For most of us, Superannuation is at the centre of our financial universe, even if we don’t realise it. Having the right superannuation fund and superannuation strategies in place can see you set for a long, happy and comfortable life when you retire. Pick the wrong super fund and you and your loved ones could pay the price down the track.


Portfolio Manager Selection

Some superannuation funds only provide a default investment option. The default option is usually based on the age and risk profile of the average member of a super fund.

Other funds allow you to tailor your investment options based on your own risk profile and retirement goals. Financial Advisers can assist in this process by selecting investment options that meet strict selection criteria.

At Designed Wealth we personally interview investment fund managers and choose investment options for our clients based on the funds meeting our requirements in a number of ways. The questions we ask fund managers when we meet with them in our office:

  • Who is in the investment committee and how do they make their decisions?
  • Is your investment approach Top-Down or Bottom-Up?
  • What is your management style – Active or Passive?
  • What is the performance of the fund over the last 5 years?
  • What sections of the stock market do you target ie. big caps or small caps?
  • What is the size of the fund?

Our superannuation investment recommendations also take into consideration your attitude to risk (risk profile), your retirement goals and AMP’s set of benchmark allowances based on risk tolerance.

Contributions tax can be offset by insurance premiums

Generally if a contribution is made to a superannuation fund, the contribution will incur a 15% contributions tax if claimed as a tax deduction.

However, for certain superannuation funds, if an insurance policy is taken out, the premium for that policy is a tax deduction to the superannuation fund and therefore reduces the contributions tax that will be deducted from contributions. Any contributions tax is sent to the ATO.

For example:

Sally’s superannuation fund receives a superannuation guaranteed contribution of $1,000 from Sally’s employer. The contribution going into the fund will be taxed 15%, leaving $850.

Sally takes out a life insurance policy with an annual premium of $1,000. This $1,000 is a tax deduction to the fund so the fund credits 15% back to Sally’s superannuation. Sally now has $1,000 in her superannuation fund.

This means, in this example, that no contributions tax is sent to the ATO.


Binding Beneficiaries

If you make a binding nomination, the trustee of your super fund is required, by law, to pay your benefit to the person/s you have nominated when you die, as long as the nomination is valid at the time of your death. Essentially with a binding nomination your super will be paid, as you want, after your death. Binding nominations are generally only remain valid for three years.


No matter your age, having the right superannuation fund can have a big financial and emotional impact on you and your family. Not all super is the same so talk to one of our qualified Financial Advisers to find a superannuation solution to suit you on 07 3841 1200 or email us.

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