Amid the Royal Commission words like toxicity, rot, darkness and attrition, the super industry must rebuild trust with accessible, open and candid communication, and stop scoring own goals.
The Royal Commission stoked the coals on financial advice fees and commissions, taking three days to learn trustees and management are severely conflicted by best interest responsibilities.
APRA and the ATO do not measure fund performance in the same way. The discrepancy can cause SMSF performance to appear worse than it actually is, and better collaboration between regulators is required.
The $1.6 million Transfer Balance Cap (TBC) on pension accounts affects only capital balances. It’s not affected by income earned and pensions paid, and there are ways to maximise the remaining tax-free status.
A couple can benefit if the person running against the $1.6 million cap on super pension balances contributes to the spouse’s super. It’s worth checking the eligibility requirements and tax offsets.
Disability insurance can be either inside or outside of superannuation. There are premium, payout amount and tax consequences of those decisions that should be analysed to achieve the best cover.
Low interest rates have created problems for retirees, leading to the threat of a reduced lifestyle quality, running out of cash or accepting the age pension. Taking high risks at this point may make things worse.
SMSFs are being targeted by property marketers, but is a single, illiquid investment a good super strategy, with its associated leverage? ASIC is worried SMSF trustees are not seeing the full picture, so we went looking.
Life expectancies have increased dramatically since the nineties, but the uncertainty is forcing retirees to live too frugally. The super industry is switching its attention to the drawdown phase to find better solutions.
A bill that allows the ATO to merge dormant super accounts with active ones and release super members from compulsory life insurance embedded in enterprise agreements and from exit fees was tabled on 21 June 2018.
Peter Costello’s 2007 changes made payments from superannuation tax free after age 60 for those who are fully retired. Is he responsible for making super unaffordable which is now forcing policy changes?
Many readers have asked why institutional super funds will not be affected by the proposed Labor policy denying franking credit refunds. The tax calculation is explained in the context of direct investment options.
It’s often said that ‘A man is not a financial plan’. A Practice Director in a successful business shares some of her life tips on financial independence for women aiming to self-fund their retirement.
The Productivity Commission report recommends young workers should be given a ‘best in show’ shortlist of super funds set by an independent process.