Piggybacking on strong performances in properties and listed shares, median growth funds have exhibited a hike of 2.2% through the months of July and August. Scott Hodder, in an article for the website Investor Daily, suggests that the good performance can be put down to the investment strategy of the growth funds.
Super News
Understanding How SMSF Works
Consider SMSF as a trust that is meant for the sole purpose of providing the members a decent source of income when they retire. Of course, family members and beneficiaries also reap benefits in case of demise of a member. Members in employment roles need to deflect their Superannuation contributions towards their allocated SMSF account. For the purpose, the SMSF need to possess an Australian Business Number (ABN), Tax File Number (TFN) and a bank account. Understanding how SMSF works is the first step to be able to take advantage of it.
Should You Consider Working at Age 70?
Let me start with a couple of statistics. Somewhere between 12% and 13% of working adults believe they will have to work till eternity. You may presume that this is a little defeatist. The second one may seem marginally better — a majority of us believe we will have to work till 68 years of age to keep ourselves in line with “happy retirement”.
The Truth about SMSF Audit Myths
SMSF audits are an integral part of managing the SMSF industry, but such audits also need to be a little more transparent and a great deal more understandable. There are a lot of myths surrounding SMSF audits. It is critical that they be quashed. Let us reveal the truth about SMSF audit myths below.
ATO Comes Out Supporting SMSFs
The SMSF industry runs without prudential regulation and this is the reason why annual independent audits become crucial to the cause of their goodwill amongst investors. After all, it is important to figure out whether SMSF deserves its tax concessional status. SMSF auditors assigned for the job know the importance of their task and give peace of mind to both; the trustees and the government.
What Hinders Effective Retirement Planning
The thought of retirement brings varied emotions. Yes, there is the satisfaction of a life spent with working shoes on and work in itself is a redemption we know. There is also the eager anticipation of days which will be spent doing things we did not find time for earlier. Amidst all these, there is also the thought of the precariousness which lies ahead in terms of finances. Let us face it — we Australian retirees do not have enough in our retirement kitty to think of a decent post-retirement living. So what’s going wrong?
