XTOOLS: Which tool should I use for Downsizing Contributions to Super ?

Document created by Lana Graham Employee on Jul 26, 2018Last modified by Lana Graham Employee on Aug 13, 2018
Version 5Show Document
  • View in full screen mode

Functionality for Downsizing Contributions to Super has been added to both XTOOLS+/CALM and Retirement Funding. This functionality is available from releases 18.7.25, 2.25.28 and 2.24.37.

 

An overview of this functionality can be viewed at the following links:

Retirement Funding: Modeling Downsizing Contributions to Super 

XTOOLS+: Modeling Downsizing Contributions to Super  

 

Below we provide guidance regarding the preferred Xtool for various Downsizing Contribution strategies. Click the links for Examples.

 

Strategy DetailsRetirement FundingXTOOLS+ / CALM
  • Not yet retired.
  • Considering Downsizing Contributions to fund retirement.

 Various options can be considered.

 Amounts in excess of Downsizing Contribution Cap (currently $300,000) can be automatically allocated to Non-Super assets.

 Limited Data Entry.

 Interactive Charts, suitable for client engagement.

See Retirement Funding: Considering Downsize Contributions - An Example

 Various options can be considered.

 Allocation to Non-Super assets must be added separately.

  • Already retired.
  • Existing Account Based Pension in place.
 Not Available

 Downsize Contributions can be modeled for those already retired.

 Existing Account Based Pensions can be commuted and consolidated with Downsize Contributions to form a new Account Based Pension.

 More than one Account Based Pension can be modeled for each client and partner.

See XTOOLS+: Consolidating Downsize Contributions with an Existing Account Based Pension - An Example 

  • Separate Downsize Contributions for client and partner.
  • Downsizing Contribution at entry to Aged Care.
 Not Available

 Separate Downsize Contributions can be modeled for client and partner.

 Social Security status changes from Homeowner to Non Homeowner upon disposal of home & entry to Aged Care.

See XTOOLS+: Separate Downsize Contributions for Client and Partner, Entering Aged Care - An Example 

  • Making a Downsize Contribution then Renting.
 Not Available

 Suitable when Downsize occurs at Projection Start Date.

 Rent Assistance automatically calculated.

 Some adjustment required when Downsize Contribution modeled at a future date.

See XTOOLS+: Becoming a Non-Homeowner and Making a Downsizing Contribution - An Example 

1 person found this helpful

Attachments

    Outcomes