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Self Managed Super

Self managed superannuation funds are in the political spotlight at the moment as both sides of the Australian political spectrum debate the merits of the current taxation laws in regard to superannuation. There is a generational divide to this argument, as well, as younger Australians see unfairness in the current Australian economy, which favours wealthier, older Australians, providing them with far more substantial tax benefits through their superannuation contributions.

The statistical data, which shows that richer Australians are getting wealthier and that the gap between the ‘haves’ and the ‘have nots’ is widening, provides stimulus for those who demand a more equitable Australia. The political debate generally revolves around the differing strategies of the political parties, with those on the right side wishing to reward the ‘producers’ within the economy, and those on the left wanting to redistribute their wealth in search of a fairer economic community. In balance both arguments have genuine merit and Australia is in the process of finding that middle ground in regard to superannuation.

The advantages of self managed super are the investment options, which are far wider; meaning that your SMSF can invest in direct shares, property, cash accounts, unlisted assets and corporate debt. The generous and flexible tax benefits offered by an SMSF to its trustees are substantially superior to traditional industry or retail super funds. The SMSF is not really any cheaper to operate than public superannuation funds but there is a far greater level of control over these costs. Professional specialist advice is recommended when setting up your self managed super fund.

Superannuation is now most Australian’s second largest asset, after the family home, so it is a highly important and therefore emotive topic, when changes to policies are mooted by governments and political parties. Superannuation was implemented by the Hawke/Keating government to head off the looming pension crisis, caused by an ageing Australian population. Economists could see that the worsening ratio of taxpaying workers to older Australians, receiving social security payments through the aged pension, would produce an unsustainable budgetary position over the long term. Forced savings through super was supposed to drastically reduce the number of Australians who would require the support of a full aged pension, but softening asset and income test requirements, over successive governments, has seen sustained levels of older Australians on the aged pension.

Self managed super funds are here to stay and they offer greater control and benefits for their trustees. Adjustments to the levels of taxation breaks on contributions and the amounts of those contributions may occur down the track. The flexibility and autonomy offered by the SMSF will continue to see their popularity rise in the super marketplace.

Materialism Our One God

Today in the harsh daylight of our overcrowded cities, in developed nations around the globe, we are encouraged to worship only one god, the holy dollar. People are rushing about in their cars, and on public transport, to reach their destinations, their places of work and of investment, where labour and lead may be turned into gold. Sitting at terminals, tapping keys, in the hope that interest rates will rise or fall, that the market will strengthen their position; and that bears will turn into bulls. If you can imagine an animated city scene, with hundreds of besuited pedestrians crossing the pavements, all with a cartoon circle above their heads, showing their thoughts as a dollar sign. This is the charge of the light brigade, where horses have become mobile phones and helmets and swords, iPods and sunglasses.

Newspapers, and online sources, today are filled with economic imperatives, and this obsession, which began in the late nineteen seventies, has become the overriding concern for dad and mum; and their kids. Money is on everyone’s lips and in everyone’s mind, how to get it, how to make it, how to keep it; and how to hide it. Everyone’s become  a banker and governments are complicit in this – the tax department has driven these changes , as your tax return became more and more complex, you had to think like an accountant to make sense of it. Paul Keating, as rock star Treasurer, had a hand in it, as he, and PM Hawke, deregulated the banks and made public announcements about “banana state economies.” Suddenly everyone had to get up to speed on the balance of payments and interest rate figures daily made the front page. It was like a crash course in economics, skewed with the dramatics and sensationalism that sells papers.

There are and were positives, about this new found economic literacy amongst the hoi polloi, as people are always empowered by knowledge. In this new era of freedom, individuals and groups, were able to break down decades and centuries of banking obfuscation, to achieve their wants; even women, who had been particularly disadvantaged by the prejudices of this male dominated industry. Economic growth came spurting out, after years of lazy conservative rule, people got money and invested it in new businesses and real estate – the housing market exploded. Of course we got some excessive behaviour, Alan Bond, Christopher Skase etc but generally it was much more for the good, as a greater number and spread of people were enabled to become productive.

However, and I will use a controversial analogy here to illustrate my point, the economic awareness grew and has now become such an overweening thing that it has strangled all other gods. I liken it to the historical journey of Western women, from their hair covered and protected imprisonment in wifely roles, through the suffragettes and then the women’s liberation movement, up until now in their emancipated state from legislated prejudice; but still with the biological necessities to be women. This potentially challenging, dichotomous position is most dramatically seen in the form of the traditionally attired Islamic woman, as she represents the other extreme pole, as if she has just stepped out of the pages of history into the twenty first century. I respect the fiercely won freedoms of today’s Western woman, but also see the conflicting impact that the demands of the world have made upon the inner life of some women. In a similar vein, today’s awareness of the economic imperative has damaged the inner life of us all, removing perceived value from other pursuits not so closely held to the material bosom.

As Science, in the service of money, has slain the Christian religion, condemning it to the irrelevancy of a surfeit of poorly attended suburban churches clamouring for ageing attendees, the great god avarice has filled the breach. Materialism, what you can buy with money, has taken hold of head and heart inside the majority of us all. What is the holiest, most sacred, thing that you can purchase? It is of course the home, a house or flat, villa or apartment, but  a home by any other name just the same. This haloed quest, the often life time journey devoted to owning your own home, is, in Australia anyway, a culturally approved goal that lies beneath the day to day activity of millions. It gives meaning to life to many of these people, and I imagine the banks must really love it. It reminds me of the association between diamond rings and marriage; doctors, pharmaceutical drugs and illness; and other firmly entrenched cultural beliefs. How do you get people to work all the time and do it more or less willingly? By making what they want so expensive that they have to. If the average home is priced around nine times the average income, and you have to borrow hundreds of thousands of dollars from the banks at substantial and fluctuating interest rates, then you are going to be tied into working for a very long time. Mentally, by the time you have paid off your house and loan, you are often so brain washed into that behaviour that you go on working anyway. Homes bought as investment properties, charge rentals at a market value so determined,  that they can pay off housing loans and or profit accordingly – thus making shelter/housing expensive for everyone.  The goal for many in owning their own home is financial freedom, which often really means, once achieved, becoming a landlord and profiting from others, for money as they say does not stand still and you will be advised by those who work with money to invest your new found freedom in more real estate; and the cycle continues.

Going to work every week day, and often doing something that you dislike in some way, treating another human being in  a less than  human way by focusing on the money at the expense of everything else, damages the soul some say. You might go to your doctor and complain that you are not feeling, dare I say it, happy, and he most probably will tell you that you are depressed and prescribe an antidepressant.

“Over the last 30 years, rates of depression have been steadily increasing in Western societies. In the last ten years, consumption of antidepressants has doubled in the most advanced Western countries. Today, more than 11 million Americans are taking antidepressants. The estimated number of people in Britain taking antidepressants is two million. In Australia, 66 percent of those seeing a GP for the first time about depression have a chance of being medicated – in most cases with antidepressants. These data are so stark that most of us and our institutions prefer not to think about them.”

Dr David Servan-Schreiber, Clinical Professor of Psychiatry, Pittsburgh University School of Medicine

Author of Healing Without Freud or Prozac, 2004, Rodale.

 

Then, in a tra la la drugged state, not caring so much about a lot of things, unable to achieve an orgasm, you will keep on doing what you were doing, working in much the same way and edging hopefully closer to that nirvana, called financial freedom. When you set out on the journey as a youngish adult, I imagine that the many things you associate with financial freedom will change over the years and that when you get there, often decades later, you will be a completely different person. It is like any long journey, in that it is better to make the experience of your journey your succour than the goal itself. Otherwise you are training yourself, every day, to switch off subtly and desensitise yourself to life, killing yourself a little bit each day in the hope that when you get to the end you will be able to turn yourself back on; and enjoy that wonderful financial freedom you see in the scenes depicted in those TV ads for the banks.

If you read a little history and have a good look at the Christian religion, you will see that belief in god, for much of their sixteen hundred years in power, was not optional. From the time of Constantine, the Roman emperor in the fourth century AD when Christianity became the state religion – the Holy Roman Catholic Church,  if you did not believe in a Christian god, and their version of that Christian god, you were very likely to be put to death. This heavy handed approach began to soften after the Renaissance in the sixteenth century, but life remained very hard for those who did not acquiesce and worship in the prescribed manner. Jews of course were murdered, exiled, banned and generally hated since the time of Christ. The crusades slaughtered millions of Muslims over centuries and religious pogroms have continued the genocide of both Jews and Muslims by Christians. I always smile when I remember Sunday School, and the things I was told about the poor Christians being thrown to the lions by the Romans, of course this was true for the three centuries it happened,  but nobody was teaching the children about the next twelve centuries of Christian atrocities committed against the rest of the world; and also within their own communities in the prosecution of heresies. History always favours the victors.

Within, and despite all this bloodshed, many people had an experience of god being present within their lives. It seems in a lot of instances to have provided these individuals with a sense of belonging to something divine, which was beyond the reach of those with the swords. I would posit that the very threat to some people’s belief in god, through perceived heretical accusations, as in the time of the Cathars in France in the thirteenth century, and in the very bloody later schism between Catholics and the Reformation Church in the sixteenth century, to name but a few, intensified their experience of their religion and god. Nobody loves quite so much as when that love is threatened and or about to go away. Religion, and or belief in god, is always like that enormous elephant in the room, which will not go away.

“Superstition requires credulity, just as true religion requires faith. Deep-rooted credulity is so powerful that it may even, in false beliefs, be thought to perform miracles. For if anyone believes most firmly that his religion is true, even if it is in fact false, he raises his spirit by reason of that very credulity until it becomes like the spirits who are the leaders and princes of that religion and seems to perform things which are not perceived by those in a normal and rational state.”

Cornelius Agrippa (1486-1535)

De Occulta Philosophia

I ask myself, a lot, what belief in god really is. Rationally there is no evidence for  the existence of a god, and in my historical search so far, there never has been any evidence. In Christianity’s case, we now clearly know that the gospels in the Bible, which were written between seventy and up to two hundred years after the time of Jesus, are not reliable historical accounts and indeed are more like PR releases or overly favourable biographical sketches, designed to sell Christianity to the Roman power elite and others. The account of Pilate for instance, is completely fictitious and reworked by the writers of the gospels to exonerate the Romans from the execution of Jesus and to put that blame squarely upon the Jews; which has had onerous historical consequences to put it mildly. Christianity is not alone in creating fictions to make it divine and more than merely human, in PR and sales there is a great and long lasting tradition, which is about making your product uniquely special and divinity ticks all those boxes. The tablet which held the ten commandments, where is it and who else but Moses really saw it and if it was placed in the Ark of the Covenant, where is it also? The Mormons then, through their prophet, Joseph Smith Junior, and I imagine from his impression of the historical precedent set by Moses as reported in Exodus, had a solid gold tablet from the Angel Moroni containing their scriptures, which conveniently only Joseph actually saw. Now Christians, who believe in Jesus rising bodily from the dead, often chuckle softly at the unrealistic beliefs of other religions, whilst having no problem with the outlandish collection of miracle stories and the like contained in their Bible. When we inherit beliefs from our parents, these loving and respected beings, and they likewise inherited their beliefs from their parents and so on, it is easy to understand why these often ridiculous beliefs have lasted so long. It is hard to shoot down the firmly held beliefs of your elders and those whom you love; many people choose to turn away from confronting the elephant in the room.

Buddhism, both the Theravada and Mahayana schools of Buddhism, are also a collection of stories tinged with the magical properties of the divine. Siddhartha Gautama, the Nepalese prince  did exist historically and most probably did venture out on a spiritual quest, but then the story tellers take over and we are regaled with unearthly feats designed to impress the uneducated masses. Hinduism is a fantastic collection of wildly colourful stories, creation myths involving gods and demons, many of them extraordinarily beautiful.

“An ancient Hindu warrior-king named Muchukunda was born from his father’s left side, the father having swallowed by mistake a fertility potion that the Brahmins had prepared for his wife; and in keeping with the promising symbolism of this miracle, the motherless marvel, fruit of the male womb, grew to be such a king among kings that when the gods, at one period, were suffering defeat in their perpetual contest with the demons, they called upon him for help. He assisted them to a mighty victory, and they, in their divine pleasure, granted him the realisation of his highest wish. But what should such a king, himself almost omnipotent, desire? What greatest boon of boons could be conceived of by such a master among men? King Muchukunda, so runs the story, was very tired after his battle: all he asked was that he might be granted a sleep without end, and that any person chancing to arouse him should be burned to a crisp by the first glance of his eye.

The boon was bestowed. In a cavern chamber, deep within the womb of a mountain, King Muchukunda retired to sleep, and there slumbered through the revolving eons. Individuals, peoples, civilisations, world ages, came into being out of the void and dropped back into it again, while the old king, in his state of subconscious bliss, endured. Timeless as the Freudian unconscious beneath the dramatic time world of our fluctuating ego-experience, that old mountain man, the drinker of deep sleep, lived on and on.

His awakening came- but with a surprising turn that throws into new perspective the whole problem of the hero-circuit, as well as the mystery of a  mighty king’s request for sleep as the highest conceivable boon.

Vishnu, the Lord of the World, had become incarnate in the person of a beautiful youth named Krishna, who, having saved the land of India from a  tyrannical race of demons, had assumed the throne. And he had been ruling in Utopian peace, when a horde of barbarians suddenly invaded from the northwest. Krishna the king went against them, but, in keeping with his divine nature, won the victory playfully, by a simple ruse. Unarmed and garlanded with lotuses, he came out of his stronghold and tempted the enemy king to pursue and catch him, then dodged into a cave. When the barbarian followed, he discovered someone lying there in the chamber, asleep.

“Oh!” thought he. “So he has lured me here and now feigns to be a harmless sleeper.”

He kicked the figure lying on the ground before him, and it stirred. It was King Muchukunda. The figure rose, and the eyes that had been closed for unnumbered cycles of creation, world history, and dissolution, opened slowly to the light. The first glance that went forth struck the enemy king, who burst into a torch of flame and was reduced immediately to a smoking heap of ash. Muchukunda turned, and the second glance struck the garlanded, beautiful youth, whom the awakened old king straightaway recognised by his radiance as an incarnation of God. And Muchukunda bowed before his Saviour with the following prayer:

“ My Lord God! When I lived and wrought as a man, I lived and wrought – straying restlessly; through many lives, birth after birth, I sought and suffered, nowhere knowing cease or rest. Distress I mistook for joy. Mirages appearing over the desert I mistook for refreshing waters. Delights I grasped, and what I obtained was misery. Kingly power and earthly possession, riches and might, friends and sons, wife and followers, everything that lures the senses: I wanted them all, because I believed that these would bring me beatitude. But the moment anything was mine it changed its nature, and became as  a burning fire.

Then I found my way into the company of the gods, and they welcomed me as a companion. But where, still, surcease? Where rest? The creatures of this world, gods included, all are tricked, my Lord God, by your playful ruses; that is why they continue in their futile round of birth, life agony, old age, and death. Between lives, they confront the lord of the dead and are forced to endure hells of every degree of pitiless pain. And it all comes from you!

“My Lord God, deluded by your playful ruses, I too was a prey of the world, wandering in a labyrinth of error, netted in the meshes of ego-consciousness. Now, therefore, I take refuge in your Presence – the boundless, the adorable – desiring only freedom from it all.”

When Muchukunda stepped from his cave, he saw that men, since his departure, had become reduced in stature. He was as a giant among them. And so he departed from them again, retreated to the highest mountains, and there dedicated himself to the ascetic practices that should finally release him from his last attachment to the forms of being.

Muchukunda, in other words, instead of returning, decided to retreat one degree still further from the world. And who shall say that his decision was altogether without reason?”

Joseph Campbell

The Hero With A Thousand Faces, 1993, Fontana Press, pp 194-196.

 

I would say that the original author of this story was probably a new parent, indicated by the hero wishing for eternal sleep over all other riches LOL. What it also tells us, is that the successful religions, which have been taken up by kings and therefore the state, all have messages at their heart which assure the listener that the rewards and sufferings of life are nothing in comparison with the promises of divinity. These are not their only messages, but clearly that message would resonate with the suffering masses – to hear that all life, good and bad, is an illusion, would be a panacea to the many who were decidedly short changed by the distribution of commonwealth. It is kings who have driven religions and enforced participation in their rituals, and kings who have controlled and censored the scriptural content of these religion’s holy books. Kings have had much more need of religion and its ability to control the behaviour of adherents, than have subjects had need of religious beliefs.

The belief in  a god, who will upon the death of the believer, even things up in terms of getting a fair share of the goodies, in heaven or some paradisiacal garden in the afterlife, has had broad appeal among the disadvantaged. I think we see that now in the fervent take up of extremist Islamic beliefs, many of these adherents are poor and have been racially slighted in the countries they reside in, and they believe that their actions and belief in a vengeful Allah will deliver them to paradise. The African American slaves took the Christian message of the meek inheriting the Earth to heart; women, who have been down trodden and abused by men, have found succour in religion, and it is often a belief which burns brightest in the hearts of mothers within a family; perhaps as salve to the tragedies that historically affected women through the deaths of their children. To believe in something better than avarice, competition and bloodshed is an understandable wish, if Darwinian evolution can only provide that the strong/intelligent will prevail, then it is perfectly understandable that humanity would invent a god that possibly offers the mercy of something else with a kinder face. Although the original incarnations of the old testament Judo-Christian religions were decidedly brutal.

“The great unmentionable evil at the centre of our culture is monotheism. From a barbaric Bronze Age text known as the Old Testament, three anti-human religions have evolved – Judaism, Christianity, and Islam. These are sky-god religions. They are, literally, patriarchal – god is the Omnipotent Father – hence the loathing of women for 2000 years in those countries afflicted by the sky-god and his earthly male delegates.”

Gore Vidal

The belief in god has been used by the strong to justify their rule and control over others, the divine right of kings to rule, and the same belief has been employed by the weak to salve their hurts and pains in the hope for  a better deal in the afterlife; it is a flexible beast this elephant. All religions seem to make a heap of promises, which require your extinction before they pay out on them, and as nobody has as yet returned from the dead (Jesus excepting but then he works for them) we are none the wiser when it comes to knowing their truth and efficacy. The poor and down trodden masses, who were forced to subscribe to the state religion – the Holy Roman Catholic Church – would have taken what message of hope they could from their time in church. The church collected taxes from these same people and controlled their lives as much as the king, for hundreds of years people were expected to go on a religious pilgrimage during their lives and if they did not they were expected to pay the church the equivalent amount of money they would have spent on their holy journey. Representatives of the church would sell common folk religious relics, purporting to be splinters of the cross that crucified Jesus and the like, and absolutions; so you could buy a piece of heaven, a bit like you can buy financial freedom through home ownership today.

I would say that in our relationship with the new religion, materialism, we have done away with a good deal of hypocrisy about money and its importance in our lives. When I was growing up it was considered rude to ask direct questions about money, which set me back somewhat for many years when it came to negotiating transactions. It was bad form to ask how much something was worth – shopping could be a struggle – bad manners to ask how much someone earnt for a living – life was a bit less exacting I suppose – I imagine as it was before the advent of the electric light, when the edges of existence were not so pronounced in gaslight and candle light. Not a bad thing sometimes to have a bit more mystery. There was however a great deal of downplaying falsely of the importance of money and this was simple dishonesty in many instances. A bit like not being able to talk about ‘fucking’ and always having to say ‘making love’ when referring to sex, which was also the case when I was growing up, at least in polite society or with a lady. But sometimes ‘fucking’ is a more correct description for the activity and incorporates more of our animal natures, whereas ‘making love’ is a far more ethereal term, non-corporeal in fact; and “fucking” is after all only a small part of making love. There always needs to be black and white in the equation, otherwise if we are forced to pretend to only live in the light, we will get corruption, as we do with celibate priests and all those who deny the darkness and their shadow side.

Similarly we need the balance of spirit, inchoate things inside of us, anti-matter if you like, especially now in the time of money. When the zeitgeist is the passion for money and the things that money can buy and people are marching to the consumerist beat, for technological toys like IPhone’s and other gadgets, then the opposite pole becomes so very important. Familiarity breeds contempt and that is what is happening, and will happen even more, with materialism, its strident voice drowns out the sensitive and the mysterious. Science like a Krispy Kreme doughnut has deliciously explained the how but has nothing at its centre to explain the why – consciousness continues to elude neuroscience and all other branches of material knowledge. We need to realise that just because we have named a street on a map and given a moment in time a precise number, that it does not truly define the reality of that particular space and moment. We have killed the mystery, the unexpected nature of existence, by naming and measuring everything and then agreeing amongst ourselves that this is its only reality – we have turned symbols into things and references into realities. No wonder so many people are depressed, having lost contact with the earth beneath their feet, because they are walking on a line on a map inside their head.

I wonder if you or I were to go and lie in a dark cave for a year, a space with no light whatsoever, but with enough warmth, food and comfort to sustain us, and we had no contact with the outside world for that entire year – how we would be on our emergence from the cave after the year? Would our consciousnesses be changed, affected, transformed in any meaningful way? What would we encounter within our own psyches and would the zeitgeist of the times slip away? I imagine that our thoughts would continue to go around and around, as they do, chasing their own tails and tales. But after awhile, with no points of external reference, with which to reinforce their existence, these thoughts would, I suspect, evolve or devolve. Perhaps as in a spiral motion returning to their points of origin, regressing to where they came from – things someone said that we appropriated; wisdom from mum and dad; teachers and mentors; books that we have read; Sunday School scriptures; and finally back even further as we lie there in the pure blackness. We would, I suspect, begin to break down all thoughts and all the things we live by, our moral compass so to speak, our very own philosophy of life, and things would be reduced to essentialities and much of the guff would simply fall away. Close your eyes now and drift away.

©Sudha Hamilton