By understanding superannuation law and implementing the right structure, SMSF members can ensure their super is passed onto their heirs after death with a minimum of fuss.
Tag Archives | account-based pension
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.
Understanding the rules for starting an account-based pension to fund retirement income is an important part of estate planning and should be done with expert guidance.
When changes to regulations are as extensive and complex as the coming 1 July rules, many misconceptions about how they work arise for both advisers and their clients. Here are a few common mistakes.
The notion of the ‘4% rule’ for drawing retirement income was devised in a much different economic environment than today. ‘Safe’ withdrawal rates may not be safe enough if certainty is required.
Due to the complexity of superannuation law, it can be easy for SMSF trustees to miss out on some opportunities, including the use of reversionary pensions for tax and estate planning benefits.
High yielding stocks are often seen as the silver bullet for retirement plans. But in many circumstances the focus on income overlooks the need to consider return and risk in any investment decision.