Notes

Pre-30 June Super Health Check
Which form of fund is right for you?

These days it's no longer acceptable to follow counsel of tied financial advisors who wish to sell their commission-based products - investors want advice which is of their best interests.

As a starting place, research your fund's performance during the last one to five years. If your current fund was chosen through your employer and/or is underperforming, it may be time for it to change funds.

If there is a corporate super fund, you may receive reduced fees or lower insurance charges. It is therefore important to be aware of these benefits before changing super funds. Retail funds offer more services, normally have higher fees and run with a profit. Industry total funds are low cost funds with lower fees, cost profit members. If you have many super fund, consider consolidating to relieve fees.

Spread your investments

Ideally you need to retire comfortably to support your future lifestyle. Ensure your asset class allocation is line along with your investment strategy - look at lastest super statement and rebalance your portfolio if required. An independent advisor will help you tailor your asset allocation and add significant value.

Consider a Self Managed Super Fund (SMSF) to boost your super potential

If you and your partner havecombined super that could reach over $150,000, now could be a fun time to think about combining it in the SMSF to optimize your wealth (and future retirement fund).The Australian Taxation Office rule changes have observed a rush of SMSFs getting yourself into investment property on account of favourable changes designed by the Government in 2007 that permit funds to loan to buy a good point.

There will also be generous tax benefits associated with buying a great investment property through a SMSF, and with the concessional contribution cap set to relieve from 1 July to $25,000 for many super fund members, purchasing property via your SMSF might be an appropriate approach to further boost your super.

Note however that stamp duty concessions end on 30 June - in case you are thinking about purchasing property via your SMSF, meet along with your financial planner at the earliest opportunity to implement your gearing in super arrangements.

Maximise contributions by 30 June

Make the most of maximising contributions to optimize your super wealth:

• For 20011/12, superannuants aged 50 as well as over could make around $50,000 in concessional contributions (subject to work tests for 65 to 74 year olds). For 2012/13 this amount is reduced to $25,000, as well as for under 50 year olds, the cap is $25,000. Superannuants under 65 could also make non-concessional contributions as much as $150,000 (or $450,000 "bring forward" over several years), again at the mercy of the job tests for those aged 65 to 74.

• Avoid breaching contribution caps and being taxed 93% on your own contributions by identifying and rectifying any errors before year end.

• This is the last financial year you can make in-specie share contributions to your SMSF - contribute now to minimise transaction costs.

• Avoid breaching the newest and reduced $25,000 concessional cap by reviewing your salary sacrifice arrangements during the early July.

• If you are over 55 it can be imperative that you review and optimise your concessionally taxed pension. Avoid any problems later on the track by withdrawing no less than your minimum pension by 30 June.

Insurance and estate planning

Consider holding life, TPD and income protection insurance to improve protect your loved ones in the event you can't help a short time as a result of sickness or injury, particularly in case you are self-employed.

In the wedding of your respective death, ensure your super goes to individual preference would like it to - in case you aren't sure who the beneficiaries of your superannuation fund are, turn it into a priority to check it at the earliest opportunity. There are tax-related liabilities based on who you choose to bequeath your death benefit to, therefore it is imperative that you seek professional advice before completion of your respective Will.

Lost super fund

Visit the ATO's free website "SuperSeeker" to locate lost or forgotten super. You could be pleasantly surprised.

Be vigilent to make time and energy to review of your super - changes in your super now can mean a positive change within the amount that you get when it comes time for you to retire.

Disclaimer: The information with this document does not take into account your personal objectives, finances or needs which means you must look into its appropriateness having regard to the telltale factors before working on it. additional resources is important that your personal circumstances are considered prior to making any financial decision and it really is recommended that you seek some help from your financial adviser.
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