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 INVESTMENT
Labor’s franking credits policy: Options for SMSF trustees
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
Asset sector performance: Returns over 1 to 15 calendar years (to December 2018)
In this article you can discover the investment performance for 12 asset classes over various timeframes. For all asset classes there is data for 1, 3 and 5 calendar years, and for most asset classes there is also data over 7, 10 and 15 calendar years.. Read more
SMSF investment: 20 most popular Australian shares
They’re some of the biggest companies in Australia, offering a degree of safety along with the potential for capital gain and dividend payouts, and it’s little surprise that SMSFs are heavily invested in the largest 20 domestic shares. Read more
Australian investors predict flat All Ordinaries for 2019
Sentiment among SMSF investors remains subdued, despite the strong rebound in the sharemarket in the first few months of 2019. Read more
SMSF investment: 20 most popular international shares
They’re some of the biggest companies in the world, representing the world’s biggest economies and international investing has become an attractive strategy for Australian investors who are looking to diversify their portfolios. Read more
SMSFs: Top 10 alternative investments
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?
Best performing super funds over 1 calendar year (to December 2018)
Super funds finished the 2018 calendar year with an average return of 0.8%. This was the lowest return since 2011, and well below the average of 9% over the last nine years. Read more
Super fund performance over 26 calendar years (to December 2018)
In this article you can find super fund performance for 1, 3, 5, 7, 10 and 15 years, up to the latest calendar year and across five different investment options. We’re grateful to Chant West for providing the statistics in this article. Read more
Best performing super funds over 15 calendar years
Superannuation is a long-term investment. Those starting in the workforce today at 18 will have 47 years of superannuation contributions and investment returns ahead of them if they retire at 65. Read more
What are lifecycle super funds, and how do they perform?
Close to 70% of Australians with super in one of the major funds are invested in their fund’s MySuper option, the default option for employees who don’t choose a super fund. If you are a member of a retail fund, this is most likely a lifecycle product which is designed to reduce your exposure to higher risk growth assets as you age. Read more
PRODUCTIVITY COMMISSION
Super’s next shake up? Productivity Commission gets tough
Australia’s current super system is “harming millions of members” through underperforming funds, multiple accounts and excessive fees. Read more
Looking good? New beauty parade for super funds with ‘best in show’ proposal
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
What are average super fund fees?
Super fund fees are unavoidable, but not all super accounts are created equal. Fees vary greatly by fund and investment type, but one thing they all have in common is they can be, according to the Productivity Commission (PC), “the biggest drain on net returns”. Read more
Super fund fees: Do lower fees mean better net returns?
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
How to compare super funds in 7 easy steps
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?
Take the Australian Life Tables with a pinch of salt
With decades of expert actuarial experience, David Orford reviews the current risks with using the Australian Life Tables at face value. Read more
Understanding your life expectancy
Life expectancy is a statistical measure on how long a person is expected to live, usually based on year of birth, current age and gender. Other factors also play a part, such as your living and working conditions, diet and lifestyle factors etc. Read more
SMSFs
SMSFs: Should you use a corporate or individual trustee structure?
SMSFs must be set up with either a corporate or individual trustee structure. This article profiles each structure and the main differences between the two. Read more
SMSF guide to hedging
Self-managed super funds (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
Beginner’s guide to making super contributions
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
2019/2020 guide to concessional contributions (before-tax super contributions)
Although it can be hard 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
2019/2020 guide to non-concessional contributions (after-tax super contributions)
Most employees know their employer is helping to build their retirement savings by making regular contributions – like the Super Guarantee (SG) – into their super account as part of their salary package. These contributions are taxed concessionally– or at a special low rate – of 15% to encourage Australians to save for their retirement. Read more
A super guide to understanding the bring-forward rule
Putting money into your super account is easy. But to ensure you don’t take too much advantage of the generous tax benefits within the super system, the government has progressively tightened up the rules around making contributions. Read more