ETF Exchange Traded Funds (ETFs) 2021

Do you mean the TSB? NCC contributions are limited by the TSB not the TBC. My understanding is that the TSB isn't a lifetime limit (like the TBC) so if you withdraw from super your TSB is then reduced, hence allowing recontribution of NCC and hence washing taxable to tax free element.

 

Or you could take a more cavalier approach. Generally your beneficiaries did not contribute one cent to your pool of funds and assets so anything they get above zero is a bonus.

 

Yes, sorry getting my TLA's mixed up. If you TSB drops below the TBC you could again make NCC's in the next financial year (after June 30)

 

Simply estate planning - just trying to determine if there is a way to avoid non dependant tax on death with some planning. There's a bunch of material out there regarding re-contribution strategies to effectively convert taxable elements into tax free elements, but I'm starting to suspect it mostly only works for balances that are smaller than what we're dealing with.

Yes that's exactly the strategy. Ideally we could pull out the entire taxable element, say 1.7 (or the future index equivilent), but you can't get it all back in as NCC (and hence tax free) before 67, I've tried modeling getting some NCC in (taking care to segregrate to avoid the impacts of the proportioning rules) before pulling out the taxable element (ie more time to contribute NCC) but we hit up against the TBC.

Done that and great while the kids are minors, but per comments to SK, still 15% tax on taxable elements for non-dependant beneficiaries (when I'm expecting I actually die rather than in the next few year )

 

And that semi which is on the wrong side of the road heading right at you?

The Hundrend Year-Old Man Who Climbed Out of the Window and Disappeared. Closing scenes.

A good read and not a bad movie either.

 

I'm actually very cavalier about many things

 

Well, yeah life can take any number of twists and turns, but I'll control what I can, or think I can!

 

Haha, he's dead!. I was more hoping my kids (who I hope will still be alive) will be grateful! At least that's how I think I'd feel with my own parents if I/they were in the same situation.

 

@Hockey Monkey I think some industry funds with direct investment options allow you to do in-specie transfer to pension phase hence avoiding CGT from selldown. E.g Seamless transfer - Member Direct | AustralianSuper Does hostplus not support this?

 

They do support in-specie transfer, but only all at once. They don't support a partial transfer of direct holdings.

 

He may be dead, but I'm certain his super was structured to avoid death tax

 

Ah, I reread your post, so you can't leave the excess over the TBC in accumulation and not incur CGT on the excess or total balance?

 

Correct. When I spoke to them on the phone, they mentioned it _might_ be possible to just transfer the 80% in ETF's and leave the 20% minimum in pooled funds behind which would raise the effective limit to 2.125m (indexed)

Seems like a hassle to have a SMSF to just hold VAS/VGS/VISM/VAE etc. Hopefully Vanguard comes up with a good offering and in the meantime that UniSuper keeps outperforming the market.

 

And James has done so much good with those taxes Kerry never paid.

It may be an indulgence but I don't give a rats about tax and investment structures anymore. Simpler, happier. Its either Tax, Charity or Kids get more than they need. Doing charity well is harder than it appears and outside my field of competence. Taxes are the lesser evil in my view to deal with a society that over compensates some skill sets.

 

There is a Paddy Pallin quote about travel - I feel the same way about investing
"The only trips I regret are the ones I didn't do." - Paddy Pallin

 

Contact @datto in that case.

 

Or maybe @Nodrog mushrooms?

 

None left for me, sold the lot to @SatayKing.

 

That should keep him occupied in lockdown .

 

They're working.