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Superannuation: Inertia & Urgency
Read more: Superannuation: Inertia & UrgencyIt’s fascinating how systems evolve. Once upon a time, the inertia that came with Australia’s superannuation system was something of a drawback. Superannuation wasn’t always compulsory, and guaranteed contribution rates were lower. It took longer to accumulate a decent balance. It didn’t seem a grand sum of money, and people really didn’t understand the whole thing. The media didn’t care much because the public didn’t care much. This could mean investors dawdled along, stayed stuck in dud funds, while being charged too much. The penny would drop at some point, but had there been an interest taken earlier those balances…
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End of Financial Year Reminder 2024/25
Read more: End of Financial Year Reminder 2024/25We’re nearing the end of another financial year, so as always there are some thing to be mindful of if you need to act on things such as minimum withdrawals for superannuation or take advantage of expiring caps or contribution limits. tax savings. Tax Savings via Concessional Contributions With the Stage 3 tax cuts now in effect, many Australians are on lower marginal tax rates, but making voluntary concessional contributions still offers the most significant tax advantages for those in an income threshold which pays tax. For example, someone earning $80,000 saw their marginal tax rate fall to 32%, down…
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Fiddling with The Future Fund
Read more: Fiddling with The Future FundThe Future Fund has a new statement of expectations and new investment mandate. From the government press release: The new Investment Mandate will require the fund to consider Australia’s national priorities in its investment decisions, where possible, appropriate and consistent with strong returns. These national priorities are: Some are saying it’s just wording and won’t mean much. Others have suggested there wouldn’t be a change in wording unless the government was intending to lean on the Future Fund and direct them into the areas specified, specifically whatever their pet projects were. Plenty have opined if such investments were worthy, then…
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How Much Do I Need To Retire?
Read more: How Much Do I Need To Retire?It’s one of the most vexing finance questions there is. While it seems like a straightforward one, it’s really a question that only invites further questions. Not about the money, but about the person or persons who are retiring. There will never be a one-size-fits-all pot of money. Primarily because of how many different variables come into play. What do you want to spend? Will your spending change? What your returns will be? What is the sequence of those returns and how volatile will your portfolio be? The first two questions are the most controllable. Everyone will have fixed costs…
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What Do You Want To Happen?
Read more: What Do You Want To Happen?The Christmas and New Year period can be chaos. More people out on the roads, airports are packed, stores are crowded, supermarkets are like zoos. Navigating it all can be tiresome and frustrating. At a more micro level, the chaos might be a better chaos that involves spending more time with friends and family. You often hear people say this time of the year is a good time for reflection and to focus on what’s important. They’re not talking about the spending, or the gifts, or the food, but the people. If people are truly the most important thing at…
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