Update No. 57 – 27/04/12

My wife and I filled out the forms to transfer our Superannuation into a recently established Self Managed Superannuation Fund (SMSF) today.  For those readers outside of Australia, Superannuation is a Government mandated retirement savings program, whereby your employer contributes 9% (currently – though it is expected to increase over time) of your salary into a tax-efficient investment vehicle to provide for your retirement.   The expectation is that eventually Government funded pensions will be substantially scaled out.  You can co-contribute from your pre-tax or post-tax salary & the tax rate is generally ½ the corporate rate (which is 30% presently) during the accumulation phase and zero when it commences pension distribution (subject to limits).

In any case, operating an SMSF has recently become much more affordable and as part of my commitment to fellow investors to commit over 90% of our net-worth to EGP Fund No. 1 Pty Ltd over the next few years, the assets within our Superannuation were an obvious source of increase towards this goal.  We will commit about 2/3 of the SMSF to the fund as at the next contribution date (1 July 2012) and then gradually increase this proportion over time.  As at July, we will have an amount approaching 2/3 of our net worth invested in the fund and we remain very confident about our financial future.

It will be nice to have a greater element of control over these Superannuation funds, which it must be said have generated very mediocre returns over the last 4 years – Tony Hansen 27/04/12.

EGP Fund No. 1 Pty Ltd. Up by 6.56%%, lagging the benchmark by 2.52% since January 1^st. Since inception, EGP Fund No. 1 Pty Ltd is Up by 2.57%%, leading the benchmark by 8.04% all-time (April 1^st 2011).