FAQ

Making lump sum contributions to super

I am 69 years of age and not working full time. I am living off the income from 2 rental properties and have the opportunity of part time employment. I have been advised that if I work 40 hours in a 30 day period I can make a lump sum contributation to superannuation. I do…

Commencing a transition to retirement strategy while still adding to super – Part 2

In Jeremy’s recent article “Commencing a transition to retirement strategy while still adding to super” he says (with reference to the 2009/10 financial year): “Secondly, at $30,000 taxable income you have optimised your personal tax situation. There is no point salary sacrificing below this level as things like low income earners rebate take you to…

Commencing a transition to retirement strategy while still adding to super

I am 60 and have commenced a transition to retirement pension. I am taking the minimum amount 2%. As I am still working I am in a position to put some of my savings back into my super fund. Am I correct in assuming that I can do this providing I do not exceed $450,000 over a…

Updating the trust deed in a SMSF

A self managed superannuation fund (SMSF) is governed by a trust deed. The trust deed sets out the rules of the fund. Whilst the trust deed can impose more onerous regulations for the trustees to follow, it is not permitted to contain clauses which require the trustee to breach the SIS Act. The trust deed…

At 65, can I live off saved income and let my super accumulate for another 12 months?

I have a SMSF and turn 65 shortly. At aged 65 can I live off saved income and let my super accumulate for another 12 months before converting it to an allocated pension. Thanks, Dave. Answer: The rules applying to Self Managed Super Funds (SMSF) are no different to those affecting all superannuation when it comes…

I am tossing up between a DIY super fund or opening a wrap account

I would like more control over my superannuation savings and am considering starting either a self-managed super fund or doing it via a super wrap account such as that offered by [ABC] Investment Management. I found out the fees for a [ABC] Direct Wrap and calculated it would be an average of 0.57% pa of…

Should I sell my home, buy a cheaper one, and invest the remaining funds for retirement?

We have 5 1/4 acres of residential land 20km south of Brisbane with an 7-year old home build by us on it. We have owned it for 10 years and our cost is around $300,000. In October last year we were offered $1.5 million by a stgeloper who knocked on our door, which we did…

Why buy instalment warrants in a DIY fund

What are the advantages of investing in instalment warrants for a DIY super fund? Response: An instalment warrant gives an investor the right to buy shares, or other underlying assets, by payment of several instalments (usually two) during the life of the instalment. Investors have direct exposure to the capital growth of the underlying share…

When starting a pension do I have to convert all of my super to a pension?

If I want to start a pension, am I obliged to do so with the percentage minimum of the whole of my super (far too much for my daily living requirements) or may I instead leave some in the accumulation phase and simply start a pension from, say, half the balance? It has always been…

Should I leave my money in super or start an allocated pension?

I am retired and all my money is still in super. I haven’t yet transferred it across to an allocated pension or other form of income stream. The reason I leave it in super is that I am guaranteed 4% in the super fund, and that means that when the markets fall I still receive…