrop of longer life expectancy.
Little decisions can have large impacts on lifetime investments
One key forecast within the Intergenerational Report is that we will all be living longer, much longer than our parents or grandparents would ever have dreamed of.
This means decisions about savings and investments, particularly in relation to superannuation and real estate, take on more importance than ever before.
In the Guardian article, Dipping into superannuation for house ‘could cost $140,000’ in retirement, an argument is made that allowing first home buyers to use super to cover their deposit, might have unintended consequences of leaving them short of funds later in life.
And this is what I think is so important to stay focused on in this current debate: Hasty investment decisions, ambiguous contract clauses, cheap advice or too much trust in verbal agreements, can all come back to bite us when we least expect it and have less ability to cope.
Taking the long view pays dividends
As I’ve mentioned here regularly, taking time and investing in relationships with trusted professionals in the fields of conveyancing, investments, taxation, etc, can help safeguard you from nasty surprises.
One of example of this has been my regular highlighting of the value of having advice AHEAD of signing a contract for a property purchase, in articles such as Form 1: A piece of paper that can tear your dreams to shreds.
Adding to this discussion now should be the growing awareness of the changing economic and social environment we are all heading into. Here’s Dr Karl’s 60-second overview.
Short of reading the full report, which I encourage you to do, might I suggest that when you’re next chatting with our team you ask about the long term consequences of the decisions you are making?
We don’t have crystal balls, but we are thorough in thinking through the details of agreements and transfers, which, according to the famous saying, is where the devil is often found.