Skip to main content

Posts

Showing posts from February, 2016

You might have more Super than you think.

Keeping track of your superannuation can be difficult.  Especially when you consider the average time Australians are currently spending in a job is just over 3 years. 
So in a 50 year working life, on average you’ll have around 17 jobs.   That’s a lot of super funds to keep track of.   Each one of your funds could be charging you fees and each of them could have insurance built into them.  It may not sound important, but it really is.  You could be paying more than you have to and you could be paying for insurance elsewhere when you already have it.
Worse still, if something happens to you and you need to claim on that insurance, you may not know where to find it.  As part of the rollover consolidation process that I undertake with clients, a free “super search” is conducted based on your tax file number.   Various searching services have been around for a while, however, they usually charge a fee, take a long time and require you to complete lengthy forms.   Our process is simple, qu…

Have you checked your Super lately?

Is my Superannuation being taxed?

Many of you may have noticed on your recent superannuation statement that an amount has been deducted for tax. Superannuation tax can be a little confusing, many people in fact believe that they pay no tax in their super.  Unfortunately this isn’t true. Each year your employer pays 9.5% of your salary into your nominated super fund in order to meet their Superannuation Guarantee obligations.  For every dollar that your employer pays into your fund, 15% of it is taken as contributions tax.  It’s worse if you earn over $300k per year when the tax paid jumps up to 30%. If you’re a savvy investor, you’ll have your super invested in funds that earn income throughout the year.  Be it interest, rent, dividends and so forth.  These earnings don’t escape tax. They are in fact also taxed at 15%. Of course these tax rates are well below most people’s personal tax rates.  So having your money in super does mean you’re paying a lower rate.  The trade off for this is that you can’t access your money u…

A Checklist for getting your Super sorted.

I’ve posted plenty of information recently in relation to superannuation and there’s no doubt that it can be a little confusing.  I thought it might be useful to put together a quick checklist that you can run through in 5 minutes and identify whether or not your super is on track.
Do you know where your super is?  Yes ¨    No ¨
Is your employer paying you your superannuation guarantee payments?  Yes ¨      No ¨ The current rate is 9.5% of your income payable quarterly on 28 Oct, 28 Jan, 28 Apr & 28 July. You should have just received a payment, did you?
Can you log in on line and check your current balance?  Yes ¨   No ¨
Is your superannuation invested appropriately based on your time horizon and investor profile?  Yes ¨     No ¨
Do you receive regular communication from an adviser to help with your investment decisions?   Yes ¨   No ¨
Have you completed a review of your insurances within superannuation?  Yes ¨   No ¨
Do you know what fees you’re paying?  Are you getting value for money?  …