Merry Christmas From The Financial Advice Shop

With the Christmas break fast approaching, we would like to take the time to personally thank all of our loyal clients for their support and to wish them all a very Merry Christmas.

 

A_Merry Christmas From The Financial Advice Shop 2018

*Please note that The Financial Advice Shop will be closed from COB Thursday 20th December 2018 and will reopen on Tuesday 29th January 2019.  Only urgent issues or portfolio management matters will be attended to during this period.

http://www.financialadviceshop.com.au

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Is The Franking Credit Policy Fiasco In Need Of A Serious Rethink?

There is no doubt some refinements to this policy proposal are required…..

Whenever a policy proposal is described as targeting the wealthy but the reality is that it affects everyday people, there is clearly some further work to do to make it fair and get the majority on board.

The solution to making the proposal fair and reasonable is potentially quite simple.  Introducing a reasonable threshold for the refund of excess franking credits of say $10,000 p.a. would be a great start and most people would probably be very happy with that approach.

The wealthy, as we know, are quite capable of reorganising their investments to minimise the effects of all sorts of tax policy but the not so wealthy are not quite so lucky.

Should we be planning for some common sense to apply to this policy?  Probably not but I live in hope…..

www.financialadviceshop.com.au

#frankingcredits #frankingcreditpolicy #financialadvicecanberra #financialadvisercanberra #financialplannercanberra #financialplanningcanberra

The Grattan Institute Report “Money In Retirement – More Than Enough”

The Grattan Institute report “Money In Retirement – More Than Enough” paints a picture for retirees that seems disconnected from the real world.

If you believe the report, the super system is serving Australian’s so well that its generosity needs to be significantly scaled back? Imagine a world where pre-tax contributions were limited to $11,000 per year and after tax contributions were subject to a $50,000 per year/$250,000 lifetime cap!

With $17.5 billion currently in lost super, it seems a lot of Australian’s are not taking their super very seriously and this is probably because they see it as a gift as they don’t make any additional contributions to super themselves. If they sought advice and made some additional contributions at an appropriate time and in the most effective way, the outcomes could be so much better.

Perhaps there is merit in linking future super concessions like increasing super guarantee from 9.5% to 12% (opposed by the Grattan Institute report) with a mandatory requirement for members to have to make additional super contributions to gain the additional entitlement from their employer? This might improve member engagement with their super and further reduce the reliance on the Age Pension in the future?

https://grattan.edu.au/wp-content/uploads/2018/11/912-Money-in-retirement.pdf

www.financialadviceshop.com.au

The Financial Services Royal Commission Interim Report

The Financial Services Royal Commission Interim Report will likely trigger many financial services business to consider making massive changes to their business models and partnering arrangements in order to ensure they seen to be acting in the client’s best interests.

For others it will be business as usual…..

http://www.financialadviceshop.com.au

https://financialservices.royalcommission.gov.au/Pages/interim-report.aspx

#financialservicesroyalcommissioninterimreport # financialservicesroyalcommission

Boosting Women’s Superannuation Is Extremely Easy But It May Require Some Pillow Talk!!

It is a well known fact that women often accumulate less superannuation than men over their working life due to many reasons including lower salaries and working less hours due to family commitments.

Any future initiatives by Government to boost women’s superannuation will be applauded but there are a few simple things that couples can already do every year to boost the superannuation balance of their spouse.

Salary sacrifice to superannuation is a very powerful tool that can be used to boost superannuation and a couple can determine who is best placed to initially implement this strategy.  A change in Legislation last year introduced an opportunity for anyone who is eligible to contribute to superannuation to consider a deductible super contribution.  This might initially benefit the higher income earner in the relationship but wait: there’s more!

After making salary sacrifice or deductible superannuation contributions, Superannuation Legislation allows members to consider splitting concessional superannuation contributions with their spouse in the following financial year.  There are a few conditions and the maximum that can be split is 85% of the previous year’s concessional superannuation contributions up to the cap.

Concessional superannuation contributions are superannuation guarantee, salary sacrifice and deductible contributions.

If you or your spouse are concerned about your superannuation balance, have a think about whether it makes sense to contribute and split concessional superannuation contributions each year to boost and equalise superannuation balances.  Additionally, for low income earners, look into and consider other contribution options such as spouse contributions, and personal non contributions to potentially qualify for the Government co-contribution to boost your superannuation balance further.

In summary, if you are looking at your superannuation contribution options, think holistically and make sure you consider if there are ways for you to tax effectively increase your current contributions and don’t forget to see if you can reduce your superannuation fees.

Unfortunately, superannuation is far more complicated that it needs to be so you will need to consider if you need advice.  This is a really big decision so give it plenty of thought before you choose a financial adviser.

What should you do next?  As its your super for your retirement, a good place to start is for you to get involved and take an interest.

www.financialadviceshop.com.au

#womenssuper #womenssuperannuation #financialadvicecanberra #financialadvisercanberra #financialplannercanberra #financialadvicedickson #financialadviserdickson #financialplannerdickson

Disclaimer: Do not trust what you read on the web.  Always seek professional advice before making investment decisions.

 

When It Comes To Long Term Investing, Is A Low Cost Index Option Too Good To Ignore?

https://static.vgcontent.info/crp/intl/auw/docs/resources/2018-index-chart-brochure.pdf

 

www.financialadviceshop.com.au

 

Disclaimer: Past performance is not a reliable indicator of future performance.  Always seek advice from your professional adviser before comparing investment options and making investment decisions.

#financialadvicecanberra #financialplannercanberra #financialplanningcanberra #finncialadvisercanberra #indexinvesting #indexinvestments

In Good Times And In Bad, A Little Wisdom From The Experts Might Make All The Difference!

When it comes to investing, there are a number of basic principles that can potentially assist in making the experience a more successful one.

At The Financial Advice Shop we believe that “wisdom” is potentially a very important factor in successful long term investing and so do the experts.  To learn more, take the time to read the following article:

http://davisadvisors.com/davissma/downloads/WGI.pdf

ABOUT THE FINANCIAL ADVICE SHOP:  We are a leading, independent and experienced provider of strategic financial planning solutions for the over 50’s with a specific focus on strategy and cost effective long term investment solutions.

www.financialadviceshop.com.au

#independentfinancialadvice #financialadvicecanberra #financialplannercanberra #financialadvisercanberra #independentfinancialadvicecanberra

Disclaimer: The information in this post is of a general nature only and has been provided without taking account of your objectives, financial situation or needs.  No representation is given, warranty made or responsibility taken about the accuracy, timeliness or completeness of the information. Because of this, we recommend you consider, with the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances.