New book, 2016/2017 checklist, top 30 funds, $1.6 million pension cap, last-minute contributions, SMSF costs, myGov
Highlights of the FEBRUARY 2017 edition include:
- NEW BOOK: AGE PENSION MADE SIMPLE. Published in response to reader demand, Trish Power’s latest book covers all of the Age Pension rules, including the January 2017 changes. To find out more, or to order the book, click on the book link below.
- SUPER STARS! TOP 30 FUNDS OVER 5 YEARS. Check out the top-performing super funds. Did your super fund make the list, and if not, how does your super fund’s performance compare? In a related article, check out the Top 30 pension (retirement) funds) over 5 years.
- LARGE FUNDS OUTPERFORM SMSFS OVER 9 YEARS, JUST. What may be a surprise to many, the difference in performance between large funds and SMSFs is only one-fifth of one per cent. See article for more.
- SUPERANNUATION CHECKLIST: WHAT RULES APPLY FOR THE 2016/2017 YEAR? With only 4 months left of the financial year, start planning if you’re taking advantage of the pre-July 2017 super rules. In related articles, get a refresher of the contributions rules, and for those making substantial after-tax contributions, ensure you understand the bring-forward rule.
- SUPER CHANGES (JULY 2017): PLANNING AHEAD FOR THE 2017/2018 YEAR. Substantial super changes take effect from 1 July 2017: have you investigated how the super changes will affect your superannuation and retirement plans?
- CGT RELIEF AND THE $1.6 MILLION TRANSFER CAP. If you have more than $1.6 million of super in pension phase than you need to read this article. In a related article, learn more out about the two caps you have to monitor throughout your retirement.
- COPING WITH MYGOV: WHY THE GOVERNMENT WANTS YOU TO GO ONLINE. Imagine a single online destination for accessing government services with one login and one password…
- OOPS! TOP 10 SMSF BOO-BOOS FOR 2016 FINANCIAL YEAR. The ATO has published the top 10 compliance mistakes that SMSF trustees make when running a SMSF. Also, in separate SMSF articles, discover the latest trends in SMSFs, where SMSFs are investing super money, the thorny issue of the ATO SMSF levy, and how much it costs to run a SMSF.
- ACCESSING SUPER EARLY: 14 LEGAL WAYS TO WITHDRAW YOUR SUPER BENEFITS. This article provides an excellent overview and summary of the 14 ways you access your super, and includes links to 50 related articles.
Note: You can find these articles, and more, by clicking on the links below.
Many thanks for your interest and support.
NEW BOOK: AGE PENSION MADE SIMPLE
Published in response to reader demand, Trish Power’s latest book covers all of the Age Pension rules, including the January 2017 changes.
4-MONTH COUNTDOWN TO JULY 2017
With only a few months left of the 2016/2017 financial year, it is timely to consider whether you plan to take advantage of pre-July 2017 rules, especially in relation to making super contributions. Read more
Radical and substantial superannuation changes take effect from 1 July 2017: have you investigated how the super changes will affect your superannuation and retirement plans? Read more
The reason government departments and financial advisers are so confused is that the law is too complicated and was passed too quickly. Read more
On 3 May 2016, the Coalition (Liberals/Nationals) announced that, effective from 1 July 2017, it will impose a cap of $1.6 million on the amount of super that can be transferred into pension phase, and effectively force Australians to remove super benefits from pension phase if a pension account balance exceeds this amount as at 1 July 2017. Read more
If you have more than $1.6 million of superannuation in pension phase, or you expect to have more than $1.6 million in pension phase by July 2017, then you need to start planning for some serious decision-making. Anyone with more than $1.6 million of super in pension phase as at 1 July 2017, will be forced to withdraw the excess over that amount from pension phase. Read more
IS YOUR SUPER FUND PERFORMING?
The investment performance articles on the SuperGuide website are some of the most popular articles for our 2 million or so readers. The table contained in this article clearly demonstrates which super funds have delivered the top returns for Australian fund members over the past 5 years (for super savings invested in the balanced/growth style option). Read more
Information on the top-performing pension funds however is more difficult to obtain. Pension funds are those pension products/funds that pay out pensions to its members. Thanks to superannuation ratings agency, SuperRatings, we can provide you with the performance data on the 30 top-performing pension funds over a 5-year period to 31 December 2016. Read more
The median superannuation growth fund lost 0.1% in value during the month of January 2017, and has delivered 5.6% for the first 7 months of the 2016/2017 financial year, according to rating company, Chant West. Read more
A common argument put forward against individuals starting a self-managed super fund is that budding SMSF trustees could lose their hard-earned super savings through inexperienced investing, and bad investment decisions. Until relatively recently, there wasn’t much evidence confirming or denying this ‘world view’ mainly proffered by the large super fund sector. Read more
We are often asked which super fund is the cheapest super fund in Australia. As you would expect, SuperGuide’s preliminary response is: “It depends…”. How much your super fund may charge in fees can depend on many factors. Read more
If the federal government has its way, the days of rolling up to your local Centrelink, ATO or Medicare office will soon be a thing of the past. Instead of talking to real people, get ready to deal with an alternative online reality – via your very own myGov account. Read more
The ATO has published the top 10 compliance mistakes that SMSF trustees make when running their self-managed super funds. The list in the table in this article is based on the general type of contraventions reported by SMSF auditors since the start of contravention reporting in 2005 (and up to 30 June 2016). Read more
The superannuation contributions caps for concessional (before tax) and non-concessional (after tax) contributions have not increased for the 2016/2017 year. The contributions caps applicable for the 2016/2017 year, are the same limits that were in place for the 2015/2016 year. Read more
The current $180,000 after-tax cap, and the 3-year $540,000 bring-forward cap will remain until 30 June 2017. Continue reading to find out more about the bring-forward rule and how it applies for the 2016/2017 year, and the potential impact of the lower non-concessional cap from July 2017. Read more
Q: I am 57. If I decided to retire before 60 when can I access my super? Read more
Many Australians are facing hard times, especially with structural change transforming our economy. The harsh reality is that mortgage repayments and everyday living expenses continue even when you suffer redundancy, illness or other forms of misfortune. Read more
Close to 600,000 self-managed super funds (SMSFs) are now in operation, managing $653.8 billion in assets, according to the latest statistics released by the Australian Prudential Regulation Authority (APRA), and the Australian Taxation Office (ATO). APRA is the prudential regulator of all super funds, with the exception of SMSFs, which are regulated by the ATO. Read more
Q: My wife and I are considering setting up a self-managed super fund. I asked two advisers for a quote on the set-up costs for a self-managed super fund with a starting balance of $600,000. The first adviser charges approximately $8000; the second considerably less — about $1500. Which do you think would be the better option, and fundamentally, is an SMSF the most cost-effective option for a couple with this level of savings? Read more
Just over three years ago, in December 2013, the newly-elected Liberal government (and again re-elected in 2016) promised to review the amount of the ATO SMSF levy. At $259 a year, the SMSF ATO supervisory levy had more than quintupled in the 7 years from the 2007/2008 year when only $45 a year was payable. Read more
The Australian Taxation Office has delivered on its promise to regularly share its market intelligence about self-managed super funds (SMSFs). The ATO has now provided the answers to some of superannuation’s burning questions, such as, ‘Are SMSFs really cheaper than larger super funds?’ and ‘Do SMSFs perform better?’ Read more
We regularly update this article with the latest data on self-managed superannuation funds (SMSFs) released by the Australian Taxation Office. This article contains the latest data available up to February 2017 (for data on SMSF growth as at December 2016, and for asset allocation data as at September 2016). Read more