How $1 million can last longer than you, free retirement planning, Top 10 SMSF boo-boos, Age Pension case studies, DIY Super For Dummies, SMSF report and more
Welcome to the final edition of SuperGuide for 2011, the second SuperGuide edition for December.
The highlights of the DECEMBER 2011 SuperGuide newsletter are:
- HOW $1 MILLION CAN LAST LONGER THAN YOU. Jon Kalkman, a regular SuperGuide reader, and a self-funded retiree and SMSF trustee, shares his secrets on how you can make $1 million last as long as you do, and then pass your super wealth onto your children. Click on the article link below to find out more.
- OOPS! TOP 10 SMSF BOO-BOOS. The ATO has published the top 10 compliance mistakes that SMSF trustees make when running their self-managed super funds. Click on the link below to find out more.
- FREE RETIREMENT PLANNING ASSISTANCE NOW AVAILABLE. You’re starting to think about your retirement but you’re not sure if you want a full-blown financial plan just yet. Perhaps you may not be able to afford a full financial plan. Why not start with a free retirement planning session, courtesy of the Australian Government? Click on the link below to find out more.
- CASE STUDIES: AM I ELIGIBLE FOR THE AGE PENSION? Around 80% of retired Australians receive a part or full Age Pension which means most Aussies considering retirement will need to understand how the Age Pension rules operate. Click on the article link below to explore three case studies illustrating how the Age Pension works in practice
- SMSF CONFIDENTIAL: THE INSIDE STORY ON DIY SUPER FUNDS. SMSFs outperform large funds even in difficult investment climates, according to the latest ATO report on SMSFs. SMSF members are also richer (and older) and have larger account balances than members of large super funds such as retail and industry funds. Click on the link below for the inside story.
You can find these features and more articles (TRIPs, tax on retirement, SMSF audits, super for beginners) by clicking on the links at the bottom of this email.
COMING UP!
JANUARY 2012 HOLIDAY NEWSLETTER: Coinciding with the release of the second edition of my book DIY Super for Dummies (Wiley, $32.95), we will be sending out a special SuperGuide email in late January. You can expect plenty of top 10 style articles and some checklists to help you kick off 2012.
DIY SUPER FOR DUMMIES (SECOND EDITION). You can pre-order the latest edition of DIY Super For Dummies via our website. For those who order the book through the SuperGuide website, I will autograph all copies.
LOOKING FOR GUEST CONTRIBUTORS: Do you have something to say, or years of experience in investing, or stories to share about running a SMSF, or even receiving a superannuation pension? You could be eligible to be a SuperGuide guest contributor. We will consider articles (no more than 800 words) from readers in their personal capacity. We will not be promoting individuals who work for financial advisory companies or SMSF service providers, although individuals who work for such firms can submit articles about their personal experiences, but no business names will be published. We cannot guarantee publication, but we will acknowledge receipt of your submissions. Please send articles to contact@superguide.com.au.
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Some of our readers have asked us to clarify the benefits of following or liking SuperGuideon Twitter or Facebook, so we’ve put together a short description here.
Thanks again for your support and interest in SuperGuide. I wish you a safe and enjoyable holiday season, and a prosperous 2012.
Trish Power
GUEST SOAPBOX
How $1 million can last longer than you
This article is written by Jon Kalkman, a regular SuperGuide reader, a self-funded retiree and SMSF trustee and a retired school principal. Jon’s comments are in response to the SuperGuide articles: ‘Why can’t $1 million last forever?’ and ‘Crunching the numbers: a $1 million retirement’. Jon believes it is possible for $1 million to last forever by relying on dividends from Australian shares, and his own SMSF experience is proof that it works. Read more
FEATURES
Oops! Top 10 SMSF boo-boos
The ATO has published the top 10 compliance mistakes that SMSF trustees make when running their self-managed super funds. The list below is based on the general type of contraventions reported by SMSF auditors (approved auditors) since the start of contravention reporting in 2005 (and up to 30 June 2010). Read more
Free retirement planning assistance now available
You’re starting to think about your retirement but you’re not sure if you want a full-blown financial plan just yet. Perhaps you may not be able to afford a full financial plan, or you may be uncertain how to go about finding an adviser or unsure as to what qualities to look for in an adviser. You may even be unsure about what’s involved in planning for your retirement. Read more
Case studies: Am I eligible for the Age Pension?
Around 80% of retired Australians receive a part or full Age Pension which means most Aussies considering retirement will need to understand how the Age Pension rules operate. This article contains three case studies illustrating how the Age Pension works in practice. The case studies have been supplied by the Financial Information Service. SuperGuide would like to thank Financial Information Service officer, Regan Welburn for his assistance in updating and supplying the case studies. Read more
SMSF confidential: the inside story on DIY super funds
SMSFs outperform large funds even in difficult investment climates, according to the latest ATO report on SMSFs. If that news isn’t confronting enough for the non-SMSF super industry, add the fact that SMSF members are also richer (and older) and have larger account balances than members of large super funds such as retail and industry funds. Continue reading for the inside story on SMSFs. Read more
HOW SUPER WORKS
Pensions: Starting a TRIP takes planning
It seems that many Australians nearing retirement don’t like the terms ‘retirement’ or ‘pension’. Some advisers who are recommending transition-to-retirement pensions (TRIPs) are experiencing client resistance because clients are adamant that they’re not retiring (at least not for a few more years), and they don’t want to be embarking on any strategies involving ‘retirement’ that may prevent them from continuing to work, or that may force them to leave a job that they enjoy. Read more
I retired at 59. Do I pay tax on my superannuation lump sum?
Q: I retired in September 2010. I’m now living on a tiny super pension since then of $640 a fortnight. In September 2010, I also received a $15,000 superannuation lump sum. The tax free component of my total superannuation is 66% and the taxable component (element taxed in the fund) is 34%. I turned 60 in February 2011. Do I have to pay any tax on the lump sum, or the super pension I’m living on, in relation to before I turned 60? Read more
Super for beginners, part 3: Why aren’t my super contributions tax-free?
Q: I checked my statement and I put an extra $10 per week into my super and each time an amount is put in, it has been taxed. Is this right? I thought that my contributions were tax-free? Read more
Super for beginners, part 6: Can I make concessional (before-tax) contributions while I’m unemployed?
Q: I have been made redundant and would like to know if any contribution in super is tax deductible while I’m unemployed even if I would find work in the next couple of weeks? Read more
Super for beginners, part 10: Can I use my super to reduce my mortgage?
Q: I have a rental property unit I owe approximately $190,000 to the bank and I would like to know if I can invest my $60,000 super into the unit to reduce my payments to the bank? Read more
HOW SMSFs WORK
SMSF trustee declaration: a quick guide
When setting up your SMSF, you must sign a SMSF trustee declaration that confirms you understand the responsibilities and duties involved in running a SMSF. If you have set up a DIY super fund in the past 4 years or so, then you would be familiar with the SMSF trustee declaration. Read more
SMSF audit: you must appoint an approved auditor
If you run a self-managed super fund, you must ensure that your SMSF is audited annually by an approved auditor. As SMSF trustee, you also must ensure that you formally appoint your fund’s auditor each year. You must appoint an approved auditor at least 30 days before the due date of the SMSF return. Upon appointment, you can expect a letter of engagement from the appointed auditor, explaining the scope of the proposed audit. Read more
SMSF audit: Where is your fund’s trust deed and investment strategy?
Q: Do I need to provide a copy of my super fund’s trust deed and financial strategy to my SMSF fund auditor in order to complete the auditing process? Read more
