"Make it your ambition to lead a quiet life, to mind your own business and to work with your hands, just as we told you so that your daily life may win the respect of outsiders and so that you will not be dependent on anybody." - 1 Thessalonians 4:11-12
When I was learning about investing in the stock market, I needed books for more information. There are a lot of free pdf on the web but the books that I like, I want to have a hard copy of it so that my children maybe can read it someday. Maybe that will be the legacy that I'll be leaving them. I want them to know money management as it is very important. If only I have known that when we were kids, maybe I have chosen a different path. So, I went to check the bookstore and EXPENSIVE!! I searched for online bookstores that offers affordable books like amazon and I found at about BOOK DEPOSITORY. These are my first books. Jesse Livermore's Methods of Trading in Stocks - Richard Wyckoff This was my first ever book about trading. It has only 32 pages and can be read in one sitting but full of information. It tells about how Livermore's preparation before and after trading, money management, news, stocks to trade and pyramiding. How To Trade in Stocks - Jesse Li
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Australia: How much Is My Net Salary? -Superannuation (Part 2)
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Superannuation, often called super, is money you set aside during your working life to provide an income to live on when you retire from work. Currently employers must by law contribute 9.5% (until June 2021, 10% from July 2021-June 2022, 10.5% from July 2022-June 2023, 11% from July 2023-June 2024, 11.5% from July 2024-June 2025, 12% from July 2025-June 2026 onwards.) of an employee's ordinary time earnings(OTEs are what you generally earn for ordinary hours of work like bonuses, allowances etc. OT is not included)into a super fund. Super contributions are remitted at least every three months (quarterly). Employers have 28 days after the end of each quarter to make the payment. Also, there is a maximum limit on any individual earnings base for each quarter. The maximum limit (FY 2018/19 is $54,080 per quarter) is indexed each year and is announced by ATO. Example: If Joe salary is $250,000/year. His employer has to contribute $54,080 x 9.5% per quarter only. (For me, I feel like it is the same concept as mutual funds and/or VUL single pay if you include insurance in your super.)
There are two types of contributions to super:
Concessional - employer contributions and contributions made under salary sacrifice arrangement. Contributions made before tax but are taxed in the super fund at 15%.
Non-concessional - contributions made into super after being taxed. They are not subject to be taxed again when put into the super.
There is an annual cap on the contributions. Any excess made will be added back to your tax return and taxed at your marginal tax rates. As of this FY, the cap is $25,000 and may change from time to time so it is important to keep aware of the rules.
If you want to boost your super, you can have a salary sacrifice arrangement with your employer. These contributions will not be counted as assessable income for tax purposes so are taxed at a maximum rate of 15% which is less than the marginal tax rate but only up to the cap of $25,000. However, there is a ruling that from July 2018, if your super balance is less than $500,000 on June 30 of the previous FY, you may be entitled to contibute more. The first year you'll be entitled to carry forward unused amounts is on FY 2019/2020. Unused amounts are available for a maximum of five years and after this period will expire.
If you are a low or middle income earner and you make a personal (after tax) contribution to your super, the government also makes a contribution (co-contribution) up to a maximum amount of $500. ATO will work out if you are eligible for it when you lodge your tax return and if the super fund has your TFN, the ATO will pay your super account automatically.
Some low or middle income earners might also be eligible for the low income super income tax offset (LISTO). When an employer makes the super contribution, the government may make a LISTO payment which equals 15% of the contributions.
Once you are eligible to access your super, you can a) take it all as a lump sum b) invest it in a superannuation pension or annuity that provides you with a regular income stream (taxable) c) do a combination of both.
Do You Know. Your super money can be taxed in three stages: contributions (15%), investment earnings (depends on how it is managed. Same as mutual funds, the NAPVS shown is already net of fees, taxes etc.) and super benefits (super income stream live dividends from your super).
Getting Started. A standard choice form is provided upon work commencement for your completion. You can choose either your employer's nominated fund or your own preferred super fund. Make sure your super fund is a complying fund, one which complies with certain rules set by the government. You can use the employer contributions calculator on the Moneysmart website or the ATO's employee superannuation guarantee calculator on the ATO website.
You should also check the statements from your super fund regularly to be sure your employer is paying the correct amount into the right fund.
If super has been paid into various employer-nominated funds, you'll end up with super in a number of accounts and will be paying a lot of fees and costs. To minimise such, it is usually better if these amounts are combined in one and before doing so, find out if a fund will charge you to close account with them and whether you'll lose any other benefits.
Monitor your super account. The level of fees charged and the rate of return on your funds can make a very big difference to the amount built up in your super fund when you retire.
Use your mygov account to see a list of all your super accounts, look for a lost super or request a transfer.
Deciding when and how to take your superannuation is a complex decision as there are many tax and welfare implications. You can seek advice from a professional.
Choosing A Fund. When choosing a fund, consider the fees and costs, features, insurance cover (many super funds provide life and disability cover- death cover, TPD and income protection), investment options and performance, and most of all, it is licensed and complies with super rules and regulations.
So if your contract says, salary will be $50,000 inclusive of super. It means your gross salary is $$45,662.10 ($50,000/1.095).
To know how much is the average salary, you can do your research here https://www.payscale.com/research/AU/Country=Australia/Salaryby indicating your profession. So you'll have an idea on how to answer, "What are your salary requirements?" in an interview.
When I was learning about investing in the stock market, I needed books for more information. There are a lot of free pdf on the web but the books that I like, I want to have a hard copy of it so that my children maybe can read it someday. Maybe that will be the legacy that I'll be leaving them. I want them to know money management as it is very important. If only I have known that when we were kids, maybe I have chosen a different path. So, I went to check the bookstore and EXPENSIVE!! I searched for online bookstores that offers affordable books like amazon and I found at about BOOK DEPOSITORY. These are my first books. Jesse Livermore's Methods of Trading in Stocks - Richard Wyckoff This was my first ever book about trading. It has only 32 pages and can be read in one sitting but full of information. It tells about how Livermore's preparation before and after trading, money management, news, stocks to trade and pyramiding. How To Trade in Stocks - Jesse Li
I have encountered in some forums people asking whether they will continue paying their contribution or not upon reaching the minimum required contributions; and some comments would suggest that they stop paying and invest to maximize the return. Yes, it can be done. It's like BTID (buy term insurance and invest the difference). Also, another reason why people discontinue paying their SSS contributions is because of the pension computation. They said that if you have been paying the minimum and instantly increased your payment to the maximum 5 years before retirement, you will get the same pension with the one paying the maximum. However, according to SSS, this is not true. One is not allowed to instantly increase it's contribution to the maximum 5 years prior to retirement. To understand more, SSS issued circular no. 2015-007. A) If below 55 years old , he/she can change without limit in frequency and in number of salary brackets in a given calendar year. B) If
The Australian financial or fiscal year starts from July 1 - June 30. Because we arrived July 2018, we are on FY 2018/2019. If you arrive May 2019, you will still be under FY 2018/2019. Why is this important? Because at the end of the financial year, centrelink will be balancing your family assistance payments. They will compare your income estimate with your actual income to ensure that they have paid the correct amount. To be able to transact easier with the government, you need to create your mygov account. After creating, secure your medicare number, CRN and TFN. Once you have them, link all your accounts to mygov and you can transact from there. Homepage upon logging to mygov account Click on centrelink once you log-in in your mygov account. You will be redirected to the centrelink website. Click on "Make A Claim" then fill in the forms. You also need to upload some documents like proof of identity, child birth certificate, tenancy agreement, TFN etc.
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