Superannuation for dummies, 2nd edition

Superannuation For Dummies® Table of Contents Introduction About This Book How to Use This Book Foolish Assumptions How This Book Is Organised Part I: What Is Super, Really? Part II: Super — Your Ticket to Ride Part III: Taking Control Is a Piece of Cake Part IV: Hey, Don’t Forget Your Retirement! Part V: The Part of Tens Part VI: Appendixes Icons Used in This Book Where to Go from Here Part I: What Is Super, Really? Chapter 1: Relax, Super’s Here to Stay Understanding the RIPper Plan behind Super Investing for the Long Tomorrow Introducing the Eight-Step Program to Super Success Confronting SUPERstitions ‘Super is too complex’ ‘Super is taxed too much’ ‘My super’s going to disappear in fees’ Opting For a Tax-free Retirement Chapter 2: Looking into Your Future Retiring Isn’t That Far Away Facing Four Facts about the Future Living longer — ageing in comfort Straining the Government Age Pension Staying healthy costs more Expecting a reasonable lifestyle Planning for Your Long-Term Lifestyle Living the Life of Riley in Retirement Dreaming the fairytale Grasping the reality Taking the ostrich option Getting serious about it Saving the Super Way Safe as houses Investing outside of super Banking on term deposits Chapter 3: Spotting a Super Fund in the Wild Discovering Six Fund Types on Your Super Safari Recognising Your Super Type from a Distance Being close to home — your employer’s fund Chasing safety in numbers — industry fund (not-for-profit) Shuffling the pack — retail fund (for profit) Becoming a public sector fund member Doing-it-yourself — DIY super fund Taking refuge — Retirement Savings Account (RSA) Appreciating a Super Fund’s DNA Putting a super fund under the microscope Passing the ‘complying fund’ test Tapping into admin, admin, admin Introducing super’s other little helpers — fund managers and more Comparing Accumulation with Defined Benefit Carrying the risk and earning the reward Protecting a rare species — defined benefit funds Chapter 4: Choosing a Super Fund Do You Have Super Fund Choice? Changing jobs, choosing a fund Nothing to choose, for some Identifying Your Super Choices Handing over your super to the experts Delving into DIY super Trusting a Fund’s PDS Profiling a Super Fund — Your Super Choice Toolkit Checking Out the Super Competition Relying on rating companies Seeking financial advice Leaving for Greener Pastures Protecting your insurance cover Avoiding higher fees Losing out on extra employer contributions Completing the Standard Choice Form Providing new fund details to your employer Chapter 5: Nothing Beats Super Advice Seeking Information Before Advice Starting with your super fund Asking your employer Removing the Con from the Content Costing your advice Critiquing commission advice Choosing a Licensed Adviser Checking out that adviser Using a financial planner Checking if your fund provides advisers Approaching Super’s White Knights Wagging the watchdog tail Liaising with industry types Did you say independent, and free? Getting Your Super Beef Sorted Out Understanding the complaints process Taking your complaint further Part II: Super — Your Ticket to Ride Chapter 6: Getting Super Fit — Your Start-Up Kit Taking Your Super Physical Exercising your rights when joining a fund Filling in fancy forms the right way Keeping your paperwork up to date Getting Compulsory Super Training — Employer Contributions Giving nine every time — SG contributions Scoring SG four times a year Identifying additional employer contributions Keeping an eye on your employer Signing Up for Your Advanced Super Workout — Voluntary Contributions Making after-tax contributions Contributing before-tax dollars Contributing for your spouse rebate Splitting contributions with your spouse Chapter 7: Becoming Friends with Your Super Fund Getting the Lowdown on Your Fund Chatting to your payroll officer Reading the info from your super fund Checking out your fund’s Web site Taking advantage of your fund’s helpline Attending your fund’s seminars Who’s Looking After Your Super Piggy Bank? Do you know your trustees by name? Identifying a quality trustee board Managing your super money Understanding Your Member Statement Reading the headlines Navigating your way around your statement Keeping Your Super Safe Identifying the cops and robbers Losing your super doesn’t make cents Finding your ‘lost’ super Chapter 8: Exploring the World of Super Investing Understanding the Basic Ingredients of Super Investing Classifying your assets Suffering a super identity crisis Setting up your super future in four steps Investment Choice — Is Your Fund Offering a Fixed Menu or Open Buffet? Checking whether your fund serves an open buffet Researching the best dishes from the investment buffet Defaulting on your investment choice Desperately Seeking Super Performance Investing for the long tomorrow Deciding on a performance benchmark Relying on past performance Seeking glowing reviews on your fund’s performance Chapter 9: Keeping Watch Over Those Fees Finding Out the Facts about Fees High fees reduce your benefit Combining your super accounts Protecting small account balances Appreciating Funds with Lower Fees Running for profit, or not Paying wholesale is cheaper Understanding Your Super Fund’s Fees Receiving fee information in plain English Checking out your fees in your member statement Unlocking the Secrets to Hidden Fees Calculating Your Super Fees Chapter 10: Cheaper Insurance and Other Benefits Protecting Your Lifestyle and Your Life Putting a value on your life and lifestyle Counting the cost of living Choosing Among Three Types of Insurance Insuring your life Insuring your body Insuring your income Relying on Your Employer’s Choice Claiming Insurance Benefits Paying super tax rates Making an insurance complaint Visiting Your One-Stop Super Shop Taking advantage of super home loans Accessing cheaper financial products Part III: Taking Control Is a Piece of Cake Chapter 11: Six Super Contribution Strategies When Before and After Matters Choosing before- and after-tax contributions Before and after the age of 65 After turning 75 Adding After-Tax Contributions Entering a tax-friendly environment Bringing forward your limit Talking tough on limits Catering for special categories Beefing Up Before-Tax Contributions If the cap fits … Claiming a tax deduction Reducing CGT While Boosting Super Taking Advantage of Salary Sacrifice Getting your arrangement in place Sacrificing your Superannuation Guarantee Sacrificing the right salary amount Weighing up the benefits of your sacrificial offering Joining the Co-Contribution Club Checking the membership requirements Receiving your bonus contribution Splitting Super with Your Spouse It takes two … Splitting super straws Chapter 12: Taxing Your Super While You’re Working Entering the Super Tax Maze Paying Less Tax than Your Marginal Rate Reducing Income Tax the Super Way Making non-concessional contributions Sacrificing your salary Claiming tax deductions for contributions Taking It One Tax at a Time Copping contributions tax Handing-over-your-earnings taxes Leaving-your-fund-before-you-turn-60 taxes Super Survival — Changing Jobs or Taking Breaks What about redundancy? Taking employment termination payments Transferring benefits from overseas Chapter 13: Setting Up Your DIY Super Fund Take Your Pick — the ATO or APRA Considering whether DIY Super Is Right for You Trying on DIY for size Taking the Super C Quiz — Your DIY roadworthy Costing the Running of Your Fund Kick-starting your fund Running your fund Practising DIY Compliance Makes Perfect, Nearly Monitoring the must-dos Drafting your fund’s trust deed Applying the sole purpose test Drafting your investment strategy Keeping financial records Auditing your SMSF Committing Long-Term to Your SMSF Chapter 14: DIY Super and Investing Committing to Your DIY Super Fund — a Life and Investment Decision Building Your DIY Super Fund Portfolio Setting the framework — your DIY super fund’s investment strategy Identifying your goals — your DIY super fund’s investment objectives Getting into position — your DIY super fund’s asset allocation Investing Directly versus Managed Funds Hand-Picking Your DIY Super Fund’s Investments Being direct on property Investing in your office or factory Investing in shares Taking it easy on exotic investments Transferring assets into your DIY super fund Walking the Investment Tightrope Keeping your investments at ‘arm’s length’ ... ‘tasks for later’ basket Start today! Your biggest enemy in getting your superannuation working for you is procrastination About This Book Superannuation For Dummies, 2nd edition, caters for super... who lived a former life as a superannuation tech-head, and toyed with the idea of becoming a nomad She is the author of Superannuation For Dummies, Superannuation: Choosing a Fund For Dummies... superannuation editor of investment newsletter Eureka Report and one of the nation’s foremost authors on the complexities of our unique system of saving for retirement In Superannuation For Dummies,