Close SMSFs at 65? (guest article), 2012/2013 super checklist, fraud and over-50s, salary sacrifice, 24 Q&As, Seniors Health Card and more
The highlights of the JULY 2012 SuperGuide newsletter are:
- GUEST CONTRIBUTOR: TURNING 65 – DO YOU NEED A SMSF? Bruce Sutherland, a regular SuperGuide reader, a self-funded retiree and now ex-SMSF trustee explains why he believes a SMSF is no longer tax-effective for his wife and himself after the age of 65. The introduction of new income tax rates from July 2012, combined with the Senior Australians and Pensioners Tax Offset and Low Income Tax Offset have created a tax-free retirement of nearly $60,000 a year – without the use of superannuation. Click on the article link below to read what Bruce has to say. Bruce’s article highlights a bigger question for the federal government, the superannuation industry and individuals approaching retirement – is super worthwhile after the age of 65 for a fair chunk of the Australian population?
- ATTENTION OVER-50s: INVESTMENT SCAMS – SIX DANGERS WHEN GETTING FINANCIAL ADVICE. The most unlikely people can be victims of investment scams. If you’re over 50, male and financially literate, then you must read this article. SuperGuide suggests that it is not only the scams you have to watch out for – being mis-sold legitimate but high-risk investments can be just as probable, and a lot more costly. Click on the article link below to discover the tactics of scammers, and also six dangers when getting financial advice on investments.
- SUPER HEALTH CHECK: 10 TIPS FOR YOUR 2012/2013 RETIREMENT PLANNING. At the start of each financial year, SuperGuide publishes an updated super checklist for readers. Use this list as a kick-start for your 2012/2013 super resolutions. For your convenience and future reference we have also included a separate article on the latest super rates and thresholds, and also an article to help you work out how long you’re going to live, and how long your savings have to last. Click on the article links below.
- SALARY SACRIFICE: 10 SUPER FACTS YOU SHOULD KNOW. Salary sacrificing is a popular strategy for employees on middle-to-high incomes who want to increase their superannuation balances while reducing the amount of income tax payable on their salary or wages. Click on the link below to find out more.
- SUPER FOR BEGINNERS: 24 Q&As. One of SuperGuide’s popular initiatives has been the development of a ‘Super for Beginners’ section that answers some of the many questions that we receive from those readers who are new to superannuation and new to super’s terminology. Even if you’re not a ‘super beginner’, take a few moments to check out the 24 Q&As listed in this article – you may discover something that you didn’t know about super. See the article link below.
- SUPERANNUATION TAX REFUND: 10 THINGS YOU SHOULD KNOW. If you earn less than $37,000, and you, or your employer, makes concessional (before-tax) contributions to your super fund, you may get a refund of up to $500 for the contributions tax deducted from the super contributions. Click on the link below to find out how it will work.
- ARE YOU ELIGIBLE FOR A COMMONWEALTH SENIORS HEALTH CARD? We have updated this very popular article. Click on the link below to find out if you’re eligible, or continue to be eligible for the Commonwealth Seniors Health Card.
- HOW TO SPOT AN INDEPENDENT ADVISER. I regularly receive emails from readers searching for qualified and independent financial advisers, and many of these readers share the difficulties they face as consumers locating an adviser who can legally claim they are independent. In this updated article, you can discover tips on how to spot an independent adviser, and also how to spot an adviser who is NOT independent. Our list of independent advisers has now grown to 14 (see separate article) but I am sure there are hundreds more out there who could join our list. Click on the article links below.
- IT’S OFFICIAL: SMSF OFF-MARKET SHARE TRANSFER BAN DEFERRED TO JULY 2013. After months of speculation, the federal government has finally deferred the potential ban on off-market share transfers for SMSFs until July 2013. Click on the article link below for the latest update.
COMING UP!
The list of top-performing super funds for the 2012/2013 year was not available by the time we published the July 2012 newsletter. As soon as this information is available we will publish the list on the SuperGuide website and we will also include the article in the AUGUST 2012 newsletter.
Thanks again for your support and interest in SuperGuide.
Trish Power
THE SOAPBOX
Guest contributor: Turning 65 – do you still need a SMSF?
A regular SuperGuide reader, Bruce Sutherland, explains why he believes a SMSF is no longer tax-effective for his wife and himself after the age of 65. Read more
FEATURES
Attention over-50s: Investment scams – six dangers when getting advice
This article reports that the most unlikely people can be victims of investment scams. SuperGuide suggests that it is not only the scams you have to watch out for – being mis-sold legitimate but high-risk investments can be just as probable, and a lot more costly as the failed investments in Westpoint and Trio Capital illustrate. In the second half of this article SuperGuide warns of six dangers when getting financial advice on investments. Read more
Super health check: 10 tips for your 2012/2013 retirement planning
At the start of each financial year, SuperGuide publishes an updated super checklist for readers. Use this list as a kick-start for your 2012/2013 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
Super rates and thresholds for the 2012/2013 year
For the 2012/2013 year, the concessional contributions caps for over-50s has changed dramatically – the concessional cap has halved for over-50s, while the concessional cap for under-50s, and the non-concessional contributions caps for everyone, remain at 2011/2012 levels. The ATO has also released other updated superannuation rates and thresholds for the 2012/2013 year. Read more
Are you eligible for a Commonwealth Seniors Health Card?
The question is a popular one among prospective retirees, and the answer can be best explained by dividing the question into four parts: What is the Commonwealth Seniors Health Card (CSHC)?; Who is eligible for the CSHC?; What year of income does Centrelink use when testing for CSHC eligibility?; Where can I find more information about the CSHC and eligibility? Read more
It’s official: SMSF off-market share transfer ban deferred to July 2013
After months of speculation, the federal government has finally deferred the potential ban on off-market share transfers for SMSFs until July 2013. Read more
- – – – SuperGuide Directory Featured Listing – – – -
HOW SUPER WORKS
Superannuation tax refund: 10 things you should know
If you earn less than $37,000, and you, or your employer, makes concessional (before-tax) contributions to your super fund, you may get a refund of up to $500 for the contributions tax deducted from the super contributions. Read more
Salary sacrificing: 10 super facts you should know
Salary sacrificing is a popular strategy for employees on middle-to-high incomes who want to increase their superannuation balances while reducing the amount of income tax payable on their salary or wages. Before you decide to arrange a salary sacrifice arrangement chat to your accountant about the tax implications, and ensure you do not lose out financially on your employment package. Read more
Super for beginners: 24 Q &As
One of SuperGuide’s more popular initiatives has been the development of a ‘Super for Beginners’ section that answers some of the many questions that we receive from those readers who are new to superannuation and new to super’s terminology. Read more
- – – – SuperGuide Directory Featured Listing – – – -
RETIREMENT PLANNING
Life expectancy: Will you outlive your retirement savings?
Now that super funds, fund managers and other financial service providers have (nearly) survived the GFC, a lingering issue concerning the super industry is ‘adequacy’ (or lack of ‘adequacy’), that is, the worry that Australians will outlive their retirement savings. Read more
Financial advice: Only 14 (10+2+2) independent financial advisers in Australia
This article is updated regularly when new financial advisers join the independence club. A financial adviser does not have to be a member of the IFAAA to join the SuperGuide list, provided they can declare that they satisfy the requirements of being an independent adviser (we now have 3 categories). Read more
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 article, you can discover tips on how to spot an independent adviser, and also how to spot an adviser who is NOT independent. Read more
