The Australian Taxation Office yesterday released a controversial draft Taxation Ruling, TR 2009/D8, in relation to the application of Division 7A to unpaid present entitlements. That is, distributions declared, but not paid, between a trust and a private company. Such unpaid entitlements will exist in almost every situation where a corporate beneficiary is utilised.
To date, most advisors have acted on the understanding that unpaid present entitlements were not considered to be a “loan” for the purposes of Division 7A. This was on the basis that there was no debtor/creditor relationship and instead the value of the distribution represented a new trust relationship.
However, in TR 2009/D8 the Commissioner has taken the view that, where there is a private company with an unpaid present entitlement to a trust, there will only be rare situations where this will be excluded from the operation of Division 7A. This is on the basis that most of these unpaid present entitlements will be considered loans.
We note that this draft ruling suggests it is providing an interpretation of the law as it has applied since 1997, and as such, the Australian Taxation Office considers the ruling would apply retrospectively.
Given this view is significantly different to the common view, what should your clients do now?
The ruling has only been issued in draft form at this stage. The final ruling may vary significantly from this draft. Further, it may be a long period from its release in draft format to its finalisation given the controversial nature of the ruling and the industry opinion (common in both the accounting and the legal professions) that it is overly stringent.
Our current advice is to be aware that this may be an issue to contend with in the future and be careful in structuring current transactions and with how trust distributions are dealt with in each future year. At this stage, we do not suggest that you amend prior returns to declare any historical unpaid present entitlements which you believe may be caught by the newly published opinion of the Australian Taxation Office. These issues may be a concern to be dealt with once the finalised opinion of the Australia Taxation Office has been released, together with any guidance on how to address currently existing issues.
Should you have any questions in relation to the above or other taxation matters, please speak to your financial advisor or solicitor.
Friday, December 18, 2009
Wednesday, December 16, 2009
Benefits of budgeting
A budget is the most fundamental and most effective financial management tool available to you. Regardless whether you are earning thousands of dollars a year, or hundreds of thousands of dollars a year, it is an extremely important tool used to give you an understanding on how much money you have to spend, and where you are spending it.
Budgeting is about planning. And planning is crucial to produce a desired result. A builder would never start work on a new house without a blueprint. You would not get in a car for a cross-country road trip without a map. The same should also be applied when it comes to your money, yet many of us find ourselves in the situation where we make, spend and invest money without a plan to guide us.
A budget is one way for you to plan, organize and control your financial resources. It can help you set and realize goals, and decide in advance how your money will work for you.
The basic idea behind budgeting is to save money up front for both known and unknown expenses.
Seven Benefits of Budgeting
1. It lets you know what is going on
Personal budgeting allows you to know exactly how much money you have, how your funds are being allocated, how they are working for you, what your plans are for them, and how far along you are toward reaching your goals. Knowing about your money is the first step toward controlling it.
2. Control
A budget is the key to enabling you to take charge of your finances. With a budget, you have the tools to decide exactly what is going to happen to your hard-earned money - and when. You can be in control of your money, instead of having your money limit what you do.
3. Organization
A budget divides funds into categories of expenditures and savings. It can also provide further organization by automatically providing records of all your monetary transactions. They can provide the foundation for a simple filing system to organize bills, receipts, and financial statements.
4. Communication
If you are married, have a family, or share money with anyone, having a budget that you both (or all) create together is a key to resolving personal differences about money handling. A budget is a communication tool to discuss the priorities for where your money should be spent, as well as enabling all involved parties to "run" the system.
5. Take advantage of opportunities
Knowing the exact state of your personal monetary affairs, and being in control of them allows you to take advantage of opportunities that you might otherwise miss. Have you ever wondered if you could afford something? With a budget, you will never have to wonder again - you will know.
6. Extra time
All your financial transactions are automatically organized when it comes round to the end of the financial year. Being armed with such information saves you time digging through old records.
7. Extra money
This might well be everyone's favourite benefit. A budget will almost certainly produce extra money for you to do with as you wish. Hidden fees and lost interest paid to outsiders can be eliminated. Unnecessary expenditures, once identified, can be stripped out. Savings, even small ones, can be accumulated and made to work for you.
To learn more about managing a budget, speak to a financial advisor from Intellichoice about a savings and debt management strategy to help you achieve your financial goals. Please feel free to use the free budgeting calculator to get started on managing your money.
Budgeting is about planning. And planning is crucial to produce a desired result. A builder would never start work on a new house without a blueprint. You would not get in a car for a cross-country road trip without a map. The same should also be applied when it comes to your money, yet many of us find ourselves in the situation where we make, spend and invest money without a plan to guide us.
A budget is one way for you to plan, organize and control your financial resources. It can help you set and realize goals, and decide in advance how your money will work for you.
The basic idea behind budgeting is to save money up front for both known and unknown expenses.
Seven Benefits of Budgeting
1. It lets you know what is going on
Personal budgeting allows you to know exactly how much money you have, how your funds are being allocated, how they are working for you, what your plans are for them, and how far along you are toward reaching your goals. Knowing about your money is the first step toward controlling it.
2. Control
A budget is the key to enabling you to take charge of your finances. With a budget, you have the tools to decide exactly what is going to happen to your hard-earned money - and when. You can be in control of your money, instead of having your money limit what you do.
3. Organization
A budget divides funds into categories of expenditures and savings. It can also provide further organization by automatically providing records of all your monetary transactions. They can provide the foundation for a simple filing system to organize bills, receipts, and financial statements.
4. Communication
If you are married, have a family, or share money with anyone, having a budget that you both (or all) create together is a key to resolving personal differences about money handling. A budget is a communication tool to discuss the priorities for where your money should be spent, as well as enabling all involved parties to "run" the system.
5. Take advantage of opportunities
Knowing the exact state of your personal monetary affairs, and being in control of them allows you to take advantage of opportunities that you might otherwise miss. Have you ever wondered if you could afford something? With a budget, you will never have to wonder again - you will know.
6. Extra time
All your financial transactions are automatically organized when it comes round to the end of the financial year. Being armed with such information saves you time digging through old records.
7. Extra money
This might well be everyone's favourite benefit. A budget will almost certainly produce extra money for you to do with as you wish. Hidden fees and lost interest paid to outsiders can be eliminated. Unnecessary expenditures, once identified, can be stripped out. Savings, even small ones, can be accumulated and made to work for you.
To learn more about managing a budget, speak to a financial advisor from Intellichoice about a savings and debt management strategy to help you achieve your financial goals. Please feel free to use the free budgeting calculator to get started on managing your money.
Tuesday, December 15, 2009
Avoid a January credit card hangover
Christmas is usually a time of extra spending, between all of the gifts, functions, food and travel, so it can be all too tempting to charge a little Christmas cheer to your credit card. However, help is at hand: if you’re keen to avoid waking up with a hectic credit card hangover in the new year, follow these tips...
Tip 1: Make a list and check it twice
Ever wandered into a shop with a specific purpose, and then walked out an hour later with four bags full of goodies you never knew you wanted? Part of it is psychological: once you’ve picked up one item and committed to the purchase, you know you have to go through the “hassle” of paying, so you’re more likely to throw in a couple of impulse items on the way to the register. Resist the urge and stick with your list; you’ll feel so much lighter for it.
Tip 2: Pay with fantastic plastic – the other kind
There’s a slight thrill that goes with paying by credit card: you get to walk away with your new goods and you don’t have to hand over any cash, so the whole transaction almost feels like you’re using play money. Paying with cash, on the other hand, is a much more realistic experience. You immediately experience the repercussions of your purchase – ie, less money in your wallet – which gives you a clearer picture of your spending habits.
Tip 3: Lower your credit limit
Do you have a high credit card limit, or an extra credit card that you keep “in case of emergencies”? At Christmas time we tend to get a little busy and stressed, so it can become harder to distinguish between “emergency purchase” and “cocktail dress that would be perfect for my work Christmas party!”. Consider chopping the credit limits right down to the bare minimum so you can avoid temptation. If you don’t have it, you can’t spend it.
Tip 4: Avoid store cards
Around the silly season, many department stores offer interest-free promotions so you can do all your Christmas shopping under a “buy now, pay later” scheme. The catch? Store cards typically have higher interest rates than standard credit cards once the interest-free period comes to an end: in some cases, rates can go as high as 29%.
Tip 5: Be creative with gifts
Rather than spending hundreds or thousands of dollars on countless Christmas presents, organise a “Secret Santa” program with your friends or family, so that each person only has to buy one present. Alternatively, give the gift of time or favours: some ideas might include car washes, hair cuts, babysitting, home repairs, home cooking, gardening or cleaning.
Tip 1: Make a list and check it twice
Ever wandered into a shop with a specific purpose, and then walked out an hour later with four bags full of goodies you never knew you wanted? Part of it is psychological: once you’ve picked up one item and committed to the purchase, you know you have to go through the “hassle” of paying, so you’re more likely to throw in a couple of impulse items on the way to the register. Resist the urge and stick with your list; you’ll feel so much lighter for it.
Tip 2: Pay with fantastic plastic – the other kind
There’s a slight thrill that goes with paying by credit card: you get to walk away with your new goods and you don’t have to hand over any cash, so the whole transaction almost feels like you’re using play money. Paying with cash, on the other hand, is a much more realistic experience. You immediately experience the repercussions of your purchase – ie, less money in your wallet – which gives you a clearer picture of your spending habits.
Tip 3: Lower your credit limit
Do you have a high credit card limit, or an extra credit card that you keep “in case of emergencies”? At Christmas time we tend to get a little busy and stressed, so it can become harder to distinguish between “emergency purchase” and “cocktail dress that would be perfect for my work Christmas party!”. Consider chopping the credit limits right down to the bare minimum so you can avoid temptation. If you don’t have it, you can’t spend it.
Tip 4: Avoid store cards
Around the silly season, many department stores offer interest-free promotions so you can do all your Christmas shopping under a “buy now, pay later” scheme. The catch? Store cards typically have higher interest rates than standard credit cards once the interest-free period comes to an end: in some cases, rates can go as high as 29%.
Tip 5: Be creative with gifts
Rather than spending hundreds or thousands of dollars on countless Christmas presents, organise a “Secret Santa” program with your friends or family, so that each person only has to buy one present. Alternatively, give the gift of time or favours: some ideas might include car washes, hair cuts, babysitting, home repairs, home cooking, gardening or cleaning.
Super funds to get simpler
Australian workers will have their superannuation guarantee payments from their employer sent to new, no-frills, low fee, default super funds under a plan outlined by the federal government’s superannuation system review.
The review proposes that the superannuation industry be overhauled because most people do not take an active interest in their superannuation. Super funds currently cost too much and provide too many investment options to provide low cost super to most people who do not take an interest in their super.
About 90% of workers are currently being placed in default funds chosen by their employer or as prescribed in industrial awards.
The review proposes that the superannuation industry be overhauled because most people do not take an active interest in their superannuation. Super funds currently cost too much and provide too many investment options to provide low cost super to most people who do not take an interest in their super.
About 90% of workers are currently being placed in default funds chosen by their employer or as prescribed in industrial awards.
Wednesday, December 9, 2009
Tips for coping with interest rate rises
With the interest rate rises of recent times, it is timely to reflect on how to make some adjustments to compensate. Here are some tips to reduce the household expenses without affecting your lifestyle.
Insurance
Having your insurance for the car and the household with the same provider can earn you a discount.
It is also always a good idea to shop around each year to check that you are still getting the best and cheapest coverage. Changing the excess and restricting the drivers to people aged over 25 can also make a difference.
For health insurance, again you should assess the level of cover as well as your provider. For example, there may be extras you are paying for that you never use.
You can also speak to one of the financial advisors at Intellichoice about finding you an insurance policy that suits your needs and circumstances. They will do all the research and legwork for you and find you an insurance policy that is best for you.
Petrol
Buy petrol on a Tuesday. According to the ACCC, petrol is usually cheapest on
Tuesdays in Australia’s metropolitan cities, except for Perth, where it is cheapest on Mondays.
Grocery Shopping
Reduce the number of trips to the grocery store to once every week or fortnight and stick to a reasonable budget each time. Also make a shopping list before you go to the supermarket and this will help you to avoid impulse buying. Meal planning also helps you focus on the things you really need.
Store displays
Do not assume that the in-store displays, particularly at the end of the aisles and at the checkout are on special – compare their price with the same items that are not being promoted. Look up and down the shelves. Note that the more expensive items tend to be right in the line of sight, while cheaper or supermarket-own brands tend to be located on the higher or lower shelves.
No-name brands
Try no-name/generic and supermarket-own brands for staples, like sugar, salt and flour – they tend to be hard to pick from branded equivalents.
Treats and snacks
Buy treats and snacks in the supermarket instead of going to the convenience store.
Telecommunications
Telstra and Optus provide discounts if you have three or more telecommunication accounts with them.
VOIP
Voice Over Internet Protocol is quickly becoming a popular alternative for your home phone. It uses the internet to drastically reduce call costs.
Electricity/Gas
If you consolidate your gas and electricity to the one provider you can receive a 5% discount. Some providers also offer a ‘switching discount’ such as $50 off your first bill.
Think about installing a solar hot water system. Whilst the initial outlay (approx $3,500-$4,500) is more than your standard system, both the Federal and some State governments offer rebates, which can take $1,000-$2,000 off the cost.
Depending on your home’s location and water consumption, this could reduce your water heating costs by up to 80%.
BYO lunch
BYO lunch. If you bring your own lunch to work three to four times a week, you could save over $500 per year
Personal loans & Credit cards
Personal loans and the rates on offer can be renegotiated, especially on cars. For example, if you have a loan on your car that was arranged by the dealer you could be paying 5-8% more interest than necessary – so it is recommended that you shop around.
Credit card rates can also range from 9.95% to 18.99% and it is usually membership reward schemes, cash advances and other offers that bump up the rate. Work out what you really want from your credit card and change it to a lower rate card where possible.
If you have a few personal loans or credit card debts, we recommend that you speak with a financial advisor from Intellichoice about consolidating all your debts into one - you may end up paying a lower interest rate and save money at the same time.
All of these suggestions will have little or no impact on your lifestyle. However, taken together, the savings can be significant and can more than offset the recent interest rate rises.
Insurance
Having your insurance for the car and the household with the same provider can earn you a discount.
It is also always a good idea to shop around each year to check that you are still getting the best and cheapest coverage. Changing the excess and restricting the drivers to people aged over 25 can also make a difference.
For health insurance, again you should assess the level of cover as well as your provider. For example, there may be extras you are paying for that you never use.
You can also speak to one of the financial advisors at Intellichoice about finding you an insurance policy that suits your needs and circumstances. They will do all the research and legwork for you and find you an insurance policy that is best for you.
Petrol
Buy petrol on a Tuesday. According to the ACCC, petrol is usually cheapest on
Tuesdays in Australia’s metropolitan cities, except for Perth, where it is cheapest on Mondays.
Grocery Shopping
Reduce the number of trips to the grocery store to once every week or fortnight and stick to a reasonable budget each time. Also make a shopping list before you go to the supermarket and this will help you to avoid impulse buying. Meal planning also helps you focus on the things you really need.
Store displays
Do not assume that the in-store displays, particularly at the end of the aisles and at the checkout are on special – compare their price with the same items that are not being promoted. Look up and down the shelves. Note that the more expensive items tend to be right in the line of sight, while cheaper or supermarket-own brands tend to be located on the higher or lower shelves.
No-name brands
Try no-name/generic and supermarket-own brands for staples, like sugar, salt and flour – they tend to be hard to pick from branded equivalents.
Treats and snacks
Buy treats and snacks in the supermarket instead of going to the convenience store.
Telecommunications
Telstra and Optus provide discounts if you have three or more telecommunication accounts with them.
VOIP
Voice Over Internet Protocol is quickly becoming a popular alternative for your home phone. It uses the internet to drastically reduce call costs.
Electricity/Gas
If you consolidate your gas and electricity to the one provider you can receive a 5% discount. Some providers also offer a ‘switching discount’ such as $50 off your first bill.
Think about installing a solar hot water system. Whilst the initial outlay (approx $3,500-$4,500) is more than your standard system, both the Federal and some State governments offer rebates, which can take $1,000-$2,000 off the cost.
Depending on your home’s location and water consumption, this could reduce your water heating costs by up to 80%.
BYO lunch
BYO lunch. If you bring your own lunch to work three to four times a week, you could save over $500 per year
Personal loans & Credit cards
Personal loans and the rates on offer can be renegotiated, especially on cars. For example, if you have a loan on your car that was arranged by the dealer you could be paying 5-8% more interest than necessary – so it is recommended that you shop around.
Credit card rates can also range from 9.95% to 18.99% and it is usually membership reward schemes, cash advances and other offers that bump up the rate. Work out what you really want from your credit card and change it to a lower rate card where possible.
If you have a few personal loans or credit card debts, we recommend that you speak with a financial advisor from Intellichoice about consolidating all your debts into one - you may end up paying a lower interest rate and save money at the same time.
All of these suggestions will have little or no impact on your lifestyle. However, taken together, the savings can be significant and can more than offset the recent interest rate rises.
Tuesday, December 8, 2009
Wealthy investors look to expand their property portfolio
Confidence in the real estate sector is returning among high-net-worth individuals according to new survey from Barclays Wealth.
According to the Barclays Wealth survey, over the next two years, 35% of respondents said they plan to increase the proportion of their portfolios dedicated to real estate, excluding their primary residences.
The average allocation to real estate among respondents was 28% internationally and 23% in the US. Investors in nine out of ten countries expect to increase their allocation to real estate by 1% to 4% over the next two years, raising the global average allocation to 30%.
Investors who plan to increase their real estate stakes believe that the asset class holds better long-term prospects than other more complex financial instruments, which many blame for igniting the financial crisis. Additionally, thanks to the recent turmoil in nearly all real estate markets around the world, investors believe there are many bargains to be had in the property sector.
According to the report, investors are less enthusiastic about commercial real estate, due to rising unemployment rates worldwide, but 45% of respondents believe there are significant opportunities in residential markets, although tight credit markets are inhibiting their ability to take advantage.
The survey found that more than three-quarters of respondents predominantly invest in their domestic market. However, when asked what other markets are attractive to them right now, the US ranked number one, followed by China, the U.K and India, in that order. US real estate is particularly appealing because of recent price declines, the falling dollar and long-term positive prospects for the US economy.
The report, commissioned by Barclays Wealth and written by the Economist Intelligence Unit (EIU), was based on a survey of more than 2000 individuals in 10 countries with over $800,000 in investable assets.
According to the Barclays Wealth survey, over the next two years, 35% of respondents said they plan to increase the proportion of their portfolios dedicated to real estate, excluding their primary residences.
The average allocation to real estate among respondents was 28% internationally and 23% in the US. Investors in nine out of ten countries expect to increase their allocation to real estate by 1% to 4% over the next two years, raising the global average allocation to 30%.
Investors who plan to increase their real estate stakes believe that the asset class holds better long-term prospects than other more complex financial instruments, which many blame for igniting the financial crisis. Additionally, thanks to the recent turmoil in nearly all real estate markets around the world, investors believe there are many bargains to be had in the property sector.
According to the report, investors are less enthusiastic about commercial real estate, due to rising unemployment rates worldwide, but 45% of respondents believe there are significant opportunities in residential markets, although tight credit markets are inhibiting their ability to take advantage.
The survey found that more than three-quarters of respondents predominantly invest in their domestic market. However, when asked what other markets are attractive to them right now, the US ranked number one, followed by China, the U.K and India, in that order. US real estate is particularly appealing because of recent price declines, the falling dollar and long-term positive prospects for the US economy.
The report, commissioned by Barclays Wealth and written by the Economist Intelligence Unit (EIU), was based on a survey of more than 2000 individuals in 10 countries with over $800,000 in investable assets.
Monday, December 7, 2009
Plan for Christmas debt now
Credit card debts are expected to soar in the next few weeks as consumers stock up for Christmas. Financial counsellors warn that February is often a month of misery for many as they try to deal with debts racked up over the summer.
Debt ratings agency Veda Advantage recommends that consumers set a spending limit and stick to it. “We are not saying don’t use your credit card, that is what they are there for, to spread out lumpy purchases like Christmas – but plan your repayments before you go out and spend the money.”
We have also included some tips to help you save money during Christmas, yet keeping it fun for the whole family.
Make it fun
Christmas shopping shouldn't be a chore. Variations of gift exchanging include:
Homemade gifts demonstrate caring, creativity and passion.
Debt ratings agency Veda Advantage recommends that consumers set a spending limit and stick to it. “We are not saying don’t use your credit card, that is what they are there for, to spread out lumpy purchases like Christmas – but plan your repayments before you go out and spend the money.”
We have also included some tips to help you save money during Christmas, yet keeping it fun for the whole family.
Make it fun
Christmas shopping shouldn't be a chore. Variations of gift exchanging include:
- Secret Santa - If you have a group that’s keen on the idea, Secret Santa can be a fun and inexpensive way to participate in the holiday season on a minimal budget
- Gift Themes - Choose a theme — travel, computers, food, whatever — and encourage everyone in the group to base their gifts around it
- Draw names - This is an excellent way to cut down costs while still participating in a gift exchange. You can draw another person’s name from a hat and give this person a nice gift. This is similar to secret santa
Homemade gifts demonstrate caring, creativity and passion.
- A hand-assembled collection of gourmet salts, complete with written description of each.
- Biscuits, cakes, muffins
- Art. (Do you dabble in photography? A framed print of your nephew is a great gift for your sister-in-law.)
- Home-made jams and jellies
- Hampers for example a cheese and wine hamper, or a hamper made up of someone's favourite foods including chocolates, fudge, shortbread and jams
- Send postcards or a letter instead ofChristmas cards
- Save your children’s (or grandchildren’s) holiday crafts and artwork from school each year and use the artwork as Christmas decorations for around the house or on the Christmas tree
- Cuting up old Christmas cards can make wonderful gift tags too
Tuesday, December 1, 2009
Australian pensioners to face poverty
New research has shown that Australians have only saved enough money to last just three or four years into retirement. This lack of wealth creation looks set to have many Australians facing the unenviable situation of experiencing a life of poverty in their old age.
Not only is the average Australian working less and living longer, but they are also not doing enough to provide for themselves in retirement – approximately 85% of men and 92% of women are now expected to live 20 years beyond the age of 65.
The recently released report from AMP also states that almost 60% of men are leaving the workforce before reaching the age of 65. Due to these circumstances, AMP has called on the government to raise the super guarantee (SG) from 9% to 12%.
Australians have very high retirement expectations but are not saving enough to even afford a comfortable retirement let alone one that meets their expectations.
Research has found that the savings of those retirees currently aged 65 and over - an average of $107,500 for men and $81,600 for women - are only enough to last three years for women and four years for men. According to AMP, those that retire on average earnings would need $40,475 each, per year, for a comfortable retirement.
This shows that people need to take charge of their future financial security.
If you would like to find out more about planning for retirement and how you can create wealth in a safe way, speak to one of the financial advisors at Intellichoice.
Not only is the average Australian working less and living longer, but they are also not doing enough to provide for themselves in retirement – approximately 85% of men and 92% of women are now expected to live 20 years beyond the age of 65.
The recently released report from AMP also states that almost 60% of men are leaving the workforce before reaching the age of 65. Due to these circumstances, AMP has called on the government to raise the super guarantee (SG) from 9% to 12%.
Australians have very high retirement expectations but are not saving enough to even afford a comfortable retirement let alone one that meets their expectations.
Research has found that the savings of those retirees currently aged 65 and over - an average of $107,500 for men and $81,600 for women - are only enough to last three years for women and four years for men. According to AMP, those that retire on average earnings would need $40,475 each, per year, for a comfortable retirement.
This shows that people need to take charge of their future financial security.
If you would like to find out more about planning for retirement and how you can create wealth in a safe way, speak to one of the financial advisors at Intellichoice.
Monday, November 30, 2009
Super cap stimulates property interest
According to Archicentre, the building advisory service of the Australian Institute of Architects, the Federal Government's move to cap superannuation contributions at $50,000 has stimulated interest in renovation and investment in negatively geared property.
In the latest Archicentre Consumer Sentiment Poll of over seven hundred respondents, approximatley 72% of respondents said they would be putting their extra funds into property. Approximately 40% said they would invest in renovation of their own home, while 32% said they would invest in a negatively geared property. Approximately 28% said they would use their extra funds by investing in shares.
Michael Cooper, Tasmanian State Manager of Archicentre said that with many Australians planning to top up their superannuation with equity in the family home or investment properties, the current rising house prices will have a significant impact on the lifestyles of hundreds of thousands of Australians.
The added bonus for people investing in the family home is that once completed and sold it is not subject to capital gains tax and they can enjoy the new renovations."
Mr Cooper said whilst this is a time of opportunity, people renovating their homes need to ensure they do their homework in relation to renovation and design to ensure they are in fact adding value.
"People purchasing an investment property can run into financial difficulty if they do not carry out a thorough inspection of the property", he warned.
"Last year, one out of three homes which underwent the independent pre-purchase inspection by Archicentre had faults which required attention allowing prospective buyers to factor in the costs of repair before making a bid.
"People who buy a 'lemon' are often confronted with unplanned borrowings to fix problems such as plumbing, wiring, rising damp and roof problems which can run to tens of thousands of dollars of extra funds cutting directly into the level of the superannuation returns."
According to Mr Cooper, the best defence against the loss of value in the family home as a superannuation asset is to get a professional, independent assessment of the property before purchasing and of any renovation before commencing.
For more information on how we can help you build your wealth through safe investments and still lead a comfortable retirement, speak to one of the financial advisors at Intellichoice.
In the latest Archicentre Consumer Sentiment Poll of over seven hundred respondents, approximatley 72% of respondents said they would be putting their extra funds into property. Approximately 40% said they would invest in renovation of their own home, while 32% said they would invest in a negatively geared property. Approximately 28% said they would use their extra funds by investing in shares.
Michael Cooper, Tasmanian State Manager of Archicentre said that with many Australians planning to top up their superannuation with equity in the family home or investment properties, the current rising house prices will have a significant impact on the lifestyles of hundreds of thousands of Australians.
The added bonus for people investing in the family home is that once completed and sold it is not subject to capital gains tax and they can enjoy the new renovations."
Mr Cooper said whilst this is a time of opportunity, people renovating their homes need to ensure they do their homework in relation to renovation and design to ensure they are in fact adding value.
"People purchasing an investment property can run into financial difficulty if they do not carry out a thorough inspection of the property", he warned.
"Last year, one out of three homes which underwent the independent pre-purchase inspection by Archicentre had faults which required attention allowing prospective buyers to factor in the costs of repair before making a bid.
"People who buy a 'lemon' are often confronted with unplanned borrowings to fix problems such as plumbing, wiring, rising damp and roof problems which can run to tens of thousands of dollars of extra funds cutting directly into the level of the superannuation returns."
According to Mr Cooper, the best defence against the loss of value in the family home as a superannuation asset is to get a professional, independent assessment of the property before purchasing and of any renovation before commencing.
For more information on how we can help you build your wealth through safe investments and still lead a comfortable retirement, speak to one of the financial advisors at Intellichoice.
Friday, November 27, 2009
A guide to self managed super
Do it yourself super via a self managed super fund (SMSF) is becoming an increasingly popular choice for investors who want to have control over how their super is invested.
What is an SMSF?
An SMSF is a trust where money or assets are held and managed on behalf of up to 4 members to provide benefits for their retirement. All members of an SMSF must be trustees of the fund or directors of the fund's corporate trustee (subject to certain exceptions).
Why should you establish an SMSF?
There are three key reasons for establishing your own super fund: control, flexibility and investment choice.
As a trustee of your self managed super fund, you decide on your fund's investment strategy and choose what your fund's assets are invested in. You can invest in almost anything and tailor your fund's investments to suit your specific needs - although it is subject to some limitations and legal restrictions.
Like all super funds, an SMSF receives concessional tax treatment. The top tax rate for the investment earnings of your SMSF is 15%. It's important to note that this tax concession is only available if your fund complies with all the rules and regulations that apply to SMSFs (a complynig fund).
Rules and obligations of an SMSF
As a trustee, you need to consider your fund's investment philosophy. Investing successfully takes time, effort and discipline.
How will you spread your money to manage risk? How long will you give an investment to prove itself? What's an acceptable rate of return? How much risk are you willing to take with members' retirement savings?
Another important consideration is your fund's performance - how is it performing relative to other funds after expenses? If it's not doing better, or at least as well, you may want to consider using a professional to manage your super fund.
Rules and obligations that apply to a self managed super fund are complex and even if you employ a financial advisor to help you with an investment strategy, compliance and administration, you will still be legally responsible for making sure your fund complies with all the rules under superannuation law.
Some of the rules and obligations include:
1. Sole purpose test
The sole purpose of your super fund must be to provide retirement benefits to your fund's members. If you use your fund for other purposes (such as running a business), your fund may be considered non-compliant and you risk losing the 15% maximum tax concession.
2. Compliance
Some key areas of compliance for an SMSF relate to:
You can't lend to (or invest in) a related party or related trust of the fund, or lease an asset of the fund to a related party of the fund, if the total of the related party investments or assets being leased is worth more than 5% of the market value of the fund's total assets.
4. Arm's length requirement
The arm's length requirement means that if you lease any asset that belongs to the fund to a related party, it must be at a commercial rate. Any asset purchased must be for market value.
5. Gearing in super
There is a general prohibition of borrowing in super, although certain exceptions do apply. You can, however, borrow funds (use gearing) to invest within an SMSF in certain limited circumstances. Gearing, where appropriate, may help you to accelerate the level of savings you have in super for your retirement. but you still need to consider the risks associated with gearing and the loan must be established on a 'limited recourse' basis.
6. Acquiring assets from related parties
the trustees of SMSFs in general are prohibited from acquiring assets from related parties of the SMSF. This rule generally prohibits such parties from selling most assets to their SMSF, or from contributing assets in-specie. Some assets such as listed securities (shares, units or bonds listed on the approved stock exchange) or business real property are exempt from this rule.
7. Seperation of assets
Your super fund must maintain its assets seperately from those of a business involving one or more of your trustees. If a trustee were to hold assets in their own name instead of the fund, the fund risks losing the asset if that trustee is declared bankrupt or if their business goes into receivership.
8.Investments
Tho help ensure that the assets of an SMSF will be available to provide retirement income, SMSFs are restricted in the investments they can make. However, one concession that SMSFs enjoy is their ability to invest up to 100% of the fund's assets in business real property.
While there are no restrictions on SMSFs investing in collectibles, such as art, members can't benefit from the investment prior to reaching their preservation age (for example, a trustee shouldn't display a piece of art belonging to the fund in their home or office).
9. Fiduciary responsibilities
Meeting fiduciary responsibilities is also important, particularly in relation to your SMSF having its own bank account, rather than banking being done through personal accounts of one or more of the trustees, and not overdrawing that account.
Aside from the initial set-up costs, the cost of sound administration of an SMSF, including compliance with all the regulations, generally means that fund members collectively need a minimum amount of between $200,000 and $250,000 to invest for an SMSF to be worthwhile.
We recommend that you speak with a financial advisor from Intellichoice to discuss in detail what super options are available and whether a self managed super fund is the best solution to meet your investment needs and circumstances. Call us on (07) 3624 1900 or email us and one of our financial planners will be only too happy to answer your queries.
What is an SMSF?
An SMSF is a trust where money or assets are held and managed on behalf of up to 4 members to provide benefits for their retirement. All members of an SMSF must be trustees of the fund or directors of the fund's corporate trustee (subject to certain exceptions).
Why should you establish an SMSF?
There are three key reasons for establishing your own super fund: control, flexibility and investment choice.
As a trustee of your self managed super fund, you decide on your fund's investment strategy and choose what your fund's assets are invested in. You can invest in almost anything and tailor your fund's investments to suit your specific needs - although it is subject to some limitations and legal restrictions.
Like all super funds, an SMSF receives concessional tax treatment. The top tax rate for the investment earnings of your SMSF is 15%. It's important to note that this tax concession is only available if your fund complies with all the rules and regulations that apply to SMSFs (a complynig fund).
Rules and obligations of an SMSF
As a trustee, you need to consider your fund's investment philosophy. Investing successfully takes time, effort and discipline.
How will you spread your money to manage risk? How long will you give an investment to prove itself? What's an acceptable rate of return? How much risk are you willing to take with members' retirement savings?
Another important consideration is your fund's performance - how is it performing relative to other funds after expenses? If it's not doing better, or at least as well, you may want to consider using a professional to manage your super fund.
Rules and obligations that apply to a self managed super fund are complex and even if you employ a financial advisor to help you with an investment strategy, compliance and administration, you will still be legally responsible for making sure your fund complies with all the rules under superannuation law.
Some of the rules and obligations include:
1. Sole purpose test
The sole purpose of your super fund must be to provide retirement benefits to your fund's members. If you use your fund for other purposes (such as running a business), your fund may be considered non-compliant and you risk losing the 15% maximum tax concession.
2. Compliance
Some key areas of compliance for an SMSF relate to:
- in-house asset rules
- conducting all transactions at arm's length
- borrowing (or gearing) in super
- acquiring assets from related parties
- separation of assets
You can't lend to (or invest in) a related party or related trust of the fund, or lease an asset of the fund to a related party of the fund, if the total of the related party investments or assets being leased is worth more than 5% of the market value of the fund's total assets.
4. Arm's length requirement
The arm's length requirement means that if you lease any asset that belongs to the fund to a related party, it must be at a commercial rate. Any asset purchased must be for market value.
5. Gearing in super
There is a general prohibition of borrowing in super, although certain exceptions do apply. You can, however, borrow funds (use gearing) to invest within an SMSF in certain limited circumstances. Gearing, where appropriate, may help you to accelerate the level of savings you have in super for your retirement. but you still need to consider the risks associated with gearing and the loan must be established on a 'limited recourse' basis.
6. Acquiring assets from related parties
the trustees of SMSFs in general are prohibited from acquiring assets from related parties of the SMSF. This rule generally prohibits such parties from selling most assets to their SMSF, or from contributing assets in-specie. Some assets such as listed securities (shares, units or bonds listed on the approved stock exchange) or business real property are exempt from this rule.
7. Seperation of assets
Your super fund must maintain its assets seperately from those of a business involving one or more of your trustees. If a trustee were to hold assets in their own name instead of the fund, the fund risks losing the asset if that trustee is declared bankrupt or if their business goes into receivership.
8.Investments
Tho help ensure that the assets of an SMSF will be available to provide retirement income, SMSFs are restricted in the investments they can make. However, one concession that SMSFs enjoy is their ability to invest up to 100% of the fund's assets in business real property.
While there are no restrictions on SMSFs investing in collectibles, such as art, members can't benefit from the investment prior to reaching their preservation age (for example, a trustee shouldn't display a piece of art belonging to the fund in their home or office).
9. Fiduciary responsibilities
Meeting fiduciary responsibilities is also important, particularly in relation to your SMSF having its own bank account, rather than banking being done through personal accounts of one or more of the trustees, and not overdrawing that account.
Aside from the initial set-up costs, the cost of sound administration of an SMSF, including compliance with all the regulations, generally means that fund members collectively need a minimum amount of between $200,000 and $250,000 to invest for an SMSF to be worthwhile.
We recommend that you speak with a financial advisor from Intellichoice to discuss in detail what super options are available and whether a self managed super fund is the best solution to meet your investment needs and circumstances. Call us on (07) 3624 1900 or email us and one of our financial planners will be only too happy to answer your queries.
Wednesday, November 18, 2009
Young people in perpetual debt
Generation Y (people aged under about 30 years of age) are likely to have more problems paying off debts than young people have had in the past. An increase in part time work and a fall in hours worked means they have less means to repay debt.
Often, a young person’s first debts today are likely to be ‘perpetual debts‘ such as credit cards and HECS, whereas in the past a young person’s first debt was more likely to be a fixed repayment schedule loan such as a car loan.
Being in perpetual debt is no longer something that many people think should be avoided.
"I don't think Gen Y has really had a great deal of experience in managing money and finances, or in establishing good savings practices," says KPMG demographer Bernard Salt.
"I am really quite concerned about their ability to manage all of this."
We recommend that you should have a plan to bring debt under control and debts with higher interest rates, such as credit cards, should be paid off first. If you require assistance with managing your debt, budgeting or need a debt consolidation loan, speak to one of the financial planners at Intellichoice. Please feel free to use our free budgeting calculator on the Intellichoice website for help managing your finances.
Often, a young person’s first debts today are likely to be ‘perpetual debts‘ such as credit cards and HECS, whereas in the past a young person’s first debt was more likely to be a fixed repayment schedule loan such as a car loan.
Being in perpetual debt is no longer something that many people think should be avoided.
"I don't think Gen Y has really had a great deal of experience in managing money and finances, or in establishing good savings practices," says KPMG demographer Bernard Salt.
"I am really quite concerned about their ability to manage all of this."
We recommend that you should have a plan to bring debt under control and debts with higher interest rates, such as credit cards, should be paid off first. If you require assistance with managing your debt, budgeting or need a debt consolidation loan, speak to one of the financial planners at Intellichoice. Please feel free to use our free budgeting calculator on the Intellichoice website for help managing your finances.
Tuesday, November 17, 2009
Australians keen to invest in property
More than 70 per cent of Australians over the age of 25 believe the time is ripe for property investment in Australia.
According to Citibank’s Australian wealth survey, 74% think now is a good time to invest in property, while 40% believe it is a bad time to invest in shares.
Citibank’s Andrew de Graaff said Australians were beginning to see property as relatively risk free.
“While a lot of people are saying now is a good time to buy and invest, it is another thing to actually do it,” he said.
Australia's property prices have held relatively firm while overseas markets, particularly in the US and Britain, plunged.
If you are looking at investing in property, speak to the financial advisors at Intellichoice about ways to grow your wealth in safe and relatively risk-free investments. We will be able to advice on an investment strategy that suits your short, medium and long-term goals.
According to Citibank’s Australian wealth survey, 74% think now is a good time to invest in property, while 40% believe it is a bad time to invest in shares.
Citibank’s Andrew de Graaff said Australians were beginning to see property as relatively risk free.
“While a lot of people are saying now is a good time to buy and invest, it is another thing to actually do it,” he said.
Australia's property prices have held relatively firm while overseas markets, particularly in the US and Britain, plunged.
If you are looking at investing in property, speak to the financial advisors at Intellichoice about ways to grow your wealth in safe and relatively risk-free investments. We will be able to advice on an investment strategy that suits your short, medium and long-term goals.
Monday, November 16, 2009
A guide to managing debt
If you have a number of debts from various sources, there are ways to reduce or better manage them. We recommend that you speak with a financial advisor first, who can recommend the best option that suits your needs. Below are just some of the strategies you could use to better manage debt.
Budget
Take the time to complete a budget planner. A budget will help give you an idea of where you're spending your money, where you can potentially cut back and how much is left over after you've paid all your regular bills and living expenses. If you find that your income is greater than your expenses, you can use the extra money to pay off your debts.
Pay off higher-interest loans first
Credit cards or personal loans tend to have a higher interest rate, so it makes sense to repay these first. Pay at least the minimum monthly amount. We recommend that you budget carefully and try to keep money aside for extra repayments.
If you have more than one loan, make extra payments on the loan with the highst interest rate first. Once that has been paid off, focus on the next highest interest rate loan.
Reduce your mortgage
Any extra repayments you make on your home loan will reduce the interest you pay in the long run, potentially reducing your mortgage term by years. Before you make any extra payments on your home loan, check with your lender first, as some may charge you for paying more than you should or paying out the loan early. You should also check that your lender allows you to withdraw money from your home loan as this will give you peace of mind that you can get back any extra you've paid you need to, for example, to pay for emergency bills.
Combine your debts with a debt consolidation debt
Consider a debt consolidation loan to repay all your debts. This will make life simpler for you as you only need to make one payment each month now. And if the loan has a lower interest rate than your other debts, you save money.
Use your home loan redraw facility
Another option is to redraw funds from your home loan to pay off your personal loans or credit card debts. Home loans generally have lower interest rates, so redrawing money to pay off your outstanding debts will result in you paying less interest and having a lower overall repayment.
If you can maintain the monthly repayment at the amount you were paying on the individual debts, you'll reduce the loan even quicker.
You could also use your redraw facility as a savings account. Instead of keeping money in your bank account or a cash trust where you pay tax on the interest it earns, you'll reduce the amount of loan interest you pay while still having access to your money.
For more information on how to manage and pay off your debts quickly or if you need help with budgeting, speak to a financial advisor from Intellichoice on 1300 55 10 45. They will be able to recommend that best option for you based on your circumstances and needs.
Budget
Take the time to complete a budget planner. A budget will help give you an idea of where you're spending your money, where you can potentially cut back and how much is left over after you've paid all your regular bills and living expenses. If you find that your income is greater than your expenses, you can use the extra money to pay off your debts.
Pay off higher-interest loans first
Credit cards or personal loans tend to have a higher interest rate, so it makes sense to repay these first. Pay at least the minimum monthly amount. We recommend that you budget carefully and try to keep money aside for extra repayments.
If you have more than one loan, make extra payments on the loan with the highst interest rate first. Once that has been paid off, focus on the next highest interest rate loan.
Reduce your mortgage
Any extra repayments you make on your home loan will reduce the interest you pay in the long run, potentially reducing your mortgage term by years. Before you make any extra payments on your home loan, check with your lender first, as some may charge you for paying more than you should or paying out the loan early. You should also check that your lender allows you to withdraw money from your home loan as this will give you peace of mind that you can get back any extra you've paid you need to, for example, to pay for emergency bills.
Combine your debts with a debt consolidation debt
Consider a debt consolidation loan to repay all your debts. This will make life simpler for you as you only need to make one payment each month now. And if the loan has a lower interest rate than your other debts, you save money.
Use your home loan redraw facility
Another option is to redraw funds from your home loan to pay off your personal loans or credit card debts. Home loans generally have lower interest rates, so redrawing money to pay off your outstanding debts will result in you paying less interest and having a lower overall repayment.
If you can maintain the monthly repayment at the amount you were paying on the individual debts, you'll reduce the loan even quicker.
You could also use your redraw facility as a savings account. Instead of keeping money in your bank account or a cash trust where you pay tax on the interest it earns, you'll reduce the amount of loan interest you pay while still having access to your money.
For more information on how to manage and pay off your debts quickly or if you need help with budgeting, speak to a financial advisor from Intellichoice on 1300 55 10 45. They will be able to recommend that best option for you based on your circumstances and needs.
Wednesday, November 11, 2009
Do you have appropriate insurance cover to meet your family needs if anything happens to you?
By world standards, Australians are financially sophisticated. Between us we have almost one trillion dollars invested in superannuation and one of the highest rates of share ownership in the world.
But did you know that:
- In 2009, over 9,000 Australians will be diagnosed with leukaemia, lymphoma and myeloma. That’s one every hour
- Every year, 8,000 Australians discover they have melanoma, and 1,000 die each year. Australian five year survival rates are the highest in the world
- Yesterday, 32 women were told they have breast cancer. 32 women will be told today…and tomorrow...Approximately 88% will survive
- Heart disease affects 2 out of 3 families
- 400 Australians are paralysed by spinal cord injury each year. Their average age is 25. Long-term care costs exceed $500 million annually
- An estimated 106,000 new cases of cancer are diagnosed each year
- Each year, around 4,400 parents with dependent children die
a stroke occurs in Australia every 11 minutes, resulting in 48,000 strokes each year
Unfortunately, many Australians don't think that any of the above could apply to them. Studies have found that around 80% of Australians are underinsured. Don't take the risk. If you had an accident and were not able to work, or if you died due to some unforeseen event, your partner and family would be faced with the burden of debt.
Research on Australian attitudes to life insurance also revealed some startling information about the Aussie psyche.
But did you know that:
- In 2009, over 9,000 Australians will be diagnosed with leukaemia, lymphoma and myeloma. That’s one every hour
- Every year, 8,000 Australians discover they have melanoma, and 1,000 die each year. Australian five year survival rates are the highest in the world
- Yesterday, 32 women were told they have breast cancer. 32 women will be told today…and tomorrow...Approximately 88% will survive
- Heart disease affects 2 out of 3 families
- 400 Australians are paralysed by spinal cord injury each year. Their average age is 25. Long-term care costs exceed $500 million annually
- An estimated 106,000 new cases of cancer are diagnosed each year
- Each year, around 4,400 parents with dependent children die
a stroke occurs in Australia every 11 minutes, resulting in 48,000 strokes each year
Unfortunately, many Australians don't think that any of the above could apply to them. Studies have found that around 80% of Australians are underinsured. Don't take the risk. If you had an accident and were not able to work, or if you died due to some unforeseen event, your partner and family would be faced with the burden of debt.
Research on Australian attitudes to life insurance also revealed some startling information about the Aussie psyche.
- 41% would sell the family home
- 47% would look to the broader family for financial support.
- 49% said that their partner would have to go back to work or continue to work
- 63% would use their superannuation
Friday, November 6, 2009
Super investors will get slugged
Superannuation investors may be slugged by higher tax rates said the Treasurer Wayne Swan yesterday. In a wide ranging speech on tax issues in Melbourne, Mr Swan said some Australians would lose and some would win from the reforms coming out of the Henry Tax Review.
High income earners could lose some tax concessions now available through superannuation. Tax payers with simple tax affairs could also be spared the need to complete a tax return under the proposed changes.
High income earners could lose some tax concessions now available through superannuation. Tax payers with simple tax affairs could also be spared the need to complete a tax return under the proposed changes.
Tuesday, November 3, 2009
Aussies are stashing their cash
The first national study by Westpac into the social effects of the global financial crisis shows more than 32% of Australians are cocooning in the suburbs and even cancelling their Christmas travel. Over 80% are cautiously stashing their cash in a major shift away from a decade of stress and excess.
Westpac spokesperson Jason Yetton, General Manager - Westpac Retail Banking, said the research reflects a cultural change in attitudes after a tough 12 months.
“We’ve had the sea change and the tree change and now we see a trend towards people getting back to basics in the suburbs, and making it a lot more about them and their needs,” he said.
52% are spending what money they do have supporting their local businesses, with 26% opting to eat at neighbourhood restaurants and drinking at the corner pub.
A further 15% of people are looking to find a job closer to home. Australians attribute the shift to “think local, act local” to losing out in super and property values in the last twelve months. 40% of those who had received bad advice from rogue advisors blamed them for the downturn in their personal finances.
Westpac spokesperson Jason Yetton, General Manager - Westpac Retail Banking, said the research reflects a cultural change in attitudes after a tough 12 months.
“We’ve had the sea change and the tree change and now we see a trend towards people getting back to basics in the suburbs, and making it a lot more about them and their needs,” he said.
52% are spending what money they do have supporting their local businesses, with 26% opting to eat at neighbourhood restaurants and drinking at the corner pub.
A further 15% of people are looking to find a job closer to home. Australians attribute the shift to “think local, act local” to losing out in super and property values in the last twelve months. 40% of those who had received bad advice from rogue advisors blamed them for the downturn in their personal finances.
Wednesday, October 28, 2009
Interest rate rises: a 2 phase move by the RBA
I met with UBS Investment Bank during a function on Monday, who gave some very interesting insights about the Reserve Bank of Australia (RBA) and their thoughts on interest rate rises.
UBS Economists predict that with the improved business investment outlook in Australia and a positive view on the improving global economy, we can expect the RBA to completely move away from the current 3.25% cash rate to a more 'normal' 4.25% by the end of March next year, rather than gradually raising the cash rates through to the end of 2010 as previously forecasted.
We can also expect the RBA to another hike 50 basis points (0.5%) before Christmas (with the risk of a 50 basis points move in November alone). While unemployment is likely to drift up towards a peak of 6% by the end of June 2010, the labour market should be steadying and fulltime jobs growth recovering. This strengthening will allow the RBA to justify a further 50 basis points increase to reach a still low 4.25% cash rate by the end of March 2010.
Economists at UBS suggest that by September 2010, the RBA will start the next phase of its tightening cycle and we can expect to see further increases towards the end of 2010 taking the cash rate up to around 4.75%, and then rising to 5.5% in 2011.
Make sure you're prepared for the rate rises, either by putting in place a simple budgeting or savings plan or by fixing your home or investment loans to cope with the increase in repayments. Please feel free to email or speak to one of the financial consultants in the office for a finance health check by calling 1300 55 10 45.
UBS Economists predict that with the improved business investment outlook in Australia and a positive view on the improving global economy, we can expect the RBA to completely move away from the current 3.25% cash rate to a more 'normal' 4.25% by the end of March next year, rather than gradually raising the cash rates through to the end of 2010 as previously forecasted.
We can also expect the RBA to another hike 50 basis points (0.5%) before Christmas (with the risk of a 50 basis points move in November alone). While unemployment is likely to drift up towards a peak of 6% by the end of June 2010, the labour market should be steadying and fulltime jobs growth recovering. This strengthening will allow the RBA to justify a further 50 basis points increase to reach a still low 4.25% cash rate by the end of March 2010.
Economists at UBS suggest that by September 2010, the RBA will start the next phase of its tightening cycle and we can expect to see further increases towards the end of 2010 taking the cash rate up to around 4.75%, and then rising to 5.5% in 2011.
Make sure you're prepared for the rate rises, either by putting in place a simple budgeting or savings plan or by fixing your home or investment loans to cope with the increase in repayments. Please feel free to email or speak to one of the financial consultants in the office for a finance health check by calling 1300 55 10 45.
Tuesday, October 27, 2009
Is Lady Luck to blame for your financial woes?
According to the results of a recent survey conducted by Sunsuper of more than 750 people from around Australia, many respondents blamed 'bad luck' for their financial dissatisfaction, while 'good luck' and 'positive thinking' on the other hand, played a big role in the financial happiness stakes.
Of those who said they were dissatisfied or very dissatisfied with their finances, 51% stated they were 'not earning enough money.' Approximately 48% said they were dissatisfied with their finances because of poor financial planning, followed by bad luck at 24%. Surprisingly, the two most likely reasons for financial stress, the economic downturn and having too much debt, came in at only 3 and 2 percent respectively.
The survey also found nearly twice as many men as women put their financial frustration down to fate and Gen Y more than any other age group attributed their financial woes to bad fortune, with 30% saying if they were luckier, they would be richer.
Those surveyed who earned under AU$60,000 per annum were also more likely than those who earned more to put the blame at Lady Luck's door.
The survey found that 69% were satisfied with their financial lives because they worked hard, although interestingly, 20% gave 'positive thinking' as a top reason, while 13% attributed it to 'good luck'. Only a quarter listed 'good financial planning' as playing a part in their financial satisfaction.
The survey also found that only 3% of Gen Y who responded attributed their financial fulfillment to their parents, which seems to contradict the notion that under 35s enjoy sponging off mum and dad.
Gen Ys also said they were not satisfied with how their lives were turning out financially, with the survey finding the older you get, the more your financial dissatisfaction grows. Only 15% of Gen Ys said they were financially dissatisfied, in comparison to 27% of Gen Xs and 32% of Baby Boomers.
It's very concerning to learn from this survey that so many people believe that their financial situation is largely out of their hands and that fate or chance plays are part in their financial satisfaction or dissatisfaction.
There are many things people can do to improve their situation and take control of their finances - for example, someething as simple as doing a budget or getting financial advice from a qualified financial planner is a start in the right direction. It does not have to be expensive or complicated and can make all the difference for a stable financial future.
For more information on how a financial planner can help you boost your financial satisfaction (without leaving it to Lady Luck or Lotto), call 1300 55 10 45 to speak to an Intellichoice Financial Adviser.
Of those who said they were dissatisfied or very dissatisfied with their finances, 51% stated they were 'not earning enough money.' Approximately 48% said they were dissatisfied with their finances because of poor financial planning, followed by bad luck at 24%. Surprisingly, the two most likely reasons for financial stress, the economic downturn and having too much debt, came in at only 3 and 2 percent respectively.
The survey also found nearly twice as many men as women put their financial frustration down to fate and Gen Y more than any other age group attributed their financial woes to bad fortune, with 30% saying if they were luckier, they would be richer.
Those surveyed who earned under AU$60,000 per annum were also more likely than those who earned more to put the blame at Lady Luck's door.
The survey found that 69% were satisfied with their financial lives because they worked hard, although interestingly, 20% gave 'positive thinking' as a top reason, while 13% attributed it to 'good luck'. Only a quarter listed 'good financial planning' as playing a part in their financial satisfaction.
The survey also found that only 3% of Gen Y who responded attributed their financial fulfillment to their parents, which seems to contradict the notion that under 35s enjoy sponging off mum and dad.
Gen Ys also said they were not satisfied with how their lives were turning out financially, with the survey finding the older you get, the more your financial dissatisfaction grows. Only 15% of Gen Ys said they were financially dissatisfied, in comparison to 27% of Gen Xs and 32% of Baby Boomers.
It's very concerning to learn from this survey that so many people believe that their financial situation is largely out of their hands and that fate or chance plays are part in their financial satisfaction or dissatisfaction.
There are many things people can do to improve their situation and take control of their finances - for example, someething as simple as doing a budget or getting financial advice from a qualified financial planner is a start in the right direction. It does not have to be expensive or complicated and can make all the difference for a stable financial future.
For more information on how a financial planner can help you boost your financial satisfaction (without leaving it to Lady Luck or Lotto), call 1300 55 10 45 to speak to an Intellichoice Financial Adviser.
Monday, October 26, 2009
Aussies follow Brits pushing financial advice aside
According to Guardian executive manager Steve Browning, there is still an alarming amount of people who are not seeking financial advice and taking control of their finances one year into the global financial crisis.
'The British Institute of Financial Planning released a survey this month that showed 80% of the country's population were not satisfied with their financial position but only 5% would seek professional help. Of the rest, most were banking on winning lott.' said Browning.
Here in Australia, it's not much better, wth the recent Suncorp WealthSmart survey finding about 51% of respondents thought seeing a financial adviser was important, but only 12% had actually sought advice.
'The British Institute of Financial Planning released a survey this month that showed 80% of the country's population were not satisfied with their financial position but only 5% would seek professional help. Of the rest, most were banking on winning lott.' said Browning.
Here in Australia, it's not much better, wth the recent Suncorp WealthSmart survey finding about 51% of respondents thought seeing a financial adviser was important, but only 12% had actually sought advice.
Friday, October 23, 2009
Can you afford to retire?
The Global Financial Crisis (GFC) has affected superannuation balances across the board. This has left many people questioning their retirement plans.
Have you asked yourself these questions:
1. Can I still afford to retire?
2. Is there anything I can do to build my balance up again?
3. Is superannuation still the best option for me?
Having a financial adviser by your side can help to answer these questions and guide you to make the right choices with your money.
You're invited to come in for a complimentary appointment with one of our financial advisers and discuss how we may be able to help get your retirement plans back on track.
Call 1300 55 10 45 or email us directly for a complimentary review.
Have you asked yourself these questions:
1. Can I still afford to retire?
2. Is there anything I can do to build my balance up again?
3. Is superannuation still the best option for me?
Having a financial adviser by your side can help to answer these questions and guide you to make the right choices with your money.
You're invited to come in for a complimentary appointment with one of our financial advisers and discuss how we may be able to help get your retirement plans back on track.
Call 1300 55 10 45 or email us directly for a complimentary review.
Financial Planning advice at a minimal fee: How we helped James
James came to us to enquire about our financial planning services. He had over the past few years spoken to 5 financial planners. Initially, the planners were excited with the prospect of dealing with a young professional with a high disposable income.
However, James had structured his financial situation to partially reduce his tax liability and more importantly, protect the family assets. This structure appeared complex and daunting to the other advisers and to James’s frustration, no positive outcome was achieved. The advisers would have charged him a huge fee to try to manage his finances or found it too hard and couldn’t help him.
When James came to see Intellichoice, not only were we able to meet his expectations, but the fee was far less than what the other planners were charging.
With minimal cost to James, we have been able to utilise his existing financial structure and further reduce his tax liability. We have also managed to establish an investment portfolio for the long term, whilst also creating a tax effective income stream for his partner.
We will be there with James and his family as they progress through the various life stages and will assist them to achieve their long term financial goals.
To find out more about our minimal fee financial planning service, speak to one of the advisors at 1300 55 10 45 or email us at planning@intellichoicefp.com.au.
Visit www.intellichoice.com.au for more details on our services.
However, James had structured his financial situation to partially reduce his tax liability and more importantly, protect the family assets. This structure appeared complex and daunting to the other advisers and to James’s frustration, no positive outcome was achieved. The advisers would have charged him a huge fee to try to manage his finances or found it too hard and couldn’t help him.
When James came to see Intellichoice, not only were we able to meet his expectations, but the fee was far less than what the other planners were charging.
With minimal cost to James, we have been able to utilise his existing financial structure and further reduce his tax liability. We have also managed to establish an investment portfolio for the long term, whilst also creating a tax effective income stream for his partner.
We will be there with James and his family as they progress through the various life stages and will assist them to achieve their long term financial goals.
To find out more about our minimal fee financial planning service, speak to one of the advisors at 1300 55 10 45 or email us at planning@intellichoicefp.com.au.
Visit www.intellichoice.com.au for more details on our services.
Thursday, October 15, 2009
Australian house values breach $400,000
The median value of an Australian house has breached the $400,000 mark for the first time.
According to information recently released by Residex, the median value of a house in Australia reached $408,500 in August 2009, an increase of 2.51% on the figure recorded at the same time last year. Unit values followed a similar trend, with the nationwide median value increasing by 4.34% to $364,000 in the 12 months from August 2008.
In the Northern Territory, unit prices recorded a massive 19.4% increase over the same period while Darwin registered a similarly impressive 15.05%. Perth and Western Australia Country recorded house value falls of 6.21% and 8.33% respectively, while unit prices in Perth dropped by 2.30% and 3.79% in WA Country.
Residex CEO John Edwards said the data suggested confidence was returning to the Australian property market and that residential investments are once again providing buyers with positive gains. Edwards added that further milestones were within reach: "Without doubt, we can be sure that by the end of September [2009] the median value of a property in Sydney will exceed $600,000."
However, he pointed out that in order to purchase a property at that price, buyers with a deposit of $144,000 would need to be able to make monthly repayments of approximately $2,950 per month at current interest rates.
If you are interested in purchasing property in Australia, please contact Intellichoice for more details. We have a wide range of real estate developments all around Australia, including Brisbane, Gold Coast, Sunshine Coast, Melbourne, Sydney and Perth.
According to information recently released by Residex, the median value of a house in Australia reached $408,500 in August 2009, an increase of 2.51% on the figure recorded at the same time last year. Unit values followed a similar trend, with the nationwide median value increasing by 4.34% to $364,000 in the 12 months from August 2008.
In the Northern Territory, unit prices recorded a massive 19.4% increase over the same period while Darwin registered a similarly impressive 15.05%. Perth and Western Australia Country recorded house value falls of 6.21% and 8.33% respectively, while unit prices in Perth dropped by 2.30% and 3.79% in WA Country.
Residex CEO John Edwards said the data suggested confidence was returning to the Australian property market and that residential investments are once again providing buyers with positive gains. Edwards added that further milestones were within reach: "Without doubt, we can be sure that by the end of September [2009] the median value of a property in Sydney will exceed $600,000."
However, he pointed out that in order to purchase a property at that price, buyers with a deposit of $144,000 would need to be able to make monthly repayments of approximately $2,950 per month at current interest rates.
If you are interested in purchasing property in Australia, please contact Intellichoice for more details. We have a wide range of real estate developments all around Australia, including Brisbane, Gold Coast, Sunshine Coast, Melbourne, Sydney and Perth.
Wednesday, October 14, 2009
Tips to safeguard your financial identity
An increasing numbers of Australian home owners are becoming victims of fraud as criminals steal their identity and take out mortgages in their name.
"What we're seeing is organised crime groups taking over the identities of people who own their properties, which are unencumbered, and then masquerading as them and getting loans using the property as security," said Detective Superintendent Colin Dyson of New South Wales Police.
While traditionally fraudsters had to commit many crimes to receive a reasonable amount of money, just one high value mortgage fraud could net over one million dollars.
The criminals obtained identity information by stealing mail, stealing discarded documents from rubbish or stealing details online using keylogging viruses said Dyson. They then used that stolen information to create fake driver’s licenses and Medicare cards to show to prospective lenders.
Below are some tips to help protect your personal information.
Beware of phishers and vishers
Be wary of emails or phone calls that appear to come from your bank – these may be phishing (email) or vishing (phone) scams to get your personal details. Do not give your personal details out!
Don’t post your personal details online
Fraudsters may scour your profile for personal information which they can use to pass themselves off as you. Never put your personal financial information in an email.
Disable pop-ups
Clicking pop-up messages may allow others to download and install a program on your PC to spay on you and steal your identity.
Change your password often
Use a combination of letters, numbers and punctuation and change passwords frequently.
Safe online banking
When you visit secure sites, make sure you always log out. Avoid using public computers for internet banking. Most banks have PC’s in their branches where you can access internet banking securely.
Is the website secure?
If you’re asked to provide personal information online, check that the details in the address bar of the browser start with ‘https’ – the ‘s’ stands for ‘secure.’
Don’t throw out personal information
Fraudsters may go through your rubbish. Destroy account statements and cards to stop them getting hold of your personal information.
Check your credit report
Make sure your name isn’t being used to run up debts. Your credit report contains your personal details and shows credit applications and defaults. You can get a free copy of your credit report from My Credit File (Veda Advantage), Dun and Bradstreet or Tasmanian Collection Service.
"What we're seeing is organised crime groups taking over the identities of people who own their properties, which are unencumbered, and then masquerading as them and getting loans using the property as security," said Detective Superintendent Colin Dyson of New South Wales Police.
While traditionally fraudsters had to commit many crimes to receive a reasonable amount of money, just one high value mortgage fraud could net over one million dollars.
The criminals obtained identity information by stealing mail, stealing discarded documents from rubbish or stealing details online using keylogging viruses said Dyson. They then used that stolen information to create fake driver’s licenses and Medicare cards to show to prospective lenders.
Below are some tips to help protect your personal information.
Beware of phishers and vishers
Be wary of emails or phone calls that appear to come from your bank – these may be phishing (email) or vishing (phone) scams to get your personal details. Do not give your personal details out!
Don’t post your personal details online
Fraudsters may scour your profile for personal information which they can use to pass themselves off as you. Never put your personal financial information in an email.
Disable pop-ups
Clicking pop-up messages may allow others to download and install a program on your PC to spay on you and steal your identity.
Change your password often
Use a combination of letters, numbers and punctuation and change passwords frequently.
Safe online banking
When you visit secure sites, make sure you always log out. Avoid using public computers for internet banking. Most banks have PC’s in their branches where you can access internet banking securely.
Is the website secure?
If you’re asked to provide personal information online, check that the details in the address bar of the browser start with ‘https’ – the ‘s’ stands for ‘secure.’
Don’t throw out personal information
Fraudsters may go through your rubbish. Destroy account statements and cards to stop them getting hold of your personal information.
Check your credit report
Make sure your name isn’t being used to run up debts. Your credit report contains your personal details and shows credit applications and defaults. You can get a free copy of your credit report from My Credit File (Veda Advantage), Dun and Bradstreet or Tasmanian Collection Service.
Tuesday, October 13, 2009
Reviewing your finances for the new year? Some money saving tips
Many people refinance their homes or investment properties to reduce their monthly home loan repayments. What other aspects of your finances can you review to help save money?
Review the frequency of your home loan repayments
If you are paid weekly or fortnightly, see if you can change the frequency of your home loan repayments to fit in. The interest on your home loan is calculated daily and making a payment two weeks earlier each month saves you money in the long term. In the short term, it will help make ongoing budgeting easier.
Consolidate debt
If you’re paying high interest rates on your credit and store cards – each of which will probably have an annual charge – think about consolidating all your debts in one loan with a debt consolidation loan. You may very well be able to access a lower overall interest rate, reducing your monthly outgoings and you will also avoid paying duplicate fees. Plus, a single monthly debt repayment is easier to manage than having to pay multiple credit card bills.
Cars
Cars are often the biggest family expense after home loan repayments. But as family needs change over time, and the price of petrol rises, we can find we have more expensive cars than we need. Could you downsize your car/s, not only reducing monthly repayments, but also potentially saving in maintenance, insurance and fuel costs? Have you thought about buying a scooter for short, local trips? Are you getting the best deal for the money you spend on your car insurance and repairs?
Insurance
There are three ways you may be able to save money on your insurance premiums. First, shop around when your renewals fall due rather than simply continue with your existing provider.
Also, you may be able to reduce monthly premiums raising the excess payable, or improving the security of your home.
Finally, some insurers provide discounted rates for bundling together policies such as home, contents, car, health or life insurance. If in doublt, speak to a financial advisor from Intellichoice - they will be able to assist you in finding an insurance policy that suits your needs and budget.
Clear out the shed
Do you have items of value gathering dust in your shed or garage? Whether you hold an old-fashioned garage sale or go onto e-bay, perhaps now is a good time to get money for the belongings you’ll never use.
Financial planning
If you’d like personal advice with regards to your financial future, speak to one of our qualified financial planners at Intellichoice. A financial planner can help you to set goals and implement a plan to help you reach them. Speak to our financial planner now on 1300 55 10 45 for an obligation free appointment.
Review the frequency of your home loan repayments
If you are paid weekly or fortnightly, see if you can change the frequency of your home loan repayments to fit in. The interest on your home loan is calculated daily and making a payment two weeks earlier each month saves you money in the long term. In the short term, it will help make ongoing budgeting easier.
Consolidate debt
If you’re paying high interest rates on your credit and store cards – each of which will probably have an annual charge – think about consolidating all your debts in one loan with a debt consolidation loan. You may very well be able to access a lower overall interest rate, reducing your monthly outgoings and you will also avoid paying duplicate fees. Plus, a single monthly debt repayment is easier to manage than having to pay multiple credit card bills.
Cars
Cars are often the biggest family expense after home loan repayments. But as family needs change over time, and the price of petrol rises, we can find we have more expensive cars than we need. Could you downsize your car/s, not only reducing monthly repayments, but also potentially saving in maintenance, insurance and fuel costs? Have you thought about buying a scooter for short, local trips? Are you getting the best deal for the money you spend on your car insurance and repairs?
Insurance
There are three ways you may be able to save money on your insurance premiums. First, shop around when your renewals fall due rather than simply continue with your existing provider.
Also, you may be able to reduce monthly premiums raising the excess payable, or improving the security of your home.
Finally, some insurers provide discounted rates for bundling together policies such as home, contents, car, health or life insurance. If in doublt, speak to a financial advisor from Intellichoice - they will be able to assist you in finding an insurance policy that suits your needs and budget.
Clear out the shed
Do you have items of value gathering dust in your shed or garage? Whether you hold an old-fashioned garage sale or go onto e-bay, perhaps now is a good time to get money for the belongings you’ll never use.
Financial planning
If you’d like personal advice with regards to your financial future, speak to one of our qualified financial planners at Intellichoice. A financial planner can help you to set goals and implement a plan to help you reach them. Speak to our financial planner now on 1300 55 10 45 for an obligation free appointment.
Thursday, October 8, 2009
Don't listen to everything the media tells you
The media (TV, radio and newspapers) will always deliver the bad news. But there is plenty of good news out there for investors.
The global financial crisis (GFC) was big news - we haven't seen the like since the Great Depression. While it's reasonable to expect a high volume of commentary on the GFC, media reports (because of their doom and gloom nature) have tended to focus only on the bad news.
This continual negative reporting has had a powerful impact on the individual's psychology and the collective psychology of the economic community, not to mention investors.
Bad news becomes a conversation starter - everybody knows somebody who has lost their business or job. People start to worry and stop spending - just in case it happens to them. The media continues to tout its bad news and good news ceases to exist.
How the media works
Let's stop and think about media reporting. It's all about the here and now. And if the news had an equal mix of bad news and good, it simply wouldn't have the same impact.
It's short-sighted because it doesn't consider how things are likely to change in the future. It doesn't say 'things are really bad, but...' it just tells us 'things are really bad.'
As investors, we need to filter out all the bad short-term news and shift our focus to the long term where the future looks somewhat brighter.
And now for the good news
Interest rates are at 50 year lows. Fuel prices have fallen from last year's highs. Unemployment and inflation are still within reasonable limits. Business opportunities abound. The talent pool to recruit from has improved, which means employers can choose the best fit for their businesses. Employees are more focused on job security which is also good for employers, as it means lower staff turnover. Suppliers are offering lower prices, better terms and value-added offerings.
There have also been some good news from the US financial sector, in particular, the US Administration's plan to remove 'toxic' assets from the balance sheets of US financial institutions. This may help relieve the global credit squeeze and allow banks to start lending again.
Although March 2009 saw the Australian sharemarket plummet to a low of 3120.80, it's since rallied strongly. It has rebounded 26.7% to 3954.90 as at the end of June 2009. There may still be some uncertainty in investment markets, but we consider that the worst may be over.
Don't wait for the economic recovery
Media reports may indicate that the Australian economy may still not be in good shape and we're experiencing a recession; but historically, investment markets have tended to recover well ahead of the economy. That's because investment markets are forward-looking; they anticipate better growth in earnings and then economies follow. The sharemarket is a leading indicator and the economy is a lagging indicator of economic recovery. If you rely solely on economic recovery to guide your investment decisions you may miss the boat. Speak to one of the financial advisors at Intellichoice about which investments may potentially help you grow your wealth in the safest way possible.
The global financial crisis (GFC) was big news - we haven't seen the like since the Great Depression. While it's reasonable to expect a high volume of commentary on the GFC, media reports (because of their doom and gloom nature) have tended to focus only on the bad news.
This continual negative reporting has had a powerful impact on the individual's psychology and the collective psychology of the economic community, not to mention investors.
Bad news becomes a conversation starter - everybody knows somebody who has lost their business or job. People start to worry and stop spending - just in case it happens to them. The media continues to tout its bad news and good news ceases to exist.
How the media works
Let's stop and think about media reporting. It's all about the here and now. And if the news had an equal mix of bad news and good, it simply wouldn't have the same impact.
It's short-sighted because it doesn't consider how things are likely to change in the future. It doesn't say 'things are really bad, but...' it just tells us 'things are really bad.'
As investors, we need to filter out all the bad short-term news and shift our focus to the long term where the future looks somewhat brighter.
And now for the good news
Interest rates are at 50 year lows. Fuel prices have fallen from last year's highs. Unemployment and inflation are still within reasonable limits. Business opportunities abound. The talent pool to recruit from has improved, which means employers can choose the best fit for their businesses. Employees are more focused on job security which is also good for employers, as it means lower staff turnover. Suppliers are offering lower prices, better terms and value-added offerings.
There have also been some good news from the US financial sector, in particular, the US Administration's plan to remove 'toxic' assets from the balance sheets of US financial institutions. This may help relieve the global credit squeeze and allow banks to start lending again.
Although March 2009 saw the Australian sharemarket plummet to a low of 3120.80, it's since rallied strongly. It has rebounded 26.7% to 3954.90 as at the end of June 2009. There may still be some uncertainty in investment markets, but we consider that the worst may be over.
Don't wait for the economic recovery
Media reports may indicate that the Australian economy may still not be in good shape and we're experiencing a recession; but historically, investment markets have tended to recover well ahead of the economy. That's because investment markets are forward-looking; they anticipate better growth in earnings and then economies follow. The sharemarket is a leading indicator and the economy is a lagging indicator of economic recovery. If you rely solely on economic recovery to guide your investment decisions you may miss the boat. Speak to one of the financial advisors at Intellichoice about which investments may potentially help you grow your wealth in the safest way possible.
Monday, October 5, 2009
Sleep better at night with the right financial advice
Do you want financial advice that suits your needs?
Seeking financial advice from a professional financial planner can make a huge difference to your financial future. They can help you make financial decisions to give you peace of mind.
Good advice advice from an experienced, qualified and well-informed financial advisor can help you save money, protect against risk, grow your wealth, reduce tax, plan for retirement, identify entitlements for government benefits and plan what inheritance is to be left for the next generation.
At Intellichoice Financial Planning, our first responsibility is to you. We will take into account your goals and circumstances and recommend an appropriate financial strategy. Any financial strategies we recommend is in your best interests and not based on commission.
Do you want to be worth over a million dollars?
Everyone has some kind of financial goal and it doesn't hurt to aim high. Think about it - what sort of lifestyle do you want in the future? What are your priorities? What do you need to achieve? Start by deciding what you want to achieve and how long it might take to get there and we will sit with you to advise on the best way to attain those goals.
Do you want peace of mind that your famimly is secure, whatever happens?
Unexpected events, like losing your job because of illness or injury, or losing your home in a fire, can have a disastrous impact, which goes far beyond the immediate problem. Your family could be financially ruined, losing the standard of living you've worked so hard to achieve.
Having the right protection will safeguard your financial safety, as well as your family and your assets. If in doubt, speak to one of the financial planners at Intellichoice - we will do all the reserch for you and find a policy that suits your needs.
Do you want to turn the tables on the taxman?
No one likes to pay more tax than they need to and there are a number of strategies you can employ to get the most out of your tax rebate, including super co-contributions, salary sacrificing, investment property and other investment expenses.
There may be even more that may apply based on your specific situation and you should speak to Intellichoice to find out the best ways to manage and reduce your tax payable.
Do you want to feel like there's never a bill you can't pay?
Being able to pay bills without going into more debt is a tough call if you're spending more than you earn - and it's surprising how many people do! The best way to find 'extra' money is to follow a budget. Use the free budgeting calculator for a better understanding on where you can cut down on unnecessary expenses.
For more tips and assistance on budgeting, speak to one of our financial advisors at 1300 55 10 45 or email us directly.
Do you want to retire and live the life you have always dreamed of?
The biggest question most of us ask is - how much money will I need for a comfortable retirement? Naturally, this depends on how long you live and how you want to live.
Deciding how much to keep in super (to save tax and access Government benefits) is part of the equation. But be sure to keep enough for emergencies and day-to-day expenses. The rules are complex and can be expensive for those who get it wrong, so make sure you get professional financial advice.
We have some very unique and innovative cost-effective financial solutions, which means you could effectively pay very little for any financial advice you receive through Intellichoice when compared to industry standard. This gives everyone, regardless of age and income, the chance to achieve financial freedom and live the life you truly deserve.
Financial planning is not reserved just for the rich. Speak to us today to find out how you too can have the opportunity to enjoy financial freedom. If you are keen to find out more, speak to us at 1300 55 10 45 or the financial planning website more details on our services.
Seeking financial advice from a professional financial planner can make a huge difference to your financial future. They can help you make financial decisions to give you peace of mind.
Good advice advice from an experienced, qualified and well-informed financial advisor can help you save money, protect against risk, grow your wealth, reduce tax, plan for retirement, identify entitlements for government benefits and plan what inheritance is to be left for the next generation.
At Intellichoice Financial Planning, our first responsibility is to you. We will take into account your goals and circumstances and recommend an appropriate financial strategy. Any financial strategies we recommend is in your best interests and not based on commission.
Do you want to be worth over a million dollars?
Everyone has some kind of financial goal and it doesn't hurt to aim high. Think about it - what sort of lifestyle do you want in the future? What are your priorities? What do you need to achieve? Start by deciding what you want to achieve and how long it might take to get there and we will sit with you to advise on the best way to attain those goals.
Do you want peace of mind that your famimly is secure, whatever happens?
Unexpected events, like losing your job because of illness or injury, or losing your home in a fire, can have a disastrous impact, which goes far beyond the immediate problem. Your family could be financially ruined, losing the standard of living you've worked so hard to achieve.
Having the right protection will safeguard your financial safety, as well as your family and your assets. If in doubt, speak to one of the financial planners at Intellichoice - we will do all the reserch for you and find a policy that suits your needs.
Do you want to turn the tables on the taxman?
No one likes to pay more tax than they need to and there are a number of strategies you can employ to get the most out of your tax rebate, including super co-contributions, salary sacrificing, investment property and other investment expenses.
There may be even more that may apply based on your specific situation and you should speak to Intellichoice to find out the best ways to manage and reduce your tax payable.
Do you want to feel like there's never a bill you can't pay?
Being able to pay bills without going into more debt is a tough call if you're spending more than you earn - and it's surprising how many people do! The best way to find 'extra' money is to follow a budget. Use the free budgeting calculator for a better understanding on where you can cut down on unnecessary expenses.
For more tips and assistance on budgeting, speak to one of our financial advisors at 1300 55 10 45 or email us directly.
Do you want to retire and live the life you have always dreamed of?
The biggest question most of us ask is - how much money will I need for a comfortable retirement? Naturally, this depends on how long you live and how you want to live.
Deciding how much to keep in super (to save tax and access Government benefits) is part of the equation. But be sure to keep enough for emergencies and day-to-day expenses. The rules are complex and can be expensive for those who get it wrong, so make sure you get professional financial advice.
We have some very unique and innovative cost-effective financial solutions, which means you could effectively pay very little for any financial advice you receive through Intellichoice when compared to industry standard. This gives everyone, regardless of age and income, the chance to achieve financial freedom and live the life you truly deserve.
Financial planning is not reserved just for the rich. Speak to us today to find out how you too can have the opportunity to enjoy financial freedom. If you are keen to find out more, speak to us at 1300 55 10 45 or the financial planning website more details on our services.
Friday, October 2, 2009
Your wealth creation journey starts here
Darin and Jo are proud to introduce a new addition to the Intellichoice Financial Planning team – Kevin Cuthbert.
Kevin has provided trusted advice to thousands of personal clients for over 10 years and specialises in the areas of superannuation, investments, risk (insurances), gearing and debt management. Kevin has over 30 years experience in the finance industry. He is a Certified Financial Planner (CFP) and has a Bachelor of Commerce degree majoring in Financial Planning and Investments.
Kevin brings his incredible wealth of experience to help Intellichoice clients who wish to optimise their investments, prepare for retirement or make changes to their superannuation arrangements.
Let Kevin help you achieve your lifestyle goals and take advantage of a free 30 minute finance review now. Simply call 1300 55 10 45 or email planning@intellichoicefp.com.au to arrange an obligation free appointment. Kevin is an authorised representative of Securitor Financial Group Limited (AFSL 240687).
Kevin has provided trusted advice to thousands of personal clients for over 10 years and specialises in the areas of superannuation, investments, risk (insurances), gearing and debt management. Kevin has over 30 years experience in the finance industry. He is a Certified Financial Planner (CFP) and has a Bachelor of Commerce degree majoring in Financial Planning and Investments.
Kevin brings his incredible wealth of experience to help Intellichoice clients who wish to optimise their investments, prepare for retirement or make changes to their superannuation arrangements.
Let Kevin help you achieve your lifestyle goals and take advantage of a free 30 minute finance review now. Simply call 1300 55 10 45 or email planning@intellichoicefp.com.au to arrange an obligation free appointment. Kevin is an authorised representative of Securitor Financial Group Limited (AFSL 240687).
Subscribe to:
Posts (Atom)