Self Managed Super Funds - Your Perfect Match?

Sick of lack lustre returns?   Think you could do a better job investing your hard earned superannuation savings than the professionals?   If you would like to control where your money is invested, a Self Managed Superannuation Fund (SMSF) could be the answer.   A word of warning though - you might be biting off more than you chew!

Managing your own self managed superannuation fund can be time consuming,  and very few investors fully understand the responsibilities of being a Trustee of their own fund (and the ATO are onto them!).   To give you a hand to start your research to ascertain whether a SMSF is your perfect match, I have sourced the following publications on the Australian Taxation Office website:- Read more

Medicare Chronic Disease Dental Program - Are you eligible?

I have  just come across this wonderful Government benefit whereby some patients may be able to receive dental services under Medicare.

Basically, if you have a chronic disease, such as asthma, cancer, diabetes or some other major illness, you may be able to claim up to $4250 over a two year period for major dental work.    To ascertain whether you are eligible, following is a link to the Department of Health and Aging.   You will also need a referral form your General Practitioner.

http://www.health.gov.au/internet/main/publishing.nsf/Content/fact%20sheet_dental-patients

Alternatively, you can ring Medicare on 132 011.

Cheers

Josie Kay

ps. It is rumoured that the Labour Party was to axe this benefit, so don’t leave it for too long to find out if you qualify.

Finance Calculators - as featured on Money Matters

Hello readers - Kel Harper here doing some work for Josie….On Sunday’s Money Matters show Josie mentioned some finance calculators…well, I haven’t had time to make any cool little images for you to click on but I do have the links….all you have to do is click and have fun:

Millionaire calculator:

http://www.askjosiekay.com/java/Millionaire.html

Compound Interest:

http://www.askjosiekay.com/java/CompoundInterest.html

Mortgage Pay off:

http://www.askjosiekay.com/java/MortgagePayoff.html

Mortgage v Rent:

http://www.askjosiekay.com/java/MortgageRentvsBuy.html

Currency fluctuations and investing

Q. I have some money invested in international shares. How does the fluctuations in the $A affect my return?

Josie’s Answer - Once a decision has been made to invest in a security of another country, it automatically involves an investment in that currency.

An investment in an American share will mean that the return will be affected by any movement in the US Dollar relative to the Australian dollar. If the US Dollar strengthens, then the value of an investment in a US share will also strengthen.

So depreciation of the Australian dollar adds value to an overseas investment, and an appreciation of the A$ means that it will detract from returns. If you are invested in a managed fund (and you probably are through your super), some fund managers have the option to employ hedging strategies or active management of currency.

Hedging is a tool employed as insurance, to protect a portfolio from future exchange rate variations. If you fund states it is ‘unhedged’ it means that it will benefit from a depreciating $A, but the return will reduce by an appreciating $A. Read more