by Jodie | Feb 9, 2017 | Centrelink, Economy, Finances, Taxation
With many changes coming into effect this year – and more reforms being suggested – now is a great time to get your finances organised so you’re prepared.
Changes to the Age Pension
Changes to the Age Pension assets test kicked in at the beginning of January 2017.
The good news is that the threshold has been increased, so you can now own more assets before your pension is affected. But the penalty for going over the threshold has also increased. For every $1,000 of assets you have above the new threshold, your pension will be reduced by $3 – double what it used to be.
The asset test threshold varies depending on your marital status and whether you own a home, so it’s best to talk to your adviser about the changes.
The age of entitlement
A Grattan Institute report titled Age of entitlement: age-based tax breaks published in November last year suggested that making several changes to the entitlements seniors receive could save the federal government $1 billion a year.
The institute recommended winding back:
- the seniors and pensioners tax offset (SAPTO)
- the Medicare levy income threshold for seniors
- the private health insurance rebate for seniors, so they receive the same rebate as younger Australians.
The recommendations focus on retirees who have incomes at taxable levels. These may be retirees who are self‑funded or on a part Age Pension. The changes would have little effect on seniors who receive a full Age Pension. While these are only recommendations at this stage, you may benefit most from preparing early.
Stay informed and plan ahead
Staying up to date about any changes to superannuation and seniors’ entitlements – locked in or potential – may help put you one step ahead. Regularly reviewing your retirement plan to ensure it can adapt to changes is an excellent way to keep your retirement strategy resilient. Talking to a trusted financial adviser may help you achieve that peace of mind, so feel free to give us a call.
by Jodie | Jan 22, 2017 | In The Media
Only about 20% of people have a financial advisor or have sought professional financial advice, meaning at the moment, 80% have yet to see the need to visit a planner. So, do you need to see an adviser? How about I give you five good reasons why it might just be a really good idea!
1. An adviser’s job is to dig deep
They find out where you’re currently at, and what you want to achieve. They help you articulate your goals. I know, I can hear you – and sure, you can probably do it on your own. But, just putting it out there… have you? Do you know how much you need in retirement? As a lump sum? As an annual income? Do you have the best protection in place should the unexpected occur? Do you have debt that you want to get a handle on? Are your goals written down clearly with a plan of attack? We know that we are usually better off when we share our goals and have someone to be accountable to. Someone who’ll kick our butts until we achieve them. This is where a financial adviser can be invaluable!
2. An advisers’ role is all about strategy
They’re to help you make the best of your current situation, while still looking ahead for the future. Most of us have a tendency to live beyond our means and scramble those last few days before the next pay check come in. You always promise that as soon as there’s something left over, you’ll start saving, even investing! An adviser can introduce strategies like salary sacrifice, salary packaging, tax minimization, protection planning and regular investment savings plans.
3. How about you view your adviser as a coach if you’re still not convinced?
Advisers assist you to understand where you’re at, what’s ahead and be way more in control of your financial situation. You’ll be reassured that you have a plan and someone to help keep you on track. We’re the Personal Trainer of your money and you’ll be able to see clearly that you’re making gains and kicking goals at each review!
4. Mistakes are a part of life
We’ve all failed, but as we know, it’s how quickly we get up and recover that can count. Unfortunately, some of us have learned the hard way, that errors can be pretty costly. Having the option to run business and investment ideas by an expert who knows their stuff has the potential to save you thousands in expensive mistakes!
5. Most advisers also understand protection
A brilliant financial plan is useless if something from left field takes you out and all that you’ve worked so hard for isn’t protected. True peace of mind comes from ensuring that your own health, ability to earn and income and your loved ones or even key people in your business are taken care of in event of traumatic illnesses, disablement or even fatal situations.
Hopefully these five reasons are compelling enough for you to think again about whether or not you really need an adviser. These days, we’re time poor. We’re already juggling our career, business, employees, health and wellbeing, significant other, little people and besties, while trying to stay on the green smoothies, pack a nutritious lunch, fit in yoga and not forget the school run and nail eight hours sleep each night.
There’s not much time left over and being someone who’s all for outsourcing… why not allow a professional to assist? Unless you’re all over your financial situation, have set plans that you’re working to achieve and truly have it all together, I believe a financial adviser can add value, and possibly point out areas where you hadn’t even thought you might need a hand.
Usually an initial interview is at the adviser’s expense of time, so look around, interview a couple and find someone you click with who can make your life easier today! It may just be the best investment you ever make.
VISIT WEBSITE
by Jodie | Jan 17, 2017 | In The Media
Gold Coast-based advice firm Wealth Planning Partners has launched a subsidiary firm that will focus specifically on Australia’s growing ageing population.
Advisers Therese Jarrett and Amanda Cassar will head the subsidiary Trusted Aged Care Services, according to a statement.
Ms Jarrett said she has become increasingly busy in keeping up with demand, having specifically focused on aged care advice for around four years.
“We shared a mutual interest in the aged care arena based on our personal family needs and brainstormed ideas on how we could make the transition easier for both those needing care and their families,” Ms Jarrett said.
Ms Cassar further added that it was important to be ready for the opportunity and be equipped to deal with the transition process.
“To that end, we have both completed the Aged Care Steps course to become Accredited Aged Care Professionals and will offer varying services depending on the needs of the client,” Ms Cassar said.
We already have a relationship with a number of facilities, but are keen to visit more homes and have a greater understanding of what each offers to better assist our clients into a facility that suits them best.
“We also stay in touch for up to three months after entry to ensure all goes well.”
Wealth Planning Partners is a corporate authorised rep of Financial Services Partners.
VISIT WEBSITE
by Jodie | Jan 13, 2017 | In The Media
Financial Standard
A Queensland financial advice practice is launching a subsidiary business assisting the elderly transition into aged care.
VISIT WEBSITE
by Jodie | Jan 3, 2017 | In The Media
As you’re probably aware, when you donate to registered charitable organisation, your gifts are a tax deductible donation that can boost your tax refund or reduce the amount of tax you pay… completely aside from the feel good factor you get of supporting those less fortunate.
Most charities exist solely to support a good cause and rely exclusively on donations to continue their work. According to the Charity Donations Guide by Choice (September 2014) nine out of 10 Australians give to charity each year.
Here’s a short set of tips to making your gift go further and claiming your donation back at tax time.
What are some ways to give?
For those who aren’t always flush with funds, Choice advises that one way to give that is gaining in popularity is to volunteer. Some donate goods that can be used or sold. Others who are able, are happy to give directly to collection agents or donate directly via websites.
More than 30% of Australia’s population volunteer with not-for-profit organisations, providing an average of 56 hours labour each on an annual basis, a boon for cash strapped charitable organisations. If you are interested in volunteering some of your time, you can visit the Go Volunteer website to learn about opportunities available close to you, or even offshore, whatever is your preference.
Alternate ways to give are charity are by hosting high teas, dinners and balls. Just keep an eye on costs though as the price of the venue and catering can eat into your donation. In a small way, purchasing merchandise on an annual event day also adds to the bottom line of many organisations.
Tips for claiming charitable donations
Charitable donations are generally tax-deductible but before claiming any donations on your tax return, here are a few tips:
- The charity must be classified as a deductible gift recipient (DGR.) To check, visit the Australian Business Register. (Most charities are happy to let you know their status.)
- To qualify for a tax refund, your gift must be greater than $2. Keep receipts for any donations you make.
- The gift must truly be a gift – a voluntary transfer of money where you receive no benefit or advantage. You cannot claim items such as raffle tickets, pens, merchandise, chocolateor membership fees.
Many businesses try to find a charity that aligns with their business for maximum leverage. Businesses who offer goods and services for children find charities that benefit youth. Those supporting women might choose female cancer or domestic violence organisations. Those in finance may support poverty alleviation or micro-finance groups offering opportunities in third world countries. If you resonate strongly with the cause you support, you’ll feel much more aligned to the outcomes.
Another area worth considering, is how many cents in every dollar actually go to where they’re needed. Some charities are extremely admin heavy and over half of funds donated (or more) go to head office staff (or the CEO’s lear jet) rather than those we believe we’re supporting. It’s worth doing the research to find out exactly what goes where and most are very transparent now about this and the information can be found from a quick internet search.
A lot of larger organisations now are incorporating Corporate Social Responsibility programs within their businesses and finding both their staff and clients are loving the involvement.
Two favourite charities that Wealth Planning Partners are proud to support financially, and with our time, are The Hunger Project, who aim to eradicate chronic, persistent hunger by 2030 (with 81c in the dollar going where required) and Hands Across the Water, helping orphaned and disadvantaged children in Thailand (with 100% of funds utilised by the charity.) And, outside of giving ‘just money’ our Director has travelled to Uganda, Malawi and Thailand to see the funds in action and be personally connected with the benefits. This in turn raises profile and clients and colleagues alike are interested in the stories and leadership lessons learned along the way.
Have a think today about whether or not you’d like to include philanthropy in your business or personal plans… and how best to go about it.
VISIT WEBSITE
