Super Portfolio

Daksar · 03-12-2007, 12:23 PM

Hi,
I intend to take my super as an income stream in about 3 years time.
With that in mind I have in my portfolio as follows :-

Aberdeen Financials Fund 90k
Advance Aust Geared Share 25k
Aust Unity Property Income 30k
Colonial FS Aust Share 55k
Colonial FS Geared Share 45k
Colonial FS Global Resources 130k
GS JBW Emerging Leaders 15k
Invesco Aust Small Companies 45k
MLC Prop Sec 55k
P'folio Partners High Growth Share 90k
UBS Prop Sec 65k

Total 645k

Does this appear sound? Thanks

Daksar

DaveA · 03-12-2007, 01:53 PM

Just to get you started, is there a reason why you have both CFS Geared & CFS Aust Share? Maybe you should consolidate them depending upon your risk profile

Daksar · 03-12-2007, 04:56 PM

Hi,
I bought into the geared funds 18 months ago as I felt more confident of the continuing strength of Aussie shares. I have held the more conservative CFS Aust Share for about 5 years.
I've been trying for a mix that will give me income and growth in about a 50/50 ratio

Daksar

AsxBroker · 04-12-2007, 06:12 AM

Hi Daksar,

Are you under age 55?

There may be tax benefits in starting an allocated pension now rather than waiting for persons 55 or over.

Cheers,

Dan

PS The above information is general information. Speak to your FPA registered Financial Planner, Accountant or Tax Adviser before making an investment decision.

DaveA · 04-12-2007, 10:01 AM

Quote:

Originally Posted by AsxBroker

Hi Daksar,

Are you under age 55?

There may be tax benefits in starting an allocated pension now rather than waiting for persons 55 or over.

Cheers,

Dan

PS The above information is general information. Speak to your FPA registered Financial Planner, Accountant or Tax Adviser before making an investment decision.

Dan, it would be fantastic if you could give a brief overview of this for the benefit of the board if you've got time.

I thought it was on 55+ you could do the pension...

Daksar · 04-12-2007, 12:11 PM

A young 57!
Planning to take a tax free income stream at 60 if Kev lets me

Daksar

AsxBroker · 05-12-2007, 05:30 AM

Quote:

Originally Posted by DaveA

Dan, it would be fantastic if you could give a brief overview of this for the benefit of the board if you've got time.

I thought it was on 55+ you could do the pension...

Sorry Dave, I missed a comma. The sentence should have been...

"There may be tax benefits in starting an allocated pension now rather than waiting, for persons 55 or over"

Some of the benefits for starting at age 55 rather than waiting are a 15% tax rebate, (I know, not as good as tax free but not so bad, as theoretically one could earn at leat $33,000 tax free). Moving superannuation from a taxable environment to a 0% tax environment (this can save alot of money purely from the earnings and growth of the super fund).

There is also the possibility of salary sacrificing if there are additional funds left over which would reduce the tax rate from the Marginal Tax Rate to 15%.

That's three good reasons.

You can read a little more here When you retire - Australian Securities and Investments Commission

Cheers,

Dan

PS The above is general information and not advice. Speak to your FPA registered Financial Planner, Accountant or Tax Adviser before making an investment decision.

MattR · 07-12-2007, 11:56 AM

My comments in BOLD with the quote below.

Quote:

Originally Posted by AsxBroker

Sorry Dave, I missed a comma. The sentence should have been...

"There may be tax benefits in starting an allocated pension now rather than waiting, for persons 55 or over"

Some of the benefits for starting at age 55 rather than waiting are a 15% tax rebate, (I know, not as good as tax free but not so bad, as theoretically one could earn at leat $33,000 tax free). Moving superannuation from a taxable environment to a 0% tax environment (this can save alot of money purely from the earnings and growth of the super fund). DO SOME CALCS ON THIS. THIS CAN HELP INCREASE THE EFFECT OF THE COMPOUND GROWTH FOR FIVE YEARS I.E. 55-60. REMEMBER THAT IF YOU TAKE A PENSION YOU ONLY NEED TAKE 4%.

There is also the possibility of salary sacrificing if there are additional funds left over which would reduce the tax rate from the Marginal Tax Rate to 15%.

That's three good reasons.

You can read a little more here When you retire - Australian Securities and Investments Commission

Cheers,

Dan

PS The above is general information and not advice. Speak to your FPA registered Financial Planner, Accountant or Tax Adviser before making an investment decision.

AsxBroker · 07-12-2007, 10:44 PM

Hi MattR,

Nicely re-iterated.

I am deeply disturbed by doing a mailout to people in my local area between 55 and 65 who honestly don't care about this.

Apparently only 3% of eligible are actually using this.

It's amazing, I'm floored that not everyone that can do this, is doing this...It totally baffles and mystifies me.

Cheers,

Dan

PS This is general information. Speak to your FPA registered Financial Planner, Accountant or Tax Adviser before making an investment decision.

crc_error · 08-12-2007, 07:34 AM

I think your fund mix is good.. but quite agressive for someone who is only 3 years away from retirement..

I would increase my exposure to fixed interest assets or bonds.. in case the market takes a dive between now and 3 years.. hence you can draw down on the fixed interest funds at retirement whilst allowing the more agressive funds time to recover..

Also you need to set yourself a goal, on how much you need to retire on.. if your already at that point, why take unnecessary risks so close to retirement! If things go bad, can you wait for the market to recover?