Effect on incomes from the Govt and other measures

[RooFlyer]

When the Government halved the required draw down amount, many funds automatically applied the same logic to the rates that current retirees were drawing down, making assumptions on their behalf. I read about it in the media.

That's bad. The auto-halving should have only have applied to those who ticked the 'minimum pension' box; when the minimum got halved, so did their pension (but the fund should have explained what was going on, and how it could be adjusted). Halving anyone else was mal-administration.

 

[Pushka]

That's bad. The auto-halving should have only have applied to those who ticked the 'minimum pension' box; when the minimum got halved, so did their pension (but the fund should have explained what was going on, and how it could be adjusted). Halving anyone else was mal-administration.

Sometimes Super Funds act far too much like parents. Making decisions.

 

[get me outta here]

I’m not so sure that this is a correct statement. Person can be self funded and be on a super fund pension. “being a 'self-funded retiree' is NOT the same as being on a Super Fund pension“.

 

[Pushka]

I’m not so sure that this is a correct statement. Person can be self funded and be on a super fund pension. “being a 'self-funded retiree' is NOT the same as being on a Super Fund pension“.

I've always taken being a self funded retiree as someone who DOES NOT rely on the Government pension.

Ahem. Now brain has kicked in. I've amended. In bold.

 

[tgh]

A smsf pension is a very useful tool roof-lyer.. super flexible and you can raid the fund balance for play money any time you like...
For example I don't have to lie when I get a pensioner rate haircut , that's nice...
We were told somewhat gleefully by the s'fund accountants that we could halve our pension, I assume this is because lots of folks are forced to draw down more than they need.
I agree with the minimum draw downs to mitigate tax free wealth preservation but it's not a very sharp tool…

 

[get me outta here]

I think there’s some confusing terms around which is obscuring definitions and can be precisely explained by qualified financial advisers. Some thoughts not intended as a lecture as some like to do :

‘Self funded‘ whether one places their funds in an SMSF, or into say an industry fund is based on where the funds came from. Self funded means that one does not rely on ‘tax payer’ funds (as someone mentioned up thread).

If one wishes to take money out for a frolic of one’s own, you can do so from wherever one chose to put one’s own money whether an SMSF or a super fund whether in pension or accumulation phase (if one ‘qualifies’).

I've always taken being a self funded retiree as someone who relies on the Government pension.

 

[Pushka]

I think there’s some confusing terms around which is obscuring definitions and can be precisely explained by qualified financial advisers. Some thoughts not intended as a lecture as some like to do :

‘Self funded‘ whether one places their funds in an SMSF, or into say an industry fund is based on where the funds came from. Self funded means that one does not rely on ‘tax payer’ funds (as someone mentioned up thread).

If one wishes to take money out for a frolic of one’s own, you can do so from wherever one chose to put one’s own money whether an SMSF or a super fund whether in pension or accumulation phase (if one ‘qualifies’).

Gawd. Ive just re read what I typed. And its the complete opposite of what my brain was saying!
We had an SMSF and this was great when I was of a mind to snap up bargains. Like a block of land we sold at 100% profit 2 years later. And I was interested in the share market. 2009 scared me off and I lost interest. We are about to finalise our SMSF once the accountant gets his act together, and have moved everything over to an Industry fund which is doing really well. As we are still earning a salary we havent converted any funds to the pension phase and its all in accumulation.

 

[RooFlyer]

I think there’s some confusing terms around which is obscuring definitions and can be precisely explained by qualified financial advisers.

Absolutely! (For the first bit) but many financial advisers are very poor at explaining it all/the terms. It is, of course, not entirely in their interest for the client to completely understand it all (mea culpa! not any of our advisers here!!). As it happens, I have just sacked my financial adviser after two strikes in trying to snow me.

I’m not so sure that this is a correct statement. Person can be self funded and be on a super fund pension. “being a 'self-funded retiree' is NOT the same as being on a Super Fund pension“.

I believe it is. As I mentioned, I am a self funded retiree (I am retired, and get no income from the government, every dollar I spend drops my savings by a dollar). But I have no super fund pension.

 

[RooFlyer]

and have moved everything over to an Industry fund which is doing really well. As we are still earning a salary we havent converted any funds to the pension phase and its all in accumulation.

I took up the Qantas /Australian Super offer a couple of years ago with the minimum contribution. That caused me to look more closely at it, and I eventually put some of the cash I realised when my SMSF sold an office investment in Sydney. Its done very well, and has just held up under COVID. So well done Qantas! Its still in accumulation, even though I have retired. So many perms and comms in this game!

 

[get me outta here]

My financial adviser was not only an excellent resource but was able to actually communicate as well. He has helped not only me but a number of other people I know. That’s the sort of person you need, they are worth the cost assuming you actually have some money to begin with that you have worked hard to achieve.

 

[Pushka]

My financial adviser was not only an excellent resource but was able to actually communicate as well. He has helped not only me but a number of other people I know. That’s the sort of person you need, they are worth the cost assuming you actually have some money to begin with that you have worked hard to achieve.

I stopped usimg mine when he was asking me questions of the shares I was buying then he went out and bought them, unbeknownst to me. Karma struck. As I didnt know he bought them, when i decided to take the profit I didnt tell him and he didnt find out until doing EOFY. He hadnt sold them and theyd tanked!

 

[cove]

Our decision to buy a bit of the Sydney Airport Novotel has not worked too well since March this year. We are more hopeful of City Chic.
We don’t blame Victorians for what is going on because you only need 2% to mess up and the 98% are affected.
My view on immigration is that we need to reset who can come to Australia.

 

[drron]

Fortunately I have always had an interest in the share market.It used to be fun before personal computers as you had to be a real sleuth.Now you really can't come up with things such as a company having 3 times more cash in bank than their market valuation or Convertible Notes that always paid the face value back when they expired.They were a good source of profit once I deduced that that was the way crooks got their money out of failing companies-think Bond,Skase.

So shares hold no fears for me so I have never taken my Accountants tips.In Feb I liquidated ~ 15% of my shares and put it back into gold stocks so my SMSF is up a fair bit on the Feb level.

But to balance that dividends certainly down and will go lower.Our investment unit in a QLD tourist area has had no income in the last 2 months and my job opportunities have dried up - no one taking holidays or going to conferences.So the fact that travel opportunities have alsp dried up is helping.

 

[Pushka]

Our decision to buy a bit of the Sydney Airport Novotel has not worked too well since March this year. We are more hopeful of City Chic.
We don’t blame Victorians for what is going on because you only need 2% to mess up and the 98% are affected.
My view on immigration is that we need to reset who can come to Australia.

US, UK and EU? . Coz NZ'ers only arent going to float my boat much.

 

[tgh]

I am quite sure that some Financial Advisers help some folks.. but it is also a diffrn't stroke type game.
I endured a very heavy sales pitch/presentation by a very successful group who said they could solve all our problems.
We were interested because the management is more onerous as we age and I am sure we could do better.
I know I can do better if I work at it but simply lack the motivation.
Sitting back and leaving it all to someone else seemed attractive , no more office chores for swmbo and no more slashing my wrists at a missed opportunity.

I listened patiently to a vociferous leader in full flight with a few specialist minders nodding sagely at points relevant to their specialty.
I then systematically demolished their hype and pointed out the costs of the kind of restructuring they were suggesting .
They ended up slightly pink faced with little to say.
We are still bumbling along on our own…..

 

[cove]

I think we might need zero immigration for about 3 years as we seem to have allowed quite a few no hopers get in who will never work nor contribute to Australia’s success.

 

[Pushka]

I think we might need zero immigration for about 3 years as we seem to have allowed quite a few no hopers get in who will never work nor contribute to Australia’s success.

And that too will have some drastic unintended consequences as immigration has been a key driver of Australia's growth.

 

[serfty]

All that drawn down super went into big screen tv's and the like...

I saw reports many actually used the $20K to offset their mortgage.

 

[RooFlyer]

I saw reports many actually used the $20K to offset their mortgage.

Which at least is putting a long term saving asset into another long term saving asset ... until they draw it down for the holiday!

 

[Isochronous]

To pad out the thread content a bit.. there has been some interesting feedback on the Governments Largesse ; it has actually expanded the economy and increased the standard of living.
All that drawn down super went into big screen tv's and the like...

There will be a day of reckoning to come though - government can't keep spending at this extraordinary rate forever.