Xplan Product27th March AMA: I'm Lana Graham, Xtools+ expert and product manager. Ask Me Anything!
Hi Lana,
I hope you are doing well.
Just wondering what the best way is to do the following scenarios:
- Utilise the unused concessional contributions over multiple years. I find that the ‘max deductible’ option does it all in the initial year.
- Purchase a new home in let’s say 5 years’ time while retaining the current home as an investment property. How do I convert the current home loan from non-deductible to deductible without having to pay it off manually and then restarting a new deductible loan for that amount? How do I also link the offset account balance (entered under Financial Assets) to the new home loan instead of the current home loan in 5 years?
Thanks.
Hi Lana,
I think you might have missed my question?
- lana.graham
Oh hi dorje.gurung, sorry about that!
Your second question is a bit tough, so I was going to come back to it - then I had to run off to a meeting!
Concessional Cap contributions
You need to do it in stages:- Stage 1:
- Model regular concessional contribution amount until retirement.
- Go to the Rates and Thresholds Display and check for the year your client exceeds their concessional cap.
- Now change the end date for your concessional contributions to the year before 2.
- Stage 2: Enter a second stage of concessional contributions and select Max Deductible. Start it the year after the above input ends.
This will be much easier when Reinvented Super and Pension modelling has been released, as you will be able to see the contributions and concessional cap on the same screen as your contribution inputs.
Retaining the Current Home as an Investment Property
You will need to model a second, deductible loan to pay off the first non-deductible loan.
You can't currently model more than one offset account, so we need to be a little creative with our . Maybe we can use a grouped credit limit.... Let me think about this over the weekend and come back to you. This will be a great test case to keep in mind for our proposed Liabilities project.- lana.graham
Hi dorje.gurung ,
Just coming back to you about Retaining the Current Home as an Investment Property. The
Group Credit limit feature won't help us to transfer the offset account to the new loan as you can only set an offset account for one loan.Therefore:
- You need to choose whether to link the offset account to the home loan or the investment loan.
- For the other loan, I suggest you reduce the loan balance by the amount of the offset account instead of modelling an offset account. This will give you the same approximate net worth position and interest amount.
Again, this will be a useful test case when we are working on our Liabilities initiative.
Kind regards,
Lana
- Stage 1:
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