Take Advantage of the Superannuation "Bring Forward" Rule

by Dominique Schuh

ASX outperforms again with a strong rise. The Australian sharemarket outpaced global markets for the second session as commodity-rebound optimism steadily developed into a resource-stocks scramble. The US S&P 500 index gained 0.2 per cent last night, but the S&P/ASX 200 index climbed 71.1 points, or 1.31 per cent, to 5484.4 as iron ore prices surged again, leaving the index up 6.4 per cent since the US election.

What this means for you:
The rise in the Australian share market over the last 6-12 months has been a welcome change to investors who hold Australian shares. If we go back in time and assess the returns over the last 5 years, it's been the internationals that have outpaced Australian equities. Don't make a rash decision with your asset allocation and go all in with Australian companies – diversification is the best friend for long term investors. 

If you're considering building your super fund with a bulk investment, this financial year is the time to take advantage of that. This year will be the last for some time that we're able to make use of the "bring forward rule" that allows three years' worth of non-concessional contributions to go into super for those under 65. This means that a bulk amount of $540,000 can be contributed to super this year for those who are eligible. 
If you would like to review your current structures, contact us today on 5482 2855.