Kohler Alan - Superannuation For Dummies

Superannuation For Dummies

by Trish Power

Wiley Publishing Australia Pty Ltd

Superannuation For Dummies

2nd edition published 2007 by Wiley Publishing Australia Pty Ltd 42 McDougall Street Milton, Qld 4064 www.dummies.com

Copyright 2007 Wiley Publishing Australia Pty Ltd

The moral rights of the author have been asserted.

National Library of Australia Cataloguing-in-Publication data

Power, Trish.

Superannuation for dummies. 2nd ed.

Includes index. ISBN 978 0 731 40715 6 (pbk).

Pensions Australia. 2. Retirement income Australia. 3. Finance, Personal Australia. I. Title. (Series: For dummies).

331.2520994

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NOTE: THIS BOOK IS INTENDED TO OFFER GENERAL INFORMATION ON THE TOPIC OF SUPERANNUATION. ALTHOUGH THE GENERAL INFORMATION ON SUPERANNUATION CONTAINED IN THIS BOOK HAS BEEN REVIEWED BY SOURCES BELIEVED TO BE RELIABLE, SOME MATERIAL MAY NOT BE SUITED FOR EVERY READER OR THEIR INDIVIDUAL CIRCUMSTANCES. READERS ARE STRONGLY ENCOURAGED TO CONSULT WITH APPROPRIATELY QUALIFIED PROFESSIONAL FINANCIAL ADVISERS.

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About the Author

Trish Power is an author and journalist who lived a former life as a superannuation tech-head, and toyed with the idea of becoming a nomad.

She is the author of Superannuation For Dummies , Superannuation: Choosing a Fund For Dummies and Dear Trish: Super Tax-free Superannuation Dollars For You . Trish is the co-author of You Dont Have to be Rich to Become Wealthy: The Baby Boomers Investment Bible and a contributor to Making Money: Alan Kohlers Guide for the Independent Investor .

She is Superannuation Editor for investment newsletter Eureka Report , where she writes a weekly column called Dear Trish covering all aspects of superannuation, including investing. She also writes the four-page DIY Super section for investment publication Investing Times . Trish is a contributor to other financial publications including The Age , Superfunds magazine and INTHEBLACK .

Trish describes much of her financial writing as educative journalism. She is interviewed regularly on radio and presents at educational seminars, typically speaking about investing, superannuation, property, and women and investing.

Trish has worked on member communication campaigns for some of the largest superannuation funds in Australia, and spent several years educating and advising the community and industry on super while employed with the industry regulator. She also held the role of Technical Manager for CPA Australias Superannuation Centre of Excellence before moving to New Zealand and writing a novel.

Trish has both a law degree and an economics/commerce degree from the University of Melbourne, and holds a professional writing and editing qualification from RMIT University.

She has travelled extensively throughout Asia, the Middle East, Africa and Europe. Her all-time favourite destinations are Venice, Iceland, Central Australia, Botswana and Petra in Jordan.

Trish lives in Elwood, Victoria, with her partner.

Dedication

This book is dedicated to all of those in the community who work tirelessly to educate and empower Australians about financial opportunity giving Aussies access to plain-English information that allows anyone to make their lives more secure in retirement and in day-to-day life.

This second edition is also dedicated to my late aunt, Mary Power, who was a great supporter of my publications and who passed away during the writing of this edition.

A Special Thanks to CPA Australia

A special thanks to CPA Australia, in particular Michael Davison, who kindly conducted the technical review of the final manuscript. Michael has lived and breathed the superannuation changes he has a marvellous grasp of the big picture super issues and also how individual fund members are affected. Thank you Michael for your counsel over the past few years.

Authors Acknowledgments

A lot of wonderful people helped make the second edition of Superannuation For Dummies a reality. My editor, Robi van Nooten, again generously gave of her experience and intellect and worked with me to create the best book possible.

Thanks and kudos to Lesley Beaumont, Charlotte Duff and the rest of the Wiley team for appreciating the importance of updating Superannuation For Dummies. I also want to acknowledge Michaela Anderson, Bradley Pragnell and the ASFA team for their involvement in reviewing the previous edition of this book.

A big thank you to Alan Kohler for writing such a positive foreword and for supporting this book. Thanks Alan.

My friend, Kate McKinna, who, as with the first edition, read many of the chapters and provided excellent feedback. Thank you Kate for taking the time.

And many thanks to Angela Longo from Greenfields Financial Services Lawyers for reviewing the death and divorce chapters, despite her hectic workload. And to Kevin Kelly, thanks for your support.

Again, thanks to my superannuation specialist brother Peter Power and his 3 Dimensions business partner Paul Lam for acting as a sounding board for my super scenarios, and for assisting me when my computer misbehaved.