Simply put, you can nominate in writing who you want to receive any future payout with a Beneficiary Nomination or Binding Death Nomination (depending upon what you choose).
Lots of things need to be moved around to make room for a new life - from furniture, family sleeping patterns and even moving some of your insurances currently held in your super.
To really understand this real-life story, to need to understand two simple legal facts about self-managed super funds:
Sounds simple enough, right?
But then to make matters worse comes retrospective investment property land tax (thankyou OSR), slow debtors, perhaps a sickness or accident forcing time off work, supporting frail aged parents with declining health or maybe a family law court financial settlement after a relationship change. Financial life is complicated.
I realised it was time to begin to explain where money comes from, after all, it's up to the adults in the lives of children to model helpful behaviours as our children begin their journey of understanding money.
"No, not that talk... the other big talk."
After 17 years working as a financial adviser, you get to see patterns in people's actions and, more importantly, their questions.
The number one question I get asked by parents of all ages is,
‘How can I help my kids get ahead in life?’
Nothing starts a heated conversation between mates at a BBQ quicker than a question about superannuation and whether you should be allowed to get access to it before you retire.
The government's stated purpose behind our national compulsory super savings plan is to provide people income in retirement to substitute (or supplement) the Age Pension. This is known as the sole purpose test.
This is especially important if your life insurance is owned by your super fund because there are additional rules you need to understand. If you don't, then you'll leave a whole lot of unnecessary pain and problems for your survivors.