by Jodie | Jan 18, 2011 | Debt Management, General, Insurance & Protection
Throw your family a financial lifeline!
They say there’s only two sure things in life – Death & Taxes. So we know it’s a given! It’s a fact of life that we won’t always be around. And like most people, you’ve probably thought about how your family will cope emotionally if you’re not there.
But what about the finances? Australian research indicates 60% of families with dependents will run out of money within a year if the breadwinner dies*. Australians unfortunately have incredibly low levels of cover in place to protect their loved ones. Many feel that their ‘super will cover it’ and it’s often not the case.
Life Cover
With Life Insurance, you can have peace of mind knowing that you have cover for terminal illness and death. This means you and your family can better focus on themselves instead of the finances. Cover often can be arranged via a superannuation fund, and this means no ‘out of pocket’ expense for the family. Although not appropriate in all cases, this may be worth consideration in your situation. Covering all debts plus the funeral is a great place to start… but add in the missing income you’d have provided, healthcare and education expenses and the family needs can start to add up!
There are other types of cover to consider too, like income protection, total & permanent disablement, or even trauma. All are designed to help you out financially if you can’t work due to illness or injury.
Wealth Planning Partners can help you find the right insurance solution for you and your family, so you can be financially prepared for the unexpected. If you would like further information or would like to arrange an appointment with a risk specialist please call Amanda on 07 5593 6895 or Trevor on 07 5525 3233.
*IFSA Research – A Nation Exposed. Conducted for IFSA by Rice Walker Actuaries and TNS Australia, 2005.
by Jodie | Jan 18, 2011 | Debt Management, Finances, General, Insurance & Protection
How much would you pay for peace of mind?
We’ve all heard it before. We’re bullet proof! She’ll be right mate! The boss will take care of me!
But then… Life is full of surprises – both good and bad! But there are some things in life over which you have little or no control, no matter how hard you work. Things like serious illness, injury, disablement and even death.
Almost everyone knows of someone who has suffered a heart attack, stroke or someone who has been diagnosed with cancer. One in three men and one in four women will be diagnosed with cancer before the age of 75*.
So there’s a very real chance it could happen to you. That’s why it’s important to protect yourself and your loved ones from financial burden if something happens to you. That’s where we can help you find a solution!
Trauma Insurance
Trauma or Critical Illness or Recovery Insurance (as they’re variously known) can help you manage this financial risk, by providing cover for over many medical conditions, including cancer, multiple sclerosis, heart attack and even blindness. It can help you focus on recovery rather than financials, by paying a lump sum if you suffer a serious medical condition
Wealth Planning Partners can help you find the right insurance solution for you and your family, so you can be financially prepared for the unexpected. If you would like further information or would like to arrange an appointment with a risk specialist please call Amanda on 07 5593 6895 or Trevor on 07 5525 3233. What price peace of mind?
*Australian Institute of Health and Welfare and Australasian Association of Cancer Registries, Cancer in Australia 2003.
by Jodie | Jan 18, 2011 | Business, Debt Management, Finances, General, Insurance & Protection
Keep your business on an even keel
Profit margins, business loans, demanding customers! Smooth sailing in a business is hard enough without adding the complications of injury, illness or even the death of a business partner or key person. Most businesses generally depend on a few key people to produce the profits, provide the capital or manage the business. If there’s no viable succession plan, there may be significant hardship for surviving owners and family members.
That’s why every business with two or more owners should include business insurance as a matter of course.
There are a number of key areas you should consider when implementing insurance into your business plan. They include protecting any business loan, succession planning, and business expenses.
A combination of Lump Sum and Income Replacement Insurances can help your business survive all of these scenarios.
And in some cases the premiums can be tax-deductible.
Wealth Planning Partners can help you find the right insurance solution for you and your business, so you can be financially prepared for the unexpected. If you would like further information or would like to arrange an appointment with a risk specialist please call us.
Amanda: 07 5593 6895
Trevor: 07 5525 3233
by Jodie | Jan 18, 2011 | Debt Management, Finances, General, Insurance & Protection
Things change... has your insurance kept up?
Does your insurance still cover you?
Once you have it, you often don’t give your insurance another thought until you need to make a claim. But as your lifestyle changes, its easy to out grow your insurance.
If you’ve made some big changes recently – like having a child, or buying a house – you may need to reassess your insurance. As your circumstances change, so does your insurance needs.
Not updating your insurance can leave you vulnerable when you need it most.
Sound familiar?
Do any of these events sound familiar to you? If you’ve recently made changes in your life, like those below, it could be time to review your insurance.
- You are getting married or changing your marital status
- You have bought a new home
- You have increased your mortgage
- You have a new child
- You have taken out a large personal loan, or some other form of debt
- You have given up smoking for at least a year
- You have new financial dependants
- It has been a few years since your last review
- Your child has started school
- You have started a new job
- You are looking after a disabled or elderly family member
Wealth Planning Partners can help you find the right insurance solution for you so you can be financially prepared for the unexpected. If you would like further information or would like to arrange an appointment with a risk specialist please call us to arrange a time.
Amanda: 07 5593 6895
Trevor: 07 552 53233
by Jodie | Dec 21, 2010 | Finances, General, Insurance & Protection, Investments, Self Managed Superannuation Funds, Superannuation
Lots of people have heard about them, have friends who have them, and most people really like the idea of having more control of their super savings – but is a Self Managed Super Fund (SMSF) really right for you?
For some of my clients – and that’s a minority, they’re a perfect fit, but they certainly are not for all. SMSFs are really well suited to people who have larger super savings (usually $250k+) and are reasonably well educated about investing – or happy to outsource this part. Once you get the benefits of scale, you are also able to reduce the overall fees you may be currently paying. It’s often still advisable however to work with a Financial Adviser and an Accountant on the fund.
For client who just wants minimal fuss and returns in line with what markets are doing, low-cost industry funds or even retail funds are usually more appropriate. Industry funds have considerably cheaper fees than most financial institution super funds and have at times outperformed them as well. But then, you often get what you pay for – there’s limited ‘bells and whistles’ with these funds and you may not be able to nominate your preferred beneficiaries via a Binding arrangement or put in place and maintain the levels of insurance you’d prefer. Industry funds administration and call centres can also be hard to work with as their back office systems can be slow; and their staff less trained and helpful than other retail super funds. Often, there’s no-one to call and help you through the maze if you ever need to claim either.
The best place to start to work out if DIY Super is right for you is to work out the total costs of running a SMSF on an annual basis.
You will certainly have accounting costs and most Accountants can give you a ballpark figure of what you’re looking at. Depending on your level of complexity in the fund, I’ve found average fees can vary from as low as $1.2k p/a to around $5k+ p/a, but the bigger the amount you have invested, the smaller the percentage cost will be overall. You’ll also need to have the fund audited annually – which is usually around $350 – $550 depending on the Auditor.
If you’re using a Financial Adviser, there’s another cost (which most are happy to negotiate) and you could have Stockbroker fees if you choose buy and sell shares. Advisers may charge either a flat fee for advice on the fund regardless or what you have invested, or charge a percentage of the assets under management – i.e. $300k @ 1.1% = $3 300 p/a. Some may even charge entry fees on products recommended, so have a good idea of what you’re getting into first. Others are purely fee for service – but just make sure you’re happy with whatever arrangement you choose to go with.
Some industry funds are quite low cost and can start from as low as 0.8% – but again; they can vary. Most financial institiutions retail funds are around 1% for administration fees, but again, there’s much variation amongst them all. Often, you’ll have investment management fees on top as well. Some however have the flexibility to provide taxation benefits down to a member level instead of charging the Government’s flat 15% by returning individual franking credits to the appropriate investor instead of keeping them – or pooling them across all investors. Most retail funds also offer a more personal approach to insurance benefits which can greatly help with cashflow.
If you’re thinking about doing it yourself make sure you do your due diligence first – count the cost, and work out who you would like to deal with in the coming years for the funds. Understand the costs involved before jumping in, as along with your ongoing costs, there are setup costs too. You need a Trust Deed, Trustees, Beneficiaries, Investment Strategy, ASIC Registration fee, Tax File Number and maybe even GST registration. Again, you can choose to DIY or outsource.
Then, when you’re finally set up it’s important to have a well-balanced portfolio that’s in line with your Investment Strategy. Assets can be invested for income or growth within the fund and it’s good to work out what’s right for you. Will each investment pass the ‘sleep at night’ test or have you awake and worrying into the small hours? And most importantly, don’t bend that one important rule – the Sole Purpose Test. These funds by law are to be put aside to fund your retirement – and nothing else. They are certainly NOT designed for you to speculate on iffy investments, have a holiday home for the family or a great piece of art on the wall.
Again, know what you’re getting yourself in for first and be prepared to spend the time to get it right. Your own personal SMSF can be a great alternative to the public super funds if you love the idea of choice and control. However, if you’re the sort of person who’s incredibly disorganised; just too busy or not really interested in investments, then give SMSFs a wide berth.
The ATO publishes some great information on running a SMSF and what is expected of Trustees. Check out one of their guides here: http://www.ato.gov.au/content/downloads/spr46427n11032.pdf
Alternately, the Advisers at WPP would be happy to take the time out to help you do your sums and work out what’s best for your circumstances.
