Bitter pill for advisers, Top 10 super funds, 2011 investment winners, 2012 to-do list, Top 10 articles, DIY Super For Dummies, 20 Q&As and more
Happy New Year to all of our subscribers, and thank you for your support and interest during 2011. SuperGuide is now entering its fourth year, and the past 12 months have been our busiest year yet. We are proud to share some of our key website statistics with our regular readers and our many thousands of new readers.
- During 2011, the SuperGuide website had nearly half a million unique visitors (463,590) and many more repeat visitors, who viewed 1.9 million pages and who spent over 35,000 hours on the SuperGuide website.
- During 2011, we also launched the SuperGuide Directory as a free service for our readers. Since the launch, the SuperGuide Directory has had more than 40,000 unique visitors checking out 270 separate listings from just over 200 companies. Any company interested in listing for free, or taking up an advertising package can contact robert@superguide.com.au.
- You can also discover SuperGuide’s top 10 articles for 2011 and our 10 most popular super topics. Click on the links below for more information.
As a general rule, we previously haven’t published a newsletter in January due to the summer holidays, but we have published this bonus JANUARY 2012 newsletter to recognise the release of the updated edition of my book, DIY Super For Dummies, 2nd edition (Wiley) and to again remind readers about the resistance of major financial organisations in doing the right thing in terms of financial advice reforms.
The highlights of the JANUARY 2012 SuperGuide newsletter are:
- ENCORE ARTICLE: NOT THE TIME TO QUIBBLE (FINANCIAL ADVICE). One year ago I wrote a fairly punchy column about the fact that poor financial advice practices continue while adviser industry groups resist change that would improve financial advice for consumers. Well, they’re at it again while the pollies are on holidays. The Financial Services Council is bleating about the cost of reform that should have taken place years ago, and the large industry players are whingeing about poorly drafted legislation. Why was the Government forced to make these fundamental reforms when the financial advising industry was given years of opportunity to clean up its operations without Government intervention? Financial advisers should be highly embarrassed by their industry representatives. Click on the link below to read the encore article, which is still relevant today.
- 2012 SUPER CHECKLIST: 10 TIPS FOR A FINANCIALLY FIT RETIREMENT. Use this list as a kick-start for your 2012 super resolutions. You may not keep all of your resolutions, but if you do just a handful of the tasks listed in the checklist below, you can strengthen the chances of a financially secure retirement. Click on the article link below for more information.
- TOP-PERFORMING SUPER FUNDS FOR 2011. The top 10 super funds for the 2011 calendar year are… you’ll have to click on the link below to find out.
- ASSET CLASSES: NAMING THE INVESTMENT WINNERS FOR 2011 CALENDAR YEAR. Click on the link below to find out the winners and losers.
- SUPER FUNDS LOSE 2% FOR 2011 YEAR (12 MONTHS TO DECEMBER 2011). For more detail on these disappointing results, click on the article link below.
- TOP 10 SUPER ARTICLES AND 10 MOST POPULAR SUPER TOPICS FOR 2011. Click on the links below to discover SuperGuide’s most popular content.
- 20 Q&As. We include a super bonanza of questions and answers from readers covering SMSFs, super contributions, super and tax, retirement planning, accessing super, Age Pension and more.
- DIY SUPER FOR DUMMIES (SECOND EDITION). You can order the latest edition of DIY Super For Dummies (2nd edition) via our website (see right-hand side of website for book link). For those who order the book through the SuperGuide website, I will autograph all copies.
Note: You can find these articles, Q&As and top 10 lists, by clicking on the links below.
Thanks again for your support and interest in SuperGuide.
Trish Power
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ENCORE: THE SOAPBOX
THE SOAPBOX: Not the time to quibble (financial advice)
I want to give you the heads up on what significant players in the financial advisory industry are now trying to do, to further compromise the quality of financial advice. Read more
FEATURES
2012 checklist: 10 super tips for a financially healthy retirement
Each year, SuperGuide publishes a super checklist for our readers. Use this list as a kick-start for your 2012 super resolutions. You may not keep all of your resolutions, but if you do just a handful of the tasks listed in the checklist below, you can strengthen the chances of a financially secure retirement. Read more
Top 10 performing super funds for 2011 calendar year
Investment returns/losses for the growth investment options within super funds ranged from a low of -4.8% through to a high of 2.6%, according to figures released by rating company Chant West. Read more
Asset classes: Naming the investment winners for the 2011 calendar year
Diversification was the key message for 2011, according to Warren Chant of rating company, Chant West. He says that the strong performance of unlisted assets has had a stabilising effect on fund returns in 2011. Read more
Super funds lose 2% for 2011 year (12 months to December 2011)
The median superannuation growth fund lost 2% in value for the 2011 calendar year, although the median fund is sitting on a gain of 2% for the 3 months to December 2011, according to rating company Chant West. Read more
Super contributions beyond the age of 75
Q: If the SG contribution age limit is being removed completely effective July 2013, does this mean that additional concessional or non-concessional contributions can also be made by those aged over 75? Read more
For your convenience: Income tax rates for the 2011/2012 year
Superannuation is a concessionally taxed investment vehicle, which means the rate of tax that you pay on your personal income generally influences any decision that you make regarding your superannuation savings. Read more
TOP 10 ARTICLES FOR 2011
- Accessing super early: 12 legal reasons to cash your super
- Super rates and thresholds for the 2011/2012 year
- A comfortable retirement: How much super is enough?
- Age Pension: September 2011 rates now available
- Investment performance: We’re the best super fund. No, we’re the best…
- Age Pension: Is my super benefit counted towards the Centrelink Pension assets test?
- Super concessional contributions: 2011/2012 survival guide
- Are you eligible for a Commonwealth Seniors Health Card?
- Income tax rates for 2011/2012 and 2012/2013 years
- What a relief! Minimum pension payments reduced by 25% for 2011/2012 and 2012/2013 years
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TOP 10 MOST POPULAR SUPER TOPICS FOR 2011
- Maximum superannuation contribution base
- Work test
- Senior Australians Tax Offset
- Condition of release
- Age Pension
- How much super do I need?
- Age Pension income test
- Superannuation Guarantee (SG)
- Assets test
- Contributions caps
20 Q&As
Does Trish Power offer personal financial planning advice?
Q: I have met many financial planners including 3 independent ones, but they don’t seem to know much and all said different things. They don’t seem to show interest and care for my retirement. I am a 61 year-old female and have no super. I need to do something fast. I am just a piano teacher and financially illiterate. I need help. Read more
I retired at 59. Do I pay tax on my superannuation lump sum?
Q: I retired in September 2011. I’m now living on a tiny super pension since then of $640 a fortnight. In September 2011, 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 turn 60 in February 2012. 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? I thought everything was tax free, even though I was 59, because the amounts I’ve received are so tiny. But many people I’ve spoken to seem to think I’ll have to pay some tax. All the official guidelines are so complex they are near impossible for me to fully understand. Read more
Non-concessional contributions at 64
Q: My wife turns 65 in early June 2012 . Can I make a spouse contribution of up to $450,000 before her birthday? Her last non-concessional contribution of $157,711 was made in 2008/2009. Read more
Can I put my super into a bank account?
Q: I am not in a self managed super fund. Can I put my superannuation balance into a bank account to get around 6% until I retire in 2.5 years? The current share market is an unreliable yo-yo, so I invested in cash, fixed interest and bonds only; now the stupid share market goes up and the fixed interest and bonds do the opposite, this drives me insane! Please help. Read more
Do I pay tax on a super account in the last year of accumulation phase?
Q: On April 1 2012 I am transferring from accumulation phase to pension phase (I turn 65 on March 27 2012). Is my super fund subject to tax (for 2011/2012 year) on income earned up until the date of conversion, or is no tax payable because the fund has been converted to pension phase? Read more
Can I use my super for a house deposit?
Q: I am 56 and wish to purchase a property as my residence (as opposed to investment). Is it possible for me to access a portion of my super for a house deposit? Read more
I’m 59 and I have $180,000 in super. Will my super be taxed?
Q: I’ve just turned 59, and I’m thinking of retiring before I turn 60. My total super is $180,000. I would like to take about $50,000 to $80,000 or so as a lump sum, and the rest as a pension. So my question is: Between now and when I turn 60, will I be subject to any tax on any super money I receive, be it the lump sum or pension or earnings from the super in my super account? Read more
Does my superannuation pension income affect tax payable on other income?
Q: How does the income from an account-based pension affect taxation payable on other income received from salaries, dividends, capital gains and investments? Or, is there no affect whatsoever regardless of the amount of pension taken in any one year (assuming the minimum is taken). Read more
Can my employer insist I join the super fund they use?
Q: I am about to start a new position. I am 67 years old and have a SMSF. My new employer has said I must join the super fund they use and cannot use my SMSF as they have too many employees. It was my understanding I could have the SCG paid to the Fund of my choice. Would you kindly let me know if this company can insist I join the super fund they use? Read more
I have exceeded the contributions cap. What can I do?
Q: It seems I have exceeded the contributions cap in 2007-2008 by $6,600 and the ATO has imposed a penalty. Can you provide any guidance on what sort of pleas they would consider? Read more
Which super funds have the largest asset allocation to the property sector?
Q: Do you know if anyone publishes a list of the largest super funds in Australia, and also possibly by amount allocated to the property sector? Read more
If I’ve reached preservation age can I claim my super?
Q: If you are living in New Zealand and you have super which has been sent to the ATO, and you have reached your preservation age, and you have retired, is there any reason you would not be able to claim your super directly from the ATO? Read more
I’m 67. Can I access my super and continue working?
Q: I am going to be 67 yrs this year and am still working as a security guard. I would like to continue in employment for as long as possible. I have about $84,000 in super savings – can I access $80,000 to put on the mortgage of our house and still continue working? Please please let me know if this is possible. Read more
Can I access my super because of my disability?
Q: I have been back in the UK from Australia for the last 3 years because of health problems. I am an Australian citizen as I emigrated from the UK in 1997. I have had two spinal operations and a heart attack three months ago at the age of 39. I have been on goverment benefits and disability living allowance, and because of my disability I can no longer return to Australia. What will happen to my super? Will I be able to get it early or will I have to wait until I am 60, as my parents are having to look after me I am struggling financially. Read more
Is a SMSF account balance counted as an ‘asset’ for the Youth Allowance assets test?
Q: I have tried numerous websites for this info. and even phoned Centrelink, but I’m still unsure. My question: Is a SMSF counted as an ‘asset’ in the test for Youth Allowance and similarly is the tax free income gained from it (recipient over 60) counted as income? Read more
Divorce: How is Australian superannuation divided in a NZ divorce?
Q: Are you able to shed any light on how Australian super funds are treated/divided by New Zealand courts in the case of divorce, where the two parties are also New Zealand citizens? Read more
Do I need to pay super for my 16-year-old employee?
I am a small business owner who currently employs a 16-year-old employee. She works a minimum of 20 hours per week and her gross income exceeds $450 per calendar month. Am I required to pay her superannuation? Read more
How is contributions tax deducted from salary sacrifice contributions?
Q: If I choose to salary sacrifice some of my income into my super account, is the 15% taxed separately on the salary sacrificed super, and then another 15% on amount my employer contributed, or are the two added together then the 15% tax deducted? Read more
Can we run our business overseas if we are ‘retired’?
Q: We are Australians living and working on a South Pacific island and age wise we are eligible to access our super later this year. We have retired from Australia and have no intention of working in Australia again, but does it affect our “retired” status for superannuation if we are running our own business overseas which has no connection at all to Australia? Read more
Is super pension income considered ‘assessable income’ or ‘total income’?
Q: Can you clarify whether income from a pension (from a taxed and/or untaxed super fund) is considered ‘assessable income’ and/or part of ‘total income’? Is it considered self-employment income or employer income? Read more
