Super Reform 2017 – Actions You Can Take Now

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The ‘Fair and Sustainable Superannuation Bill 2016’ was officially passed through Parliament and it is generally accepted to be a mere formality to receive Royal Assent and becoming law in time for 1 July 2017. The lead up to this date provides some opportunities for our clients looking to make the most of the current laws before the updated system comes into effect.

As a brief refresher, some of the key measures include:

Introducing a $1.6 million transfer balance cap per individual which limits the amount that can be transferred to the retirement phase, where earnings are tax-free.

Reducing the concessional contributions cap to $25,000 for all taxpayers.

Reducing the non-concessional contribution cap to $100,000 pa (or $300,000 under the bring forward provisions).

Removing tax exempt earnings for transition to retirement income streams.

We’ll focus now on the changes that have an impact on this financial year. The current contribution rules still apply, so depending on how much you have contributed to your Superannuation in the past, you could potentially contribute up to $540,000 this financial year to take advantage of the concessionally taxed environment.

Of course, not always do you have a spare $540,000 in their account available to just pop into their Superannuation accounts, but if you have a Self-Managed Super Fund (SMSF) or a Super Wrap account, you might be able to make in-specie asset contributions to transfer them from your own name. Assets most commonly transferred are shares or managed funds, but or SMSFs, other assets such as commercial properties could also be considered.

A lot of press has centred around the $1.6m limitation to Super pension accounts from 1 July 2017. We should remind you that this limit is per person, so this will only be of concern if your own balance is above $1.6m. If you are fortunate enough to be in this position, the new rules state that the excess over $1.6m will need to be in an ‘accumulation’ account that will be subject to the standard 15% tax rate.

For our clients currently salary sacrificing surplus cashflow into their Super, it may be worth making additional contributions before 1 July 2017. The current caps are $30,000 for those under 50 and $35,000 for those over 50 and these will both drop to $25,000 from 1 July 2017.

The superannuation landscape will continue to evolve over the coming years making it even more important to continue to be diligent and monitor your retirement savings. We pride ourselves on being experts in researching opportunities and recommending investments and implementing strategies that fit in with our client’s objectives and retirement plans.

For an obligation free conversation about your financial future, please contact us on 03 9603 0072 or at advice@endorphinwealth.com.au

Phillip Richards

Director and Wealth Advisor

Endorphin Wealth Management

Phillip Richards is a qualified Financial Advisor with more than nine years’ experience in the industry. His expertise in investment, superannuation, SMSF, retirement planning and insurance will help you assess your options to build your wealth. Contact Phillip today to discuss how you can build your own wealth and plan to reach your goals.

This information is general in nature and does not take your personal situation into account. If you are interested in taking control of your wealth, contact Endorphin Wealth Management.

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Santa Investment Rallies – Do They Exist?

2You may have heard financial commentators talk about a so-called ‘Santa Rally’ over the last few weeks. Broadly defined as a surge in stock prices occurring over the Christmas and New Year period, we thought we would take the opportunity to investigate a little deeper to see if there is actually some substance to it or if it has just been fabricated by the stockbrokers of Wall St.

The term Santa Rally has been accredited to Yale Hirsch in 1972 who was the Editor in Chief of the Stock Trader’s Almanac. He researched ‘the last five trading days of the year plus the first two of the New Year’ and concluded the S&P500 increased by an average 1.5% for that 7-day window back to 1950.

If we extend the research up to 2009, there definitely appears to be a trend of positive returns over the Christmas period.


Numerous explanations have been cited for the phenomenon, including:

• Additional investments with tax considerations in the lead up to the end of the financial year in the United States,
• General happiness and optimism in the population at that time of year,
• People investing their Christmas bonuses

Fortunately we live in a global economy where the Australian economy can benefit from confidence overseas and indeed we have seen similarly positive results in Australia. A study of the Australian Share Market from October to January over 33 years (1982 – 2015) has indicated:

• 28 years of growth,
• 2 years of neutral returns, and
• 3 years of decline.

This represents an impressive 84.8% of years with a positive return over the timeframe. We know of course that past performance can’t be relied upon to predict future performance, but the trend is certainly interesting!

We invest a great deal of time and effort researching the best tax effective investment strategies for our clients. We have developed a number of systems to manage and track the marketplace.

The investment landscape always evolves and it is more important than ever to consider your investments and superannuation funds carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your retirement goals. We want, our clients to get on with enjoying their life rather than worrying about money.

For an obligation free conversation about your financial future, please contact us on 03 9603 0072 or at advice@endorphinwealth.com.au

Phillip Richards and Robert Rich
Endorphin Wealth Management


Financial Advisor Phillip Richards
Phillip Richards is a qualified Financial Advisor with over ten years’ experience. 
Contact Phillip today to discuss how you can build your own wealth and plan to reach your retirement goals.

Financial Advisor Robert Rich
Robert Rich is a qualified Associate Financial Advisor with over nine years of personal investment experience. 
Contact Robert today to discuss how you can build your own wealth and plan to reach your retirement goals.

 

 

This information is general in nature and does not take your personal situation into account.

Contact Us for quality financial advice so you can feel good about your future.