Notes

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

These days it's no longer acceptable to adhere to the recommendations of tied financial advisors which sell their commission-based products - investors want advice that's within their best interests.

As a starting place, review of your fund's performance within the last one to five years. If your current fund was chosen by your employer and/or is underperforming, it might be time for it to change funds.

If you have a corporate super fund, you could possibly receive reduced fees or lower insurance fees. It is therefore important to comprehend these benefits before changing super funds. Retail funds offer more services, typically have higher fees and run with a profit. Industry funds are affordable funds with lower fees, set you back profit members. If you have many super fund, consider consolidating to reduce fees.

Spread your investments

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

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

If you and your wife havecombined super that has reached over $150,000, now is fun to consider combining it in a SMSF to increase your wealth (and future retirement fund).The Australian Taxation Office rule changes have seen a rush of SMSFs getting into investment property on account of favourable changes introduced by the Government in 2007 that enable funds to loan to purchase a good thing.

There can also be generous tax benefits associated with buying a good investment property through a SMSF, current concessional contribution cap set to relieve from 1 July to $25,000 for those super fund members, purchasing property using your SMSF could possibly be the right strategy to further improve your super.

Note however that stamp duty concessions end on 30 June - in case you are thinking of purchasing property via your SMSF, meet using 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 maximise your super wealth:

• For 20011/12, superannuants aged 50 and also over can make around $50,000 in concessional contributions (at the mercy of work tests for 65 to 74 year olds). For 2012/13 this amount is reduced to $25,000, and then for under 50 year olds, the cap is $25,000. Superannuants under 65 may also make non-concessional contributions as much as $150,000 (or $450,000 "bring forward" over 3 years), again at the mercy of the project tests for all those aged 65 to 74.

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

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

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

• If online superannuation health check 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 family in case you can't work for a period because of sickness or injury, particularly if you're self-employed.

In the wedding of one's death, keep your super would go to who you need it to - if you aren't sure who the beneficiaries of your superannuation fund are, turn it into a priority to review it at the earliest opportunity. There are tax-related liabilities depending on who you decide to bequeath your death profit to, so it is vital that you seek professional advice before completion of one's Will.

Lost super fund

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

Be vigilent and earn time for you to take a look at super - changes to your super now can mean a huge difference within the amount that you receive when it comes time to retire.

Disclaimer: The information within this document does not consider your own personal objectives, financial situation or needs so you should consider its appropriateness having regard to these factors before functioning on it. It is important that your own personal circumstances are taken into account before you make any financial decision and it is recommended that you seek some help from your financial adviser.
Here's my website: https://superhealthcheckaustralia.com.au/