Don’t let the title fool you, even if you are not a Millennial you may benefit from these fantastic apps. These tools could help you save for your first home, new car or your next holiday adventure. But most importantly, they can help you build your wealth which seems to be an area that millennials are struggling with the most.
GoodBudget is a budgeting app that allows the user to create a budget that is easy to stick to, making saving money a lot easier. GoodBudget uses a virtual form of the old envelope system where you put your money into an envelope for each expense and when an envelope is empty to stop spending. You start with a savings envelope then allocate funds to your expenses. You have planned your savings before your expenses so you don’t overspend.
GoodBudget comes with a free plan that includes 10 regular envelopes and can be used on 2 devices.
The perceived high costs involved with running your own fund can sometimes be the determinant factor for many people, especially when considering if having an SMSF is right for them. In addition to this, the first question I get asked from prospective clients is “what are your fees?”. It’s a legitimate question and is usually the catalyst for trustees to change administration providers, that and the lack of perceived value they are receiving for that cost.
Being in this industry for quite a while now I have come across many different fee structures. Traditionally the fees to run an SMSF are higher than your industry or retail fund, however the opportunities afforded to you with control and flexibility need to be weighed up in terms of the value they provide you in reaching your retirement goals. In 2014 Rice Warner Actuaries conducted research on the SMSF operating costs across the country and have come up with a scaled view demonstrating the variance in costs.
*In 2014 Rice Warner Actuaries
This table is based on a fund in accumulation mode and doesn’t take in the extra costs firms are charging for pension set ups,
On issuance of the Practical Guidance in June this year for related party borrowings, the ATO acknowledged that further information was needed.
Recently, the ATO released Tax Determination 2016/16 which dealt with the subject of when a limited recourse borrowing arrangement has not been entered into on arm’s length terms.
The core principal at the heart of the release of the information from the ATO is that all dealings between a related party of the SMSF and the SMSF must be on ‘commercial terms’, or ‘arm’s length’. The meaning of commercial terms or arm’s length in relation to obtaining a loan in an SMSF, is that the terms of the loan, ie the interest rate, amount borrowed and term of the loan, must reflect what can be obtained from a third party such as a banking institution.
An example taken directly from the ATO tax determination compares a non arm’s length LRBA and an Arm’s Length LRBA, provides the following example:
The SMSF purchased a commercial property;
For some, retirement is drawing near and it is time to start planning where you want to set up camp. There are so many amazing places down under which makes it very hard to select just a handful of top spots to retire. So, we asked our team members what they thought and they came up with 4 great locations that you might be already considering.
Let’s take a look!
#4 The Hunter Valley.
Hmm…wonder why this made the list? Great tasting wine, picturesque vineyards and the quaint country setting. Hunter Valley is the place to be for retirees.
- Close to Sydney and Newcastle
- Golf and other outdoor activities
#3 Sunshine Coast.
Sunshine Coast is one of the highlights of South East Queensland. It has a long stretch of amazing beaches but with less of a crowd then its Golden counterpart,
With the Government abandoning its policy to introduce a $500,000 lifetime cap for non-concessional contributions are you clear on what non-concessional contributions you can make to superannuation now?
Non-concessional contributions are contributions that are made to super from after-tax income or savings.
Instead of going forward with its proposed $500,000 lifetime cap on after-tax contributions, (with a retrospective counting of the last ten years) the Government has decided to go back to the current rules for after-tax contributions but with a lower annual limit of $100,000.
This will now allow individuals to:
- make non-concessional contributions of up to $100,000 per year
- have the ability to bring forward 3 years’ worth of contributions to a single year (allowing you to contribute up to $300,000 in a single year)
The ability to make non-concessional contributions will also be limited to people who have an individual superannuation balance of under $1.6 million. In addition,
Australia has one of the highest levels of smartphone penetration in the world and there is an increasing array of very useful tools and apps freely available to help us manage all aspects of our financial lives.
In this article, I’m going to share the top 5 apps that can make managing your SMSF a breeze.
Macquarie Mobile Banking
A great bank account is central to every SMSF and all banks have their own dedicated smartphone apps. I am going to use the Macquarie Mobile Banking App as an example as the Macquarie’s award winning Cash Management Account (CMA) is the most popular for SMSFs.
Their app allows you to easily manage your Macquarie CMA and view your term deposits from the palm of your hand. It gives you a live feed on your cash balance and interest income and allows you to make immediate payments via BPAY or EFT.
If you are worried about how secure the app is,
The federal government has made some big changes to their superannuation package, including dumping the $500,000 Super cap.
Chloe Ward chats about the budget, non-concessional contribution caps and wraps up the month as we all prepare for the election that is just around the corner.
Effective from July 1, 2017, the government intends to place a $1.6 million cap on the amount of superannuation that you can retain in, or transfer to, a super pension account. The government released an exposure draft of the proposed legislation for this measure on 27 September 2016. Final legislation is expected to be passed before the end of 2016. This proposed budget change capping pension balances (and therefore limiting the corresponding tax exemption available) to $1.6 million has caused major concern to impacted SMSF trustees – but it may not be all bad news!
The Changes Explained
There are 5 areas in which the new changes impact.
1. Cap on tax-free super accounts
Currently: No limit on the amount of money in superannuation that is tax-free in retirement mode.
Proposed: From July 1, 2017, a limit of $1.6 million can be transferred into a tax-free super account.