![Getting your head around Superannuation…]()
by Jodie | Dec 7, 2014 | Advisers, Finances, Investments, Money, Retirement, Self Managed Superannuation Funds, Superannuation
A lot of our daily client queries are based around superannuation. It’s a tricky area for many clients to wrap their heads around with lots of rules, regulations, risks and opportunities.
Here’s some facts below, followed by a key hint on how you can best navigate this somewhat complex, but incredibly important wealth creation strategy.
Fact 1: There are over 500,000 Self Managed Super Funds in Australia, with approximately $440 billion under management – indicating the average amount under management in each, is $880,000.
Fact 2: There are approximately 1000 Self Managed Super Funds in Australia with more than $10 million in managed funds, and up to 6,000 with between $5 million and $10 million. This means that there are a lot of funds with significantly less than the above estimated average of $880,000.
Fact 3: 47% of Australian couples and 78% of singles over 40 don’t have enough funds to retire.
This article explains the situation that couples in Western Australia (and the rest of the nation) need approximately $1 million in superannuation and savings to retire comfortably – a target most of us fall far short on. And with us living longer now, the risk will only become higher!
A study by REST Industry Super reveals 30% of young people are hoping for an inheritance to help fund retirement; however superannuation is improperly accounted for in many people’s Estate Plans leaving family members somewhat short-changed. And with many parents now choosing to have “SKI trips” (Spending the Kids Inheritance) the odds are, there’ll be less to inherit.
TIP: Superannuation is a wealth creation strategy that the informed know how to take advantage of, and many others won’t. Education is key. Many feel it’s too complex and too hard.
Our role at Wealth Planning Partners is as advisers is to assist clients with wealth creation for retirement (through investment, superannuation and insurance), but just as importantly to educate about the opportunity that Superannuation is and then how to secure this fantastic and tax effective asset for the benefit of their own retirement, and family.
We are here to support you in learning the ins and outs of superannuation and have fabulous partnerships with legal experts to assist with Estate Planning and Business Succession issues.
Give us a call to chat about your retirement issues, and ensure you start the New Year off on the right financial foot.
![Getting your head around Superannuation…]()
by Jodie | Dec 4, 2014 | Finances, Insurance & Protection, Investments, Men, Money, Superannuation, Women
If there’s only thing life constantly throws at us, it’s change!
It often occurs when we least expect it and can take us by surprise. Especially when it’s the end or start of a relationship! Sometimes when emotions are running high and life is in a state of upheaval, it’s easy to overlook some of the more practical things that need taking care of.
So, here’s a bit of a check-list of things you might have missed when adding or moving on from a life partner…
- Have you updated the beneficiaries of your superannuation fund? (this stays outside of your estate and isn’t usually dealt with by your Will.)
- Have you updated your Will and Powers of Attorney? Or Guardians for the children?
- Do you need to review your Life Insurance and beneficiaries?
- Is it time to provide for you,… reviewing or establishing Trauma cover?
- Does your Income Protection need updating?
- Have you reviewed ownership of any joint investments and debt?
- Have you removed or added secondary owners on credit or store cards?
- Do your mobile phones bills need separating?
- Are you guarantor for any personal or corporate loans?
- Do you need to review any arrangements for family trusts or companies?
- Does your health insurance need review?
- Do your utility bills need amending?
- Do your banking arrangements need revision – removing or adding signatories to accounts?
- Do you need to let the school know changes to custody for the kids?
- Do you need to review and choose new service providers like your accountant or adviser or lawyer?
- Have you let everyone know your new contact details?
With so much going on it’s easy to overlook some items on the list. Or have you been through this change yourself? Let us know if there’s anything we’ve missed! There’s bound to be more!
![Getting your head around Superannuation…]()
by Jodie | Nov 12, 2014 | Finances, Superannuation
On 1 July 2014 the cap limits for superannuation contributions were increased, allowing you to contribute more into superannuation before penalties are applied.
Concessional contribution caps apply to employers’ compulsory super guarantee contributions, voluntary salary sacrifice contributions and to personal deductible super contributions. The non-concessional cap applies to after-tax contributions.
The increase in caps are designed to assist you to save for their retirement sooner rather than later. The new contribution caps for the 2014-15 financial year are:
Concessional Caps
| $30,000 or |
| $35,000 for people aged at least 50 by 30 June 2015. |
Non-Concessional Caps
| $180,000 per year |
| $540,000 per three consecutive years (under ‘bring forward’ rule) |
Taking advantage of the increase in caps now could benefit you down the track. Adding regular contributions earlier rather than later, combined with compounding returns, could boost your retirement income substantially!
Give us a call now to see if you can take advantage of any of these increases.
![Getting your head around Superannuation…]()
by Jodie | Nov 3, 2014 | Advisers, Finances, Insurance & Protection, Money
Warning, warning, warning, open your calendar now and lock in your insurance reviews!!!
Things have changed in your life. Change is the one big constant in this world. Some change is radical and obvious like loosing a job, or getting a promotion or getting married or having a baby or buying a house or getting a divorce.
Other change can be very covert and kind of creep up on us. Things shift and we don’t really notice. Try fitting into last summers bathers, or check the slow wear on your car tyres or the goals you set last year to stay on track with your life.
Will Rogers wrote, “even if you are on the right track, you’ll get run over if you just sit there.” That is, run over by change if you don’t stay vigilant. Any successful person in their field will confirm that to achieve your goals you need to review them daily so the creeping change that we don’t notice, does not bump you off course.
If something is important to us, we need to make sure we treat it like a priority so that the urgent things in our hectic lives, don’t steal the show. Be vigilant, diarise your priorities and review your goals daily. Protect everything you have worked so hard for and ensure that you have the right insurance to keep you on track.
Be one of the few that work smarter and not harder!
![Getting your head around Superannuation…]()
by Jodie | Oct 31, 2014 | Finances, Insurance & Protection
For many, getting life insurance itself can be a scary thing, but it’s not about paying premiums. As cover can at times, be funded by super, this sometimes isn’t even an issue! The idea of preparing for not being here any more, isn’t very fun however.
Most understand that protecting their family, should the unexpected happen, is an incredibly important thing to do. For some, the potential of looming medical tests may be frightening.
But firstly, not everyone needs a medical! It mostly depends on how much insurance cover is applied for. All companies have a ‘non-medical limit’: that is, if the amount of insurance you’re applying for is under their limit, you won’t need a medical at all. If you want to be insured for a sum that is over that limit, you will be told you require a medical at application time.
A bit more on the test itself… A lot of people think it could be a brutal test, specifically designed to lose undesirables.
In reality, it’s similar to a standard check-up at your doctor’s office can be less stressful when done in your own home.
The medical is used to find underlying conditions that may shorten your life or adversely affect your health and will generally consist of:
- a blood test to check for health conditions (often called an MBA20)
- a urine test (affectionately alluded to as the Pee Pot test)
- blood pressure measurements, (lose the Lab Coat freak out!) and
- in some instances, an ECG to measure heart rate.
Your usual GP can often get a copy of your results if you request these.
One thing’s for sure, you don’t need to have the body of an athlete to get life cover. And more importantly, you won’t need to worry about being denied a claim because of your health at a later date if you get all the tests done when you apply. And beyond life cover protection, it’s nice to know how you’re doing in general – and at the cost of the insurer.
