An income bucketing strategy can provide a significant boost to median balance when compared with a traditional balanced portfolio, according to new research from Accurium.
Research undertaken by the SMSF pension specialist indicated that over a 10-year period, an SMSF using an income bucketing strategy can provide a balance five per cent higher than a traditional balanced portfolio.
Accurium has claimed that for a typical SMSF at retirement with a balance of $1.1 million, an income bucketing strategy could provide an added $43,000 when compared with a traditionally balanced SMSF portfolio over 10 years.
Tracy Williams, Accurium CEO, noted that in a burgeoning and prospering investment market, income bucketing for SMSFs becomes an even more attractive option.
“When markets perform well, the typical SMSF using income bucketing could see a balance of $99,000, or six per cent higher than a traditional balanced portfolio,” Ms Williams added.
The research serves as part of Accurium’s latest retirement insights report, Pension Strategies for SMSF Retirees, which seeks to assess the three leading strategies for retirement: income bucketing, income layering and the safe withdrawal rate.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 17 Aug 2017Industry questions ATO’s capacity for new reportingBy Miranda Brownlee
- 17 Aug 2017Qld succession law changes tipped to impact SMSFsBy Miranda Brownlee
- 16 Aug 2017Contribution limits restricting future balances, warns mid-tierBy Staff Reporter
- 16 Aug 2017SMSF firms underprepared for events-based reportingBy Miranda Brownlee
- 15 Aug 2017SMSF auditor disqualified for misconductBy Staff Reporter
- 15 Aug 2017Class gains market share in financial year resultsBy Staff Reporter
- view all
- Industry questions ATO’s capacity for new reporting
With events-based reporting set to generate huge amounts of data, concerns have been raised about whether the ATO’s systems will be able t...read more
- Contribution limits restricting future balances, warns mid-tier
Clients hoping to accumulate a superannuation balance of $1.6 million by age 65 will need to start taking full advantage of concessional con...read more
- SMSF firms underprepared for events-based reporting
A straw poll has revealed that the majority of SMSF firms currently feel their firm is not equipped to deal with the proposed events-based r...read more
- view all