Superannuation Discussion + market volatility

[VPS]

Yes, that will do it.

But if you were still doing Concessional/Non-Concessional contributions (if able), you'd need a non-Gov super account for those anyway. So maybe not a bad idea to have a low/no fee Super account?

A bit of investigation to do - didn't realise that there were no fee Super accounts.

To be honest I think I'm done but I will keep the door open for another one if it's worth it (that last one certainly was)

 

[SYD]

A bit of investigation to do - didn't realise that there were no fee Super accounts.

Sorry, there probably aren't "No fee" accounts. But some lower than others.

https://www.canstar.com.au/superannuation/super-funds-low-balances/?gclsrc=aw.ds&si=&gad_source=1&gad_campaignid=990981042&gclid=EAIaIQobChMIh77z75GHjwMV4swWBR1tDA1KEAAYASAAEgIokfD_BwE

To be honest I think I'm done but I will keep the door open for another one if it's worth it (that last one certainly was)

But presumably you can't "top up" your Gov super directly? So if you were considering further SGL, salary sacrifice, other concessional/non-concessional top-ups - you need somewhere to put them.

 

[VPS]

Sorry, there probably aren't "No fee" accounts. But some lower than others.

https://www.canstar.com.au/superannuation/super-funds-low-balances/?gclsrc=aw.ds&si=&gad_source=1&gad_campaignid=990981042&gclid=EAIaIQobChMIh77z75GHjwMV4swWBR1tDA1KEAAYASAAEgIokfD_BwE

But presumably you can't "top up" your Gov super directly? So if you were considering further SGL, salary sacrifice, other concessional/non-concessional top-ups - you need somewhere to put them.

I can add to my government super but employers can't

 

[serfty]

Sorry, there probably aren't "No fee" accounts. But some lower than others.
https://www.canstar.com.au/superann...MIh77z75GHjwMV4swWBR1tDA1KEAAYASAAEgIokfD_BwE

Canstar does not mention REST.

REST's Balanced Indexed Option has zero investment and transaction fees, but standard administration and other costs still apply.

These are $1.50 per week and 0.1% of balance per year (latter capped at $600). For a $50k balance these amount to under $130pa ($78+$50).

Current 1 year return to July 31st is 11.69%.

Balanced - Indexed Investment Option | Rest Super

Achieve the investment objective through an indexed based investment in a mixture of growth and defensive assets.

rest.com.au

 

[Pushka]

Have many here done the withdrawal/recontribution of super or have knowledge of those that have?

 

[serfty]

Have many here done the withdrawal/recontribution of super or have knowledge of those that have?

We have done strategic withdrawals. If you are "of age" (or otherwise eligible) the money is yours.

Being with a reputable fund our experience with online application is no more than 5 business days before the withdrawal is complete and available.

With personal post tax contributions, we have had issues with the source being incorrectly allocated as being taxable, and more than once despite payments using the specifically defined automatic process.

Correct consitency has been achieved by working directly through customer service.

 

[Pushka]

We have done strategic withdrawals. If you are "of age" (or otherwise eligible) the money is yours.

Being with a reputable fund our experience with online application is no more than 5 business days before the withdrawal is complete and available.

I'm thinking of reducing the tax burden for non dependents. Did you recontribute it or hand it on?

 

[serfty]

I'm thinking of reducing the tax burden for non dependents. Did you recontribute it or hand it on?

Recontribution was performed as a separate process after funds were available.

For us, KISS.

 

[burmans]

Have many here done the withdrawal/recontribution of super or have knowledge of those that have?

Didn’t do it myself as I was over the TBC but planning to do for my wife once she hits a condition of release (hitting 65). ATO advice on this seems pretty good, you need to be aware of the TBC Cap, and yearly caps, noting you can also use the bring forward provisions.

 

[Brissy1]

Canstar does not mention REST.

REST's Balanced Indexed Option has zero investment and transaction fees, but standard administration and other costs still apply.

These are $1.50 per week and 0.1% of balance per year (latter capped at $600). For a $50k balance these amount to under $130pa ($78+$50).

Current 1 year return to July 31st is 11.69%.

Balanced - Indexed Investment Option | Rest Super

Achieve the investment objective through an indexed based investment in a mixture of growth and defensive assets.

rest.com.au

To be clear, I presume that the
"$1.50 per week and 0.1% of balance per year"
is the REST fee; but REST (you) will also be paying for all the multi level investment provider fees. Which is why SMSFs are popular.

(Nevertheless I do also use an industry fund as well as a SMSF for various reasons).

 

[serfty]

To be clear, I presume that the
"$1.50 per week and 0.1% of balance per year"
is the REST fee; but REST (you) will also be paying for all the multi level investment provider fees. Which is why SMSFs are popular.

(Nevertheless I do also use an industry fund as well as a SMSF for various reasons).

Camt knock the rate of return.

 

[ellen10]

Have many here done the withdrawal/recontribution of super or have knowledge of those that have?

I'm thinking of reducing the tax burden for non dependents. Did you recontribute it or hand it on?

I have just done this recently (withdrawal/recontribution).
My fund manager organised it all.

 

[Quickstatus]

Can't remember and too lazy to look up. At what age is withdrawal and recontribution no longer available.

 

[andye]

Can't remember and too lazy to look up. At what age is withdrawal and recontribution no longer available.

75. At current life expectancy, still plenty of time to leave the kids with a tax bill

 

[QF WP]

Have many here done the withdrawal/recontribution of super or have knowledge of those that have?

Yes, advised and implemented for clients probably 70 to 80 times.

I'm thinking of reducing the tax burden for non dependents. Did you recontribute it or hand it on?

I’ve had clients do both. Depends on whether you feel you need the money still, or the next generation are in greater need now. Taking financial burdens off the shoulders of children (and grandchildren) is vastly positive

 

[OATEK]

Have many here done the withdrawal/recontribution of super or have knowledge of those that have?

Over the last 6 or so years we have withdrawn all our super and recontributed, so that there is no tax on the balances that pass to our kids. Whether they will appreciate that we may never know.

Having a mix of a Government defined benefits pension (from the first half of my working life) and an accumulation fund from the second half, then the amounts withdrawn and recontributed are less than half my notional super holdings (the Defined Benefits scheme has a complex formula to "estimate" the funds notionally held to fund it for the super cap calculations).

 

[Pushka]

So I have five years then. I can make two rounds of $300K so $600000. And I'll need to set up another pension fund to put the funds back in. Some can stay in the accumulation account which we both kept as well as still working.

But thinking again, when the funds are withdrawn they aren't all taken from the taxed part, are they..

So, if I turn 75 at the end of the second round (June) it's still ok to do it that year? Although if I get my act together I can do it the year before.

 

[Quickstatus]

we have withdrawn all our super and recontributed,

Do you recontrivute to a separate super fund to keep all the newly converted non concessional funds separate from the existing concessional funds?.

 

[Jacques Vert]

So I have five years then. I can make two rounds of $300K so $600000. And I'll need to set up another pension fund to put the funds back in. Some can stay in the accumulation account which we both kept as well as still working.

But thinking again, when the funds are withdrawn they aren't all taken from the taxed part, are they..

So, if I turn 75 at the end of the second round (June) it's still ok to do it that year? Although if I get my act together I can do it the year before.

Perhaps it's time to sit down with a qualified and independent advisor?

 

[Quickstatus]

But thinking again, when the funds are withdrawn they aren't all taken from the taxed part, are they..

That's my understanding You can't specify which funds to take out.

If % of concessional in accumulation is 70% then when you withdraw, 70% will be concessional and 30% will be non concessional.