Here’s Rodney explaining succession planning and how it can work for farmers
Thursday, May 17, 2012
The trip begins
As part of our commitment to helping ensure that farmers have a well developed succession plan Rodney Page and I are heading off on a road trip to visit farmers and explain why succession planning is such an important issue.
It wasn’t a glamourous start.
I left Brisbane at 4 in the morning driving through pouring rain.
At 4.00am the Qld Government website told me the Bruce Highway was flooded but by 5.00 the highway signs were saying it was open again! Too late to turn back so we pushed on through Gympie.
Our first seminar was at 8.30 am to about 10 farm groups. We quickly identified some issues that needed work and Rodney is coming back to spend 3 days there on his way back.
The next seminar for the day was at 1.00 in Bundaberg so I hightailed it throught Childers to Bundaberg and did the seminar to about 4 or 5 farmers. All of those people wanted a visit from Rod so they are all booked in.
Wednesday, was Childers and we had more than 20 people at that seminar – all identifying issues that needed to be addressed.
Thursday, July 28, 2011
How to understand the ins and outs of a self-managed superannuation fund
A self-managed superannuation fund (SMSF) can be a vehicle to help you take full control of your retirement with property, but David Hasib of Chan and Naylor says investors must know what they're in for prior to setting one up:
1. To set up a viable SMSF it's wise to have at least $200,000 in your existing superannuation fund otherwise the costs of administering the fund (minimum $1000 annually) can make the exercise unviable.
2. Your SMSF must be classified as a complying Australian superannuation fund.
3. You must become a trustee of the SMSF - this means you're responsible for managing the fund and only access it according to the law.
4. You must set up and execute an appropriate investment strategy with the assistance of SMSF professionals.
5. You must always comply with the sole purpose test in the fund to maintain tax concessions are available (eg. buying a holiday home to occupy is in most cases a no-no).
6. Always keep assets separate from personal affairs.
7. Follow the superannuation and tax rules in the trust deed, which are set up and updated by an SMSF professional.
8. Know your restrictions - what you can or can't do (eg. borrowing and lending).
9. Know what retirement planning strategies you can use to achieve your goals and objectives.
10. Do you need to outsource? Know what you're truly capable of doing and what you should outsource (eg. tax returns, administration, reporting and auditing). If you're satisfied you have what it takes to set up a SMSF then you need to: set up a trust, choose to be a regulated fund with tax file number and Australian Business Number, write your investment strategy, then set up the trust bank account. The rest is history.
For more information about self managed super funds, speak to one of the financial planners at Intellichoice today.
1. To set up a viable SMSF it's wise to have at least $200,000 in your existing superannuation fund otherwise the costs of administering the fund (minimum $1000 annually) can make the exercise unviable.
2. Your SMSF must be classified as a complying Australian superannuation fund.
3. You must become a trustee of the SMSF - this means you're responsible for managing the fund and only access it according to the law.
4. You must set up and execute an appropriate investment strategy with the assistance of SMSF professionals.
5. You must always comply with the sole purpose test in the fund to maintain tax concessions are available (eg. buying a holiday home to occupy is in most cases a no-no).
6. Always keep assets separate from personal affairs.
7. Follow the superannuation and tax rules in the trust deed, which are set up and updated by an SMSF professional.
8. Know your restrictions - what you can or can't do (eg. borrowing and lending).
9. Know what retirement planning strategies you can use to achieve your goals and objectives.
10. Do you need to outsource? Know what you're truly capable of doing and what you should outsource (eg. tax returns, administration, reporting and auditing). If you're satisfied you have what it takes to set up a SMSF then you need to: set up a trust, choose to be a regulated fund with tax file number and Australian Business Number, write your investment strategy, then set up the trust bank account. The rest is history.
For more information about self managed super funds, speak to one of the financial planners at Intellichoice today.
Thursday, July 14, 2011
Tax break for savings to benefit millions of Australians
More than five million Australians will earn more interest on their savings in banks, building societies and credit unions, under a government proposal to halve the tax paid on the interest they receive.
Instead of paying $160 in tax on $10,000 of savings in a bank account that earns 5 per cent interest, the Australian taxpayer will only have to pay $80 in tax on the interest earned in 2012-13.
Under the present system, all interest earned on savings is taxed. The interest is considered additional income, which is added to the taxpayer's annual earnings.
With the proposed changes, the taxpayer will be given a tax rebate of 50 per cent on the interest earned.
Instead of paying $160 in tax on $10,000 of savings in a bank account that earns 5 per cent interest, the Australian taxpayer will only have to pay $80 in tax on the interest earned in 2012-13.
Under the present system, all interest earned on savings is taxed. The interest is considered additional income, which is added to the taxpayer's annual earnings.
With the proposed changes, the taxpayer will be given a tax rebate of 50 per cent on the interest earned.
Monday, May 30, 2011
The importance of property
A recently released report by global real estate firm Knight Frank and Citi Private Bank highlights the important part that property plays in the lives of the wealthy.
The report looks at the property habits of those who have fortunes of more than $100 million and found that these wealthy individuals have 35% of their wealth in property.
After their own business they see property as their most important investment and are currently more likely to invest in property than any other asset class.
The report looks at the property habits of those who have fortunes of more than $100 million and found that these wealthy individuals have 35% of their wealth in property.
After their own business they see property as their most important investment and are currently more likely to invest in property than any other asset class.
Thursday, May 5, 2011
Reasons for investing
When considering your investment be sure that you understand your reasons for purchasing an investment property.
Remember that you are investing to secure your financial independance, which means you want to create a passive income and build equity.
Many people try to pick the market cycle but never actually buy anything because it is not the "right time".
It's important to plan for the future and not get so caught up in the process that you could end up failing to act.
It's extremely important to get moving and do something as the cost of doing nothing can be very expensive.
The ideal time to buy is when it is right for your individual circumstances and when the opportunity presents itself.
Once a decision is made, act quickly and with confidence.
The second half of this year will bring many opportunities ; the question is, is it the right time for you?
Remember that you are investing to secure your financial independance, which means you want to create a passive income and build equity.
Many people try to pick the market cycle but never actually buy anything because it is not the "right time".
It's important to plan for the future and not get so caught up in the process that you could end up failing to act.
It's extremely important to get moving and do something as the cost of doing nothing can be very expensive.
The ideal time to buy is when it is right for your individual circumstances and when the opportunity presents itself.
Once a decision is made, act quickly and with confidence.
The second half of this year will bring many opportunities ; the question is, is it the right time for you?
Monday, March 7, 2011
Three quarters of us are in credit card debt
One of the myths of the credit card market is that only a minority of cardholders carry a balance on their cards from one month to the next.
In fact the opposite is true.
According to Reserve Bank credit card figures, the “revolve rate” on cards is 72% (the revolve rate is the finance industry term for cards that carry a credit balance from month to month).
Consumers spent an average of $15,963 on their credit cards over the past 12 months and carried an average account balance of $3,234.
And whilst spending on cards increased by a fairly modest 3.3 % over that 12-month period, balances still increased by 6.9% - which means we are reining in our spending on cards but accumulating more debt.
Customers with multiple credit cards should always pay off the one with the highest interest rate first.
Alternatively they should consider consolidating the debts into a low rate card through a balance transfer offer, or consolidate into a personal or home loan.
For assistance with managing your debt or if you would like more information about debt consolidation loans, speak to one of the financial consultants at Intellichoice today on 1300 55 10 45.
In fact the opposite is true.
According to Reserve Bank credit card figures, the “revolve rate” on cards is 72% (the revolve rate is the finance industry term for cards that carry a credit balance from month to month).
Consumers spent an average of $15,963 on their credit cards over the past 12 months and carried an average account balance of $3,234.
And whilst spending on cards increased by a fairly modest 3.3 % over that 12-month period, balances still increased by 6.9% - which means we are reining in our spending on cards but accumulating more debt.
Customers with multiple credit cards should always pay off the one with the highest interest rate first.
Alternatively they should consider consolidating the debts into a low rate card through a balance transfer offer, or consolidate into a personal or home loan.
For assistance with managing your debt or if you would like more information about debt consolidation loans, speak to one of the financial consultants at Intellichoice today on 1300 55 10 45.
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