SMSFs outperform large funds, Concessional contributions (Q&As), independent advisers, Age Pension case studies, SMSF costs, SMSF boo-boos and more
Highlights of the MAY 2012 SuperGuide newsletter are:
- CONCESSIONAL CONTRIBUTIONS CAPS: 10 FACTS YOU SHOULD KNOW (10 Q&As). Since the May 2012 Federal Budget announced the deferral of a special over-50s concessional contributions cap, we have been inundated with questions about the concessional contributions caps. The list of 10 Q&As contained in this article answer the most popular questions asked about the concessional caps. Click on the article link below to find out more.
- SMSFs OUTPERFORM LARGE FUNDS 3 YEARS OUT OF 4. Click on the article link below to find out more.
- WANTED: ALL INDEPENDENT ADVISERS IN AUSTRALIA. SuperGuide is on a mission. We want to find every independent financial adviser in Australia and to give them an opportunity to let SuperGuide readers know that they exist. If you’re a financial adviser and you fall into one of 3 categories then you can join our SuperGuide independent adviser list. Click on the article link below to discover the 3 categories.
- ONLY 9 (8 +1) INDEPENDENT ADVISERS IN AUSTRALIA. We have also updated our list of independent advisers with one new name added and one name falling off. Come on Australia, we can do better than 9 independent advisers: you don’t have to be a member of the IFAAA to qualify. Click on the article link below to find out more.
- CASE STUDIES: AM I ELIGIBLE FOR THE AGE PENSION? (UPDATED CASE STUDIES) Around 80% of retired Australians receive a part or full Age Pension which means most Aussies considering retirement will need to understand how the Age Pension rules operate. Click on the article link below to explore three case studies (updated for the March 2012 Age Pension adjustments) illustrating how the Age Pension works in practice.
- SUPER FUNDS HEADING FOR A LOSS FOR 2012 YEAR. Click on the article link below to find out more.
- OOPS! TOP 10 SMSF BOO-BOOS (UPDATED). The ATO has published the top 10 compliance mistakes that SMSF trustees make when running their self-managed super funds. Click on link to find out more.
- SMSF CONFIDENTIAL: THE INSIDE STORY ON DIY SUPER FUNDS. In April 2012, the ATO published key data about SMSF costs, investment performance, SMSF asset allocation, SMSF demographics, types of trustees and what SMSFs are doing in pension phase. The report makes interesting reading. Equipped with the latest data, we have also updated two of our most popular SMSF Q&As (how much does a SMSF cost, how much should audit fees costs?). Click on the links below to find out more about the report, and about the costs of running a SMSF.
SUBSCRIBER SURVEY FINDINGS: We had a fantastic response to our first ever SuperGuide subscriber survey with just under 2000 subscribers (nearly a quarter of all subscribers) participating in the survey. Thankyou to everyone who participated, or who thought about participating. The findings provide SuperGuide with valuable insights about what you’re looking for on the site and also important demographic information such as the age profile of our subscribers, life stages, work status, the percentage of subscribers who have SMSFs, or don’t have SMSFs, and a lot more. We are also thrilled with the response to ebooks and the SuperGuide team intends to develop some of those ideas in the near future. Some of the interesting findings about SuperGuide subscribers who participated include:
- Around 70% are male, and obviously the other 30% are female
- Just over half (53%) of SuperGuide subscribers surveyed are aged 57 to 65
- Around 70% are aged from 50 to 65 years
- Just over 40% ( 41.8%) of SuperGuide subscribers surveyed earn more than $100,000 a year, and just under half (48%) earn less than $100,000 and 10% preferred not to say
- Just under half (49.1%) of subscribers surveyed have $500,000 or more in super, and 70% have $250,000 or more in super, and about 15% of subscribers surveyed had less than $100,000 in super
- Nearly half (48.1%) of SuperGuide subscribers surveyed have SMSFs, which means just over half (51.9%) are members of large super funds or non-SMSF vehicles.
Thanks again for your support and interest in SuperGuide.
SuperGuide is on a mission. We want to find every independent financial adviser in Australia and to give them an opportunity to let SuperGuide readers know that they exist. Read more
In February 2010, we published a list of 14 independent advisers which triggered much controversy and angst from the financial services industry, and from SuperGuide readers. In February 2012, for the third year in a row, we published an updated list of truly independent advisers. The magic number was 9 truly independent financial advisers. We again publish an updated list of 9 independent advisers (we have one new name, while one adviser has departed the list) but we have also split the types of independent advisers into 3 categories and broadened the eligibility requirements. Read more
Since the Government announced the deferral of a special over-50s concessional contributions cap in the May 2012 Federal Budget, I have been inundated with questions about the contributions caps. Throughout 2012, SuperGuide will continue to update readers on any proposed changes to the contributions, and the implications on super strategies. 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 and inexperienced investing, and bad investment decisions. Until recently, there wasn’t much evidence confirming or denying this ‘world view’ mainly proffered by the large super fund sector. Read more
Around 80% of retired Australians receive a part or full Age Pension which means most Aussies considering retirement will need to understand how the Age Pension rules operate. This article contains three case studies illustrating how the Age Pension works in practice. Read more
The median superannuation growth fund increased 0.4% in value for the month of April, and the median fund is sitting on a gain of only 2.5% for the financial year to date (July 2011 to April 2012), according to rating company Chant West. That’s the good news. The bad news is that there is a strong likelihood of a loss for the 2012 financial year (July 2011 to June 2012) as a result of the Australian and international share markets being hammered during May 2012, and uncertainty for June performance. Read more
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Q: My wife and I are considering setting up a self-managed super fund to be overseen by a licensed adviser. 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? Read more
The ATO has published the top 10 compliance mistakes that SMSF trustees make when running their self-managed super funds. The list below is based on the general type of contraventions reported by SMSF auditors (approved auditors) since the start of contravention reporting in 2005 (and up to 30 June 2011). Read more
In April 2012, the ATO published key data about SMSF costs, investment performance, SMSF asset allocation, SMSF demographics, types of trustees and what SMSFs are doing in pension phase. Read more
Q: SMSF auditors and administrators are charging rather high audit fees, perhaps because of the mandatory nature of these audits. I have also noticed some online SMSF administrators, including one that flatly refused to provide me with the name of their auditors. It cost me over $2,000 last year for my super fund’s audit and income tax return that is in the accumulation phase, and holding just over $200,000. That’s 1%, just for audit and the ITR. I have done some research but it seems cheaper options are not all that transparent. I have spoken with a number of SMSF trustees and I have discovered a range of concerns about the mounting costs of audits for smaller SMSFs. Read more