Registered Members Login:
   
Forgotten Your Details? Click Here To Recover +
Welcome To The ShareCafe Community - Talk Shares And Take Stock With Smart Investors - New Here? Click To Register >

59 Pages (Click to Jump) V   1 2 3 4 > »    
 
  
Reply to this topic

SUPERANNUATION, Discussing all aspects of Superannuation
nipper
post Posted: Nov 3 2019, 12:15 PM
  Quote Post


Posts: 6,453
Thanks: 2246


QUOTE
"The 2019 Melbourne Mercer Global Pensions Index has rated the Australian retirement system as the third best in the world so there is a disconnect between the performance of the industry and how members feel ... by better educating members on the improvements they've achieved and the relative strengths of the Australian super system, funds could improve their members' retirement confidence."

It's far more than the ongoing industry fund versus retail fund stoush. Six leading figures have weighed into the super debate again in recent days, including:

Finance Minister Mathias Cormann admitted people were sick of politicians "tinkering" with superannuation, and the Retirement Income Review "will not lead to any change". It will simply inform the public on how the super system operates.

Senator Jane Hume, Assistant Minister for Superannuation and Financial Services, said the superannuation system was "beleaguered by disengagement and opacity" and government has a moral obligation to make the system as efficient as possible.

Bill Kelty, the union executive credited with initiating the current super system, said former Treasurer Wayne Swan was a "miserable bastard" for only increasing the super guarantee (SG) by 0.5% during the Rudd-Gillard years. Kelty and Paul Keating would "go to their grave" fighting for the 12% SG.

Innes Willox, CEO of the Australian Industry Group, said the legislated 2.5% increase in SG to 12% needed to be weighed up against the cost to business of its implementation.

Paul Keating said, "Willox is kidding us ... Superannuation has revolutionised Australia. It is the greatest reform to capital markets in the history of the country. Only a government of indecipherable recklessness would upend or damage such a system."

Former Treasurer Peter Costello told a Citibank Conference that compulsory superannuation had failed because "there was not a lot of thought given to how it would be managed once it was in these funds and how it would come out ... We realise that fees were extraordinarily high, some of the products were no good, and at the end of all this, when you get your entitlement, there's still this huge gap as to 'what do I do now?'"

With such strong positions and vested interests, it's difficult to have an informed debate



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 28 2019, 11:14 AM
  Quote Post


Posts: 6,453
Thanks: 2246


QUOTE
Josh Frydenberg has made a brave move into the quicksand of superannuation politics with the announcement of a retirement incomes review. This is, after all, the sector that may well have ­ensured the Labor Party lost the last election.

For the moment every potential change that has been suggested for our strong, but flawed, retirement system appears to be “on the table” in what will be a broad-ranging review that looks at the age pension, compulsory super and voluntary savings.

Hopefully, that means some of the more notorious black spots that pepper our system with a sense of unfairness will finally be tackled: how can it make sense that you are worse off (on a week to week income basis) having savings of between $600,000 and $800,000 than a pensioner who hasn't saved a penny
... Or at the other end, own a three million dollar home, have assets up to $380k, and receive a full pension.

one thing for sure, the pot is so large that there will be continued and continual investigations.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 12 2019, 01:14 PM
  Quote Post


Posts: 6,453
Thanks: 2246


In Reply To: nipper's post @ Sep 28 2018, 04:03 PM

QUOTE
Sometime in the next year, if there is no major market fall, total assets in superannuation will hit $3 trillion on the way to a forecast $10 trillion in 20 years, as shown below. Not bad for a country with GDP of about $1.9 trillion. The entire market value of all listed companies in Australia is about $2.1 trillion. While super funds obviously invest in a wide range of other asset classes, super investments will increasingly move offshore.

Already, this is making a major contribution to Australia's current account balance, which recently went into surplus for the first time in 44 years. With foreign equity holdings reaching $1.5 trillion, Australian investors now hold a record $141 billion more foreign equities than the amount of Australian equities owned by foreigners.
https://www.firstlinks.com.au/?utm_source=W...950e9e-83781601



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Aug 21 2019, 03:40 PM
  Quote Post


Posts: 6,453
Thanks: 2246


They can't help 'emselves !!!
QUOTE
What expenses are being recovered?

These deductions will recover expenses relating to Australian Prudential Regulation Authority (APRA) levies, the cost to implement regulatory changes (RCL) and Operational Risk Financial Requirement (ORFR) prudential standards.

- in super fund statements being sent out.

The first two can range between $40-150 in total, while for many accounts the ORFR is a percentage, expressed as bps, being 2.3
More you have; more you pay.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 28 2018, 04:03 PM
  Quote Post


Posts: 6,453
Thanks: 2246


QUOTE
.... [Australia's] compulsory super system just clocked up $2.7 trillion in assets. That's the equivalent of India's gross domestic product this year, and roughly the same amount of money Trump hopes will be repatriated by Fortune 500 companies in response to his tax cuts.

In the context of the Australian economy, super represents about 140 per cent of gross domestic product....
https://www.afr.com/personal-finance/supera...20180924-h15rzz



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 25 2018, 12:18 AM
  Quote Post


Posts: 6,453
Thanks: 2246


QUOTE
Westpac’s (WBC) wholly-owned wealth arm BT Financial said it would be introducing a new cut-price 0.15 per cent asset administration fee for customers invested through the BT Panorama Investments and BT Panorama Super platforms, along with a flat account fee of $540 a year. On an average account, the move represents a fee cut of 40 per cent.

Analysts told shareholders rival platform providers, such as Netwealth (NWL), HUB24 (HUB), platform and financial advice specialist IOOF (IFL) and wealth giant AMP (AMP), would likely be forced to follow the move in order to retain market share.
... including 0.15 on the CMT!

Still got fund manager fees usually ripping along at 1+%, as well



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 

sentifi.com

Share Cafe Sentifi Top themes and market attention on:


nipper
post Posted: Jun 22 2018, 09:32 AM
  Quote Post


Posts: 6,453
Thanks: 2246


Mags said elsewhere
QUOTE
I see/hear commentary running around, that this 'kind' of behaviour (massively overstating off market asset values) in lurking throughout the Superannuation industry.
- this may well be the case - because there is a fundamental contradiction between short and long term

Daily pricing (& mark to market) implies liquidity but = short term, tradable

Long term more aligns with aims of Super, and theoretically enhanced outcomes can be had by ignoring market noise, which is achieved by having unlisted assets. Which is where the danger of valuation error/ aggrandisement can come into play.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Apr 10 2018, 08:38 PM
  Quote Post


Posts: 6,791
Thanks: 2304


A slap on the wrist
Spaceship super fund brought back to Earth by ASIC

QUOTE
The tech-specialist superannuation fund, Spaceship, has been slapped with a $12,600 fine, as has Tidswell Financial Services, the trustee of the fund, for misleading claims made on the fund's website in 2017.

Spaceship, which targets millennials through social media, is backed by the co-founder of Atlassian, Mike Cannon-Brookes, through his investment vehicle Grok Ventures and a host of other tech and fintech entrepreneurs.

https://www.theage.com.au/money/super-and-r...410-p4z8q7.html

Spaceship shows there's no room for poor disclosure

QUOTE
But as we've seen in cases such as GetSwift, Big Un and even Blue Sky Alternative Investments, a good story must be backed up with real substance and real disclosure if you are going to ask real people – not institutions, or venture funds, but average, normal, time-poor investors – for real money.

Read more: http://www.afr.com/brand/chanticleer/space...z#ixzz5CGTQC5FA




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Mar 20 2018, 09:03 PM
  Quote Post


Posts: 6,453
Thanks: 2246


the hit to retirement incomes (cont.)

QUOTE
The government has signed off on the semi-annual, inflation-linked increase in the government pension. The single age pension (total) homeowners pension has lifted for singles from $894 per fortnight to $907 per fortnight — for couples the same figures moves to $1,348 to $1,368

For self-funded retirees facing lower incomes, it means they will watch as government-funded pensions go up.

Retirees who occupy the notorious deadspot — between $400,000 and $600,000 in super — where their self-funded pension offers an annual income only marginally better than the government pension, will now see more reason to quit their efforts to be independent of government welfare.

.... especially if they have a SMSF and/ or have otherwise structured their affairs to take advantage of the franking. I would suggest there are far more in this group than the 'wealthy retirees' so identified by the ALP, and the indignation is real, based on several realities:
1. More changes, that are deleterious. Self-funded retirees, who put aside assets in good faith, will lose money under the changes.
2. Once retired, just how does one replenish the lost income?
3. Rational retirees will restructure their affairs to access the pension, if feasible.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Mar 17 2018, 03:18 PM
  Quote Post


Posts: 6,453
Thanks: 2246


QUOTE
The hit to retirement incomes contained in [the Labor proposal to cancel cash refunds for excess dividend imputation credits] will not only affect the very wealthy, but substantially damage the lifestyles of many retirees who have prudently saved and are carefully drawing down on their retirement savings.

Refundable franking credits have been a well-established principle for nearly two decades, having been introduced on July 1, 2000, and self-funded retirees have understandably built their retirement income strategies around this. All these people want is certainty with the superannuation system. They had to contend with the enormous changes that took effect on July 1, 2017. Among these changes were a reduction in caps across both concessional (pre-tax) and non-concessional (post-tax) super along with the imposition of tax on individual earnings on amounts of above $1.6 million.

They also had to contend with the reduction in access to pension benefits — the tightening of so-called taper rules — which were introduced on January 1, 2017.

Now Labor's proposal will force them to rethink their retirement income strategies — yet again....

The simple fact is this proposal unfairly targets one sector of the community who have been diligent in saving to be self-sufficient in retirement. SMSFs put strategies in place under the existing rules only to find that politicians have again proposed to shift the goalposts. Aside from the personal financial pain many retirees will suffer, the changes to dividend imputation could have unforeseen consequences. It's almost inevitable to lead to a shift in SMSF asset allocation....

When compulsory superannuation was introduced in 1992, the primary goal was for people to save to become self-sufficient in retirement. Financial incentives were put in place to ensure this happened, and people all over the country took the government at its word and structured their financial affairs to this end....
https://www.theaustralian.com.au/business/w...b47041b3655571e

Andrew Conway, CEO of the Institute of Public Accountants, said: "Self-funded retirees or prospective self-retirees who seek to invest to secure a self-funded retirement plan, alleviating pressure on a government-funded pension system, should be incentivised, not penalised."



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: BobE  boylep  
 
 


59 Pages (Click to Jump) V   1 2 3 4 > » 

Back To Top Of Page
Reply to this topic


You agree through the use of ShareCafe, that you understand and accept the TERMS OF USE.


TERMS OF USE  -  CONTACT ADMIN  -  ADVERTISING