Super scorecard, Top funds revealed, How your fund ranks, Director IDs, Dixon’s demise, Reverse mortgages
Highlights of the February 2022 edition of the SuperGuide Premium newsletter include:
- WINDS OF CHANGE: With more ‘reforms’ on the way, we keep score of the super and not-so-super changes so far.
- BEST IN SHOW: We reveal the top performing super and pension funds, including risk-adjusted and sustainable options.
- WHERE DOES YOUR FUND RANK? If your fund is not among the top dogs, we show you where it sits in the pack.
- SMSFs AND DIRECTOR IDs: If your fund has a corporate trustee then listen up, it’s time for an identity check.
- LESSONS FROM A FALL: Dixon Advisory has left many of its SMSF clients out of pocket and provided salutary lessons for all.
- UNLOCKING HOUSING WEALTH: A growing number of retirees are turning to reverse mortgages to top up their income.
HOW SUPER WORKS
$450 income threshold lifted, Retirement income covenant introduced, Aware Financial Services Australia fined $20m, Inflation hits retirees, APRA to focus on sub-standard practices in super, Australian super funds lead decarbonisation, SMSF Association calls for simplification of transfer balance cap, Proxy advice regulations overturned in Senate.
If you thought governments were constantly tinkering with super, you’re right. Here’s your guide to the good, the bad and the ugly super changes so far.
Keeping track of your super can be time-consuming and difficult, but linking the ATO’s online services to your myGov account makes it easier – and secure.
Dealing with government agencies these days means going through myGov. So, if you want help with your super or tax affairs, it’s time to set up your account.
SUPER FUND PERFORMANCE
While all super funds aim to deliver good long-term returns, some also strive to smooth short-term fluctuations along the way to take some of the worry out of investing for their members.
Choosing an investment option for your super that aligns with your values no longer means sacrificing returns. Here’s the latest on top-performing sustainable funds.
A strong finish for shares and bonds provided stellar returns for pension fund members in 2023, more than wiping out the previous year’s losses.
Super funds continued their winning streak in January, with the median Growth fund up 1% over the month.
BEST PERFORMING SUPER AND PENSION FUNDS
Check out the best performing super and pension funds across 5 different investment categories over 1 year and 10 years, updated to 31 December 2021.
SUPER AND PENSION FUND QUARTILE RANKINGS
If your super fund is not in the top 10, see which quartile it ranks in across 5 different investment categories and 8 different timeframes, updated to 31 December 2021:
If you have a self-managed super fund (SMSF) with a corporate trustee, then you need to be aware of the new requirement to apply for and obtain a Director Identification Number (Director ID).
Well diversified SMSFs with $200,000 or more in assets perform as well or better than large funds, but funds in pension phase do things differently to the rest.
Australian shares remain the most popular asset class among SMSF investors who continue to put their faith, and their money, in our mining heavyweights and big four banks.
Investing directly in international shares is still a fringe activity for most SMSFs, but the allure of the world’s big tech companies is proving irresistible for some.
Traditional managed funds may not have the ‘it’ factor of ETFs but they still pack a punch in many SMSF portfolios, providing significant diversification.
From a standing start 20 years ago, ETFs now play a central role in many SMSF investment portfolios with more than 300 to choose from.
When Dixon Advisory collapsed, it left a trail of aggrieved SMSFs and investment losses. It’s a saga we can all learn from.
Many Australians dream of retiring overseas and some actually turn the dream into reality, but there are health and financial considerations to consider before you take the plunge.
If you dream of retiring to an exotic overseas location where the living is easy, be sure to look at the financial, health and other considerations before you make the leap.
There’s a lot to think about when you’re on the threshold of retirement, so it’s not surprising that mistakes are made and opportunities overlooked. Here’s what to watch out for.
If you’re finding it difficult to make ends meet in retirement, one solution to free up some extra cash could be to take out a reverse mortgage.
Sheena Stow-Smith from PensionHelp answers reader questions about how minimum drawdowns impact Age Pension entitlements.
When you are planning your retirement bucket list, aged care probably doesn’t rate a mention, but it should if you want to live out your days in comfort and security.
Government funding is available for older Australians who want to remain in their own home with in-home care, but you need to know where to look.