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Manage Account-Based Pension account in KMM?

steffie
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I would appreciate advice please on how best to manage my current Superannuation account, & future Account-Based Pension account, in KMM.

I suspect that possibly some of the definitions & concepts might be unknown outside Australia, so to minimise confusion at the end of my post are some explanatory reference information.

Currently in KMM my Accumulation Super account exists as an "Investment" Type account. This seems quite good for managing my account in its current status [where there are no outgoings (other than fees), but are ingoings via capital growth (usually) as reflected by increasing Unit Prices]. However i am concerned that it seems at least inefficient, if not actually impossible, for managing my funds next year once i need to convert it officially to an ABP & begin drawing my periodic Pension from it. As far as i have been able to understand KMM does not cater for that type of periodic withdrawal usage for an "Investment" Type account [???].

Or maybe i should say instead, that i am unsure if KMM can meet my KMM-objectives for this imminent ABP account next year, which are to be able to:
1. track [ledger, reports, charts] the ABP account's periodic balance increases from its funds' investment returns, & the account's periodic balance decreases from management fees & more significantly from my monthly Pension withdrawals.
2. track the Pension transfer each month from that ABP account into my existing KMM-Savings Account.
3. when i say "KMM to be able to track", i simply mean that i will be manually doing all the edits of my KMM database via the KMM UI, if i can understand how to setup this desired KMM account structure.

When i created that account in KMM a few years ago i did not associate it with a Brokerage Account, as i have never understood what they are & what i would do with one. However recently i found that possibly a Brokerage Account associated with this Super Investment account might be useful for my imminent objective.

By research i found this clever technique https://sourceforge.net/p/kmymoney2/mai ... /21475257/ by Thomas Baumgart [the OP has a different need to mine, but this answer might be useful for me]:
So for now, I assume, you have two accounts: one is your checking account
where you receive your paycheck and the other one is an investment account
where you keep your investments. For the above to setup, you will need
another asset account which is called the brokerage account. If you did not
select to set it up when creating the investment account, you can do so by
simply creating a checking account with a specific name: use the name of the
investment account exactly as shown and append " (Brokerage)" without the
quotes but with the leading blank.


However, i'm pretty confused about how then logistically i would actually use this brokerage account in KMM, & if that really would meet my objectives as listed above. Unlike the current Super [KMM-Investment] account, this new [KMM-Asset] Brokerage account might thence allow me to chart my ABP's progressive drawdown, for modelling & budgeting purposes... but i don't think i yet understand how to best set it all up in my existing KMM database & then use it.


Reference Info.

My current superannuation account disposition is known as being in Accumulation phase. Per https://www.superguide.com.au/superannu ... tion-phase,
Accumulation phase is the period of time that a member is amassing a superannuation investment portfolio in the anticipation of funding her retirement at some point in the future.


Next year i will need to convert my current Superannuation ["Super"] account into an Account-Based Pension ["ABP"], from which i shall begin to draw down a fortnightly or monthly pension on which to live either for the remainder of my retirement/life, or until the account is exhausted. Generic ABP info:
1. https://www.moneysmart.gov.au/superannu ... d-pensions
2. https://www.canstar.com.au/account-base ... ules-work/
3. https://www.superguide.com.au/superannu ... n-pensions



Thanks in hope.
steffie
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I think i've deduced an acceptable workaround for this tricky problem. Happy to add details here in unlikely event of anyone else being interested, but ... tumbleweeds...
abhi007cruise
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Hi Steffie, first of all wow as another fellow Aussie is using this great product in kmymoney. Could you please share the trick as I am trying to add superannuation as its in the accumulation phase. I am thinking this would be done exactly as per typical checking account i.e. crediting any employer/self contribution and debiting any fees, contributions tax, insurances etc. I am not too sure about capital growth etc, how to record those i.e. investments within superannuation increasing your final balance in any financial year. Thanks in advance.
steffie
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G'day cobber me mate dig blue cor blimey stone the crows flat out like a lizard drinking xD

Now that ****'s out of my system, to business. I giggled last night when i noticed someone other than moi had replied to my thread. If i'd have known that all it'd take to prompt anyone else to reply, was for me to first sardonically self-reply i'd have done that months ago. Ha!

I sincerely think that KMM is fabulous [& have posted that previously]... but... it is not well suited to the Strayan superannuation scene IMO. My current Super Accumulation fund i created in KMM some years ago as an [KMM-]Investment asset, but frankly i find it an ongoing hassle to manage it this way [however, its End Date now rapidly approaches, so that horse has bolted for me]. The Pro for this arrangement is that by manually updating the Unit Prices from my fund's website, in KMM, it ergo updates the Current Value shown in KMM. The Con is that i find this structure an utter PITA wrt managing the ongoing fee deductions, such that i chose pragmatically a few years ago to simply ignore the fees in KMM intra-year, but simply create a summed-up once-off transaction for them annually from my fund's Annual Statement. Clumsy, inefficient, but i couldn't think of a better method.

Your current idea for how You might manage your Super Accumulation account is obviously different to that above, but potentially offers you similar benefits [to what i write below] over a KMM-Investment asset as to make it viable... & funnily seems extremely similar to my own recent revelation for how to manage my impending ABP. On that, for laziness, rather than do the right thing & severely edit it for brevity of your reading [but thus taking up my time to edit], i chose to simply copy & paste my own voluble working notes i made recently to note my current thinking; i hope you can survive the verbosity:

Not wishing to place my real KMM data at risk, I chose to use a mock file with fictitious numbers in KMM in one of my VMs, with which I spent a couple of hours experimenting. Once again my reattempt to setup a KMM-”Investment” account for the ABP proved utterly hopeless. Then, suddenly, a lightbulb-moment…

Image

Image

This is most certainly NOT a "Checking Account" [nor cheque account; bloody septic mis-spellings], but given that KMM seems unhelpfully to have no dedicated Asset-type for a Super ABP Fund [& given that KMM's "Investment"-type asset with Brokerage Account is/are absolutely unsuitable for the types of transactions necessary, & the types of monitoring & reporting i want in KMM], today i had the idea to simply create a new KMM account which is still an "Asset" (in KMM-speak) as a **metaphor** for what next year will be my XXX ABP Account [from which they'll begin paying me my monthly pension] once i convert my current Super Accumulation Fund into the ABP.

Whilst it'll be XXX not me who directly administers this account, obviously it's part of my total personal assets, whose balance will fall over time eventually to zero, as i cumulatively draw it down each month [otherwise it’ll stay non-zero if I cark it first]. Also, XXX will charge ongoing Fees, & hopefully there will be some ongoing capital growth... both of which i can track in KMM via monthly [or whatever] Reconciliations just like i've done for years with my "normal" [ie, non-”Investment”, in KMM-speak] accounts.

If my idea is correct, i can use this metaphor to "receive" my Super balance when the conversion occurs [less fees etc], & coz in KMM it's an "Asset" not an "Investment", KMM will let me create a Scheduled Transfer monthly from it to my bank account, & all of these will be KMM-reportable & chartable [all of which are vital for me, & NONE of which is possible for a KMM-"Investment"].

Image

On one hand it might seem foolish that I struggled with the concept of how to manage this impending account in KMM for so long. However I think the essential reason for that was that I had been hung-up on being able to manage the Units, by which Unit Price my present Super Accumulation account is valued, & which i’d supposed “should” be the way i’d also manage the ABP in KMM. Yesterday’s revelation that in fact I can simply dispense with Units once I convert to the ABP [& simply manage the account's value the way I do for any ordinary bank account, via periodic Statement Reconciliations] liberated me from the constraint of “having” to use one of KMM’s very narrowly-functional Investment accounts, & instead simply use one of its Asset accounts… which then avail me of the full array of KMM’s Reports & Charts.
abhi007cruise
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Steffie you are a legend! Thanks so much for paying attention and responding to my query. I will check how it works for me using your recommendation.

Cheers

Abhi
steffie
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Hi Abhi

I've just discovered why i've been receiving no email notifications when one of my Followed topics gets a reply... this site has chucked a major wobbly at some point & reverted to an obsolete email address i stopped using & checking >2 years ago. Gahhhhhhhhhhhhh.

Could you do me a favour pls & make a trivial [or meaty; your choice] new reply here so i can test if the site notifications will now work for me? Ta.

 
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