March 21, 2018

The popular choice for new SMSFs: A corporate trustee

A fundamental question for intending SMSF members is whether to have a corporate trustee or individual trustees for their new fund. More than 80 per cent of new SMSFs established in 2016-17 had a corporate trustee whereas 57 per cent of all SMSFs had a corporate trustee as at June last year, according to the latest tax office data. Individual trustee arrangements – with all members individually being trustees – are typically less costly and simpler to put in place when a fund is being setup. Yet a corporate trustee potentially provides greater flexibility for the future. These tax office statistics […]
March 14, 2018

Should I pay off my mortgage or contribute to super?

One of the most popular questions we are asked by our clients is whether it’s best to pay off their mortgage first or salary sacrifice money into their super fund – or can they do both? The answer to this question is never the same considering that everyone’s needs are completely different, but we thought we’d provide an explanation with some examples to give you an idea of how both options work. It’s not really a sacrifice Salary sacrifice means arranging for your employer to pay part of your salary into superannuation instead of paying it to you in cash. […]
March 14, 2018

Rethinking retirement

A year ago The Economist magazine published an article about the ageing of the Japanese workforce, pointing to three very senior executives as examples. Today, those three executives are still at their jobs with the difference that they are a year older. Tsuneo Watanabe, editor-in-chief of the world’s biggest circulation newspaper, the Yomiuri Shimbun, is 91. Masamoto Yashiro, chairman and chief executive of Shinsei Bank has just turned 89 while Mikio Sasaki, chairman of Mitsubishi, is now 80. The Economist had commented that while people in most countries typically retire before becoming eligible for an age pension, Japan is an exception. The average retirement […]