My bank has no ATMs nearby any more, how do I avoid withdrawal fees?
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I bank with CBA which before two years ago had an ATM and branch in the local shopping centre. The shopping centre has a Coles and numerous other shops and previously had other banks and ATMs – all gone. Further from home, Newcastle West has large shopping centre, Officeworks, Coles, Big W, Woolworths supermarket, dozens of other shops. The nearest CBA ATM to me is in an obscure location in Newcastle East with only paid on street parking. Any suggestions?
I suggest you do what I do. Get yourself an ING Orange Everyday debit card which has no fees – provided you deposit at least $1000 every month and make five transactions of any size – it could be 5 cups of coffee. ING refunds commissions at every ATM in Australia. This means you could use any ATM, including at shopping centres and service stations.
Banks have started cutting back on the number of ATMs available.Credit: Paul Rovere
I have a two-year-old and have set up a children’s bank account with bonus interest. I have close to $10,000. Is this the best option? What tax effective investment options are available for children?
I have long suggested that insurance bonds are the perfect investment to build up funds for children and grandchildren because is nothing to declare on anybody’s tax return each year as the earnings accrue as bonuses. Furthermore, at any stage the bond can be transferred to the child free of capital gains tax. An insurance bond is a tax paid investment with the fund paying tax at up to 30 per cent on your behalf.
A good example is Generation Life’s ChildBuilder insurance bond which can be a great way to create wealth for your children for a specific purpose. You may want to provide for their education, help them buy a home or both. ChildBuilder can help you do this in a tax-effective way, while still remaining flexible enough to adapt to life’s unexpected moments.
While insurance bond funds are taxed at a maximum of 30 per cent, the ChildBuilder’s long-term effective tax rate may be much lower depending on the investments you select. A financial adviser can help you select the most appropriate bond for your situation.
Could you tell me if there is a limit on how much a person can have in superannuation? I think I have read $1.9 million but where I read this escapes me.
There is no limit on what your superannuation can grow to, but there are limits on what you can contribute. These depend on your age and possibly your balance.
You cannot make non-concessional contributions to super once your balance reaches $1.9 million, but you can still make concessional (tax-deductible) contributions as long as you pass the age criteria or the work test (if 67 to 75).
The most you can transfer to pension mode is $1.9 million. Once you have made that transfer the amount you can have in pension mode can grow provided you are making the required pension withdrawals.
I am 66, just retired and want to apply for the age pension come end year when I reach pensionable age. I have $110,000 in super and have minimal savings. My wife is 62 and receives a DSP (Disability Support Pension). We own an investment property worth $800,000 rented out for $700 per week. Our non-financial assets such as car and furniture would be worth no more than $50,000. For the Centrelink asset test, I was told that money in super counts towards our assets. Can you please advise if I should move my super into another account like a retirement account, or even withdraw it so that I will have a higher chance of qualifying for/or a higher pension?
Your issue here is not superannuation, it is your investment property and your combined assets are getting close to $1,003,000 which is the cut-off point for a couple under the assets test. One option is to withdraw all your super and place that in your wife’s name where it will not be counted until she reaches pensionable age.
Make sure your personal effects are at market value which puts around $5000 as the appropriate value for most couples. Value the car at second hand wholesale value. The big decision long term is whether you keep the investment property or sell it – factors here will include its potential and what capital gains tax will be payable if you do sell it. This is an area where you need expert advice.
Noel Whittaker is the author of Retirement Made Simple and other books on personal finance. Email: [email protected]
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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