Planning for control of your super cash

WITH the growing importance of superannuation and self-funded retirement and the Australian population ageing, it is clear that appropriate planning for the control and succession of your superannuation assets is increasingly important.

Two topics I’m being asked about lately are, the ATO’S current focus on investment strategies and the diversification of investments held by SMSFS.

About 17,700 SMSF trustees will receive a letter from the tax office about their fund’s investment strategy that have at 90 per cent of their total assets in a single asset or asset class. They’re concerned some trustees haven’t given due consideration to diversifying their fund’s investments.

Having an investment portfolio that is highly concentrated ignores the one free lunch in investment management: diversification.

The amount of diversification SMSFS employ should be consistent with members’ risk tolerance and appetite for return.

Accordingly, the investment mix for an SMSF, including its level of diversification, is expected to change over time.

Contributions caps and the rules applicable to members aged 65 and over.

Once your 65th birthday rolls around, many people are keen to put their feet up and enjoy a well-earned rest.

When they think about their super, it’s usually more about how to wisely spend their retirement nest egg than how to add to it.

But just because you have hit 65 it doesn’t mean you shouldn’t consider making super contributions.

If you plan on working after age 65, adding to your super account balance isn’t that hard but the rules for making contributions into your super account can be confusing.

* The information contained in this newspaper article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs. Steve Jenkosky trading as Golden Age Advisory is an Authorised Representative of Synchron, AFS Licence No. 243313