The ‘direct investment options’ may have structural advantages for franking credit refunds, but that does not mean SMSFs do not have their own specific advantages. What’s best for the superannuant?
Using the value of home equity built up over many years seems an obvious part of retirement planning, but reverse mortgages have been unsuccessful in Australia. Is it time for a fourth pillar of retirement income?
The main focus in retirement planning should be on the entire return from a portfolio, not just the income generated, and this might help some people in managing changes due to Labor’s franking credit proposal.
Access to regular payments from the Pension Loan Scheme is now available to any property owner of pension age irrespective of whether they qualify for the pension. It can be a valuable extra planning tool.
The design of superannuation is part of a social contract, and people who do not understand the long-term context are often offended that super funds should be tax-free in retirement. Don’t blame Peter Costello.
Amazingly, SMSF pensioners invested in Australian shares will be much worse off under the Labor franking policy than in the ‘bad old days’ when their pensions were taxed.
With almost one thousand people entering retirement in Australia every day, they face different challenges to managing an investment portfolio in the accumulation stage.
While financial solutions to longevity are worth pursuing, it is more important to educate people on what the late-stages of life are likely to deliver, and the time to prepare is now.
Some retirement portfolios may never recover from a big hit to the balance just when contributions have stopped and withdrawals have commenced. The possible sequence of returns is another risk to focus on.
Most financial advisers will say they have faced an increased level of scrutiny from clients due to the Royal Commission. The test is how the industry wins back trust.
With the availability of large pools of retirees, the law of large numbers will start to see a predictable distribution of lifespans around the mean, allowing for longevity risk products. An important development.
There has been a massive focus on the maximum allowed in a tax-free pension of $1.6 million, but what happens if your portfolio rises in value and you exceed it? Should you worry about it?
The current system is complex and inequitable, and those most affected by aged care anomalies are often least able to understand the consequences.
Most people think of super access in terms of age, but when life deals a cruel blow, the rules allow members early access subject to certain conditions. It’s a valuable safety net.