Let's talk about Superannuation Investment!

TotoyOZresident · May 2015

Please share your knowledge about Superannuation Investment, choosing your investment strategy, pros and cons. Thanks

TotoyOZresident · May 2015

Pros and cons of DIY superannuation investment

http://www.afr.com/personal-finance/pros-and-cons-of-diy-superannuation-investment-20141028-11dbsh

TotoyOZresident · May 2015

PreMIxed Options of AustralianSuper
High Growth
Balanced
Sustainable Balanced
Indexed Diversified
Conservative Balanced
Stable
Capital Guaranteed

DIY Mix Options of AustralianSuper
1. Australian Shares
2. International Shares
3. International Shares - Hedged
4. Australian Sustainable Shares
5. International Sustainable Shares
6. Property
7. Australian Fixed Interest
8. International Fixed Interest
9. Diversified Fixed Interest
10. Cash

For more info link: http://www.australiansuper.com/investments-and-performance/super-investment-choices/diy-mix-investment-choice.aspx

Note: Superannuation investments, are subject to the risk that the value of the investment may rise or fall and produce a return which is less than you anticipate. Rises and falls in value can occur rapidly and for a variety of reasons.

TasBurrfoot · May 2015

I am with Mercer Corporate Super Plan - my inflows the past 3 months has been directed to Overseas Shares Unhedged (to maximize the weak AUD and strong outlook on global equities).

Previously - I place my inflows as follows: 30% Growth, 40% High Growth and 30% High Growth.

A bit agressive but hey, I am 3 decades away from retirement...

And yeah, apart from the SG of 9.5% - me and my wife do a salary sacrifice of 9.5% and add it into our Super. We started lated in the Super Game hence we need to catch up.

inwayah · May 2015

Hi po, I am new in my employment and I just go with the default Super Annuation company that my employer offers. what I am thinking of is to add money through salary packaging on top of the 9.5%. hanggang dun lang muna with my limited technical knowledge in SA investing esp in AU market. For now, I might be more comfortable investing sa atin through COL Financial which I have started years ago.

TasBurrfoot · May 2015

Hi po, I am new in my employment and I just go with the default Super Annuation company that my employer offers. what I am thinking of is to add money through salary packaging on top of the 9.5%. hanggang dun lang muna with my limited technical knowledge in SA investing esp in AU market. For now, I might be more comfortable investing sa atin through COL Financial which I have started years ago.

That is not a problem, add in more money to your super lang to make up for lost times as we started late versus those born in Australia. You should take note though that your money cannot be accessed until retirement.

louiebonifacio1 · June 2015

Hi All, my name is Louie Bonifacio from Sydney. If you would like to receive advice on your superannuation and personal insurance, we can help. We do not sell products. We sell our services to provide a financial plan for you. Commissions from any product we will recommend will be rebated back to you. If you would to know more visit our website (www.my-ifa.com.au) or send me a message.

TasBurrfoot · June 2015

Hi All, my name is Louie Bonifacio from Sydney. If you would like to receive advice on your superannuation and personal insurance, we can help. We do not sell products. We sell our services to provide a financial plan for you. Commissions from any product we will recommend will be rebated back to you. If you would to know more visit our website (www.my-ifa.com.au) or send me a message.

Let's go straight to the point here if you don't mind... What is in it for you on this type of service if commission will be rebated...

KillerQT · October 2015

@TasBurrfoot hello! ask ko lang about yung superannuation how it works. Just want to clarify... we can put money as we wish sa superannuation account ko?

for example: I'm migrating from SG to OZ soon... in SG we also have CPF. yung laman ng CPF (Ordinary, Special account and Medisave account) we can transfer to my superannuation account or let say I have extra money that I can commit sa superannuation account? Aside po ito sa employee/employer share.

MisterKehn · October 2015

@TasBurrfoot hello! ask ko lang about yung superannuation how it works. Just want to clarify... we can put money as we wish sa superannuation account ko?

for example: I'm migrating from SG to OZ soon... in SG we also have CPF. yung laman ng CPF (Ordinary, Special account and Medisave account) we can transfer to my superannuation account or let say I have extra money that I can commit sa superannuation account? Aside po ito sa employee/employer share.

same here.. I'm also interested in these..

TasBurrfoot · October 2015

@TasBurrfoot hello! ask ko lang about yung superannuation how it works. Just want to clarify... we can put money as we wish sa superannuation account ko?

for example: I'm migrating from SG to OZ soon... in SG we also have CPF. yung laman ng CPF (Ordinary, Special account and Medisave account) we can transfer to my superannuation account or let say I have extra money that I can commit sa superannuation account? Aside po ito sa employee/employer share.

@KillerQT and @MisterKehn pwede po kayo mag contribute ng pera sa superannuation mo from excess money (including proceeds from your CPF) - this what you call non concessional contribution (or after tax contribution); tax free ito up to $180K ata (or if you invoke the bring forward rule, up $540K or 3x $180k).

Kami naman ni misis, we salary sacrifice naman 10% of our gross pay and top it up in addition to the employee share. In a way this is a form of lowering your tax as this will only be slugged at 15% instead of your top marginal rate of say 32.5%.

You mileage may vary but kami we did not place out savings from Singapore to the Superannuation - ang problema kasi sa Super is that for us it will take more than 3 decades before we can access the money. It would be better to place it as a deposit to your house if feel ninyo maging home owner.

Lizzie · October 2015

If you're planning to salary sacrifice extra contribution to super just be mindful that there's a threshold to the concessional rate of 15% tax. Anything above the threshold is taxed at your marginal tax rate

KillerQT · October 2015

@TasBurrfoot I see... nagweweight din kasi ko for our pension / retirement plan. kasi if I will start from scratch super liit ng laman ng Superannuation account namin. At the same time I want to be a home owner as early as possible. I will be 34yrs old by the time we migrate and start working in OZ 2016 kaya I feel medyo late na. hehe.

MisterKehn · October 2015

@Tasburrfoot- Thanks for the info. This means, it's the same concept as Singaporean CPF. Where in, they can only withdraw there CPF until they are 60 years old.

Gusto rin naming maging home owner ni mrs, so we might as well buy a home in oz.. from our SG savings including CPF.

@KillerQT- nothing is late... mas late kami hehe..

KillerQT · October 2015

@MisterKehn hahaha! Ganun ba... sorry. Atleast my chance to put more money kapag may extra money. Mas sulit maging home owner sa OZ.

tontoronsky · October 2015

If you're planning to salary sacrifice extra contribution to super just be mindful that there's a threshold to the concessional rate of 15% tax. Anything above the threshold is taxed at your marginal tax rate

Hi Maam @Lizzie can you pls expound on this. Thanks

TasBurrfoot · November 2015

If you're planning to salary sacrifice extra contribution to super just be mindful that there's a threshold to the concessional rate of 15% tax. Anything above the threshold is taxed at your marginal tax rate
Hi Maam @Lizzie can you pls expound on this. Thanks

@tontoronsky - concessional contributions are your salary sacrifice and the superannuation guarantee paid by your employer. Currently in a given financial year, $30K ang limit nito.

What does it mean? You concessional contribution, as long as it has not exceeded 30K will be taxed at the concessional 15% rate. However once you have exceeded the $30k limit, the tax will be at your marginal tax rate; i.e. 37% if you are earning $95K a year.

tontoronsky · November 2015

@TasBurrfoot - if nag exceed sa $30k and concessional contri, yung buong 30k b ang subject to marginal tax rate or yung excess lang?

TasBurrfoot · November 2015

@TasBurrfoot - if nag exceed sa $30k and concessional contri, yung buong 30k b ang subject to marginal tax rate or yung excess lang?

Excess lang naman chief...

Don't worry, to exceed this kailangan around $300K sweldo mo...

tontoronsky · November 2015

@TasBurrfoot - buti wala ako gnun walang problema.. pag may gnun ako hnd nko mg salary sacrifice, iuuwi ko n sa pinas yun.. hehe.. Thanks chief

jkk32w · January 2016

@TasBurrfoot sir question

if ung salary package na advertised doesnt say 'plus super'..do we assume na ung package amount includes super na? or is it usually d case na ung package mag a add pa ang employer ng super?

also, if lets say for the sake of computation d package INCLUDES super na if its 70k ..ung net income mo will be 'around' --70k less 9.5% super ann less marginal tax (approx 30%)- so mga 60% ung net income mo of the 70k is around 42k approx ..

thanks boss. just to shed some light please sa expectations of the intending migrants

TasBurrfoot · January 2016

@TasBurrfoot sir question

if ung salary package na advertised doesnt say 'plus super'..do we assume na ung package amount includes super na? or is it usually d case na ung package mag a add pa ang employer ng super?

also, if lets say for the sake of computation d package INCLUDES super na if its 70k ..ung net income mo will be 'around' --70k less 9.5% super ann less marginal tax (approx 30%)- so mga 60% ung net income mo of the 70k is around 42k approx ..

thanks boss. just to shed some light please sa expectations of the intending migrants

It really depends on the company... Only one who can answer this is the HR of the firm (or the head hunter).

jkk32w · January 2016

@TasBurrfoot thanks! is the calculation above right po?

yung calculation lng nung net income..of if there are other things to be deducted pa sa salary other than d tax and super ann

thanks again!

TasBurrfoot · January 2016

@TasBurrfoot thanks! is the calculation above right po? yung calculation lng nung net income..of if there are other things to be deducted pa sa salary other than d tax and super ann thanks again!

Correct way to compute for tax should be:

(Salary) - (Salary * 9.5%%) = Taxable Income Amount

Hope this helps...

purplesyd · February 2016

Hello Guys,

My partner is a Financial Adviser and have his own Financial Planning Business focusing on Superannuation, stocks, financial advise, insurance (health/life) or investment. You may visit his website at http://smsfs.biz/ . He may help you in your future needs. Na ka base kami dito sa Melbourne. Or if ever you can refer someone that in need of help.

Cheers,
Sid

angelcris0807 · May 2016

@TasBurrfoot tama po ba na 15% na lang yung marginal tax rate instead of 32.5% kappa nag contribute ka sa Super ng 10% ng salary mo..thanks po sa reply

TasBurrfoot · March 2017

angelcris0807 said:
@TasBurrfoot tama po ba na 15% na lang yung marginal tax rate instead of 32.5% kappa nag contribute ka sa Super ng 10% ng salary mo..thanks po sa reply

Nope... The 15% you are referring to is the tax on your salary sacrifice contribution; your super contribution kasi gets taxed when it hits your account, tax for this is 15cents per dollar.

Concrete example:

Annual Salary: $50,000
Salary Sacrifice: $5,000

From the above, your taxable income at the end of the year would only be $45,000 nalang as you plunked in $5,000 into your super... Your net contribution naman sa super will only be $4,250 as $750 (15%) was taken as contribution tax.

Hope this helps! Sorry took me a while to notice this @angelcris0807