enquiries@kofkinbond.com.au     03 9111 2675

Tag : Superannuation

The financial Forecaster – Are they just fortune tellers in a suit?

Reading Time: 3 minutes

From how the dollar will perform, to whether we should invest in property or shares, despite the past record of forecasters often ‘getting it wrong’, or playing it safe, consumers will continue to seek market predictions, almost as if they are searching to find that one person with the crystal ball.

Using last year as an example, many experts, including Mike Wilson from Morgan Stanley, predicted tech stocks would continue to head the market, allowing it to remain strong.  What happened? The likes of Apple and Facebook fell over 40% from their highs. Even the S&P 500 ended the year well below the predicted 2840 with a concluding result of 2500.

So why are the experts so often wrong? To put it simply, it’s because they generally fall into two categories, and either way, they are playing it safe.

Importance of Superannuation and Financial Advice

Reading Time: 3 minutes

With little doubt, Superannuation (AKA Super) is likely going to be a persons longest-term investment and, therefore, deserves to be considered with a greater depth than perhaps their other financial investments.  There is no better time than now to engage in a conversation with a Kofkin Bond and Co financial adviser to ensure your Super is in order.

Super is not a short-term discussion

In the course of an average life, they may have many long and short-term savings and investment objectives. Saving for a holiday or a used car in your younger days may take a year or two, Whereas saving for a home deposit may take a little longer, and even then it may take thirty years, or more, to pay it off.

SMSFs: Know your options for investing in property

Reading Time: 6 minutes

The purchase of property by an SMSF has long been seen as an attractive option for investors, however, the rules regarding any limitations are often misunderstood.

We have put together this article as an attempt to clarify each of the ways property can be held by an SMSF.

Option 1

SMSF acquires property outright

The simplest form of ownership by an SMSF is to own the property outright; The SMSF having purchased the property with cash.

Key points

  • The purchased property is to be registered in the name of SMSF trustee, however, if that is not possible for legal reasons, then a caveat, instrument or declaration of trust should be executed over the property.
  • The SMSF’s share of the rent is to be paid to its bank account.
  • The SMSF’s share of property expenses should be paid or accounted for in the fund. Expenses may be paid by a member, or another party, however, they must be reimbursed to the payer to ensure they are not recorded as a contribution. If the payments do end up being treated as contributions, it’s imperative the relevant contribution cap is not exceeded in order to avoid excess contributions tax being applied.
  • The property cannot be used as security, this includes mortgages, liens, caveats or any other encumbrance.
  • The property can be rented to a related party – provided it’s a premise used for business which is leased on market terms.

Top up your super before the end of the financial year

Reading Time: 2 minutes

The end of the financial year is rapidly approaching and, along with it, the opportunity to claim a tax deduction on additional superannuation contributions.

 Why contribute more to super?

Superannuation does impose restrictions on access to your money. It is, after all, intended to provide for your retirement. So why would you lock up more of your money? Because superannuation remains one of the most tax-favoured environments within which to build wealth. That can make it an ideal place to invest your long-term savings. 

What are some of the risks inside an Australian expats superannuation fund?

Reading Time: 3 minutes

We often hear Australian expats taking the age-old ‘set and forget’ approach when it comes to their superannuation. Here we wanted to explore some of the risks you may be exposed to in an Australian expats superannuation fund.

Generally, the superannuation can’t be touched for years. With this in mind, we are often asked why should expats bother looking into it before they jet off or even while they are abroad? A recent article out of the Australian Financial Review (AFR) has placed the spotlight on how our superannuation is invested and potentially exposing expats to investment risk that they may not have been aware of.

It points out the lack of transparency that members face when it comes to knowing where their super is invested and what the actual level of risk members take on by being in specific investment option (i.e. Balanced, Growth and High Growth).