Super happiness

Unlike the age for access to the pension, AFAIK super is still accessible at 60.

 

Good point. Still 25+ years away for me so I've got time to get up to speed

 

Hi Gockie,

I guess the LICs would have franked dividends.
Just wondering, how are these treated within ING Living Super?

When you go the direct investing route, do you see detailed dividend info on your statements?

Cheers.

 

Here's my May and June details. The 1st column is the date. The 2nd column is the description. The 3rd column is the credits applied.
The 4th column is the debits.

I get the franked income and because the tax on income is 15% in super, I get a tax rebate applied as well. Unfortunately it doesn't say which investments the franked dividends were earned on. It would be great to have that info on the statement.

Also note: I think any cash in the account gets the full interest applied but then the 15% tax is deducted.

Question. Anybody know what that "Contributions Tax Rebate" is applied to at the end of each month? It doesn't easily match up to any contributions I see. (My current employer only deposits super contributions once every 3 months)...

Also, the "Group Life Premium" figure went up a lot for June (which is not a good thing). Anybody know why? It's not my birthday.

 

Early in my career, I worked in the superannuation industry. What I saw really scared me, both mismanagement and draining of funds. That was a long time ago and things have been tightened up BUT I will take my memories to my grave.

If anyone thinks the finance industry is “squeaky clean”, read the transcripts from the RC.

That is exactly what I did, nearly 30 years ago.

I have never looked back. It allows me to “sleep at night” as I am in control.

Exactly.

With our Super, I record/review its investment performance every Quarter, raise our pension payment (we are retired) once a year and review/sign off its financial reports/tax return once a year.

We outsource everything else .

We retired in August 2010 - the last thing we would want to do is create “a job” for ourselves. I find owning an IP a lot more work than having a SMSF.

But I do gain sheer pleasure watching our Super balance grow - in the 8 years we have been retired, it has doubled in value (and this is after we have taken our the mandatory 4% pension).

I realise this is not for everyone.

 

Thanks Gockie!

I'm considering shifting some within super into LICs for income and good to see an actual statement

 

Oops, not sure but I may have revealed my very little knowledge about the superannuation pension phase. Does it really matter when withdrawing the 4% if the profits come from dividends/franking or capital gains?

 

I think it doesn't matter.

 

Pension phase is very simple. Find out what your balance is on 1st July and withdraw at least 4% (or whatever the correct percentage is for one’s age) in that financial year.

One can do it in one withdrawal, monthly withdrawals, weekly withdrawals, ...

We take ours out every year on 2nd July and place it in our Offset. In our SMSF, we earn interest at 1.5% and in our Offset we save interest at 4%+.

 

I recently closed my SMSF and moved to Hostplus. You can only rollover cash, not direct holdings, which meant selling all the LICs and shares and starting again which was not a bad thing.

 

Hi @Gockie , curious why you chose the ING super compared to hostplus? I will have to move from AMP super. Is it easy to move to ING? Thank you!

 

I moved to ING before they hiked up their fees!
Not sure how the fees compare between hostplus and ING.

 

Agree that everyone should explicitly manage their superannuation. The fees and other rorts will result in huge differences in final payout figures.

Interested in whether you think a low cost industry fund approach to super could have produces similar results to those you achieved?

The last 8 years have been excellent for long term investors, unfortunately it won't be like that for everyone.

 

You can roll some of the money or all of it out of your SMSF. Consult your SMSF accountant for guidance on the process and relevant accounting advice re your specific circumstances.

 

Don’t know (and TBH really don’t care).

I can only go back 16 years. I achieved a total return of 20.8%pa (growth of 14.3% and income of 6.5%).

I don’t know what low cost industry funds achieved over that timeframe .

 

Super happiness. One year since this thread was written.
Just did the maths. It appears that since opening the ING Living Super account (2nd March 2017) my super’s gone up over 45k per year (a tad over $123 per day). I’m doing my calcs off the basis I’ve completed 2 years and 5 months with the fund.

The increase is a mix of contributions, investment capital value and investment earnings (minus deductions being fees, insurance etc).

Now if I assume the 45k annual figure consists of 22.5k contributions (mix of Employer contributions and own Salary sacrifice) then I would also have 22.5k investment growth in the year too. Well, both would be a bit more in reality but I’m assuming the overheads such as the fees are absorbed by both the contributions and earnings. There would be more growth in more recent times due to a larger account balance compounding, but this should be ok for my calc purposes as I’m taking averages over the whole period. There haven’t been any big one off contributions.

If I divide the investment growth of 22.5k by the mid value of my investment’s value from opening of my account till now*, then I’ve arrived at an annual 9.47% capital growth on my money. (Starting fund amount approx: $180k, end fund amount approx $295k).

*Calculation I used to get to this number of 9.47% was
22.5k/((180k + 295k)/2)
Can anybody see any flaws in this calc? I think this is a solid number!

 

is that because you are 64 , 11 month and 29 days old ?

 

Well, ok, I could well die before the age of 65. **** happens.
I’m happy to invest for retirement though because I expect to live past 65 - I could make 100 or so. Investing in Super is effective tax wise.

 

Hopefully for those not in SMSF's such activities will or are being curtailed to some extent for the benefit of members.

https://www.theage.com.au/business/...le-instead-to-woo-bosses-20190731-p52cl3.html

 

Its about time regulators focussed on the misuse of member funds. Directly or indirectly. Industry funds can be some of the worst ones.

How does a TV ad about comparing the pair for example assist the present member who is funding the cost of such ads ?? It would be impausible to argue that the cost for advertising leads to a direct reduction in costs to all existing members of more than the cost of the ads. What is arguable is that the present member is funding a increased future income stream for people including the trustee, directors and so on.