Super system prevalent in Australia does not promise even a decent retirement to all who believe in its competence. This statement, harsh as it may sound, is as close to the truth as it comes. More than half of the pre-retirees will be in excess of $140,000 short at the time of their retirement.
Author: Alan Preston Archives
SMSF Investments in Residential Property Market
With the SMSF members’ tally crossing the million mark, it is about time we begin to look into where their investments are going. Any new financial strategy comes with its fair share of cynics and detractors and SMSF has not been an exception.
This said, the cynics are fast beginning to comprehend that the self-managed super fund is here to stay. After all, individuals becoming helmsmen of their own retirement planning is a novel idea.
Choosing Between SMA and IMA
If there is something that confuses retirement planners and wealth-seekers alike more than anything else, it is the many acronyms that they need to memorize and know the concept of, such as MDA, SMA, or IMA. Laymen find it hard to tide over this jargon pool.
For the uninitiated, MDA stands for a Managed Discretionary Account whereas SMA is a Separately Managed Account and IMA is an Individually Managed Account. Alright then, let me set a few peculiarities straight by explaining what they are and whether they are for you or not.
‘Catch Up’ Concessional Contribution a Novel Idea
In an article for the website Super Review, Jason Spits talks about a Catch Up concessional contribution cap that is meant to aid those workers who have been out/away from work for long. Such a cap may help workers compensate for the shortage in their Super accumulation.
There are men and women who have to take the hard route of remaining jobless to raise their families. In prolonged absence of Super guarantee contributions, their retirement nest egg thins out. To add to the woe, they find that the upper cap for annual concessional contribution is $30,000 ($35,000 for those aged above 49), which is not enough to cover for the years they have lost. This is where, says Spits, additional concessional contribution can help.
You can read the original article here.
The Importance of Retirement Planning
I have news which is enough to send shivers down Gen X andY’s spine. Baby Boomers are at least 4-6 times short of the amount needed for decent post-retirement living. So does it send shivers? Not even the mildest one. Young people think they will never get old and that retirement planning is not something they should spend their time and money on.
Why Many Women are not Concerned about Retirement Savings
It is significant to discuss the amount of retirement planning — or the lack of it — that women of our times indulge in. Find out why women are not so thrilled nor concerned about planning their retirement.
