Latest news with #SMSFs
1News
13 hours ago
- Business
- 1News
You can DIY your KiwiSaver, but should you?
More KiwiSaver schemes allow investors to choose their own investments - but should you do it? This week, Sharesies expanded its 'self select' KiwiSaver option to include US shares and exchange-traded funds. Members can now add more than 150 New Zealand and US investments to their KiwiSaver portfolios, alongside 'base funds'. Up to half a KiwiSaver member's plan can be allocated to their own investment picks, with a maximum of 5% in each pick. To varying degrees, Craigs Investment Partners, NZ Funds, Nikko, InvestNow, Kernel and KiwiWRAP also allow investors to select where their money goes. Sharesies super and funds general manager Matt McPherson said investors said they wanted more connection and control over what was available. ADVERTISEMENT "People who want to take some of the control, but not all of it are who we're building for." He said about 40% of Sharesies KiwiSaver members had some of their own picks and about 10% of their contributions going into those. He said the most popular self-select pick was the S&P500. "What people like about that is that it's very low cost and it's very passive." Investments in big global brands were also proving popular, such as Microsoft, Apple and Amazon. Each stock was in its own pie fund for Sharesies investors to simplify tax considerations. Genesis Advice financial adviser Edward Glennie said it was sensible for KiwiSaver schemes to have limits on how much choice investors could have, "If you're allowed to put 100% on one particular stock, that might compromise your returns, particular if you're unadvised." ADVERTISEMENT He said he would work with clients through KiwiWRAP to help them set up a suitable portfolio. Self-select options could sometimes have higher costs, but he said that was probably the direction the market was headed. It also allowed people to get away from the 'one manager' model that had been dominant since the scheme launched 18 years ago. "I think the market is gradually opening up." Data director Greg Bunkall said it was difficult to anticipate most individuals outperforming fund managers with their own picks. "In Australia, studies comparing self-managed superannuation fund (SMSF) portfolios with APRA-regulated funds present mixed results, with superior returns observed among SMSFs that possess substantial balances and leverage the expertise of financial advisors in their decision-making processes." McPherson said the option would not be the right thing for all investors. "Fund managers do great work of finding undervalued companies and investing in them, so that's why the product is built around this idea of, if you want to, you can do a bit of it, as opposed to having to take on all the responsibility." ADVERTISEMENT McPherson said Sharesies' model was more like the self-directed options seen in Australian, than full self-management. Kernel Wealth founder Dean Anderson said members could "mix and match" from Kernel's 21 funds. "We've found overall investors are very informed, with fund selection often reflecting an investor's age and life stage. Of course, Kernel isn't a default provider, so investors have typically made an educated decision to move to us and have realised the benefits of being engaged with their KiwiSaver. "Consistently outperforming the market over time is incredibly challenging, but KiwiSaver members, who customise their plans, often have a specific purpose in mind. Some may want 100% of their KiwiSaver invested in global shares, others might prioritise values by choosing ESG-centric funds or they could be aiming to diversify away from other assets they own, selecting funds that balance their overall wealth. "As investors approach the time to access their KiwiSaver, the self-select function becomes even more valuable. They might start to bucket their assets-moving funds for the first few years of retirement spending into a cash fund, while keeping another bucket in higher-growth assets to support their financial needs 10, 20 or even 30 years down the line. "This flexibility is incredibly useful, rather than being forced to only be in one strategy."
Sky News AU
14-05-2025
- Business
- Sky News AU
‘Unfair and bizarre' consequence of Labor's proposed unrealised capital gains tax under the spotlight for SMSF holders
A concerned Aussie with a self-managed super fund has bemoaned an 'unfair and bizarre' financial hit they could face if Labor passes legislation to tax unrealised capital gains in super accounts. The Albanese government's plan to impose a 30 per cent tax on super funds above $3 million, including unrealised capital gains, looms as Labor and the Greens are likely to join forces in the Senate to pass legislation after the former's massive federal election win. It has raised concerns for Australians with SMSFs as many put assets – including farms, properties and shares – into their accounts. One Aussie told Wilson Asset Management, an investment firm spearheaded by Geoff Wilson who has been very outspoken against Labor's tax proposal, the unrealised capital gains tax was 'fraught with unfair consequences'. He said the tax would particularly hurt as SMSF members facing significant losses on assets would have to pay tax as the asset's value recovered. 'I have more than $3m in my SMSF. On one share investment I am currently sitting on losses of $500,000,' he told Wilson Asset Management. 'I expect that these shares will recover full value, but it will likely take some time. 'The incurring of the additional tax on the unrealised gain when it is really only recovering prior period investment value markdowns is both unfair and bizarre.' Treasurer Jim Chalmers was questioned about why an Australian incurring a loss on an asset in their super should pay tax on this. He said an Australian above the $3m threshold can carry the loss forward to a later financial year. As the tax proposal could hurt SMSFs, Mr Wilson has warned the tax changes would be a detriment to small business in Australia. 'People will move away from taking risks. They'll restructure their investments," Mr Wilson told Sky News in a recent interview. Mr Wilson also said local entrepreneurialism and innovation would be under threat, as many investors use self-managed super funds to invest in tech start-ups. 'Mr Albanese is correct in terms of the tax only affects a very small number of people in terms paying extra tax," he said. "But it actually affects every Australian in terms (of the fact) the $4.2 trillion is now going to be not going to be productively invested... I actually think it's a disaster.' The Greens want Labor to lower the taxation threshold to $2m, but support indexing it over time to match the rate of inflation. Prime Minister Anthony Albanese, before Labor's sweeping victory over the weekend, ruled out doing a deal with the Greens to lower the threshold with Mr Chalmers echoing this on Wednesday.
Yahoo
23-02-2025
- Business
- Yahoo
Australasia Financial Services Celebrates 12 Years of Pioneering Investment Advisory Services
PEPPERMINT GROVE, AU / / February 23, 2025 / Australasia Financial Services Pty Ltd, a standout leader in the investment advisory sector, is thrilled to announce its 12th anniversary. Founded in April 2013, Australasia Financial Services has made significant strides in offering award-winning investment solutions, consistently recognized for exceptional service and industry expertise. For the past three years, we have proudly secured our place among the top 10 independent advisory providers, a testament to our unwavering commitment to client satisfaction and financial growth. At Australasia Financial Services, we understand that navigating the world of finance can be daunting for many individuals and businesses. As a one-stop shop for all financial needs, we offer tailored solutions to help you manage your investments effectively. Our team of experienced advisors is equipped to address various financial objectives, ensuring that each client receives personalized attention that aligns with their unique circumstances. One of our flagship services is our expertise in Self-Managed Super Funds (SMSF). SMSFs represent a powerful investment tool that allows individuals greater control over their retirement savings while maximizing their investment potential. Our dedicated professionals guide clients through the complexities of setting up and managing SMSFs, ensuring compliance with regulatory requirements while optimizing investment strategies. In addition to SMSFs, Australasia Financial Services provides a comprehensive suite of investment products designed to cater to diverse financial needs. Our offerings include Fixed Term Deposits, Fixed Rate Bonds, and Government Bonds, providing clients with stable and secure investment options. Our advisors carefully evaluate market conditions and trends, empowering clients to make informed decisions that drive financial success. Over the years, Australasia Financial Services has transitioned from working exclusively with institutional clients to embracing the retail market. This strategic shift enhances our capacity to deliver personalized investment services to a wider audience. By actively engaging with retail clients, we have fostered long-term relationships built on trust and mutual understanding. As we celebrate our journey, we take pride in our team of highly skilled professionals who bring diverse expertise and knowledge to the table. Our advisors undergo continuous training and stay abreast of the latest financial trends, regulations, and technologies. This commitment ensures that our clients receive informed, up-to-date advice tailored to their specific needs. Client success stories are the hallmark of our achievements. We have helped dozens of individuals and families navigate life's financial milestones-from purchasing their first home to planning for retirement. Our client-centric approach emphasizes transparency and education, empowering clients to take charge of their financial futures. We believe that informed clients are the best clients, and we strive to provide them with the tools and resources needed to succeed. In addition to our comprehensive advisory services, Australasia Financial Services is actively involved in community engagement initiatives. We host educational workshops, seminars, and events aimed at raising financial literacy in our communities. We believe that financial education is key to achieving long-term stability and prosperity, and we are dedicated to giving back to the community in meaningful ways. As we look to the future, Australasia Financial Services remains committed to innovation and excellence. Our focus will continue to be on expanding our range of offerings to meet the evolving needs of our clients. We are excited about the opportunities ahead and are devoted to maintaining our reputation as a trusted partner in our clients' financial journeys. To mark this significant milestone, we will be hosting an anniversary celebration gathering clients, partners, and community members. The event will offer an opportunity for networking, learning, and celebrating our achievements together. We invite all investors, current and prospective clients, and the community to join us in this exciting chapter of Australasia Financial Services. Together, we can navigate the complexities of finance, ensuring a brighter financial future for all. For more information about our services or the anniversary event, please visit our website at or reach out to our media contact. About Australasia Financial Services Pty Ltd Australasia Financial Services is an award-winning investment advisory firm established in 2013. With a focus on comprehensive financial planning and investment solutions, we work diligently to help our clients achieve their financial goals. Holding an AFS License Number 432787 and ABN/ACN/ARBN 81158339372, we pride ourselves on our commitment to ethical practices, transparency, and exceptional customer service. Contact details Website: person: Charles Brooks (Press Officer)Company name: Australasia Financial Services Pty LtdEmail: press@ SOURCE: Australasia Financial Services Pty Ltd View the original press release on ACCESS Newswire Sign in to access your portfolio
