Superannuation Discussion + market volatility

[SYD]

Who gets FREE public transport for life?

In NSW, a Seniors card from age 60 (and not working full time), is as good as free travel for life!

 

[luckypierre]

In NSW, a Seniors card from age 60 (and not working full time), is as good as free travel for life!

Ditto For SA

 

[OZDUCK]

In WA Seniors Card gets free travel outside peak hours and free all day weekends and P/H. Pensioners get one long distance return train/bus trip a year.

 

[Buzzard]

South Australian Seniors Card members can travel for free
on Adelaide Metro buses, trains and trams – all day, every day.

Assuming that the bus actually shows up
When I wrote to Mali the reply I got was that the service was adequate.

 

[luckypierre]

Assuming that the bus actually shows up
When I wrote to Mali the reply I got was that the service was adequate.

Well to be “fare” Mali did deliver on the election promise. The only catch of course is you actually have to use public transport

 

[Pushka]

Which super tax cuts? I don’t remember any recent legislation in this area?

Who gets FREE public transport for life?

We do in SA with Seniors card regardless of financial status.

 

[OZDUCK]

In WA all public transport for everyone with a Smart Rider card - the local transport card - will be free from 24 December until 24 January.

 

[QF WP]

Thought that some here might find this article and report interesting:

The 2023 edition of State Street Global Advisors’ Global Retirement Reality Report found the confidence of Australians in their pre-retirement savings has declined from the previous year’s survey.

Retirement confidence wanes amid annuities jump - Financial Newswire

The 2023 State Street Global Retirement Reality Report found Australians are less confident in their pre-retirement savings than in 2022.

buff.ly

 

[cove]

The earning rates for annuities have improved with the jump in interest rates.

 

[serfty]

The earning rates for annuities have improved with the jump in interest rates.

For those with no debt it's a really nice thing ... although sometime the hoops needed to maximise earning on some products seem silly. e.g. the ING 5.5% at call with it's deposit, balance and transaction criteria.

 

[cove]

We went for the big 5 capital notes that earn between 7% and 8% and you can sell them off and get the funds back in 2 days. Not as secure as a bank term deposit so be aware of this.
The quarterly interest is subject to tax if that applies to you.

 

[CaptJCool]

Well September 2023 figures dropped on 1 December

Age pension have dropped
Some to do with no new entrants until 2024….
View attachment 356290
13,000 less

View attachment 356289
22,000 less in 66-69

Each year roughly an extra 260,000 come eligible less 130,000 deaths
And the figures are going nowhere ….

And December 2023 figures have 5,000 less Age Pensioners with a further reduction of new entrants by 22,000 (and this before any final uplift of Age pension age to 67 enables 6 months worth of backlog cases to be assessed after 1 Jan 2024)
On 1 July 2023, the eligibility age increased from 66 years and 6 months to 67 years (for anyone born after 31 December 1956)




And we know the backlog is going to take 4-6 months to process as there’ll be say 35,000 plus applications all coming in on day one on top of the ordinary half yearly volume of 35-40,000
Doubled the volume by shifting the eligibility date to 67…

 

[dxwell]

Oh dear, something terrible happened to me.
Every year, I make the max concessional contribution for both my wife and I (self employed).
I was with Super provider A.
I switched to Super provider B.
I did not submit the concessional contribution form while with provider A.
Provider A cannot accept the form as funds are no longer with them.
Provider B cannot accept the form as contribution was before the switch.

Accountant advised that there is nothing we can do.
Cannot claim tax deduction.
There is no recourse.

 

[dec540]

Oh dear, something terrible happened to me.
Every year, I make the max concessional contribution for both my wife and I (self employed).
I was with Super provider A.
I switched to Super provider B.
I did not submit the concessional contribution form while with provider A.
Provider A cannot accept the form as funds are no longer with them.
Provider B cannot accept the form as contribution was before the switch.

Accountant advised that there is nothing we can do.
Cannot claim tax deduction.
There is no recourse.

That's correct. It's one of those unfortunate cracks that's easy to fall into when managing things yourself. A mistake you're unlikely to make twice!

 

[Rnwillia]

The superannuation rort has been a nice little earn for some financial advisers thanks to suckers like me.

I worked for a company between 2003 and 2005 and the superannuation funds were with Colonial Mutual. When I left the company the superannuation funds were then transferred from the company superannuation account to Colonial Mutual superannuation account. That was over 10 years ago.

Fast forward to today and I look at superannuation account to find the balance has decreased from previous year. Why? Only 0.28% growty for the year. Ok so why decrease in balance? Not only are they charging me an administration fee but they are charging me a financial adviser fee. A financial adviser who I have never seen or spoken to ever and they have been taking a cut from my superannuarion. Seriously?

Called today and was told that I needed to call Colonial Mutual to remove the financial adviser from my account. Seriiusly? Yes I know I should have noticed earlier but whst a nice little rort going on there. Why aren't these things audited?

Asked for exit forms. The consultant couldn't care less and emailed me the forms.

I'd hate to think how much superannuation I have wasted in useless fees. If there are no contributions to a superannuation account they shouldn't be charging admin fees. What are they doing that requires a fee to be charged?

Now what? Think my daughter is going to be angry with her dads carefree attitude to money.

So sorry to learn of your bad experience John. I am from Adelaide but have recently moved to the Gold Coast. My super has been managed by Calder Wealth Management for about 15 years now and they are the most honest and trustworthy financial company that I have ever dealt with. Their fees are probably as low as any available and their long term returns are amazing. They can service anyone in most parts of Australia and I would thoroughly recommend them to you. Just look them up on the net and give them a call - you won't regret it I assure you; regards
Ray.

 

[MEL_Traveller]

Apologies if this is a silly question!

I’m with an industry super fund. Low fees and really good returns!

Is there any way to invest in the same way as my super fund, but without it being superannuation?

Obviously my super fund is doing something right with the mix of shares and other investments. I’d like to be able to buy ‘units’ in something similar. But of course be able to liquidate or realise any gains in real time, not having to wait until 65 or whatever.

Is there a product like that? Or is it something that’s going to come with high fees?

 

[lovestotravel]

In exactly the same way, with same taxation benefits, nope impossible

Best you could do would probably be an ETF

Keep in mind the last 12 months has been very good for most investments with most super funds/investment options well over 10%

 

[MEL_Traveller]

In exactly the same way, with same taxation benefits, nope impossible

Best you could do would probably be an ETF

Keep in mind the last 12 months has been very good for most investments with most super funds/investment options well over 10%

No, don’t need the same taxation benefits, would be happy to pay marginal rates.

Just wish whoever was determining the super mix for industry funds would also market it ‘for profit’.

 

[Askance]

An ETF (exchange traded fund) definitely meets your criteria. I have money invested outside of super in Vanguard as I need money to live on before i can access super at 60. The ETF pays a regular distribution to me that provides my living expenses, and if i need a lump sum I can sell units via the ASX.

 

[SYD]

The problem (for want of a better term) is ETFs and managed funds usually have a mix of dividend returns and capital gains that are passed on in distributions. The CG component can vary wildly. The upside is you can get some super (no pun intended) windfall returns in some years. The downside is those CGT events, even at the 50% discounted rate can have significant income tax consequences.

But if the OP is happy with the tax situation, then a couple of ETFs to spread portfolio risk is one strategy. eg a mix of growth and income funds / ETFs, a mix of AU and international etc.

In the current high interest rate environment, a wad of cash on call at 5+ % in addition isn’t to be sniffed at.

Of course, a direct share portfolio has the lowest overhead costs but unless you really know what you’re doing, also the highest risk profile - but sort of fun - if you don’t mind seeing some stock flounder while others do well. Also, fully franked* dividends are close to tax neutral for middle income earners.

*Note: peeps who call for the removal franking credits on income tax have no idea what they’re talking about.