It is best to have a long-term outlook for the ownership of direct shares; this may help to smooth out the impact of market volatility on your share portfolio performance. MDAs charge administration fees for the operation of your account. Brokerage of $XXX will be payable for the purchase of your share portfolio. Any further buys and sells within your portfolio will be subject to brokerage also at a rate of $XX / XX% per trade. Diversification across companies and markets is harder to achieve when building a portfolio of direct shares. Managed funds provide more diversification at a lower level of investment. Capital gains tax may be payable on the sale of shares. Please seek professional tax advice before selling any shares.
112. Re-contribute your COVID-19 Early Release of Super We recommend you make an after-tax, non-concessional contribution of $XXX each / this financial year, to your YYY Super Fund / the recommended Super Fund. This will be funded from your XXX bank account / cash account / XXX investment. This contribution is to redirect money back to super after your withdrawal of $XX under the ‘Early Release of Super – COVID-19” provisions. Benefits:
You can make this contribution without impacting your non-concessional contribution cap. This will help you to grow your retirement savings for the future / to meet your retirement goal of XXX. We estimate that with earnings, you will have $XXX more in your superannuation within the first year. Your contributions will be invested in line with your investment risk profile. After-tax, non-concessional contributions form part of the tax-free component of your Fund. This will be paid to you tax-free upon meeting a condition of release. Benefits will be paid tax-free to beneficiaries such as your adult children, in the event of your death. [Pension pre-60] These contributions will reduce tax payable on pension payments you receive prior to age 60.
Points to Consider:
You will not be able to access this money until you meet a condition of release such as retirement. You must complete the Notice of re-contribution of COVID-19 early release amount (NAT 75394) form if you are close to the cap. If you are not close to the cap, there is no need to submit the form. The current non-concessional contribution cap is $110,000 per annum. Contributions that exceed the cap may be subject to additional tax. Although it won’t count towards your cap, it will towards your Total Super Balance as determined on 30 June, and also towards your Transfer Balance Cap. This may impact how much you can transfer to a tax-free pension in retirement. You will have less funds available in your XXX bank account / cash account / XXX investment. [Under 75 super] As you are under age 75 you are eligible to contribute to Super. Please refer to the Super Flyer for criteria. Superannuation in an accumulation account is subject to market performance. The value of your super savings will rise and fall with the markets you are invested in. If your balance exceeds the Transfer Balance Cap of $1.7 million in the future, you will not be able to make any further non-concessional contributions to super.
76
