Which kind of fund is the best for you?

These days it is no longer acceptable to adhere to the recommendations of tied financial advisors who would like to sell their commission-based products – investors want advice which is of their desires.

As a place to start, take a look at fund’s performance within the last one to five years. If your current fund was chosen through your employer and/or is underperforming, it may be time for you to change funds.

If you have a corporate super fund, you might receive reduced fees or lower insurance charges. It is therefore important to be aware of these benefits before changing super funds. Retail funds offer more services, typically have higher fees and run at a profit. Industry settlement is inexpensive funds with lower fees, go to profit members. If you have multiple super fund, consider consolidating to relieve fees.

Spread your investments

Ideally you would like to retire comfortably to support your future lifestyle. Ensure your asset class allocation is line with your investment strategy – check your lastest super statement and rebalance your portfolio if needed. An independent advisor can assist you tailor your asset allocation and add significant value.

Consider a Self Managed Super Fund (SMSF) to raise your super potential

If you and your partner havecombined super that could reach over $150,000, now could be a good time to take into account combining it in a SMSF to maximise your wealth (and future retirement fund).The Australian Taxation Office rule changes have seen a rush of SMSFs engaging in investment property as a result of favourable changes introduced by the Government in 2007 that allow funds to loan to buy a property.

There will also be generous tax benefits associated with buying a great investment property by having a SMSF, current concessional contribution cap set to lessen from 1 July to $25,000 for those super fund members, purchasing property via your SMSF may be a suitable way to further improve your super.

Note however that stamp duty concessions end on 30 June – in case you are thinking of investing in property through your SMSF, meet with your financial planner as soon as possible to implement your gearing in super arrangements.

Maximise contributions by 30 June

Make essentially the most of maximising contributions to increase your super wealth:

• For 20011/12, superannuants aged 50 and over can make as much as $50,000 in concessional contributions (at the mercy of work tests for 65 to 74 year olds). For 2012/13 this amount is reduced to $25,000, as well as for under 50 year olds, the cap is $25,000. Superannuants under 65 could also make non-concessional contributions around $150,000 (or $450,000 “bring forward” over several years), again subject to the job tests for all those aged 65 to 74.

• Avoid breaching contribution caps and being taxed 93% on your own contributions by identifying and rectifying any errors before year end.

• This is the last financial year you can make in-specie share contributions for your SMSF – contribute now to minimise transaction costs.

• Avoid breaching the modern and reduced $25,000 concessional cap by reviewing your salary sacrifice arrangements at the begining of July.

• If you are over 55 it really is imperative that you review and optimise your concessionally taxed pension. Avoid any problems later down the track by withdrawing no less than your minimum pension by 30 June.

Insurance and estate planning

Consider holding life, TPD and income protection insurance to better protect your family in the event you cannot benefit a period of time due to sickness or injury, particularly if you’re self-employed.

In the big event of your death, keep your super would go to whom you want it to – in case you aren’t sure who the beneficiaries of your superannuation fund are, turn it into a priority to examine it at the earliest opportunity. There are tax-related liabilities based on which team you tend to bequeath your death help to, so it is crucial that you seek professional advice before completion of your Will.

Lost super fund

Visit the ATO’s free website “SuperSeeker” to get lost or forgotten super. You could be pleased.

Be Related Site to make time for it to research your super – changes for a super now can mean a positive change in the amount that you receive when it comes time and energy to retire.

Disclaimer: The information in this document does not take into consideration your individual objectives, financial situation or needs which means you should consider its appropriateness having regard to these factors before performing on it. It is important that your own personal circumstances are looked at prior to making any financial decision and it is recommended that you seek assistance from your financial adviser.