An article on the website news.com.au talks about the current Superannuation savings scenario in Australia and why people would do well to review where they are headed. Unless Australians take stock of the scene, they might face a bleak retirement prospect. It is ironical that a nation which can boast of $1.8 trillion in Super cannot take help from this retirement vehicle (read the Sole Purpose test) to aid their post-retirement life.
SMSF can be a lucrative option if only you know the few traps that may present themselves along the way and have covered the range of penalties you may be exposed to. When the sun rose on 1st July this year, the tax man wanted the SMSF trustees to have a few things clearly figured out. Till this day, the ATO could mete out penalties to you but, there was no regime in place. Things changed on 1st of July.
The hiatus between the Superannuation savings of men and women is becoming a cause for serious concern. Not that men are doing appreciably, but it is the women who are sending distress signals. The expected retirement nest egg for women is close to only about half that of men and some of them have even sparser means to negotiate the post-retirement stretch.
A lot is being made out of the SMSF’s risk of borrowing. Funnily, and it cannot be a coincidence, that most of the vitriolic attack is launched by the big funds which have suffered immeasurably due to the growth of the SMSF industry. Now, the only avenue left to them is to malign SMSF. So, they talk about SMSF’s borrowing risk, lack of prudential regulations, and tax evasion, among other things. Let’s go through some of the illogical claims made by the SMSF attackers.
An article published on the website Mortgage Business talks about the recent Australian penchant for online SMSF property advice. There is a clear hike in the number of investors seeking online videos for their property themes.
What are your long-term investment goals? What is your risk profile? Answer these questions loudly to yourself because these would determine what mix of assets will see you performing through the roof in terms of your SMSF fund.