Life Begins At.....
Issue link: http://ebook.aprs.com.au/i/32324
FINANCIAL MATTERS Preparation the key to success May and June are the traditional months when investors start to fi nalise their yearend fi nancial planning strategies. It’s no different for SMSF Trustees who by now should be thinking about what they need to do in relation to their SMSF before 30 June. It’s not too late for Trustees to play catch up with their paperwork, ensuring minutes of meetings are up to date, contributions are accounted for and pension payments are paid in accordance with minimum requirements. Leaving these things to the last minute could lead to unintended consequences (for example, extra tax penalties if a contribution is not counted in the right fi nancial year). Deductions are another area Trustees should focus on to ensure they can maximise whatever deductions may be available to the fund. What deductions can your SMSF generally claim: • Insurance premiums (except Trauma insurance). • Ongoing portfolio management fees (incl. professional fees for ongoing advice). • Ongoing accounting/administration/ audit fees. • ATO/APRA lodgment fees. • Costs to upgrade the trust deed necessitated by legislative/regulatory changes. Don’t forget the fund’s investment portfolio. Trustees should be reviewing the investment strategy in preparation for the new fi nancial year. What is the fund currently invested in and are changes warranted to maximise performance? Is the portfolio in the best position to withstand potential market volatility? How is the fund’s portfolio weighted in terms of asset allocation and does it need rebalancing in accordance with the investment strategy? Tips for your SMSF investment portfolio: • Review the structure of the fund’s investments and set things in place for the new fi nancial year. • Review asset allocation benchmarks - are they in line with the investment strategy? • Pensioners to start thinking about required income levels for 2011/12 and how the pension payments will be funded – particularly if account balances have changed. • Bear in mind the benefi ts of franking credits from listed Australian shares. For an accumulation account, franking credits can help off set other income tax. For a pension account, franking credits are fully refunded to the SMSF, eff ectively ‘topping up’ the account balance. On a personal level, now is also the time SMSF members can fi nalise their own plans for the year. Superannuation Strategies With the halving of concessional contribution caps from 1 July 2009 the eff ectiveness of some contribution strategies has been reduced. However, tax free benefi t payments remain for those over age 60. Please contact your fi nancial adviser if you want to discuss any of the following strategies in more detail. 54 THE RETIREE WINTER