Labor’s franking credits policy, How much super will you need?, SMSFs and insurance, Death benefits
Welcome to the October 2018 edition of the SuperGuide Premium newsletter. Highlights include:
- LABOR’S FRANKING CREDITS POLICY: Jim Bonham illustrates how the ALP’s policy will significantly reduce the income for not just SMSFs, but also low and middle income direct shareholders.
- HOW MUCH SUPER WILL YOU NEED? In a series of articles we examine the fundamental questions – when should you retire, how much will you be spending in retirement, and (therefore) how much super will you need? We also crunch the numbers on whether $1m is enough to retire on, and how much super you need to retire on $100,000 per year.
- SMSFS AND INSURANCE: All SMSFs need to consider insurance as part of their investment strategy. We present the rules, the benefits and some frequently asked questions.
- LIFE INSURANCE: Thanks to SuperRatings we can announce the 20 funds with the lowest fees for life / TPD insurance, and the 20 funds with the lowest fees for Income Protection insurance.
- DEATH BENEFITS: Death and taxes are a fact of life, and tax cannot be avoided even by dying. We cover the super death benefit rules in detail and present tax strategies you may wish to consider.
FEATURES
Labor’s franking credits policy will significantly reduce income for low and middle earners
Retirees will simply not be able to suck up the sort of losses involved and we can expect some creative asset reduction to get under the Age Pension asset test threshold, or a major restructure of the investment portfolio to avoid franked dividends. Read more
Understanding your life expectancy
Ever wondered how long you might live, and what the current projections are for Australians? These are natural considerations as you plan for retirement and older age. Read more
‘Today’s Dollars’: The impact of inflation on retirement income
Planning for your retirement and working out how much you’ll need to enjoy a good standard of living after your working years can be a complex task, and one factor that needs to be considered is inflation. Read more
A simple guide to what tax is payable on super death benefits
The two certainties in life, namely death and taxes, is an idiom that can mean different things to different people. For present purposes we take it to mean that death is inevitable and it is very difficult to (legitimately) avoid taxes. Read more
WILL YOUR MONEY LAST AS LONG AS YOU? (UPDATED FIGURES)
Retirement cost of living: How much does a comfortable lifestyle cost?
As you approach retirement, you may have already spent time thinking about your likely spending habits once you stop work for good. Read more
How much super do I need to retire?
No doubt you have heard people say you need a million dollars (or some other nice round figure) in superannuation before you can afford to retire. Often they are the same people trying to sell you investment products or advice. Don’t pay attention to them, because there is no magic number. Read more
When should I retire?
The decision about when to retire is rarely made overnight. It’s a major life event and deserves careful thought and planning. Finances play a big part, but so do your health, your partner’s circumstances and whether you still enjoy your work or are itching to leave. Read more
How much super do I need to retire on $100,000 a year?
If you have always earned a high income and enjoyed the lifestyle that comes with it, chances are you want to continue living in the style to which you have become accustomed once you retire. Read more
Super to income Reckoner
SuperGuide’s Super to income Reckoner can help you quickly and simply understand approximately how much retirement income your super savings might be able to generate. Read more
Is $1 million in super enough to retire on?
A million dollars is often bandied about as the gold standard of retirement savings. It certainly sounds like a lot of money, but is it enough to retire on not just comfortably but in style? Read more
Is $1.6 million in super enough to retire on?
Since 1 July 2017 there has been a $1.6 million limit on the amount you can transfer into a super account in pension phase. The question is, is this an arbitrary figure dreamed up by bureaucrats or is it enough for a dream retirement? Read more
CHEAPEST INSURANCE
Super funds with the lowest fees for life and TPD insurance
According to the recent Productivity Commission (PC) report on superannuation, approximately 12 million Australians have some type of insurance through their super, and insurance within super accounts for just under half of the total market for life, TPD (total and permanent disability) and Income Protection insurance. Read more
Super funds with the lowest fees for income protection insurance
Income protection (IP) insurance (sometimes called salary continuance insurance) is available through about a third of super funds as default cover. It is one of three kinds of insurance available inside super, the others being life and TPD. Of the three, IP insurance is the least common. Read more
SMSF Q&As
The definitive SMSF guide to franked dividends
Many ASX 200 companies, the banks, miners and Telstra in particular, are known for paying franked dividends of between 4% and 8%, on average. These offer SMSFs substantial tax benefits. Read more
Re-contribution strategy: What is it and how can I use it with my super?
Using a re-contribution strategy with your super sounds complex and mysterious, but in reality the name says it all – you withdraw some of the savings in your super account and then you re-contribute them back into the super system. Read more
SMSF investment rules: What every trustee should know
An SMSF is a very attractive superannuation savings vehicle but it also comes with plenty of responsibility for anyone that signs up to being a trustee. While most of the time people choose an SMSF because of the freedom of investment choice it provides, it’s important to understand the rules around what you can, and cannot, invest in. Read more
Life insurance through super: A definitive guide
Life insurance inside super is the most common of all personal super insurances. It is often bundled with TPD (Total and Permanent Disability) cover and sometimes with income protection insurance. Life insurance is often referred to as death cover by super funds. Read more
Guide to SMSFs and insurance
SMSF trustees must consider whether to take out appropriate insurance cover for each member of their fund as part of preparing their investment strategy. Read more