Investment special, Top performing funds, Productivity Commission report, Franking credits, Life expectancy
Welcome to the JANUARY 2019 edition of the SuperGuide Premium newsletter. Highlights include:
- TOP PERFORMING FUNDS FOR 2018: The last quarter was a rollercoaster for many investors, but the median balanced super funds managed to eke out a positive result – the 7th year in a row. Find out which funds did even better.
- PRODUCTIVITY COMMISSION: The PC has handed down it’s final report card on super. Janine summarises the main considerations for Australian consumers, and separately assesses the “Best in show” proposal which is making all the headlines.
- FRANKING CREDITS: The ALP’s ban on franking credits could become a reality if they win the next election, and would have significant consequences for many SMSFs. Ali Cain explores how this can affect an SMSF’s investment strategy, and what options SMSF trustees might consider.
- SMSF INVESTMENT: Discover what SMSFs are investing in – including the most popular Australian shares, International shares and alternative investments.
- LIFE EXPECTANCY: One of the trickiest areas of retirement planning is knowing how long you’ll be around for. Luke Vanem looks at the key factors and statistics, while David Orford urges us to treat the statistics with a pinch of salt.
SMSF members could be forced to take on more risk, should the ALP be successful with its plan to scrap cash refunds from franking credits.Read more
The top performers over the last calendar year were International Shares, Australian shares, Global Listed Infrastructure, Global Listed Property and Australian Listed Property. However, all asset classes produced positive returns with cash bringing up the rear.Read more
This article includes the 20 most popular Australian domestic listed securities invested in by SMSFs as at 30 June 2019.Read more
SMSF investors estimate a +1.4% capital growth expectation for the All Ordinaries Index for the next 12 months, according to the latest Investment Trends’ Investors Intention Index report.Read more
This article includes the 20 most popular international shares invested in by SMSFs as at 30 June 2019.Read more
SMSF trustees are often accused of being unadventurous in their asset allocation, but some are bucking the trend with ‘exotic’ investments in everything from horse semen to vending machines and dividend-paying cows.Read more
IS YOUR SUPER FUND PERFORMING?
UniSuper Balanced took out the top spot with a stellar return of 18.4%, the brightest star among many. All 10 top performing funds returned 16% or more.Read more
Super funds defied all expectations in 2019, recording their best calendar year since 2013. The median growth fund returned 14.7%, capping an eight-year run of positive returns.Read more
Hostplus and AustralianSuper cemented their position in the top two spots with average annual returns over the last 10 years of 9.2% and 9% respectively. The top 10 consists entirely of industry funds, beating all retail and corporate funds.Read more
Despite a partial rebound in April, all lifecycle fund age cohorts have had negative returns for the financial year to date. Younger members with higher exposure to risk assets have borne the brunt of the downturn, while older members with a more defensive asset allocation have been cushioned from the worst of the falls.Read more
Australia’s current super system is “harming millions of members” through underperforming funds, multiple accounts and excessive fees.Read more
A key recommendation in the new Productivity Commission report, the idea of employees being given a ‘best in show’ list for the top 10 performing super funds has been met with a hostile response from the super industry.Read more
An easy way to determine if you believe your super fund is good value, is to assess the cost of your super fund against the average costs for the different types of super funds available.Read more
In the superannuation world there’s always a lot of talk that lower fees equates to more savings over the life of your super.Read more
Superannuation is a long-term investment but that doesn’t mean you can afford to put off thinking about it for a day that never comes.Read more
HAVE YOU PLANNED FOR A LONG LIFE?
With decades of expert actuarial experience, David Orford reviews the current risks with using the Australian Life Tables at face value.Read more
Life expectancy is a complex topic, so we’ve put together a straightforward guide to help explain the key concepts – enabling you to plan your retirement with a bit more confidence.Read more
One of the first decisions you must make when setting up an SMSF is whether to choose a corporate or an individual trustee structure. We take a look at the pros and cons and the key differences between the two structures.Read more
SMSFs are increasing their allocation to international shares, with the Australian Taxation Office’s figures showing funds’ allocation to this asset class jumped to $6.18 billion last year, up from $1.8 billion in 2013.Read more
UPDATED CONTRIBUTIONS GUIDES
Building a sizeable retirement nest egg can take some effort, but a recent study by Roy Morgan found only 18% of employees with super currently have more than the compulsory 9.5% of their salary or wages going into their super fund account.Read more
Although it can be difficult getting your head around all the different types of super contributions that go into your super account, concessional contributions are the ones you are mostly likely to have and are pretty straightforward to understand.Read more
You can make contributions into your super account from your take home pay or money outside the super system. Since these contributions have already been taxed before you contribute them to your super account, they are not treated concessionally and are called non-concessional contributions.Read more
Although it sounds complicated, bring-forward contributions are just what they sound like – you bring forward your non-concessional contributions caps from future years and use them in a shorter time period.Read more
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