Although it may sound a little odd, taking money out of super and putting it back in can actually be beneficial by reducing the amount of potential tax you or your dependents may pay in the future. A recontribution strategy aims to increase the ‘tax-free’ component of your super account while reducing the ‘taxable’ amount. […]
Interest rates are higher, why aren’t house prices lower?
Rising interest rates usually mean bad news for homeowners, as the cost of servicing existing mortgages goes up and consumers start to feel the pinch. You’d expect this to have a knock-on effect on house prices – higher rates should mean lower house prices as more people are pushed out of (or unable to enter) […]
Higher Minimum Pensions from 1 July 2023
The recent 50% reduction in the minimum Account Based Pension withdrawal requirement came to an end on 1 July 2023. This was a temporary measure during and after COVID and was designed to reduce the depletion of ABPs in times of lower investment returns. From 1 July 2023, the minimum withdrawal percentages are reverting to […]
What is an SMSF and is it right for you?
What is an SMSF? A Self-Managed Super Fund (SMSF) does what it says on the tin – you manage your superannuation yourself, instead of delegating the management of your retirement savings to a large institution. In practice, very few people “Self Manage” their retirement savings entirely as they enlist the help of an adviser to […]
Why Do Unit Prices Fall After 30 June?
Most managed investments including Exchange Traded Funds (ETFs) are offered by way of units in a unit trust. Units are to a unit trust what shares are to a company; they are the bits that fractionalise ownership. Unit prices often fall on the 1st of July when distributions are paid. Why does this happen? The […]