Suite 8 / 260 Auburn Road, Hawthorn 3122
Phone: 03 9214 4100
Fax: 03 9818 6008
enquiries@trumpetfinancial.com.au
 
 
eWombat Search
  LATEST FINANCIAL NEWS
 
Hot Issues
Federal Budget 2018 – Overview
Your Budget
4 components of our 2018 Federal Budget
Tools to help you manage your financial position are available on our site.
New rules capture SMSFs trading big with cryptocurrency
Common EOFY slip-ups flagged for SMSFs
Beware residency rules if moving overseas
99 pct of SMSFs missing global opportunities
How to plan for a better retirement
Australia by numbers - Update
Determine your retirement goals
ATO issues update on cryptocurrency compliance traps
How likely is a global trade war?
Gig economy spike prompts calls for super policy changes
Australia's vital statistics
What your age should say about your super
Downsizing requires holistic tax planning
Millions of multiple super accounts erode savings
Why your retirement intentions are critical
Plans for study into elder abuse
Our website is really our digital office.
Dissecting the downsizer contribution
The Goldilocks effect - Economic and market update 4Q 17
Rates, inflation and yield - five graphs to help make sense of it all
Australia. All you need to know to be the expert.
Potential pension minefields
Confusion lingers over post-death insurance
Non-lodgement numbers slashed, 30,000 funds still in ATO’s sights
Business confidence hits 5-month high: NAB
Articles archive
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 2 of 2016
Articles
Making investing a family affair
Super and divorce: a personal finance issue
Market Update - May 2016
ASIC flags SMSF investors in scam risk
Older, greyer and still working
Working and contributing to super past 65
The pitfalls of part-year pensions
Replenishing SMSF memberships
Budget will hit 15% of SMSFs
The insidious side of low interest rates
Market Update - April 2016
Budget 2016-17
Do investment principles stand test of time?
Estate Planning - early inheritance
US economy will bend, not break
A detailed look at the ATO’s new LRBA guidance
Defying life's blueprint
ATO continuing lodgement crackdown
Another twist on the gender savings gap
Market Update – March 2016
Going solo
Use our online budgeting tools to help plan your future.
Age Pension means-test prevents rational decision-making
Changing times for super collectables
Preservation Age Rule
Why investing for retirement isn't just about super
Making investing a family affair

 

Most advisers would agree that couples in a marital relationship who carefully co-ordinate their investment portfolios along with their other personal finances ....



       


 


.... can potentially put themselves in an excellent position to reach their shared long-term goals. 


This joint approach to investing can include ensuring that the asset allocation of all of their investment portfolios - inside and outside super - are appropriate and non-conflicting. It also involves making sure that each partner is making the most of the caps on super contributions if suitable for their circumstances and within their means. 


Another issue to consider is whether to make spouse super contributions where appropriate with one spouse contributing to the superannuation account of the other spouse. For instance, a higher-earning spouse might decide to split eligible concessional (before tax) contributions with a lower-earning or non-working spouse. (See discussion below regarding the federal Budget.) There are numerous ways that spouses can save and invest together.


However, for married and de facto couples, particularly those whose relationships last, taking a joint approach to personal finances and investments in general can be highly positive. 


Perhaps think about consulting a financial planner as a couple to discuss your overall personal finances and your shared long-term goals. 


The recent federal Budget with such proposals as a $500,000 lifetime cap on non-concessional (after-tax) contributions and a $1.6 million cap on the amount that can be transferred into a super pension account underline the benefits of a co-ordinated savings effort. These two Budget proposals once again emphasise that both partners should each work towards reaching their individual contribution caps - rather than most of the savings being in the super account of one partner. 


Further, the Budget proposes to allow fund members aged 65 to 74 to make super contributions from July 2017 without meeting the works test. In turn, this would enable spouse contributions for non-working spouses aged up to 74, providing another incentive to take a joint approach to retirement savings. 


Self-managed super funds can provide the best example of couples saving together in a co-ordinated way to achieve their shared goals. 


Two-member SMSFs hold 69.7 per cent of the $590 billion-plus in SMSFs while single-member funds hold 22.6 per cent of the money as at 2013-14, according to the ATO's latest SMSF stats. These percentages hardly move from year to year.


Couples in married or de facto relationships would make up vast majority of these two-person SMSFs. And presumably a fair proportion of the single-member SMSFs in existence once had memberships made up of couples in a marital relationship until death or divorce intervened. 


The remaining 7.7 per cent of SMSFs have various membership combinations including parents and up to two of their adult children.


 


By Robin Bowerman
Smart Investing 
Principal & Head of Retail, Vanguard Investments Australia
03 June 2016




29th-June-2016
Trumpet Financial Pty Ltd ABN 11 443 516 384 Corporate Authorised Representative (No 327756) of Aon Hewitt Financial Advice Limited AFSL 239183 ABN 13 091 225 642
Registered Address: Level 33  201 Kent Street, Sydney NSW 2000 | Sitemap | Disclaimer | Privacy Policy | About Aon Hewitt Positioning