Early access to super, March super returns, SMSFs see buying opportunities ahead, Managing your super in a downturn, Minimising super pension risks, Advance care plans
Highlights of the April 2020 edition of the SuperGuide Premium newsletter include:
- SUPER FUND RETURNS FOR MARCH: Super funds recorded significant falls in March but have clawed back some ground in the first three weeks of April.
- EARLY RELEASE OF SUPER: As part of its response to the Coronavirus, the Federal Government is allowing Australians to access up to $20,000 of their super. We give the details, and we also look at the rules around early access that apply to SMSFs.
- SMSFS AHEAD OF THE INVESTMENT CURVE: Perhaps due to their age and experience, SMSF investors are more likely than others to see the current market turmoil as a buying opportunity.
- WORRIED ABOUT YOUR SUPER? DON’T PANIC: It seems counter-intuitive, but the best thing to do with your super when the market panics is often nothing. Janine Mace looks at the evidence for holding tight and offers tips to stretch your retirement dollars further.
- TESTING TIMES FOR SUPER PENSIONS: A big market fall is especially difficult to handle in the years just before and after retirement. Barbara Drury looks at the twin risks to be aware of. While the Government’s temporary halving of pension drawdown rates is a help, Penny Pryor looks at an additional strategy for SMSFs.
- TAKING CARE OF YOUR HEALTH: The Coronavirus has made us all more aware that not just the elderly can become critically unwell. Bina Brown explains why everyone should have an advance care plan. And longevity researcher David Williams shares insights into positive ageing.
SUPER NEWS
Super news for April 2020
Scammers targeting early release of super, ASIC announces advice relief measures, ATO releases Q&As on coronavirus, SMSF annual returns can be deferred, and the federal government releases a Code of Conduct for commercial tenants and landlords.
Read moreSuper fund performance: Monthly returns to March 2021
Super funds continued their phoenix-like rise from the COVID ashes in March, with the median Growth fund up 1.9% for the month and an extraordinary 12.2% for the first 9 months of the financial year.
Read moreACCESSING SUPER
When can I access my super? All conditions of release explained
To legally access your super in Australia you must satisfy a condition of release. Different conditions of release have different payment conditions and tax implications.
Read moreEarly release of super due to COVID-19 (coronavirus)
On 22 March 2020 the federal government announced a temporary measure allowing individuals to access up to $10,000 of their superannuation in 2019/20 and a further $10,000 in 2020/21.
Read moreEarly release of super due to severe financial hardship
Accessing super early due to severe financial hardship is possible under Australian law, provided that you meet strict eligibility conditions and your super fund allows it.
Read moreEarly release of super on compassionate grounds
Learn the rules for accessing your super early on compassionate grounds, including for paying your mortgage if you are at risk of losing your home.
Read moreCan my SMSF loan money to me or my business?
There are a number of ways of legally accessing super early via an SMSF. These strategies are useful in times of economic disruption such as the current disruption relating to the coronavirus pandemic.
Read moreSMSFs
Down but not out: Investors see buying opportunities ahead
Experienced investors are holding their nerve and anticipating buying opportunities in the year ahead.
Read morePassive versus active: Which investment style is best in a downturn?
It’s tempting for SMSF investors to switch from passive investments to actively managed strategies when markets are volatile and falling. But it’s more important than ever to work out the right trade-off between performance and fees to help preserve precious capital.
Read moreTop 5 mistakes SMSF trustees make with their annual returns
Keep on top of these potential mishaps with your annual return and you should be able to avoid the ire of the regulator.
Read moreSMSFs: What to do if you get a breach notification from the ATO
Working with the ATO might be the best course of action if your SMSF receives a breach notice.
Read moreVital Signs: APRA’s extraordinary gift to banks under pressure to pay dividends
In early April APRA sent an extraordinary letter to Australia’s banks and insurers, essentially telling them to cut their dividend payments to shareholders in light of the coronavirus crisis.
Read moreRETIREMENT PLANNING
Worried about your super? How not to turn a paper loss into a real one
When sharemarkets fall and people start panicking, it’s easy to think the best solution is to sell your investments or swap out of your super fund investment option. But it’s a decision that could cost you dearly.
Read moreCan I get free financial advice?
It’s a rare person who doesn’t want to improve their financial situation, but cost is often a barrier to seeking advice. Yet free advice does exist if you know where to look.
Read moreHow can you plan your income needs in retirement?
How to plan your income in retirement can be one of the most confusing aspects of retirement planning. In this video members of the Profession of Independent Financial Advisers provide some insights into how they approach it.
Read moreWorried about your post-virus finances? 10 tips to help stretch your retirement dollars
With sharemarkets swooning, interest rates being cut and super balances dropping, many retirees are starting to worry about their finances. Here’s our 10 suggestions to stretch your retirement income.
Read moreSUPER PENSIONS
Consider these two risks before you start a super pension
Today’s retirees are being given a masterclass in risk, thanks to the brutal impact of the coronavirus on global markets.
Read moreSequencing risk and pension income: A tale of two market journeys
A major market fall is always bad news for investors, especially retirees who have limited time and opportunity to recoup losses. But the impact of losses on your pension income is all in the timing.
Read moreMinimum pension payments for 2020/21 (including calculator)
On 22 March 2020 the Federal Government announced that the minimum pension drawdown rates would be halved for the 2019/20 and 2020/21 financial years.
Read moreWhat strategies can I consider to reduce tax on my super pension?
One of the benefits of retirement is that you can start to withdraw your superannuation tax-free. That doesn’t mean it’s a rule-free zone.
Read moreCommuting an SMSF allocated pension
Younger retirees might like to consider moving their funds back into accumulation phase for the time being.
Read moreIN RETIREMENT
Advance care plans: Why everyone should have one
Old age isn’t the only time you may need to rely on someone you trust to make decisions concerning your medical treatment. As highlighted by the rapid onset of COVID-19, people of any age can become critically unwell. Ensure your decisions are adhered to with an advance care directive.
Read moreRise of the three-quarter life crisis
Move over midlife crisis. New research shows more of us are going through a major life reassessment much later in life.
Read moreAustralians are living longer but what does it mean?
With life expectancy projected to continue to rise, along with the cost of living, older Australians face both opportunities and challenges as they head into their ‘third act’ of life.
Read moreWhat are some key factors that help us in later life?
In this video interview David Williams from My Longevity talks about some of the insights he found when researching what benefits us in later life.
Read moreKeep a healthy perspective on the virus
Our community is being economically hit ‘to save the oldies’ – especially with existing health conditions. Should we older people be grateful? How and why could we contribute?
Read more