Superannuation Discussion + market volatility

[CaptJCool]

Last time I saw this was 2018
This updated to 2024 figures

https://mybrand.schroders.com/m/66b5440799ad9aa/original/Multi-Asset-annual-returns-Poster-2025.pdf

 

[QF WP]

Have always used the Schroders wall chart above as well @CaptJCool

 

[CaptJCool]

Have always used the Schroders wall chart above as well @CaptJCool

Yes yes
That you shared back in ‘18

It’s a beauty

 

[QF WP]

Time in the markets, not timing. Never about taking risk, rather managing the relevant risks of each asset in the portfolio.

 

[Pushka]

About to plunge into our first recontribution strategy of just one year currently then the bring forward rate after July. Having done this what is the bet that the Budget will can this approach.

 

[burmans]

About to plunge into our first recontribution strategy of just one year currently then the bring forward rate after July. Having done this what is the bet that the Budget will can this approach.

Unlikely to be retrospective!

 

[Pushka]

Unlikely to be retrospective!

We just need this budget not to change it. . Next Fin year for bring forward then one final year after that ends.

 

[lepetitprince]

Hi all, TIA.

As I did not want to start a separate thread, I am posting here. Mods, please move if irrelevant to this thread.

I have a SMSF and auspost are closing down their superstream service. Does the community have any recommendations? I looked at the ATO website of registered providers - I haven't even heard of some of the names, so a bit cautious.

Westpac and Macquarie don't support rollovers, so I can't use them (as money from a proportion of my jobs go into industry superfunds and I don't have a choice).

#SMSF #superstream #gateway

 

[Brissy1]

money from a proportion of my jobs go into industry superfunds and I don't have a choice

I thought it was legislated decades ago that you have a choice, including into your own smsf.

 

[Bindibuys]

I thought it was legislated decades ago that you have a choice, including into your own smsf.

No, our daughter works at Newcastle Uni, and part of their agreement is that their super MUST go to their fund. She was part of our SMSF.

 

[Beer_budget]

No, our daughter works at Newcastle Uni, and part of their agreement is that their super MUST go to their fund. She was part of our SMSF.

That's standard in the university sector as (at least the bigger) unis still operate defined benefit schemes and contribute 17% as part of their enterprise agreement.

 

[Mr_Tee]

Hi all, TIA.

As I did not want to start a separate thread, I am posting here. Mods, please move if irrelevant to this thread.

I have a SMSF and auspost are closing down their superstream service. Does the community have any recommendations? I looked at the ATO website of registered providers - I haven't even heard of some of the names, so a bit cautious.

Westpac and Macquarie don't support rollovers, so I can't use them (as money from a proportion of my jobs go into industry superfunds and I don't have a choice).

#SMSF #superstream #gateway

What is the actual problem that you are trying to solve here? What were you previously doing at Auspost that you soon won't be able to do?

a) Contributions from an employer into your SMSF?
b) Your personal contributions into your SMSF?
c) Someone else's contributions into your SMSF?
d) Something else?

Who is the Administrator of your SMSF? Do they have any recommended alternatives?

 

[hydrabyss]

I don't have a lot of knowledge when it comes to super as I have concentrated on investing elsewhere.

As I am only 53 I don't have any plans at the moment to use super in the future even though I can see it has tax advantages it does not fit in with what I do.

But as my partner is 64 and has less than 100k in super I am considering building up her balance as it will be more tax efficient than in my name currently. Plus she wants to drop down from 3 days a week to 2 days a fortnight at work in the next few months.

So i have done some quick research online and have not completely checked all the rules but have come up with a possible option. She will be able to transfer 360k into her super as non concessional. As her income is under 40k a year she may be able to transfer another 150k to make up the last 5 years of being under the 35k concessional cap.

Then going forward with her super in retirement phase she will be able to draw down an income from the super balance plus her 2 days a fortnight pay and other income from investments outside of super and only pay tax on the last two.

So I have run what I have written into AI and it appears correct but can anyone see any issues or things I am off on.

 

[openseat]

About to plunge into our first recontribution strategy of just one year currently then the bring forward rate after July. Having done this what is the bet that the Budget will can this approach.

I have to wait another year before beginning recontribution strategy. Fingers crossed.

 

[Quickstatus]

She will be able to transfer 360k into her super as non concessional.

yes

As her income is under 40k a year she may be able to transfer another 150k to make up the last 5 years of being under the 35k concessional cap.

Unused concessional caps can be rolled over for a maximum of 5 years.
Providing the total super balance is <$500K at any time in that 5 year period.
Note that the concessional cap for each year. It was $30K for 2024-25.

So it would be beneficial to transfer up to the concessional cap prior to transferring the non concessional component. Note that Non concessional contributions are possible up to age 75.

Then going forward with her super in retirement phase she will be able to draw down an income from the super balance plus her 2 days a fortnight pay and other income from investments outside of super and only pay tax on the last two.

The super account can be converted into a pension phase account. Drawings from the super pension is tax free and does not affect the the marginal tax rates on other income if over age 60.

Also there is a super split capability from 1 spouse to another - called spouse super split.
You can split 85% of your concessional super to your spouse in any one financial year but the splitting occurs in the next financial year after the concessional contribution. The split does not change the concessional cap for both spouses. That means the receiving spouse can have their own concessional cap plus the split.
The receiving spouse must be 60-65 yrs and not retired.

 

[There'sOnlyOneJimmy]

As her income is under 40k a year she may be able to transfer another 150k to make up the last 5 years of being under the 35k concessional cap.

Keep in mind that at a taxable income of $40k, the marginal tax rate is 16% + Medicare levy. So you are going to save tax of 18% by the deduction, but pay tax of 15% by the contribution- still a saving, but a relatively small one…
Also, any contribution greater than about $20k in a year, will result in a taxable income below the tax free threshold, resulting in paying the 15% contribution tax while the marginal tax rate is zero…

 

[Pushka]

I don't have a lot of knowledge when it comes to super as I have concentrated on investing elsewhere.

As I am only 53 I don't have any plans at the moment to use super in the future even though I can see it has tax advantages it does not fit in with what I do.

But as my partner is 64 and has less than 100k in super I am considering building up her balance as it will be more tax efficient than in my name currently. Plus she wants to drop down from 3 days a week to 2 days a fortnight at work in the next few months.

So i have done some quick research online and have not completely checked all the rules but have come up with a possible option. She will be able to transfer 360k into her super as non concessional. As her income is under 40k a year she may be able to transfer another 150k to make up the last 5 years of being under the 35k concessional cap.

Then going forward with her super in retirement phase she will be able to draw down an income from the super balance plus her 2 days a fortnight pay and other income from investments outside of super and only pay tax on the last two.

So I have run what I have written into AI and it appears correct but can anyone see any issues or things I am off on.

You can actually do one year of $120,000 (not a cent over that) in June, must hit her super fund by at latest June 30 2026, earlier to be sure. . That means it appears there. Then in July you can do the $360,000. Just make sure you are using exactly the right terms when you lodge it.

You cannot add to a pension super account, only an accumulating super account. So you need to make sure you don't convert all the super account into a pension one so you can keep adding to it.

This is what Chat tells me. Waiting on the damn accountant to get back to me.....