Notes

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

These days it is no longer acceptable to check out the advice of tied financial advisors which sell their commission-based products - investors want advice that is certainly inside their best interests.

As a starting point, 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 you to change funds.

If you have a corporate super fund, you could receive reduced fees or lower insurance costs. It is therefore important to understand these benefits before changing super funds. Retail funds offer more services, routinely have higher fees and run at a profit. Industry funds are low cost funds with lower fees, set you back profit members. If you have more than one super fund, consider consolidating to cut back fees.

Spread how is my super performing need to retire comfortably to support your future lifestyle. Ensure your asset class allocation is line using your investment strategy - look at the lastest super statement and rebalance your portfolio if necessary. An independent advisor can assist you tailor your asset allocation and add significant value.

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

If you and your spouse havecombined super well over $150,000, might be a great time to take into account combining it in a SMSF to maximise your wealth (and future retirement fund).The Australian Taxation Office rule changes have experienced a rush of SMSFs getting into investment property on account of favourable changes introduced by the Government in 2007 that allow funds to gain access to to acquire a good thing.

There are also generous tax benefits associated with buying a great investment property by having a SMSF, current concessional contribution cap set to cut back from 1 July to $25,000 for all super fund members, purchasing property via your SMSF could be the right strategy to further improve your super.

Note however that stamp duty concessions end on 30 June - should you be considering purchasing property using your SMSF, meet along with your financial planner as soon as possible to implement your gearing in super arrangements.

Maximise contributions by 30 June

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

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

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

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

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

• If you are over 55 it can be vital that you review and optimise your concessionally taxed pension. Avoid any problems later around the track by withdrawing a minimum of your minimum pension by 30 June.

Insurance and estate planning

Consider holding life, TPD and income protection insurance to higher protect all your family members in the event that you cannot benefit a short time because of sickness or injury, particularly if you're self-employed.

In the event of your death, keep your super would go to whom you want it to - should 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 determined by individual preference tend to bequeath your death advantage of, therefore it is important to seek professional advice before completion of the Will.

Lost super fund

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

Be vigilent and earn time for it to review your super - changes for your super now can mean an impact inside the amount that you receive when it comes time and energy to retire.

Disclaimer: The information on this document does not take into consideration your own objectives, finances or needs and that means you must look into its appropriateness having regard about bat roosting factors before functioning on it. It is important that your own personal circumstances are taken into account prior to any financial decision and it's recommended that you seek assistance from your financial adviser.
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