EXCLUSIVE (How to spot an independent adviser), 2011 super checklist, new SMSF study, industry funds outperform retail, accessing super early (22 Q&As) and more
Welcome to a bumper FEBRUARY 2011 edition of SuperGuide newsletter, a free and independent source of superannuation information for consumers.
Here’s the highlights of this month’s SuperGuide newsletter:
- THE SOAPBOX EXCLUSIVE: HOW TO SPOT AN INDEPENDENT ADVISER. In this exclusive interview, the president of the Independent Financial Advisers Association of Australia Limited (IFAAA), Daniel Brammall, shares his tips on how to spot an independent adviser, and also how to spot an adviser who is NOT independent. We also share the two questions you need to ask any adviser to test the adviser’s independence. Click on the link below to find out more.
- EXPECTATION GAP: CLIENT vs ADVISER (COMMENTS FROM READERS). Some of our readers have their say about what they are seeking in a financial adviser, and in doing so generate a very interesting debate that highlights a potential expectation gap between what consumers are seeking from a financial adviser, and what an adviser believes they are providing. Click on the link below to read what SuperGuide readers think about financial advisers.
- 2011 CHECKLIST: 10 TIPS FOR A FINANCIALLY HEALTHY RETIREMENT. The usual practice for a ‘New Year’ checklist is to send out the checklist at the beginning of the year! True, but experience has taught SuperGuide that most Australians get serious about spring-cleaning their financial closet after the Summer months end. Our retirement planning articles are extremely popular with readers. Click on the list below if you want a kick-start for your Autumn super resolutions.
- SUPER FUNDS DELIVER 4.7% RETURN FOR 2010 CALENDAR YEAR. The median superannuation growth fund delivered an underwhelming return of 4.7% for the 2010 calendar year (12 months to 31 December 2010), according to rating company Chant West. Super fund members have to wait at least another year before they recoup the returns lost during the Global Financial Crisis (GFC) nearly 3 years ago. Click on the link below to find out more.
- NEW SMSF STUDY: 15 FINDINGS ABOUT SMSF TRUSTEES. At last! A new SMSF study sets an initial benchmark to measure the growth of self-managed super funds, to track SMSF trustee behaviour and SMSF investment performance, and the role of SMSF advisers. Click on the link below to discover the 15 main findings about how SMSF trustees behave.
- ACCESSING SUPER EARLY SPECIAL (22 Q &As). As promised, due to the number of emails that we have received over the Summer months, regarding accessing super early due to hardship, and emails from expats and non-residents departing our shores, we have included 22 Q &As about accessing your super benefits before you retire.
In this month’s newsletter, we also have two helpful articles about transition-to-retirement pensions (TRIPs), and lots more.
Note: You can click on the links below or you can access the newsletter link directly via the SuperGuide website. Click here if you want to access the FEBRUARY 2011 newsletter page via the website.
COMING UP!
- SMSF SPECIAL. I have received literally hundreds of emails from SMSF trustees alone over the Summer months. The MARCH 2011 edition will explore many of the issues facing SMSF trustees, including heaps of Q &As.
- BUMPER SELECTION OF Q & As. Due to the sheer number of questions that we receive, it is not possible for me to answer every question but I do endeavour to answer as many as possible. The MARCH 2011 edition will include a larger than normal selection of Q and As covering many of the most popular questions asked by readers.
SuperGuide is now happily tweeting – you can follow us on Twitter, or you may prefer to become a SuperGuide fan on Facebook, or do both.
If you like this newsletter and our website, then please pass on the newsletter to your friends and encourage them to sign up for the SuperGuide newsletter. As consumers, we have more influence with decision-makers when we speak as a group.
Many thanks for your support and interest in SuperGuide.
Trish Power
SUPERGUIDE DIRECTORY!
In late January 2011, SuperGuide launched the SuperGuide Directory – a special directory for superannuation-related companies and other related service providers. We now have 100 service providers listed offering more than 150 services.
Contact Robert Barnes at robert@superguide.com.au for information about how to list.
Listing is free and the Directory is available to SuperGuide readers and the general public.
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THE SOAPBOX
THE SOAPBOX EXCLUSIVE: How to spot an independent adviser
Every week I receive emails from readers searching for qualified and independent financial advisers, and many of these readers share with me the difficulties they face as consumers locating an adviser who can legally claim they are independent. In this exclusive article, the president of the Independent Financial Advisers Association of Australia Limited (IFAAA), Daniel Brammall, shares his tips on how to spot an independent adviser, and also how to spot an adviser who is NOT independent.
Read more
Expectation gap: Client vs Adviser (comments from readers)
Readers have their say about what they are seeking in a financial adviser, and in doing so generate a very interesting debate that highlights a potential expectation gap between client and adviser.
Read more
Six dangers when seeking super fund advice
I have been writing about, or working in or on the sidelines of the financial services industry for 20-odd years and the regulator and the advising industry are only now, in 2011, really grappling with how consumers make investment decisions and the influential role that advisers and financial organisations hold in distributing investment products.
Read more
FEATURES
2011 checklist: 10 tips for a financially healthy retirement
The usual practice for a ‘New Year’ checklist is to send out the checklist at the beginning of the year! True, but experience has taught SuperGuide that most Australians get serious about spring-cleaning their financial closet after the Summer months end.
Read more
Super funds deliver 4.7% for 2010 calendar year
The median superannuation growth fund delivered an underwhelming return of 4.7% for the 2010 calendar year (12 months to 31 December 2010), according to rating company Chant West. Super funds need to generate an additional 8% return from January 2011 onwards to simply recoup the losses suffered since late October 2007. Depressing perhaps but at least investment returns are now heading in the right direction.
Read more
SMSFs: 15 findings about SMSF trustees
At last! A new SMSF study sets an initial benchmark to measure the growth of self-managed super funds, to track SMSF trustee behaviour and SMSF investment performance, and the role of SMSF advisers.
Read more
Transition-to-retirement pension: How does a TRIP work?
A transition-to-retirement pension (TRIP) enables any Australian, aged 55 or over, to access his or her superannuation benefits in the form of a pension (income streams) without retiring or satisfying another condition of release. Using 3 case studies, this article illustrates how a TRIP can operate in practice.
Read more
Super in 3 steps: You’re probably richer than you think
Here’s a tip: a quick and easy way to feel instantly richer is to take the following 3 steps: Find out how much money you have sitting in your superannuation account; Locate any lost or forgotten super accounts; Consolidate your super accounts, and potentially save thousands of dollars.
Read more
ACCESSING SUPER EARLY
Accessing super early: 12 legal reasons to cash your super
Many Australians are facing hard times but mortgage repayments and everyday living expenses continue even when you lose your job, or suffer illness or other misfortune. We have received many emails from readers asking when, and how, you can access your super benefits. In brief, there are 12 ways to unlock your super early.
Read more
Accessing super early: 14 popular Q&As
I have received many questions from readers, some in serious financial situations or suffering illness who are seeking more information on how to access Australian super benefits early. Other readers seeking early access to super benefits have left Australia permanently, or have even left Australia temporarily.
Read more
Accessing super early: Permanent departure from Australia (6 Q&As)
This article contains 6 examples of the most popular questions received by SuperGuide from Australian citizens and Australian permanent residents departing Australia, and who are seeking to access super benefits before retirement. If you’re a temporary resident of Australia then check out another SuperGuide article Accessing super early: Temporary resident.
Read more
Accessing super: Turning 55 is not enough
Q: I am 57 years old, born 1953. I thought I could access my super funds from age 55 but I have been told I can’t access my funds until age 60. Is this correct? If I withdraw my super benefits, is there any tax payable?
Read more
Unrestricted access to super, sometimes
Q: I was an Australian citizen, age 37, and had been part of a super fund from about 1993/4. I left Australia in 2001. I see from your 12 legal reasons to cash your super that I may be able to access my restricted benefit. You write: “Cease employment. If you’ve been a member of a super fund since before 1 July 1999, you can cash your restricted benefit only when you cease employment with your employer”.
Read more
MORE Q&As
Help! How can I find independent investment advice?
Q: My husband and I are looking to start a SMSF. We have been able to find sources for the set up, accounting and audit of the fund and are now looking for assistance on the portfolio. We have a share portfolio outside super and so we have some knowledge in the area but do not feel confident to make decisions about our whole super. I know you do not give investment advice but we were wondering if you could suggest anyone that you know that does. I understand that we will have to speak to and meet with anyone suggested and that the ultimate decision will be our own responsibility.
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Super for beginners, part 24: Do I have to withdraw my super when I turn 65?
Q: I turned 60 in June 2007. I retired, sold my large house, downgraded, invested spare money into my super believing I would be making $25,000 per year until age 65. One month after I invested, I lost $50,000 just like that. I would like to know what the chances are, of the government increasing the cut off for this Super Scheme from 65 to maybe 67 to give those of us that did have this experience, a chance to recover some of the money lost and make a little. Saying this I would like to remind you that the Government has already legislated that retirement age is going up gradually anyway.
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Transition-to-retirement pension: Can I work full-time and take a TRIP?
Q: Your site says: “By starting a TRIP, you don’t have to retire to withdraw your super benefits. You can work part-time or full-time or even casually.” But on the TRIP form I have from my super fund it says I have to be permanently retired or be working part time. Which is correct? I can’t see any reference on the ATO site to a need to be working part time. So can I continue working full-time and still do TRIPs?
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