Superannuation advice, where to go.

[deesun]

Who here has been given Super advice recently and who gave it to you, bank, super fund, accountant, tax dept? I need some advice on my financials and super and I am afraid whoever I go to will have a product that they want to sell and it will cost me dearly. We have just moved into a new area and as yet havent looked for an accountant for our tax and wondered if they would be the best to ask or should I find someone different. I am in QLD but I dont think Super is state specific. Thanks.

[Geez Louise]

Are you just after general info on Super ie: what happens with it, total amount that should be paid etc? or are you wanting to know specifics on how your money is invested?

Cheers
Col

[deesun]

Specifics, how much I should put, where. I am already paying into a fund but my circumstances have changed recently and am looking at super as an investment option.

[Mr Hardware]

PAY an accountant for investment advice. Go to two if you like. It may cost you a fair amount, but the ones you don't pay for are trying to get you to buy their product.

[Geez Louise]

You can always call a Superannuation broker. I have my super with a company (not self managed), however I do ring up my broker, and tell him where to invest my money.

If you have your money in a fund, they will just put it into stock std portfolio..

It is always good to seek advice from your accountant though as there are tax breaks etc associated with how some investments are made.

Cheers
Col

[GT0132]

Pm me your questions and I'll see if i can assist. A lot will depend if you're an employee or self employed as well as your age

[Geez Louise]

That is great of you to offer GTO132.

Some days I just love being a part of AFF, especially when you see posts like yours

Cheers
Col

[deesun]

Originally Posted by GT0132

Pm me your questions and I'll see if i can assist. A lot will depend if you're an employee or self employed as well as your age

Thanks, will do, will get some figures together on weekend.

[Yellow_Festiva]

Super is one of the biggest investments that is overlooked by most people. I put all mine together late last year after several years of saying I'm going to do it... Some companies don't make it easy, getting a JP to sign stuff, etc.

I had 7 accounts with between $200 and $20,000 in them... what a waste of fees....

If you are just comparing funds, there are some great online tools that can compare several variables across a few funds. Funds also have a star rating.

For what it's worth, I found 'Sun Super' to be a pretty good provider. But, get specific advice to your individual needs as what suits me may not suit you obviously...

7 accounts.... consolodate them people!!!!!!!!!!!!!!!!!!!!!

Cheers,

Jason

[Miss_XR6]

Super is important whether you are 18yrs old or 50+

Alot of people lhave numerous accounts and dont know where there money is being invested or where it even is

Mine has always been with 1 fund and is in high risk investement which I can change at anytime I keep a tab every week on my super and I am only in my late 20s
I have seen people loose there whole retirement for putting money at there ages in wrong funds ect

[Lukeyson]

Good thread, Sorry to hijack it tho :(

Anyone had a similar experience to ours, my wife worked for 7 odd years before stopping, and now a stay at home mum for the last nearly 6 years, and we really do not intend on her going back to work. Is there anything we can do with her super that is slowly going down the gurgler everytime she gets a statement?

[Dr Jekkyl]

Superratings and Chantwest are 2 sites that might help you in choosing your super fund.

With respect to choosing your asset allocation, keep in mind the fact that superannuation is a vehicle for savings, not speculation.

[Charliewool]

Great topic, and one that I've been pondering for the last few years.
I have been with AMP since I started my working life and am now 55.
Once you reach 55 you can salary sacrifice and top up the amount sacrificed with an allocated pension.. The tax benefits are/were quite attractive.
I say "were" because the bloody government is constantly moving the goal posts with the taxation incentives.
I recently sat down with my AMP guy who explained the latest budget changes to allocated pensions and thresholds.
The bottom line is $3600 to do a personal plan, $2000 to set it up, then around $3600 annually to manage and maintain my strategy.
(my initial reaction was.. You'd expect AMP to offer these services as part of managing your super?.. but it seems all financial advisors charge similar to set the above up)
All still well worth doing, as the long term benefits outway the costs, AT THIS STAGE!
But what really concerns me is the continual superannuation rule changes by government of the day.. If I commit to my strategy, who's to say they won't change the rules again?.. Superannuation rules should be set in stone, and not used to balance "budget deficits".
And THIS is why so many are hesitant and losing confidence in traditional superannuation funds.
The deeper I've gone into this, and the more people in the know I've talked to, the more inclined I'm becomming in self-managing and tipping into property.. maybe defence housing or industrial?

[GT0132]

Superannuation is not an investment, it is only term used to describe the vehicle used to invest funds to build a nestegg for ones retirement. The investment comes about due to what the fund invests in (shares, property, govt bonds,cash etc)

Most super fund managers have a variety of funds within which they invest members funds. Members usually have a choice of how their contributions are are invested and range from high risk (i,e a portfolio largely comprising of shares)to low risk (being cash on deposit). Those that have seen their super fund balances go backwards in recent times have had their funds invested in high risk assets, like shares, which took a battering in FY2009 because of the GFC, came back a bit in FY10 and 11 (but with many not making up the lost ground in FY2009) and look to be heading down again in FY12 due in most part to the problems in Europe.

The natutral reaction is to pull out of higher risk investments and move to a safrer haven like cash once you suffer losses. However, by doing that, you don't reap the upside when the market starts moving up again and it will move up again. If those who suffered losses in FY2009 moved into cash they would not have reaped the upside in FY2009 and 10.

Each fund usually has, what they call, a unit price with the unit price moving up and down with market movements in the values of the underlying assets in which the fund has invested. A fund which has invested in shares will suffer a fall in its unit price if there is a decline in the sharemarket. While that's not a good thing the upside is that your monthly contributions are able to buy more units because of the low price. This is why people say that the best time to buy shares is after a crash.

Tax on super is another thing the government keeps changing and seem to be making it more onnerous on investors. You could previously contribute up to $100k a year tax free, now that is capped at $25,000 a year which is hard on those over 50 who want to maximise their retirement income and not be a burden on the welfare system.

[deesun]

Originally Posted by GT0132

Tax on super is another thing the government keeps changing and seem to be making it more onnerous on investors. You could previously contribute up to $100k a year tax free, now that is capped at $25,000 a year which is hard on those over 50 who want to maximise their retirement income and not be a burden on the welfare system.

^^^ This is for ppl salary sacrificing inst it?

Recent changes by the gov mostly affected ppl on incomes of over 300k, is this correct?
Can lump sums still be made and if so is there a cap on them?

[GT0132]

Originally Posted by deesun

^^^ This is for ppl salary sacrificing inst it?

Recent changes by the gov mostly affected ppl on incomes of over 300k, is this correct?
Can lump sums still be made and if so is there a cap on them?

There are 2 type of contributions -

1. Concessional Contributions - Those contributions for which you, or your employer, can get a tax deduction for, and

2. Non concessional contributions - contributions for which you cannot get a tax deduction

For 2011/12 if you're under 50 years of age your concessional contributions are capped at $25,000, which includes the 9% super guarantee paid by your employer as well as any salary sacrifice contributions. If you're over 50, your concessional contributions can be up to $50,000, but this is being scaled back to $25,000 in future years unless you have a super balance of less than $0.5M in which case it will remain at $50,000. These limits are supposed to be indexed annually but the government has proposed to cut indexation for 2013/14 (yet to be passed by parliament)

Concessional contributions are taxed at 15% in the hands of the fund with any excess above the cap taxed at a further 31.5%

In addition you can contribute up to $150,000 p.a as a non concessional contribution if aged under 75. Those under 65 can pay up to $450,000 in one lump sum as a non concessional contribution but the average over the next 3 years cannot exceed the equivalent of $150k p.a.

For example if I make non concessional contributions totalling $450,000 in 2011/12 I cannot make any more non concessional contributions until 1 July 2014.

Non concessional contributions are not taxed as income in the funds hands unless the cap is exceeded in which case tax of 46% will apply on the excess.

These limits apply based on the sum total of all contributions made to all funds the member has, so you can't exploit these caps by having multiple funds.

The $300k you're talking about is in relation to the tax paid on concessional contributions. This will increase from 15 to 30% for those earning over $300k p.a and proposed to start from 1 July 2012, but not passed through parliament as yet

[Dr Jekkyl]

[deesun]

Thank you GT0132.

[Iggypoppin']

GTO132 could I possibly pm you for some advice too? Only if that's ok.

[Bundy]

Originally Posted by GT0132

Superannuation is not an investment, it is only term used to describe the vehicle used to invest funds to build a nestegg for ones retirement. The investment comes about due to what the fund invests in (shares, property, govt bonds,cash etc)

Most super fund managers have a variety of funds within which they invest members funds. Members usually have a choice of how their contributions are are invested and range from high risk (i,e a portfolio largely comprising of shares)to low risk (being cash on deposit). Those that have seen their super fund balances go backwards in recent times have had their funds invested in high risk assets, like shares, which took a battering in FY2009 because of the GFC, came back a bit in FY10 and 11 (but with many not making up the lost ground in FY2009) and look to be heading down again in FY12 due in most part to the problems in Europe.

The natutral reaction is to pull out of higher risk investments and move to a safrer haven like cash once you suffer losses. However, by doing that, you don't reap the upside when the market starts moving up again and it will move up again. If those who suffered losses in FY2009 moved into cash they would not have reaped the upside in FY2009 and 10.

Each fund usually has, what they call, a unit price with the unit price moving up and down with market movements in the values of the underlying assets in which the fund has invested. A fund which has invested in shares will suffer a fall in its unit price if there is a decline in the sharemarket. While that's not a good thing the upside is that your monthly contributions are able to buy more units because of the low price. This is why people say that the best time to buy shares is after a crash.

Tax on super is another thing the government keeps changing and seem to be making it more onnerous on investors. You could previously contribute up to $100k a year tax free, now that is capped at $25,000 a year which is hard on those over 50 who want to maximise their retirement income and not be a burden on the welfare system.

This is not a dig at you GT0132;

But therein lies the extra problem with Superanuation and investing in things that are out of your control. You might as well take your money and gamble it, its the same thing. GovCO don't ever have your best insterests at heart, neither will your average Fianaical advisor, its just a job to them If they really knew what to invest in, they would hardly be in the investment industy to benifit you would they. And if they really knew how the cycles worked, they would tell you when's a go time to pull YOUR money out before the crash comes. GovCo needed a tool for self funding retirements and Super investments in its currnet form is NOT the answer in my opinion and I'm entiled to that.

[GT0132]

Originally Posted by Iggypoppin'

GTO132 could I possibly pm you for some advice too? Only if that's ok.

No worries

Bundy i agree...

[mcflux]

I'm with "Australian Super". They have a trending graph for their dozen-or-so different investment options (premixed or DIY). I'd kept my investment option as their default "balanced" option until recently and it had only grown 0.86% over the past 12 months (it had shrunk in 2010/2011).

Their "cash" option has grown ~5% over the past 12 months. Their "high growth" option has contracted ~1.5% (reaching -9% 6 months ago).

In a fantasy world where the govt gave you the 9/12% to invest as you wish, but could not access until >60, I'd be regularly re-investing in term deposits (ignoring taxes). I <3 compound interest, at least it isn't volatile.

Anyway back to reality, for those of you who can readily access your Super account online & can view charts & graphs of investment options' trends over time, I'd be keeping an eye on these regularly! I'm now checking mine weekly.

[Syndrome]

With 2016 starting off in turmoil, now is a time for us all to review our superannuation funds. Things look like they are going to get messy this year.

[mcflux]

Originally Posted by Ghia5L

blah blah I know everything

I'm now checking mine weekly.

^^^ lol this didn't happen in 2013, 2014, 2015...