Superannuation Discussion + market volatility

[Pushka]

I have a friend who has almost nothing left in her super as she has drawn down on it after 60 to pay off her house, buy a car and do house renovations. She would never have had enough in there to pay her a decent retirement income and has always said she just wants the government pension. It’s not what I would choose but people make the best of their lives. She retired a couple of weeks ago and is still waiting for a decision from Centrelink even after submitting the paperwork ages ago. In the past we did make some gentle suggestions about finances but she makes her own decisions and it’s certainly not our business. Her adult children seem pretty useless when it comes to helping their mum - most of them seem to be feuding with each other!

Best wishes for your friend. It doesn’t sound like she’s been frivolous though, just doing what we’d all like to do. Mortgage free in nice home with a reliable car.

For me I need to quit an investment mortgage before we all stop working. So on sale of home if I’ve taken out a lump sum from Super then I could put proceeds back into it. We’d not qualify for any pension. Once all mortgages are gone then we will be better off as I don’t think MrP will ever retire and I think we can shift things around better. But I take it on 65 he can take lump sum anyway. Also mindful of when a couple of IO investment loans switch to principal+ in just over 3 years. They will be paid out by then.

 

[Flying mermaid]

Which is what I wonder how cove’s friend could access their super.

You can access it you can convince them of hardship or medical incapacity - I wonder how hard they check?

 

[Flying mermaid]

Clearly a lot of people do though.

I think I might retire. I’m well old enough! Potter around for a bit. Then who knows what might happen. No one can predict the future in these times. Just a few questions to ask first. And timing. Timing is everything.

Can you make the full $25,000 combined contributions (sal sac and SG) and then retire mid FY?

we did - full contributions with our final salary in mid July and then immediately closed the business and retired.

 

[Flying mermaid]

Best wishes for your friend. It doesn’t sound like she’s been frivolous though, just doing what we’d all like to do. Mortgage free in nice home with a reliable car.

For me I need to quit an investment mortgage before we all stop working. So on sale of home if I’ve taken out a lump sum from Super then I could put proceeds back into it. We’d not qualify for any pension. Once all mortgages are gone then we will be better off as I don’t think MrP will ever retire and I think we can shift things around better. But I take it on 65 he can take lump sum anyway. Also mindful of when a couple of IO investment loans switch to principal+ in just over 3 years. They will be paid out by then.

yes - you really don’t want loans in retirement! If there is a downturn, diminution of rent or dividends, it is easy to cut discretionary spending, but not if there are compulsory payments,

We have a small loan against our house, which we did so Master FM could avoid the mortgage insurance when he bought his townhouse some years ago, but he pays that. Apart from that we were totally debt free when we retired.

 

[love_the_life]

yes - you really don’t want loans in retirement! If there is a downturn, diminution of rent or dividends, it is easy to cut discretionary spending, but not if there are compulsory payments,
..............

Totally agree; interesting that there was an article on line today that I read about how when the current super guarantee scheme was set up it was assumed that people would own their own homes by retirement age. Many baby boomers who do are in quite good financial positions now but in the future there will be a large number of people for whom ownership is possibly never going to be possible.

 

[Pushka]

My accountant has responded. I had expected him to say don’t do it but surprisingly he has come up with a few additional options.

 

[Flying mermaid]

Totally agree; interesting that there was an article on line today that I read about how when the current super guarantee scheme was set up it was assumed that people would own their own homes by retirement age. Many baby boomers who do are in quite good financial positions now but in the future there will be a large number of people for whom ownership is possibly never going to be possible.

yes it is a worry - although as we baby boomers die off and leave our house to our children, maybe there will be a late surge as people get over the deposit hurdle? Apparently a lot of first home buyers are coming back into the market as prices drop in Sydney.

I actually blame the media for constantly telling young people how impossible it is for them to buy anything.....

 

[RooFlyer]

I had a conversation with my accountant re the SMSF / auditor bizo. I was right - there has been a major stuff-up at accountant's head office and the person in charge of super fund tax has been 'moved on' recently. Turns out that what was initially framed in terms of requests from external auditor were in fact requests from the head office person 'finalising' the prep for submission to the auditor (and who apparently hadn't a clue). Auditor in fact only wants a few more details - a PITA, but not so difficult to comply with.

I am convinced what the acct has told me is the way it is - it fitted with all the various conversations I've had to this point. Apparently I've joined a long list of complaining clients. Am assured that extensions for lodgements will be forthcoming if needs be.

Will make sure the next return is lodged much earlier next time (but there are external reasons why I traditionally lodge late), so will give them one more chance - this will be the one where retirement is noted and I understand just needs to be dated appropriately.

 

[Pushka]

I had a conversation with my accountant re the SMSF / auditor bizo. I was right - there has been a major stuff-up at accountant's head office and the person in charge of super fund tax has been 'moved on' recently. Turns out that what was initially framed in terms of requests from external auditor were in fact requests from the head office person 'finalising' the prep for submission to the auditor (and who apparently hadn't a clue). Auditor in fact only wants a few more details - a PITA, but not so difficult to comply with.

I am convinced what the acct has told me is the way it is - it fitted with all the various conversations I've had to this point. Apparently I've joined a long list of complaining clients. Am assured that extensions for lodgements will be forthcoming if needs be.

Will make sure the next return is lodged much earlier next time (but there are external reasons why I traditionally lodge late), so will give them one more chance - this will be the one where retirement is noted and I understand just needs to be dated appropriately.

Similar thing happened to us last year. I asked if the accountant had changed auditors! They hadn’t but the previous accountant employee had left and a new one installed.

 

[tgh]

Surprised that your 16/17 was only due to be done 06/17.
We try very hard to have ours done asap, as the sooner it is done the sooner the franking credit refund is banked.
We have a couple of slow reports that put us out to august and thats when it will be done.
How soon post eofy does everyone else have their return in ?

 

[Pushka]

Surprised that your 16/17 was only due to be done 06/17.
We try very hard to have ours done asap, as the sooner it is done the sooner the franking credit refund is banked.
We have a couple of slow reports that put us out to august and thats when it will be done.
How soon post eofy does everyone else have their return in ?

Depends on how much tax to pay but all submitted by May obviously. Usual timing is Nov - Dec. Super is done first. We get them to the accountant late August.

 

[RooFlyer]

In my case one of my investments is in a trust that is held between 4 super funds of me and some associates. The accounting firm (not mine!) that does it always ends up late getting the financials done and audited very very late. I've complained and complained to our Secretary but to no avail. I have all the other SMSF stuff into my accountant in plenty of time, but the last bit only comes late, so its not usually lodged until March-April-ish. Last year it was late full stop and I got a nasty letter. This year will be worse, but not my fault this time!

 

[Flying mermaid]

Surprised that your 16/17 was only due to be done 06/17.
We try very hard to have ours done asap, as the sooner it is done the sooner the franking credit refund is banked.
We have a couple of slow reports that put us out to august and thats when it will be done.
How soon post eofy does everyone else have their return in ?

i send my accountant everything on 1 July. I know he is really busy July and August so I start nagging him in mid September and we usually have it submitted between October and early December, depending on how much I nag and how busy he is and whether there is a footy game he wants to see in Canberra.or Sydney.....he always comes up to get the accounts signed and tries to tie it with some sporting event he wants to see.

There is no way I would let the fiscal fiend hang onto my refund for longer than I have to. Obviously things will change under Mr Shorten, but I will probably still get it done as soon as I can extract it out of my accountant. It’s nice to cross it off a mental list.

 

[RooFlyer]

We are all talking about Super Fund tax returns, aren't we?

 

[QF WP]

I think some have gone off on a tangent ...but most (if not all) looks like they did consider their SMSF tax return. The length of time taken to bring together relevant information for the accountant & auditor depend on the type of investments - bank accounts, TD's and the like won't take long but there are other investments where one is beholden to third parties completing the relevant information (investment funds, syndicates, etc).

 

[Pushka]

We are all talking about Super Fund tax returns, aren't we?

Sort of. We have super, personal, business and trust returns. They are all handed over pretty much at the same time while I’m in the figures mood.

 

[Flying mermaid]

Sort of. We have super, personal, business and trust returns. They are all handed over pretty much at the same time while I’m in the figures mood.

Ditto us - I hand over company, personal and super on 1 July and accountant does together. Company is all but dormant now - just a bit of consulting from Mr FM.

 

[tgh]

We use a small local accountant to do our personal and company tax returns.
He usually turns it over in a week or so.
The behemoth with all the flashing lights can't look at the super fund until October

 

[RooFlyer]

OK, in that vein I have my personal and company returns to the accountant in August. SMSF, on the other hand ...

<snip>but there are other investments where one is beholden to third parties completing the relevant information (investment funds, syndicates, etc).

Tell me about it

 

[RooFlyer]

Has anyone invested into BT Portfolio Services (part of the BT Funds Management group) managed (administered) 'Wrap' investment platform? or have any comment about it (like : RUN!)

Have been introduced to it by my financial adviser and have spent a 'pleasant' afternoon today reading through all the gumph. Just about ran my highlighter pen dry.

If someone is familiar with it, I'll have a few questions about its operation.