How to get the best from your super

We know superannuation can seem boring, but putting good strategies in place now could make a big difference to your future. And getting your super sorted doesn't need to be time consuming or hard work. Here are some quick and easy tips to help get you on your way.

1. Find lost super
Did you know that there's more than $13 billion of lost super in Australia? That's a lot of money and there's a chance some of it's yours. It's easy to search for your money via SuperSeeker, the Australian Taxation Office's (ATO) online search tool. After all, if you lost a $100 note, you'd spend at least a few minutes looking for it, so why not spend a little time finding your lost super? Go to www.ato.gov.au and follow the links to SuperSeeker to search for your lost super.

2. Consolidate yoru super and save on fees
And once you've found any lost super, don't burden yourself with multiple fees and bundles of paperwork by having several super funds. It makes sense to roll it all into one super fund. Fewer fees and less paperwork!

3. Exercise your right to choose
So now that you have all your super in one place, make sure you choose where it's invested. Super funds nowadays have many different investment options that members can choose from. So no matter what stage of life you're at or what your investment goals are, your super fund will have an investment option that's right for you. Alternatively, speak to your financial adviser for professional help and they'll be able to assist you in deciding on an investment option that suits your needs.

4. Make the most of profesional advisers with the right expertise
After you've done all this, and if you'd still like an extra helping hand getting your super sorted, why not use the professional services of a financial adviser from Intellichioce? For a completely low fee, our team of qualified financial planners can help you grow your wealth and help you get on track to a comfortable financial future. Call 1300 55 10 45 for an obligation free financial meeting with one of our financial advisers.

5. Ensure you're insured
Life insurance is unlikely to be a big priority if you don't have a family, but what would happen if you couldn't work due to injury? You probably have insurance cover as part of your super, but you should check that it's enough. It's also worth noting that income protection premiums are generally cheaper if taken out through your super, but again, make sure that it's enough and meets your requirements.

For financial advice on superannuation or insurance, speak to a financial planner at Intellichoice today on 1300 55 10 45 or visit www.intellichoice.com.au for details on the various services offered.

Creating an investment portfolio

Before investing in shares there are many questions you have to ask yourself before you put together an investment portfolio with your financial planner.

• Are your investments going to be long term or short term?
• Are you looking for a return in the form of income and long term capital growth or a short term return in the form of a large capital growth?
• What is your tolerance to risk? Are you prepared to risk some of your investment capital for the opportunity to make higher returns?

If you are looking for income and long term capital growth then you should look at stocks that have a proven long term business model and pay good dividends. These stocks are referred to as Value Stocks and would be considered to have a lower risk profile. Their share prices gain over the long term and pay dividends every 6 months providing you with an income. Many stocks within the Infrastructure sector would be considered Value Stocks.

If you are looking for short term capital growth then you should consider stocks that are just starting their growth phase. These are usually new companies that are just starting production or expansion. These stocks are referred to as Growth Stocks and would be considered to have a higher risk. Many stocks within the Energy, Material and Health sectors would be considered Growth Stocks.

Don't put all your eggs in the one basket - investing evenly across Value and Growth Stocks can create a diversified investment portfolio with a medium risk profile. An educated investor can achieve both short and long term capital growth and create an ongoing income by receiving dividend payments.

The difference between a good and bad investment portfolio is always about education and knowledge. The educated investor will always look to buy stocks at discount prices and introduce simple hedging strategies to maintain the profitability of their investment portfolio during volatile times.

To find out whether investing in shares is right for you, speak to one of the financial planners at Intellichoice today on 1300 55 10 45 or visit www.intellichoice.com.au.

What stops people from getting financial advice?

There is always the temptation to do it yourself when it comes to your finances, but the truth is that without specialist financial planning knowledge, you may not reach your financial goals.

Many people put off getting quality financial advice because of things they may have heard. In most cases, they are nothing more than myths.

Based on commission only - WRONG
Financial advice provided through Intellichoice is not based on commission and you can be assured that our qualified financial planners will always be honest and provide unbiased advice. There is no conflict of interests and any recommendations we make for growing your wealth is in your best interests.

High cost of getting financial advice - WRONG
Our unique and innovative financial solution offers everyone, regardless of age and income level, to enjoy financial freedom and pay very little or nothing for any financial advice received through Intellichoice when compared to industry standard. We are very upfront about our fees so you know exactly where you stand at all times. Find out more about our low fee financial planning service by calling 1300 55 10 45 or email info@intellichoice.com.au.

Get rich quick - too good to be true investments - WRONG
If it’s too good to be true, it often is! Financial planning is not about getting rick quickly. Through good advice and informed investment decisions, your financial planner will help build your wealth over an appropriate time frame and in a safe manner that is in your best interests.

Invest in shares only - WRONG
We listen to your needs and provide unbiased and professional advice to help grow your wealth in a safe way. Our holistic approach to creating wealth is to take into account the amount of risk you are willing to take and provide investment strategies (either through property, shares, cash, managed funds, superannuation or mortgage funds), that will help you meet your goals in a safe manner.

Glorified sales people – WRONG
Anyone can go and sell cars, mobile phones or computers, but Australian financial planners are subject to rigorous licensing, education and ongoing professional development standards. The financial planners at Intellichoice are accredited with two of the largest licensees in Australia, which regulate ethical and professional codes of conduct in the financial services industry.

To find out more about getting quality financial advice and how a financial planner from Intellichoice can assist you to grow your wealth and have a comfortable retirement, call 1300 55 10 45 or email info@intellichoice.com.au.

How do investments impact on you - Shares

Shares grow in value over time. Most text books will say that you will require somewhere between 10 and 15 stocks to obtain a diversified portfolio of shares so you can spread your exposure and reduce your risk.

For example, on 31st December 2001, you purchased 9 stocks - Flight Centre, Commonwealth Bank, James Hardie, John Fairfax, Billabong, Qantas, Ten Network, Telstra and Woolworths - to the value of $83,542.40 and you held those stocks until 31st January 2010.

This share portfolio would have increased in value to $111,278.60 - an increase of 33%.

This is good news, but it is not the entire story.

On top of the underlying growth of your investment and the income you receive from your shares (in the form of dividends), do you know how your investments will impact on your tax return?

A simple strategy, such as gearing can make your money work for you and help reduce your tax. Gearing relates specifically to the money you borrow to fund your investments.

Below is a simple scenario showing the difference between investing and not investing.

Based on an income of $50,000 pa with no other income or deductions, you would currently be paying about $9,600 in tax, inclusive of the Medicare levy.

However, if your investment strategy takes into account gearing, the amount of tax you would pay would be reduced to approximately $7,575 – a saving of about $2,025 in tax, while at the same time, your net income increases by $3,033.

The points to highlight are:

1.    Investments will reduce your tax liability
2.    Geared Investments will create a tax saving
        
Where to from here? Many of our clients are becoming aware that the end of financial year is looming. As shown above, it is important that you speak with a knowledgeable financial adviser on the best strategy for your circumstances to reduce your loss to the tax man.

For more information, visit www.intellichoice.com.au or speak to our financial planners on 1300 55 10 45 or email info@intellichoice.com.au.

Disclaimer: This column is provided as general advice only and does not take into account your personal objectives, financial situation and needs. You should always carefully consider these matters and discuss them with a financial planner before you act.

Seek SMSF advice

A self managed super fund (SMSF) may have many benefits, for example, it will give you more control over the fund's investment strategy, there is a lower tax payable and all self managed super funds are protected from bankruptcy and other legal claims, but many Australians don't understand the time, risks and costs involved in operating a SMSF.

A survey conducted by TNS found that more than half of Australians thought you could establish a SMSF with a balance of $50,000 or less. One quarter of respondents thought a balance of $5,000 would be enough to set up their own SMSF.

As a note, if you have less than $200,000 in super, the admin costs would probably make setting up a SMSF uneconomical. You can also expect to pay $1,000 to $1,500 a year on running your own super fund.

There has been an increase in the number of self managed super funds being set up, suggesting that Australian's want to exercise more control over their super. However, research shows that only a third of people consult a professional financial planner to decide whether a SMSF is suitable for their needs.

So if you are thinking of setting up a DIY super fund, please seek advice from a professional financial planner first to ensure that this is the best option for you. Factors such as time, money in administering a SMSF and whether you have the desire and ability to manage the fund for the long term all need to be taken into account. For more information about SMSF's, speak to one of the financial planners at Intellichoice today on 1300 55 10 45.

Getting professional financial advice

Financial advice is a process that will help you meet your goals and dreams through the property management of your finances. Whether you are looking at buying a property, manage and pay down your debts, save for your children's education, build wealth or plan for retirement, getting good, professional and quality financial advice will help you implement a financial plan in order for you to reach those goals.

There are many ways to get information about handling your money, such as newspapers, money or investing magazines, the Internet, friends and family. However, finance and building your wealth is a complex area and you should seek advice from a certified financial advisor. Just as you would go to a doctor or lawyer for their expertise in their area, you should also do the same when it comes to your financial wellbeing.

So how do you know that the financial advice you get is of high standard?

According to the Australian Financial Planning Association (FPA), getting quality and professional financial advice should be based on the following, which your financial planner should go through with you.

• Identify your life goals - short, medium and long term
• A financial planner will become acquainted with your financial background, including your income, debt levels, commitments (for example, home loan or personal loan repayments etc)
• Understands your current situation, needs and what you want to achieve now and in the future
• Prepares a financial plan based on your needs and goals and implements strategies that address your attitude to risk
• Identifies suitable investments and insurance plans for your situation
• Provides annual reviews for your financial plan to ensure it still suits your needs and financial situation

Good quality financial advice will help you in many ways including:

• Gives you greater control over your financial future
• Provides you with a long-term relationship with an expert that will help you reach your goals and is on hand to answer any concerns or issues you may have
• Good quality financial advice will give you a realistic picture of your financial future and how to reach your goals in a safe way
• Provides you with clear information on how to manage risk

 Many people may think it is better to do it themselves and not seek professional financial advice, but the truth is that without professional financial planning knowledge, you may not reach your goals or reap the full benefits.

Many Australian retired couples currently live on less than $20,000 per annum, so make sure you have enough enough for a comfortable retirement. Speak to a qualified financial planner today on 1300 55 10 45 for an obligation free appointment at no cost to you, normally worth $500.