Here is why I am seriously questioning the value of holding funds in super:
1. I just added up how much I am paying in fees each year. Currently the return of franking credits pay for those, with only a little over and above. The fees would no longer be covered by the cash rebate of franked dividends.
2. The cash in the annuities I hold pay interest rates at less than every day accounts in my own name in one of the big banks.
3. I can only buy or sell the shares held in my annuities via their broker, and thus a multiple of what I pay when I buy and sell in my own name using an on-line broker.
4. I still have capital losses which keep me busy trying to make up for in my own name and thus why not close my annuities and use the funds to help with that?
5. I already have only 1/3rd of my assets in super. May as well remove all of it and be outside the tinkering of the likes of either Shorten or Turnbull.
6. I could upgrade my property as an alternative to share buying, if it was in my name.
7. I am restricted to buying top 300 shares in my annuities whereas I can buy/sell what I like if all in my name.
8. Or I could just use a portion of it for additional shares and the remainder for a better house. House already well positioned and would sell very fast. Just could move to similar with a bit more panache.
Happily, too many assets to qualify for OAP.
I reckon it will move lots like yourself, Atticuscat, towards a govt. pension given the incentive will be massive. You will get the pressies, like regular fortnightly credit into your bank account, indexed twice per year, plus energy supplement, health care card, and return of all franking credit unused. Win-win. There will be a lot of retirees around that honey-pot level of qualifying for a minimum (or more) pension.
Oh dear, Bill is not the great financial guru, now is he?
