Question: Last week, one of our reader’s asked [1] how to invest in the Asian BATS stocks i.e. Baidu (NASDAQ: BIDU), Alibaba (NYSE: BABA), Tencent (HKG: 0700) and Samsung (KRX: 005930). This week we’re sharing a very thoughtful response to that question from one of our readers.
Reader Answer: I get exposure to BATS by purchasing selected large liquid index ETFs – Vanguard VAE or VGE or iSHares IEM – the BATS are in their top 10 holdings, and as these ETFs are indexed, these stocks will be highly weighted. In addition, you get the benefit of some other highly desirable stocks, plus diversification.
Betashares has come up with the answer for the many Australian investors wanting to invest in the BATS – they have an ETF called Betashares Asia Technology Tiger (ASIA), which is to be launched in the near term so you could contact Betashares to find out when this will be available.
Question: We are 63 and 64 and we have $150,000 in savings each. We have less than $200,000 each in superannuation, which is not in an SMSF as we don’t want to manage it ourselves. Do we have to pay a 15% contribution tax if we put the cash savings into our super?
Answer (By Paul Rickard): In short, no.
These contributions will be classified as ‘non-concessional’ contributions because they are coming from your own monies. There is no tax to pay. The annual cap on non-concessional contributions is $100,000. However, because you are under 65, you should be able to access the ‘bring forward’ rule and potentially make up to three years’ worth of contributions in one year.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.