Phase 5 - Retirement

I will start this Phase at 65 years old. In this Phase I am no longer in the working force and I am
able to access my superannuation. The definition of a superannuation is: regular payment made
into a fund by an employee towards a future pension. Because Im not working I have to find a
way to continue to gain money or else we might run out.

How has life changed and what obligations will you have?
My children are now raising kids and working hard while Rhonda and I sit back relax and enjoy
life. Because neither one of us are working we need to have an income. That is why I have
previously bought two apartments in Narrabeen which I have rented out. I have also done the
same with an apartment in Clontarf that I have inherited from my parents. Rhonda and I are now
both entitled to our superannuation but we wont need it because we have saved A$4 187
726.2.
What is your income potential?
From the apartment in Narrabeen at 4/1277 Pittwater Road (domain,2014), I would receive a
weekly rental income of $500 a week but I agreed with my tenant that he would pay me the
yearly rent instead of weekly at the start of the year. So I will receive 26 000 at the start of the
year. I have also done this with my fathers house at 19 moore st Clontarf, which I inherited
when he died. From the house in clontarf I will rent it out and also with my tenant will pay me
$104 000 from the start of the year, the equivalent of $2000 a year. In total I will receive A$139
000 at the start of the year.

What expenses will you incur?

Fixed expenses A$ Monthly
Mortgage - on two homes 1656.25 + 3546.30 =
5202.55
car expenses - service, fuel etc (beside insurance) 430
necessities - cleaning products and equipment, toiletries, and
food
600
bills - gas, electricity, phone, internet etc 400
Total 6632.55

Variable expenses A$ Monthly

Variable Expenses A$ Monthly
Clothes 1000
social and recreational e.g movies, dinning out 3000
total 4000


Where will you live and what will it cost?
Me and my partner Rhonda, will still be living at 5/87 Birkley Road Manly (domain, 2014). The
house has 2 bedrooms, one games room, one bathroom and 1 car parking space and is close
to manly shops.

What additional financial obligations will you have and why?

Additional Expenses(A$) Paid in one go, or throughout the year
Dogs funeral 625 (bit of heaven, 2001)
holidays 7000
transport expenses 1560
total 9185

Budget yearly A$
Savings 4 187 726.2
income 139 000
expenses 136 775.6
saved 2224.4

What could go wrong and who can help?

Cant pay mortgage- If I can't pay off my mortgage, for help, I can visit MoneySmart, a
government website that can provide me with:
Charities and emergency help
help with debts
help with legal issues
help with housing
government assistance and concessions
free financial counsellors
fair trading contacts
(ASIC, 2014)