Superannuation Discussion + market volatility

[JohnK]

Take it from my personal experience, John, they definitely have a normal contributory fund that you can have your employer direct SG and salary sacrifice to. And you can contribute extra to make up the annual $25K limit - and tax-deduct that, as previously discussed.

I can't find it on their website. I'm quite happy with the return of the Choice Income account at ~8%/pa.

 

[JohnM]

Here you go, John: Superannuation | AustralianSuper

Note that the site will be down for maintenance from 2359 EST tonight for the rest of the weekend.

 

[JohnM]

I should have added the next page that pops up when you click the 'Join' link at top right: https://www.australiansuper.com/member-join#/

 

[Buzzard]

My investment property sale settles at the end of this month. Do you reckon the devaluation will last for another month or so?

Maybe not but there will always be opportunities if you have cash.

 

[Buzzard]

Now i just need to figure out what these under valued stocks are...

Just my opinion, not advice.
NAB at under $30, QBE in the $10 range and I still like TLS at around $3.50 for the return. I have faith in Telstra with their upcoming 5G network, could be an NBN killer. The ACCC also ruled they don't have to share their infrastructure with the likes of TPG

 

[RooFlyer]

I have faith in Telstra with their upcoming 5G network, could be an NBN killer. The ACCC also ruled they don't have to share their infrastructure with the likes of TPG

That's interesting, in respect of 5G. My understanding is that 5G will take many more towers ( ie denser coverage), so are we guns see 4x the tower coverage? ( Sorry, O/T here)

 

[lovetravellingoz]

To me it just makes sense that both persons in a couple if they are eligible to invest in super in Australia (and indeed everyone regardless of whether they are one half of a couple or not) have super for a wide variety of reasons, and that in managing that super that you take into account the likely lifespan of both persons etc. From the tax advantages of paying super for a low (or no) earning spouse, to guarding against caps (including a future government lowering them further etc), to making things simpler if the spouse is as not financially astute/educated etc.

Particularly as people age having a reliable, easily managed, income stream becomes more important and moreso where the person is not used to managing money.

 

[JessicaTam]

[mod hat]
This is the superannuation thread.

Any further off topic discussion will be deleted.
[/mod hat]

 

[straitman]

[mod hat]
This is the superannuation thread.

Any further off topic discussion will be deleted.
[/mod hat]

What don't some of you understand?

It's simple on topic or deleted.

Let's not have the need to resort to warning or infractions.

 

[OATEK]

To me it just makes sense that both persons in a couple if they are eligible to invest in super in Australia ...

MrsOatek put away very little super, as her job working with children was lowly paid. I on the other hand have a defined benefits pension from Government and a decent income stream from my time with a consulting firm, leading to quite a disparate super outcome.

I made the decision some time ago that MrsOatek should have enough super for a decent independent income so that she doesn't feel she is always coming cap in hand to me. As I sold up assets in my name a decent share went in to her super fund, and will be the basis for an income stream on retirement in the next year or so.

I pushed this idea because in our local culture women have not traditionally had the same opportunities as men for amassing super, but felt it was important to provide a level of independence for SWMBO who has long been able to make her own financial decisions from what she earned. Some may see it as patronising, but it has been well received. In the case of JohnK's wife, who comes from a different culture and social structure, I am not surprised to hear of a different approach to retirement planning.

 

[cove]

Our SMSF has our super balances very close to equal. I wouldn’t want it any other way.
I think it is only fair to try to be 50/50.
The only time we have varied this has been caused by land tax rather than the ATO.

 

[JohnK]

In the case of JohnK's wife, who comes from a different culture and social structure, I am not surprised to hear of a different approach to retirement planning.

We need to remember that my wife is not yet an Australian resident. I'm not sure I can even include her in any superannuation.

Superannuation is also a concept that my wife does not understand. She is not even remotely interested when I discuss it with her.

I just need to make sure she is taken care of if anything happens to me. If I do that then I've done my duty.

 

[QF WP]

I believe I can access super at 59 as I was born before 1965. Not sure what happens if this is changed but I suspect any changes won't affect me.

Fingers crossed I can retire at 60.

Unless things change you could start a TTR at 55

Preservation ages can be found here: TRIPs: 10 important facts about transition-to-retirement pensions. That is the age from which lump sums can be accessed.

You must have reached preservation age.
If you have reached your preservation age (that is, the minimum age that you can access your super — at least 55 years of age, increased to 56 years and older since 1 July 2015, and increased to 57 years and older since 1 July 2016, and effectively increased to 58 years and older since 1 July 2017), you can start a transition-to-retirement pension (TRIP) and continue to work, and continue making super contributions. If you were born before 1 July 1960, your preservation age is 55, that is, you turn 55 before 1 July 2015. If you were born after June 1964, then your preservation age is 60 (see table below). For more information on your preservation age, see SuperGuide article Accessing super: What is my preservation age?

Date of birth Preservation age
Before 1 July 1960 55
1 July 1960 – 30 June 1961 56
1 July 1961 – 30 June 1962 57
1 July 1962 – 30 June 1963 58
1 July 1963 – 30 June 1964 59
After 30 June 1964 60

Any withdrawals from superannuation from age 60 is tax free.

 

[casanovawa]

That's interesting, in respect of 5G. My understanding is that 5G will take many more towers ( ie denser coverage), so are we guns see 4x the tower coverage? ( Sorry, O/T here)

If so, maybe i should invest in mobile tower builders/material suppliers...

 

[cove]

If your fund value has dropped you can consider making $25,000 this years contribution amount. Please don’t do this if you are struggling with credit card debt, car hire purchase or housing loan repayments.

 

[Deleted member]

If your fund value has dropped you can consider making $25,000 this years contribution amount. Please don’t do this if you are struggling with credit card debt, car hire purchase or housing loan repayments.

I’m guessing that if you’re "struggling" with housing loan, car debt, etc. Making "any" contributions to super is off the agenda !!!

 

[cove]

I am told 30% of Australians cannot get one cent as a loan from our banks. Then there is another 30% struggling with their repayments. Of the 40% left maybe 20% might think about the subject.
That means very few will up their superannuation contribution to $25,000 this year.

 

[Deleted member 29185]

If your fund value has dropped you can consider making $25,000 this years contribution amount. Please don’t do this if you are struggling with credit card debt, car hire purchase or housing loan repayments.

So I take it that this extra investment is financially sensible. ie better than investing in a restrictive super account rather than say, shares or real estate?

 

[Buzzard]

So I take it that this extra investment is financially sensible. ie better than investing in a restrictive super account rather than say, shares or real estate?

I would say that generally investing in super is always better due to the generous tax benefits.

 

[cove]

Yes there is a tax deduction possibility up to a $25,000 figure but problems if you exceed that figure in 2018. Talk to your accountant/financial advisor about this.