Top10 SMSF strategies for 2011/12 presentation conducted by Aaron Dunn of The SMSF Academy in conjunction with Business Fitness.
Download a copy of the free webinar, by visiting http://thesmsfacademy.com.au/free-webinars/
This is a copy of the presentation of the August 2010 Webinar on High Net Worth SMSF strategies conducted on 'thedunnthing' blog, http://thedunnthing.com
Hi Friends,This presentation provides the details about the pension plan and its benefit.You can know now that why pension plan is important for life and in old age.For more details visit here :- www.thepolicykart.com..also you can check cons and pros of this plan also,because many companies provide pension plan,but the executive didn't provide the proper details to them.
This is a copy of the presentation of the August 2010 Webinar on High Net Worth SMSF strategies conducted on 'thedunnthing' blog, http://thedunnthing.com
Hi Friends,This presentation provides the details about the pension plan and its benefit.You can know now that why pension plan is important for life and in old age.For more details visit here :- www.thepolicykart.com..also you can check cons and pros of this plan also,because many companies provide pension plan,but the executive didn't provide the proper details to them.
Pension plans are schemes by which small amount is saved on a monthly basis over a considerable period of time so that one can enjoy monthly income after retirement.
Public pensions are on the verge of exploding municipal and the state budget in coming years.
Generational theft is a strong language, but Richard Dreyfus, Senior Fellow at the Commonwealth Foundation beleives that this looming timebomb" has the potential to bankrupt our cities and our state. He made complelling arguments and marshalled the facts to present a simple, compelling and thought provoking presentation.
The Pandemic taught several lessons to first-time and seasoned investors alike. It reinforced the habit of saving, having a sound financial backup plan for a rainy day and devising a prudent asset allocation strategy. Explore 7 investment lessons that help prepare for the unexpected.
www.Quantumamc.com
Five Trends Reshaping the Global Pension Fund IndustryState Street
This executive briefing explores how pension funds are adapting to the challenges of a new investment environment. The research presented in this report is based on an international State Street survey, conducted by the Economist Intelligence Unit in August 2014, of 134 senior executives in the pension fund industry.
Mary Beth Gray provides a "how to" of the issues you need to consider when creating a distribution policy, and what is or is not permitted by the IRS. Tabitha Croscut discusses diversification language in plans and what the IRS decided was the definition of a "qualified participant."
Cornerstone Wealth Management's July 2017 "Investment Insights" newsletter, focusing on the Dept. of Labor's Fiduciary Rule, which should reduce conflicts of interest and protect the interests of all investors.
Principal protection with upside potential. 20% rollover bonus. 401k,IRA rollover eligible. For more information call (888) 235-8060 or visit us at www.AdvisorRick.com.
What is an annuity?
An annuity is an insurance-based contract between you, the owner, and the contract issuer.
This is basically how annuities work: You pay after-tax dollars to the issuer, the issuer invests the money for you, and any earnings accumulate tax deferred. At some point, the issuer pays out the principal and earnings to you or to your beneficiaries. Earnings are taxed as ordinary income when they’re distributed.
HunterMaclean ERISA and employee benefits attorney Rebecca Sczepanski made this presentation at the 2015 Savannah Fiduciary Seminar. Her presentation covered a summary of the legal issues regarding fiduciary status, including how to identify ERISA and state law fiduciaries. She provided tips for avoiding or mitigating risks associated with defined plan fiduciary status as well as an update on major fiduciary litigation.
Diane Fanelli follows up her last article on rebalancing with a summary of reshuffling. Brian Wurpts discusses the basics of distributions, then presents some options for funding benefit distributions and the implications of benefit funding decisions on repurchase obligation.
Pension plans are schemes by which small amount is saved on a monthly basis over a considerable period of time so that one can enjoy monthly income after retirement.
Public pensions are on the verge of exploding municipal and the state budget in coming years.
Generational theft is a strong language, but Richard Dreyfus, Senior Fellow at the Commonwealth Foundation beleives that this looming timebomb" has the potential to bankrupt our cities and our state. He made complelling arguments and marshalled the facts to present a simple, compelling and thought provoking presentation.
The Pandemic taught several lessons to first-time and seasoned investors alike. It reinforced the habit of saving, having a sound financial backup plan for a rainy day and devising a prudent asset allocation strategy. Explore 7 investment lessons that help prepare for the unexpected.
www.Quantumamc.com
Five Trends Reshaping the Global Pension Fund IndustryState Street
This executive briefing explores how pension funds are adapting to the challenges of a new investment environment. The research presented in this report is based on an international State Street survey, conducted by the Economist Intelligence Unit in August 2014, of 134 senior executives in the pension fund industry.
Mary Beth Gray provides a "how to" of the issues you need to consider when creating a distribution policy, and what is or is not permitted by the IRS. Tabitha Croscut discusses diversification language in plans and what the IRS decided was the definition of a "qualified participant."
Cornerstone Wealth Management's July 2017 "Investment Insights" newsletter, focusing on the Dept. of Labor's Fiduciary Rule, which should reduce conflicts of interest and protect the interests of all investors.
Principal protection with upside potential. 20% rollover bonus. 401k,IRA rollover eligible. For more information call (888) 235-8060 or visit us at www.AdvisorRick.com.
What is an annuity?
An annuity is an insurance-based contract between you, the owner, and the contract issuer.
This is basically how annuities work: You pay after-tax dollars to the issuer, the issuer invests the money for you, and any earnings accumulate tax deferred. At some point, the issuer pays out the principal and earnings to you or to your beneficiaries. Earnings are taxed as ordinary income when they’re distributed.
HunterMaclean ERISA and employee benefits attorney Rebecca Sczepanski made this presentation at the 2015 Savannah Fiduciary Seminar. Her presentation covered a summary of the legal issues regarding fiduciary status, including how to identify ERISA and state law fiduciaries. She provided tips for avoiding or mitigating risks associated with defined plan fiduciary status as well as an update on major fiduciary litigation.
Diane Fanelli follows up her last article on rebalancing with a summary of reshuffling. Brian Wurpts discusses the basics of distributions, then presents some options for funding benefit distributions and the implications of benefit funding decisions on repurchase obligation.
Brian Wurpts addresses share redemption and share re-leveraging as other strategies to manage plan funding decisions, and their implications on repurchase obligation, in Part II of an article that appeared in the August 2011 Client Alert. Mychelle Holloway discusses when and how to use the new Form 8955-SSA, and all about the changes to the Form 5558, released by the Internal Revenue Service earlier this year.
Presentation slides from the Changing Face of SMSFs webinar held on 12 December 2013. This session looked at the latest technical and regulatory issues impacting self-managed super funds.
Brian Wurpts discusses how an ESOP company's funding decisions can alleviate or exacerbate the "Have/Have Not" problem and ESOP sustainability concerns. Steve Magowan explains how to avail yourself of the protective provisions of IRS Notice 2010-6 for nonqualified deferred compensation plans.
How will retirement reform impact your retirement fund by Olano Makhubela10X Investments
Chief Director, Financial Investments and Savings, National Treasury presented at the 10X Retirement Conference 2014 on the topic How will retirement reform impact your retirement fund.
COVID-19: The Impact on Retirement PlansCBIZ, Inc.
As COVID-19 continues to impact the stock market and organizations around the world, we understand that you have concerns about how recent market fluctuations may affect your retirement plan. What you should know is that there are options you may have to minimize these effects on your business and your employees. We’ve developed a summary of these complex issues in this whitepaper. You will learn about:
- Impacts to both defined benefit plans and defined contribution plans
- Potential options for your organization to minimize negative effects on your business and your employees
- Legislative updates from the CARES Act
- Important considerations and actions to take next
The ATO has created an infographic from the 2013-14 statistics of the SMSF industry. It provides a great insight into the SMSF sector today and can help to understand many of the key drivers for growth and how the sector continues to evolve.
This infographic provides an update on the SMSF sector in April 2015. The content within this infographic was extracted from a speech given by the Assistant Commissioner, SMSF Segment, Matthew Bambrick in March 2015.
This webinar was presented by Aaron Dunn and Ian Glenister from The SMSF Academy, looking at the important aspects of death benefit nominations for members of a self-managed super fund.
Presentation slides from webinar presented by Aaron Dunn on 26 November 2013, about structuring insurance arrangements with limited recourse borrowing arrangements within a SMSF.
Visit www.thesmsfacademy.com.au online store should you wish to purchase the webinar recording.
Presentation slides from webinar presented by Aaron Dunn of The SMSF Academy on 5 September 2013 on the latest issues impacting contributions including excess concessional contribution reforms, additional contributions tax for high income earners and more.
Presentation slides of webinar presented by Aaron Dunn of The SMSF Academy on the finalisation of tax ruling, TR 2013/5, when a pension commences and ceases.
Presentation slides from The SMSF Academy webinar on 26 July 2013, presented by Aaron Dunn.
Session looks at the practical issues, strategies, superannuation law and tax law requirements in paying a member death benefit from a self-managed super fund.
Presentation slides from the Changing Face of SMSF Webinar, presented by Aaron Dunn of The SMSF Academy on 23 May 2013, looking at the latest technical and regulatory issues impacting self managed super funds.
Presentation slides for the SMSF Tax Planning webinar presented by Aaron Dunn of the SMSF Academy on 24 April 2013.
With the growing number of self-managed super funds, the need to appropriately plan and take advantage of the various contribution, pension, investment strategy and tax issues all lead to the value of discussing some key tax planning strategies with SMSF trustees.
If you wish to view the webinar recording, this can be purchased for $99 (incl. GST). You can visit the SMSF Academy online store to purchase this recording, https://nq129.infusionsoft.com/app/storeFront/showCategoryPage?categoryId=9
Presentation slides from the webinar, "Actuarial Requirements for SMSFs", held on 26 March 2013. Webinar presented by Aaron Dunn from The SMSF Academy and Andy O'Meagher from Act2 Solutions.
Session outline included:
- the key requirements around a fund’s tax exemption and where an actuarial certificate is required;
- when an actuarial certificate is not required;
- How you can make the call on whether an actuary certificate is necessary;
- How tax exemption can be maximised in a financial year;
- Understanding when you should be using segregated or unsegregated methods; and
- Impact of proposed changes to legislation (tax exemption extending beyond death)
Webinar recording from the session can be purchased for $99 (incl. GST). Contact info@thesmsfacademy.com.au for further details.
Presentation slides from the Changing Face of SMSF webinar presented by Aaron Dunn on 28 February 2013. Webinar covers at the latest technical and regulatory issues impacting self managed super funds, including:
- Stronger Super draft regulations with related party acquisitions and disposals, and changes to the supervisory levy
- ATO guidance regarding when an income stream starts and stops within a SMSF
- Latest NTLG Super technical minutes (Dec 2012) covering limited recourse borrowing arrangements, insurance premiums for LRBAs, etc.
- Impact of recent private ruling issued on anti-detriment payments (what it could mean for SMSF trustees)
If you wish to view the webinar, you can purchase this online for $99 (incl. GST) at www.smsf101.com.au. CPD points will be allocated for SPAA members.
Presentation slides from webinar held on 30 January 2013 on the future of SMSF licensing. Presented by Aaron Dunn of The SMSF Academy, along with guest panelists, Liz Westover, ICAA and Nick Hilton, MLC.
Discussion includes:
> draft regulations for replacement of accountant's exemption (Reg. 7.1.29A)
> Advice allowed under a restricted license
> Timeline for introduction of licensing regime
> Licensing options including restricted AFSL & becoming an authorised representative
> Ongoing requirements including training
> Opportunities in providing advice
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
2. This presentation provided general advice only. No direct or implicit recommendations are given in this document. This means that the general advice provided has not been prepared taking into account an individual’s financial circumstances (i.e. investment objectives, financial situation and particular investment needs). You should assess whether the advice is appropriate to your individual financial circumstances before making an investment decision. You can either assess the advice yourself or seek the help of an authorised representative through an Australian Financial Services License (AFSL) holder. The SMSF Academy Pty Ltd believes that the information in this presentation is correct at the time of compilation but does not warrant the accuracy of that information. Save for statutory liability which cannot be excluded, The SMSF Academy disclaims all responsibility for any loss or damage which any person may suffer from reliance on this information or any opinion, conclusion or recommendation in this presentation whether the loss or damage is caused by any fault or negligence on the part of presenter or otherwise. General Advice Disclaimer
4. A reincarnation of RBLs? Government proposal to extend contribution cap for over 50’s with balance of less than $500,000 Consultation paper dealing with parameters including: How to calculate member balances? Assessment model? What financial year to use for assessment? SMSF specific issues
5. Example John (52) – member account balance of $489,000 SMSF audited financials at 30 June 2011 For the 2011/12 financial year: $50,000 concession contribution Net earnings of $10,000 Closing Balance of $541,500 What level of contributions will John be able to make from 1 July 2012? Answer: $50,000 Why? Government likely to utilise balance ‘two years’ prior (i.e. 30 June 2011) Contribution Splitting benefit? Remember: $50,000 cannot be split until 1 July each year 30 June 2011 member balances become very important!! Think about whether the 2010 contributions should be split when doing the 2011 financials.
7. Using a Contributions Reserve Ability to “park” contributions for up to 28 days after the end of month in which contribution made June contributions can be held-over until following financial year (allocated before 28 July) Deduction for taxpayer when paid Assessed against cap when allocated to the member NTLG Super Technical Sub Group Committee minutes 16 June 2009 Applicable to both concessional and non-concessional contributions
8. Reported FY 2011 contributions Keep this in mind… FY2011 contributions X XX X XXXXXXXXX Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun A contribution reserve can be used to identify excessive contributions made in the previous financial year Reduction in contribution caps for FY2010 caught many people June 2011 contributions only 28 days to allocate after month end
9. Example – Contributions Reserve saviour! Doug (53) currently salary sacrificing to his $50,000 concessional contribution limit The timing of his super payments received by his employer has meant that the SMSF has received $54,167* for FY10 13 months x $4,166.67 Trustees can allocate any June contributions to a Contributions Reserve Must be allocated to Doug’s member balance before 28 July Saves a minimum of $1,313 in tax (31.5%) Potentially more if maximum NCC reached (bring forward) Ability to revise salary sacrifice arrangements to $45,833 for FY12 (Total CC = $50k)
11. Contributions Deferral What if your client is on the top MTR (46.5%)? Can potentially salary sacrifice or make a personal deductible contribution up to CC cap plus up to NCC cap Employer / individual receives full deduction on contribution Excess tax payable, but on receipt of a Notice of Assessment (NoA) Provided no further NCCs or excess CCs made in subsequent years there is no double taxation but get the benefit of the assessment deferral
12. Example – Contributions Deferral Ken (62) is a company director, earning $1,000,000 (incl. super). Includes a $500,000 bonus, which was to be paid in September 2011. He would like to retire in approx. three years time from his job Ken intends to salary sacrifice up to his CC cap of $50,000 Expected personal tax payable on Ken’s taxable income of $448,550* What if, Ken salary sacrificed $484,225** of his bonus to super in 2010/11? Excess concessional contributions of $450,000 Excess concessional contributions tax (31.5%): $141,750 Excess non-concessional contributions: $0 Instead of PAYGW on salary, amount taxed within SMSF @ 15% + ECT Salary is withheld upfront vs. deferred at least 11 months after end of financial year (May 2013 - due date of SMSF Annual Return) * Includes Income Tax, Medicare & Flood levies ** $500k bonus adjusted for SGC up to maximum super contribution base of $43,820 per quarter (2011/12)
13. Example – Contributions Deferral Excess Contribution Made Financial Year End 2011/12 SMSF AR lodge & payable ECT Assessment payable Sept 2011 30 June 2012 May 2013Jan/Feb 2014 21 months Up to 30 months Why? Cash is able to work harder within the SMSF SMSF benefits from $209,750 invested up to 20 months, plus ability for $141,750 to stay in the fund if Ken pays tax personally (which he can elect to do)
14.
15. 93% tax payable on an excessive concessional contributions for the next two years
17. If fund is going to pay excess tax, need to ensure the NOA is provided within the timeframes
18.
19. How does section 67A work? Personal guarantee Bare /Holding Trust
20. Benefits of SMSF borrowing Case Study Property purchase - $600,000 Loan - $350,000 @ 8% (P&I repayments) Rental - $460 p/wk (increases 3% p.a.) Expenses - $4k p.a. / Depreciation - $5k p.a. Individual currently salary - $100,000 (increases 3% p.a.) Eight (8) years away from retirement What is the tax benefit of acquiring the property within a SMSF vs. personally?
23. What needs to be considered Property Investors (residential or commercial) Yield (rent) Capital growth LVR Lender & interest rate P&I or Interest-only period Term of loan Expenses, Depreciation & Building Allowance Ability to contribute to super / servicing Timeframe to retirement
26. Section 67A & 67B restrictions Changes to super borrowing laws (s.67A & 67B) have imposed significant restrictions Definition of a Single acquirable asset? What constitutes a replacement asset? Within SMSF, can not undertake (breach of replacement rules): Capital improvements Subdivision Property held over 2 or more titles (e.g. farmland) Question – what strategies (if any) can be used to address the above?
27. Property Development Use of a SISR 13.22C trust (ungeared unit trust) Unit Trust is the developer; SMSF is a contributor of capital to the trust (in full or part) Trust acquires land and/or property to develop Need to get capital in ‘up-front’ or would require additional bare trust for further borrowings unless additional unit holders subscribed Banks unlikely to provide a SMSF Limited Recourse loan Related Party (BYO lender) loans only Only security allowed by lender are the units in the unit trust ATOID 2010/162 – dealing with SMSF on more ‘favourable terms’ Do not breach SISR 13.22D requirements
28. SMSF (5). Lease agreement between SMSF and tenant (can be related party for commercial property) (1). Redraws on equity in own home to provide a loan to SMSF (2). SMSF borrows money from related party on arms-length basis (6). Rent paid to Unit Trust (8). Repayments made by SMSF back to lender (principal and/or interest) – subject to terms of loan Tenant (inc. related party) Bare Trust Lender to SMSF Units in U/T (7). Distribution paid to SMSF as beneficial owner of units in unit trust (3). SMSF acquires units in ungeared unit trust units in name of Trustee of Bare Trust (4). Unit Trust acquires land and uses additional funds to develop site (9). Lender makes repayments back to own bank where money originally drawn. Ungeared Unit Trust (SISR 13.22C) (3b). Lender’s rights in the event of default are limited to the property only.
30. When does an income stream cease? TR2011/D3 released on 13 July Income tax: When an income stream commences and ceases Death benefits, failure to meet minimum pensions, commutations, etc. ATO views in draft ruling on partial commutations and interaction between SIS Act and Tax Act Example: Bob (57) has recently retired and has $1,000,000 in accumulation within SMSF Wishes to commence an Account Based Pension and take minimum of $40,000 (4%) Subject to Bob’s other assessable income he will have between$600 (16.5% tax rate) -$12,600 (46.5%) of tax payable on this pension If taken as a lump sum can use LRT, but 15% super fund tax rate applies (accumulation phase) Could Bob have the best of both worlds?
31. Yes, he can Where pension is partially commuted and payment is elected to be received as a lump sum, this amount will count towards the member’s minimum pension for the financial year. This benefit payment can be made in cash or in-specie Partial Commutation Example
33. Proportioning Rule Simpler Super introduce many changes including the proportioning rule when commencing an income stream Proportioning rule locks in the tax-free and taxable component Why is this important? Greater tax efficiency for pensions under 60 years of age Estate planning benefits
34. Proportioning Rule Example John (60) commences Account Based Pension with $1,000,000 50% tax-free proportion olddeductible amount was $23,084 Move forward 10 years, account balance is $1,200,000 Tax-free component - $600,000 | old rules - $269,160 difference of $330,840 Move forward 20 years, account balance is $1,000,000 Tax-free component - $500,000 | old rules - $38,320 difference of $461,680 Why is this so important? Future Tax saving of between $69,252 - $76,177 (incl. Medicare) Consider optimising through recontribution strategy & running multiple pensions
37. Reason to segregate Both members in the pension phase Member A – accumulation phase Member B – pension phase 1 July 1 June 30 June Average value of current pension liabilities Average value of super liabilities Asset sold here Capital gains tax (ancillary benefit) Different investment strategies (per member or interest) Benefiting from a market recovery
39. Anti-detriment tax deduction Section 295-485 ITAA 1997 Additional amount paid in the event of the death of a member (tax saving amount) to compensate for tax paid on contributions received. Use Audit Method or Calculation Method (ATOID 2010/5) to determine amount How to ‘fund’ the tax saving amount? Tax deduction claimed only on amount paid as lump sum Confirmed in ATO NLTG Super Technical Meeting Minutes – March 2011
40. Anti-detriment Example Frank (58) recently passed away and is survived by his wife Maria Death benefit of $550,000 to be paid Maria wishes to take $150,000 as a lump sum with balance as an Account Based Pension (ABP) Can we claim a deduction for the tax saving amount and how much can we claim?
41. Tax Saving Amount 15/55 x $72,056 = $19,652 tax saving amount Lump Sum to Maria of $169,652 Tax deduction available of $131,013 Available under SMSF resources SMSF calculators on The SMSF Academy website
43. Future Liability Benefit Deduction Section 295-470 ITAA 1997 Lesser known estate planning tool particularly beneficial for SMSFs Election to claim tax deduction on future liability benefit replaces claim of deduction for insurance premium where: Member dies*, Disability superannuation benefit is paid*, Income stream is paid as a result of temporary incapacity * Must be in connected with employment Note: SMSF becomes ineligible claim future insurance premium deductions for members No need for the fund to have insurance to claim the deduction
44. Future Liability Benefit Example John dies suddenly at age 50 and is survived by wife, Jane (48) and two (2) sons, Robert (23) & Chris (19) Member balance of $600,000 in SMSF ($120k TFC) Life Insurance policy of $650,000 in which fund is ordinarily entitled to a tax deduction John’s service period (work) was 24 years What tax deduction can the fund claim for the Future Liability to pay benefits? $1,250,000 x (15 years / 39 years) = $480,769 Remember that no tax deduction can be claimed for the insurance in the elected year of the tax deduction Regardless of previous years where tax deduction was claimed Look to magnify the tax deduction using both anti-detriment and future liability to pay benefits.
45. Top10 SMSF Strategies Contribution splitting back in vogue!! Contribution Reserves Contribution Deferral SMSF Limited Recourse Borrowing Borrowing for Property Development Minimum Pension as Lump Sum Locking in Tax-Free proportion income streams Using segregation effectively Anti-detriment Future Liability Benefit
46. Free educational content for trustees & advisors including videos, podcasts, calculators and flyers on SMSF topics Trustee & Advisor Membership accessing ongoing training, educational content and practical tools Special Offer: Subscribe to our news & events to receive a free copy of 30+ page booklet on Top10 SMSF Strategies for 2011/12 ADVISOR MEMBER $770 or $2200
47. www.thesmsfacademy.com.au Thank You twitter.com/thesmsfacademy facebook.com/thesmsfacademy youtube.com/thesmsfacademy Follow my blog, http://thedunnthing.com
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Editor's Notes
.. Aaron may lead into this one ...When thinking about segregation, I think it’s very useful just to keep this simple concept in mind:If you segregate part of a fund, you are just setting up a fund within a fund. Remember that concept: it’s a fund within a fund.It’s not a completely separate trust vehicle, with a deed, ATO reporting, trustees, etc. It’s simpler than that, it’s just a notional fund, defined only by the Trustees’ decisions and records.All it requires is for the Trustees to maintain records of what asset or assets are segregated, and what accounts are supported by those assets.Also, remember that essentially anything can be in or out of that fund within a fund:You can segregate all of a members’ accounts, or just some of that members accounts;You can segregate all pension accounts from all accumulation accounts, or segregate only some of them;You can segregate particular assets or groups of assets;Segregation can start or stop whenever the Trustees decide;If you need to, you can even have multiple segregated pools within your fund!So remember this idea, it’s key to understanding segregation: segregation is about setting up a sub-fund within your SMSF. That fund can include as much or as little as you choose and can start or stop whenever you choose.