David Kennedy, Author at Retirement Essentials

Is your super really safe?

Is your super safe from high profile collapses?

There are three simple words which are guaranteed to unsettle almost any retiree: SUPER FUNDS COLLAPSE. Such failures are very topical right now, in the wake of the recent collapses of the First Guardian and Shield Master Funds. These are examples of managed investments held within super funds – high profile liquidations involving more than 10,000 individuals’ life savings, so there is certainly cause for concern. But how widespread or likely are such financial failures – and should you be worried?

Once again, the answer is yes – and no. There are some clear misdemeanours involved and some warning signs to consider to ensure you don’t lose your super to dodgy operators. Today Retirement Essentials Head Of Advice, David Kennedy lends his many years of experience to take the heat out of the debate and help you make sense of what just happened – and how avoidable it really might be.

Couples and super: Using FAQS to explain the rules

by David Kennedy | Superannuation

Some days it can feel hard enough managing your own money without needing to be totally across ‘couples’ rules and how they can affect both partners’ income.

Today we’ve compiled a list of the five most commonly asked ‘couples’ questions, with answers to help you stay on top of the rules that affect your household the most. These answers cover contributions, tax, downsizing and younger spouse options, so read on to ensure you have the information you need for your own money management.

Smart ways to reorganise your super and turbocharge your Age Pension

by David Kennedy | Retirement Advice

Chris and Sandra had recently retired, but had a nagging feeling that they could have organised their super better. Their balance was substantial, but they wanted a second opinion on whether they had missed anything that mattered when it came to accessing this money. They recently contacted Retirement Essentials adviser, Sharon Sheehan, to double check their numbers. It was a great call – her suggestions to restructure their super have led to an $50,000+ . Here’s what she found.

Chris (age 66) and Sandra (age 63) booked an advice consultation. They wanted to discuss their retirement plans and explore options to maximise their finances before Chris turned 67 and was eligible for an Age Pension. They knew it was important to find out about strategies to make the most of their money but were unclear where and how to start.

They were in the fortunate position of owning their home with no mortgage. They believed that they would need $80,000 per annum in retirement to meet their ongoing household and lifestyle expenses. Chris had $900,000 in an income stream (an Account-Based Pension), while Sandra had $450,000 in super in addition to a small amount of cash, a car, and their home contents. This meant that the total value of these assets (excluding their home) was around $1.4 million.