By Money reporters
Money magazine, May edition
Members of industry super funds could be over $120 a week better off in retirement because they pay fewer fees and no sales commissions. Members could have an average of $82,026 more in their superannuation when they reach retirement after a 40-year working life, according to new research by ratings agency SuperRatings.
“That could make a huge difference to dignity and comfort in retirement for Australians who have worked hard for 40 years and seek to enjoy their life in retirement,” says David Whiteley, Industry Super Network chief executive. “Ongoing financial advice fees and sales commissions erode members’ superannuation savings, reducing their super payout on retirement.”
Car insurance challenge
Australia’s oldest exchange-traded fund provider, State Street Global Advisors (SSgA), has rolled out three new sector ETFs. They include the SPDR S&P/ASX Small Ordinaries Fund, SPDR S&P/ASX 200 Resources Fund and SPDR S&P/ASX 200 Financials ex A-REIT Fund.
Flood relief for SMSFs
The strict rules covering limited recourse borrowing by SMSFs had looked set to create serious difficulties for any fund that owns a geared property destroyed or badly damaged in the recent floods and cyclones. This was because rules prohibit securing a limited recourse loan arrangement against an asset which, in effect, replaced the original one.
While the rules allow the fund to repair the original building, if the repairs are extensive the property may be classified as having been replaced. Fortunately the tax commissioner, Michael D’Ascenzo, has said the tax office will use its discretion to ensure funds that own geared property seriously damaged by floods and cyclone aren’t disadvantaged.
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