Financial Tools
  Client Portfolio Access
  New Client Kit
  Enquiry / Seminar Registration
Hot Issues
An investor's personal trainer
SMSF trustee penalties going up
Contraventions rife among non-advised SMSF trustees
Dealing with investor uncertainty
Reserve bank gives the economy a lift
Retirement planning: the gap between intention and reality
Market Update – April 2015
Budget 2015 - some professional opinions
Australian Government - Budget 2015
What does the ATO want from you?
Making sense of the new excess contribution rules
Greying, working and contributing
Simple-yet-smart investment housekeeping
Market Update – March 2015
Customer-centred innovation underpins high satisfaction among financial advice customers
Two sides to the age profile of SMSF members
Actuaries call for end to superannuation policy tinkering
ATO urges caution on pensions
Market Update - February 2015
Aussie economy shifts gears as structural changes take hold
The catch 22 of retirement savings
Are there reasons to help the tax man do his job?
Some financial terms explained
Small business paradox
Good financial planning finally has a value: 23% more income in retirement
Articles archive
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 3 July - September 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 3 July - September 2006
Quarter 2 April - June 2006
Quarter 2 of 2009
Utegate dominates
Maximising the tax free portion of a super fund in times of market down turn.
Super catch-up
SMSF strategies for low income earners
Investment Markets Data - To 31st May 2009.
Salary-sacrificed super: the new frontier
Why don't stocks begin trading at the previous day's closing price?
Budget winds back the clock on super
Some definitions
The Buffett way to measure your portfolio's success
Budget 2009-10   -   Overview, Summary, Papers.
A powerful search engine resides on this website.
Turning back the clock
A survival plan for a retiree's worst nightmare
What are dividend reinvestment plans?
Gone Fishin'
Government Stimulus Package - Summary
Investment Markets Data - To 31st March 2009.
Super catch-up
By Robin Bowerman
Smart Investing
19th  June 2009
Principal & Head of Retail, Vanguard Investments Australia

Are you in your late forties or early fifties and beginning to experience financial freedom for the first time in many years?

Perhaps your once-hefty mortgage has just been paid off and maybe your children have recently become financially independent?

If your answer is "yes" to these questions, you may well rank among the many Australians who decide at this point in their lives to boost their relatively meager superannuation savings.

But many superannuation funds and financial planners are concerned for fund members matching this profile of the possible impact of the federal Budget proposal to halve the caps on concessional super contributions.

Responding to such concerns, the Association of Superannuation Funds of Australia (ASFA) has made an innovative suggestion that members with low balances be allowed higher concessional contribution caps to help them catch-up with their retirement savings.

ASFA made this suggestion to the Senate inquiry considering several of the Budget measures. (Read the submissions to the inquiry).

This is the sort of innovative thinking is really needed in super; particularly given the rapid ageing of the population and the effect of the severe bear market on superannuation balances.

A difficulty with having blanket contribution limits is that no recognition is made of how much a member actually has in superannuation.

The over-riding driver behind ASFA's recommendation is that many older members in their countdown to retirement are often in the position to make sizeable contributions for the first time in their working lives.

Mark Spencer, chairman of Christian Super, gave evidence to the Senate inquiry that summed up the challenges that many fund members will face with the imminent lower caps on concessional contributions.

"Our average minimum balance is around $25,000," Spencer told the committee. "Around 1% of our members have balances of over $250,000. These are not big balances.

"We have a lot of teachers in our fund," he added. "Over 60% of our members are female and they have breaks during their working lives. A number of our members are missionaries who have been on missions overseas or in some form of Christian ministry, in particular in their early years, and they were earning very little if anything."

And then Spencer came to the crunch of his evidence: "Later on in life they have the opportunity to earn some more and to catch-up on their superannuation balances. I know people who are sacrificing significant proportions of their salaries into superannuation who will be affected by these changes to the caps.

"They are sacrificing lifestyle to put money into their superannuation because they know it is a good retirement savings vehicle," he said. "They are trying to do the right thing to ensure that they have sufficient retirement funds available."

Any decision to make large super contributions at certain times in our lives is, of course, a high personal one that depends so much on differing personal circumstances.






  Financial Advisor | Financial Planner | Financial Adviser | Financial Planning | Financial Planner Sydney