Originally posted by pepe
Agree of course an SMSF gets cheaper to run as the size increases due to fixed charges. Also great for family combined accounts and estate planning , LRBA's ,etc.
I did spend four years in a call centre in a large govt department listening to the world of pain that many small SMSF trustees endure .
But for the average retiree an IOOF share platform in pension mode for say < $500k balance , is .5% pa fee (plus $38 per trade !) My fund performed 20% pa for last five years (till Dec 2018 anyway! ) just by buying the dips (eg : BHP @ $15) and trawling through HC,AFR etc. No advisers or outside help.
Best part is zero documentation , CGT free trades and 100% ff dividends .
The famous lament of most retirees is "I paid tax all my life" but this claim is looking a bit lame now that the well advised ones (direct shareholders) are saying "we want the money back".
The ALP did not need to raise a tax issue which is so unpopular . Perhaps there's a "good for the country" view to consider.
Surfs up gotta go.
The wealthy and our large corporates pay the majority of the tax in this country. Not your average or lower retiree. You can’t, and never could, amass vast untaxed fortunes in super, caps stopped this. New limits, by the libs also tax retirees who have more than an average super balance ($1.6m). That fair enough too. It’s designed to be a self funded retirement, not tax free rort.
Their are a handful with $100m but that was due to literally lottery like odds or tech or penny dread mining executives/founders creating a 1,000 bagger etc. so not real for 99.99%.
Our tax system was designed around being taxed at the ultimate recipient level. This is why retirees are pissed off as this fundamental principle has changed and forcing them to pay 30% tax regardless of their situation.
My family and I would be classified as wealthy. We pay a huge amount of tax in various structures. No issues with this, as it’s a contribution to society in this great country (mind you I cannot stand left leaning individuals who want more for nothing via lazy life style choices). My overall point is these proposed changes to franking credits will not change anything within our overall structure. As I said, it effects the poor and middle class self funded retirees, not the wealthy.
This policy literally encoirages anyone with marginal assets for pension qualification to blow some of their cash on overseas holidays and live off the government on the pension.... super was invented to get people off the governments teet, since the majority of the population cannot save a dime nor bother/contemplate investing for the future.
(20min delay)