This is NetActuary's Typepad Profile.
Join Typepad and start following NetActuary's activity
Join Now!
Already a member? Sign In
NetActuary
Hobart, Australia
The core objective of the firm is to assist advisers with the computational aspects of managing retirement income uncertainty.
Interests: Pension Risk Management, Age Pension Maximisation, Transition to Retirement, Investment Property
Recent Activity
The 2018-19 allowable income and asset thresholds for a full Age Pension are now available. From 1/7/2018 the allowable income threshold will increase for singles from $168.00 p.f. to $172.00 p.f. For couples the increase is from $300.00 p.f. to $304.00 p.f. Deeming lower limit has increased from $50,200 to... Continue reading
Posted 2 days ago at NetActuary
Image
In a similar manner to superannuation funds needing to have an investment strategy, there will be a requirement to satisfy a “retirement income covenant”. This basically codifies the requirements and obligations for trustees to help improve retirement outcomes. The implementation date is likely to be 01/07/2020. The funds will need... Continue reading
Posted Jun 6, 2018 at NetActuary
Image
The recent legislation changes have failed to adequately consider legacy pensions. There are multiple issues where this is now becoming evident. This blog details a few that practitioners need to watch. Market-linked pensions (term allocated pensions) are treated as “capped defined benefit income streams” where they were in place before... Continue reading
Posted May 20, 2018 at NetActuary
Image
Yesterday a person asked me what were “disregarded small funds assets” and their relevance to actuarial certificates for exempt current pension income. In essence, where you have a complying SMSF with at least one superannuation interest in retirement phase AND just before the start of the year one person had... Continue reading
Posted May 13, 2018 at NetActuary
An SMSF-friendly Budget is the good news coming out of the 2018-19 Federal Budget. With SMSF members still working through the wide-reaching and complex superannuation changes which took effect from 1 July 2017, this Federal Budget will provide much needed stability while looking to reduce costs for SMSFs and prove... Continue reading
Posted May 8, 2018 at NetActuary
Image
As the planning duration on lifetime legacy pensions in SMSFs reduces, the investment philosophy tends to become more conservative. The SMSFs with legacy pensions we have been reviewing currently have quite high cash holdings. It’s important not to overstate the investment philosophy. Growth will have a better tax percentage than... Continue reading
Posted Apr 9, 2018 at NetActuary
Image
Recently it has been observed that to carry out the management of an SMSF one needs to know more about the client. The Total Super Balance and its ramifications for non-concessional contributions is one such example. In a similar vein – and with even more importance – the same applies... Continue reading
Posted Mar 25, 2018 at NetActuary
Image
In a recent blog I showed how a small procedural implementation difference could result in greatly different tax outcomes for the client. At the same time, I wondered how automated actuarial certificate systems would solve this dilemma appropriately. The answer (upon additional research) is worse than I expected – it... Continue reading
Posted Mar 18, 2018 at NetActuary
Image
NetActuary has a particular interest in legacy pensions. While SMSFs have not been able to directly issue defined pensions since 01/01/2006, quite a few of this type of pension still exist. We have (in the past few weeks) been assisting administrators get ready for a new level of support on... Continue reading
Posted Mar 12, 2018 at NetActuary
Image
Every time the government changes the rules, there is a last minute rush by people to enjoy the grandfathered option. Already there are signs this is happening with the Limited Recourse Borrowing Arrangements (LRBA) changes from 1st July, 2018. To be ready for this, NetActuary has a new enhanced SMSF... Continue reading
Posted Mar 10, 2018 at NetActuary
Image
Your SMSF clients would be horrified to realise that a small difference in how one starts a pension could result in considerably more investment tax being paid. We have gotten used to the idea that capital gains tax can vary markedly depending on whether the realization takes place in accumulation... Continue reading
Posted Feb 28, 2018 at NetActuary
Image
My Retirement products (also called Comprehensive Income Products for Retirement) are designed to empower trustees to provide members with an easier transition to retirement income. I understand that financial planners will have to demonstrate that any non-My Retirement product they recommend is in the client’s best interests as opposed to... Continue reading
Posted Feb 19, 2018 at NetActuary
This blog has been prompted by watching David Busoli’s video about the “strategic admin” focus for his new SMSF Alliance firm. The same applies to actuarial certificates. Whilst one keeps the low costs and processing speed gains of recent years, we find ourselves in a climate where a client’s best... Continue reading
Posted Feb 5, 2018 at NetActuary
Image
Thanks for all the kind comments and encouragement about these pre-retirement planning tools. I agree that there is a need for modest cost planning support tools. The comments that in the years ahead these tools are likely to have a robo advice version is also valid. In this second calculator,... Continue reading
Posted Jan 18, 2018 at NetActuary
Image
The first of the three calculators to assist with pre-retirement planning for couples can be downloaded from the NetActuary website – click here. The calculator works out the assets that need to be accumulated by a preferred retirement date to cover a desired retirement income. It allows you to set... Continue reading
Posted Jan 16, 2018 at NetActuary
Image
A retirement plan is important – but shorter-term family expenditure needs and lifestyle ambitions can make it look too difficult to tackle. Clients need to be able to see the whole picture – where mortgages are paid off and private school fees don’t wipe out disposable income. NetActuary has developed... Continue reading
Posted Jan 14, 2018 at NetActuary
Image
There is no doubt that recent changes have made SMSF administration and management a lot more complex. This blog considers measures that can be taken to make Exempt Current Pension Income (ECPI) aspects less onerous administratively. For the 2017/18 financial year, the ATO will enforce it’s view that where a... Continue reading
Posted Jan 1, 2018 at NetActuary
I like this time of the year. Besides plenty of Christmas pudding and desserts, it is a good time for reflection and planning business strategies for 2018. Superannuation administrators, financial planners and auditors need a high level of competency and proactivity if they are going to act in their clients’... Continue reading
Posted Dec 14, 2017 at NetActuary
Image
I have been watching – on Netflix – a fascinating series by mathematician Marcus du Sautoy (yes seriously fascinating!) on how the precision which one can measure things influences the outcomes that are possible. The better the precision, the better the outcome that can be created. To illustrate this, here... Continue reading
Posted Nov 25, 2017 at NetActuary
Image
UK pension splitting provisions are not dissimilar to Australia. It is possible to split personal pension schemes; occupational pension schemes and the Additional State Pension. It is not possible to divide the basic State Pension. Scottish provisions can have difference to those in England, Wales or Northern Ireland. In the... Continue reading
Posted Nov 14, 2017 at NetActuary
Image
The Actuaries Institute’s new practice guidelines for projected retirement benefit illustrations will apply from 1st January 2018. It contains some useful provisions and comments for a variety of tasks from retirement calculators to comparing benefits from different types of funds. It also provides comments upon how to help users appreciate... Continue reading
Posted Nov 2, 2017 at NetActuary
In Private Binding Ruling 105 1226866016 (Date of Advice 18 May 2017) a taxpayer asked the question that if “applicable fund earnings” were transferred from one foreign superannuation fund to a second foreign superannuation fund – and then on to an Australian SMSF, could an election be made in accordance... Continue reading
Posted Oct 30, 2017 at NetActuary
Image
NetActuary is going to make available its extensive library of custom computational tools. The first group will be those that help with pre-retirement planning. There is little point in talking about what assets would be required at retirement for a comfortable lifestyle without examining how feasible this is. Paying off... Continue reading
Posted Oct 22, 2017 at NetActuary
Image
In April 2015 the UK introduced an option to access retirement monies similar to the Australian Account Based Pension. The Flexible Access Drawdown allows those over the age of 55 to withdraw 25% of their pension post as a tax-free lump sum and the remainder subject to the normal rates... Continue reading
Posted Oct 12, 2017 at NetActuary
Image
The SMSF Association/Accurium checkup for SMSF financial health as at 30th June 2016 has just been published. It shows that many SMSF members are further away from achieving their retirement goals than previously. I am not surprised at that because the paper showed a median investment return of 1% for... Continue reading
Posted Sep 18, 2017 at NetActuary