Superannuation Discussion + market volatility

[QF WP]

Good article on the front page of The West Australian today about the loss of franking credits - it’s the only plank that LNP have to de-rail Labors chances but I fear it’s not enough. After the result in Vic over the weekend, it’s almost an unloseable election for Labor, regardless of when it’s called (Anthony Green is plumping for May).

Perhaps I’ll be changing my own share ownership strategies

 

[Pushka]

Good article on the front page of The West Australian today about the loss of franking credits - it’s the only plank that LNP have to de-rail Labors chances but I fear it’s not enough. After the result in Vic over the weekend, it’s almost an unloseable election for Labor, regardless of when it’s called (Anthony Green is plumping for May).

Perhaps I’ll be changing my own share ownership strategies

Unfortunately people are falling for the ‘get the rich oldies’ line. Not realising that every superannuation portfolio will be impacted.

 

[QF WP]

Agreed, but this is the line that the LNP should be pushing harder on. They are losing the opportunity and Bill Shorten was looking very smug this morning in Parliament.

 

[Quickstatus]

LNP has no credibility on the super/retirement issue after moving the goalposts retrospectively on the 1.6mil cap

 

[QF WP]

Oh dear , 710K short term thinkers who are happy to be reliant on some (or full) Centrelink in the future.

(Courtesy of The Australian edition today)

 

[QF WP]

LNP has no credibility on the super/retirement issue after moving the goalposts retrospectively on the 1.6mil cap

Every Government since 1983 has changed the goalposts on superannuation - mostly in the May Budgets with various dates of implementation.

On the flip side, it’s great for us in the industry

 

[Pushka]

LNP has no credibility on the super/retirement issue after moving the goalposts retrospectively on the 1.6mil cap

And the $25,000 contributions limit. I hate all politicians.

 

[I love to travel]

Every Government since 1983 has changed the goalposts on superannuation - mostly in the May Budgets with various dates of implementation.

On the flip side, it’s great for us in the industry

But for those of us in our 40's and younger it makes it very hard to plan. My current thinking is contribute nothing extra to super and use liquid cash/shares/property to fund retirement as by the time I retire in 2045 the rules will be so much worse than they are now

 

[Pushka]

But for those of us in our 40's and younger it makes it very hard to plan. My current thinking is contribute nothing extra to super and use liquid cash/shares/property to fund retirement as by the time I retire in 2045 the rules will be so much worse than they are now

And the trick is to be disciplined and do that.

 

[QF WP]

But for those of us in our 40's and younger it makes it very hard to plan. My current thinking is contribute nothing extra to super and use liquid cash/shares/property to fund retirement as by the time I retire in 2045 the rules will be so much worse than they are now

You should try being in your early 50’s or even 60’s, when the ability to accumulate sufficient capital in retirement (for most) is even harder with the lack of years left to contributions and having starter from a smaller base (3% for some from 1987 and more from 1982)

Completely understand the desire to pay off non-deductible debt first and then aspire to contribute more to super closer to retirement - except the performance of most superannuation funds in the long term has exceeded the interest paid on mortgages (with the additional benefit of reduced levels of taxation).

The issue with your aspiration is that you are likely to be paying tax from now and into retirement given your income will have a moderate level of taxable income. Superannuation is concessionally taxed and drops to nil in retirement. Well it does for my clients - very few pay tax at all, YMMV

 

[cove]

I am troubled by those folks doing early access to their superannuation and then spending it on frivolous stuff. My former BIL got his hands on $50,000 and within a few weeks he had nothing much left.

 

[QF WP]

From Page 4 of The Australian today:

 

[cove]

Lucky it’s only money. If Shorten gets to be PM I know my taxes will be quite a bit more as he thinks a 50% tax rate is ok.
I have started looking at some property and share trusts to get some unfranked income that can neutralize some franked income in our super fund.

 

[QF WP]

I am troubled by those folks doing early access to their superannuation and then spending it on frivolous stuff. My former BIL got his hands on $50,000 and within a few weeks he had nothing much left.

Agree - that’s the problem if it’s a consumable item and regardless of whether spent before or after on the Pension. But if under $250K in assets, then the spending of funds is a moot point as there would be no change in pension entitlement

 

[cove]

That former family member is certainly no rocket scientist. Getting his superannuation stash down to near zero when he is unemployed and about 60 is a pretty stupid move.

 

[Quickstatus]

I am troubled by those folks doing early access to their superannuation and then spending it on frivolous stuff. My former BIL got his hands on $50,000 and within a few weeks he had nothing much left.

Well it makes sense because the an equivalent in age pension requires roughly about $700k in super assets (someone can correct if wrong). If you are never going to be near that might as well spend it then get onto full pension

 

[cove]

We have had way too many changes to superannuation rules over the last two decades. I guess it is just too much money for politicians to leave it alone.
I would like to tamper with the politicians overly generous superannuation.

 

[VPS]

I know a couple of people who cashed their super in and blew it on cough and then went oh whoops

 

[Pushka]

We have had way too many changes to superannuation rules over the last two decades. I guess it is just too much money for politicians to leave it alone.
I would like to tamper with the politicians overly generous superannuation.

They must look at the billions that are accumulating and be salivating.

 

[JohnK]

Anyone know anything about the IAG capital return? Money was deposited into my bank account yesterday but I don't remember reading about it or giving them my bank account.