Can Superannuation Survive In Its Current Form? Hopefully Superannuation Does Not End In Ruins.

Superannuation might look very different after 6 October 2020 when the Government hands down Its delayed Budget.

Share your thoughts on what you think might change or things that should not change.

I suspect superannuation will not survive in its current form as the Government makes desperate moves to increase tax revenue.

I expect there could be reductions to contribution limits, the $1.6m transfer balance cap could be reduced, allocated pension accounts could lose their tax free status, allocated pension payments could become partially taxed, and/or the tax on superannuation account earnings could be increased.

If the Government does attack superannuation in the 6 October 2020 Budget it will be very negative for the future success of the superannuation sector.

Fortunately there is time to plan and take action ahead of the October Budget to attempt to pre-empt some possible changes to superannuation.

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Financial Advice: What Consumers Really Think?

ASIC’s recently released report into what consumers really think about financial advice has been causing some discussion in financial planning circles but the report findings do not really reveal anything new or remarkable.

If you would like to read the ASIC report or review the key findings, the report is available from the ASIC website via the following link:

Click to access rep627-published-26-august-2019.pdf

Unfortunately, with rapidly increasing regulation, compliance costs and the desire by a number of financial advisers to distance themselves from large institutions so as to achieve greater autonomy, consumers may find it more expensive to see a financial adviser in the future and they may also find it harder to find a financial adviser who is seeing new clients. This is a very disappointing outcome as it is likely that a greater percentage of consumers in the future will not be able to receive the financial advice that they really need.

At The Financial Advice Shop, we have always found that the very best way for a consumer to find a financial adviser they can trust and for us to find a new client who will fully appreciate our capabilities, is via a referral from someone they know and trust and someone who also trusts us.

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#findafinancialadviser #trustedfinancialadviser #financialadvicecanberra

Why Trying To Time The Share Market Can Be A Really Dumb Idea!!

Investing and financial advice is often about making sensible and informed decisions, and for most people it should not be about major speculation.

In recent months I have been amazed at the number of new client discussions I have had where their investments have been in cash. In some cases they have been invested in cash since the Global Financial Crisis when they sold out in a panic, and in other cases it has been for the last year or two because they were concerned share markets were about to correct.  In all cases they have missed out on a substantial return on their investments because they have taken an extreme position without advice.

I am certainly not saying that 2018 is not without significant share market risks but there is a lot of value to be gained through seeking assistance before you make decisions.  Once you have made an extreme investment decision and got it wrong, it is much harder to then decide what to do next.

It is very normal to be concerned or excited about investments from time to time and at those times there is always a question about how to manage the situation. Think carefully before you commit to a high risk binary solution: all in or all out.  It is often far better to modestly adjust the cash levels in your investments over time in consultation with your adviser, to sensibly manage the situation and to give you more options down the track.

If you are foolish enough to be in a set and forget investment and have accepted the default position on your level of risk, you may have made a poor choice. Your investment portfolio manager is certainly not going to consider your individual needs or concerns as they invest on behalf of thousands of other investors with a ten or twenty year investment horizon.  If you want a tailored outcome you need to be proactive and initiate sensible changes to your portfolio that are right for you.

At the end of the day, share markets are more a measure of fear and greed. When investors are fearful share markets tend to fall and when investors are greedy share markets tend to rise.  Unfortunately for many investors they tend to follow the herd and make decisions at the extremes in the investment cycle, and the outcome is not always ideal.

Hot Tip: Everyone’s financial situation is different so now might be a good time for you and your Financial Adviser to review and understand the risks you are taking with your investments.  In periods of share market volatility and uncertainty, nervousness can result in wealth passing from weak hands to strong hands so make sure you have a plan for how you will respond to a share market correction as it will come eventually.

We do not agree to help everyone but if you feel you need a second opinion on your superannuation and financial position, contact The Financial Advice Shop to see if we can add value.

www.financialadviceshop.com.au

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Are You Being Ripped Off With High Superannuation And Investment Fees?

There has never been a better time to review your superannuation investments and consider options to reduce costs. If you do not take action, you can be 100% sure that no one else will and you should not feel secure simply because you are using an industry super fund.  You should also not underestimate the negative effect high fees could have on your financial security.

In recent years, superannuation and investment costs have been steadily falling but unfortunately those costs are often not passed on to investors and often increase when members retire. There are a variety of reasons why so many investors are not benefiting from lower superannuation and investment costs, some of which relate to conflicted financial adviser remuneration and commissions that are paid from inflated fees.  If you have been invested in a financial superannuation or investment product for a number of years, it is time for a review!

None of the superannuation or investment recommendations from The Financial Advice Shop have hidden fees or commissions so you can be confident they are extremely cost effective and represent excellent value for money. Our superannuation and investment offering is very unique and it is a fact that we regularly save many new clients thousands, and in some cases tens of thousands, of dollars in ongoing fees every year.

While you are thinking about fees, make sure you also think about your strategy and the risk in your investments! We know from experience that it is extremely rare that improvements and refinements to existing strategies will not yield improved results.

HOT TIP: The need for honest and practical financial advice has never been greater, so contact The Financial Advice Shop without delay to see if we can assist with a cost effective Financial Advice Health Check to ensure you understand all of your fees and future superannuation investment options.

www.financialadviceshop.com.au

#superannuationfees #superannuation #financialadvicecanberra #superannuationcosts #financialplannercanberra #financialplanningcanberra #retirementplanningcanberra

If You Or Someone You Know Has Recently Lost An Entitlement To The Age Pension: Continue Reading!!

The rules for Age Pension entitlements change on 1 January 2017. For a large number of retirees being assessed under the Assets Test, this has meant they have lost their entitlement to a Part Age Pension.  It is estimated that approximately 326,000 people will be adversely affected by these changes.

A summary of the old Age Pension Assets Test rules versus the new Age Pension Assets Test rules are as follows:

Disqualifying limits for the Full Age Pension*

  2016 Rules 2017 Rules
Single homeowners full pension assets must be less than $209,000 $250,000
Single non homeowners full pension assets must be less than $360,500 $450,000
Couple homeowners full pension assets must be less than $296,500 $375,000
Couple non homeowners full pension assets must be less than $448,000 $575,000

 

Disqualifying limits for the Part Age Pension*

  2016 Rules 2017 Rules
Single homeowners part pension assets must be less than $793,750 $542,500
Single non homeowners part pension assets must be less than $945,250 $742,500
Couple homeowners part pension assets must be less than $1,178,500 $816,000
Couple non homeowners part pension assets must be less than $1,330,000 $1,016,000

*as at September 2016 and some figures may be subject to indexation in the future.

Source https://www.humanservices.gov.au/customer/enablers/assets#assetstestlimits

If you have most of your retirement savings in a superannuation pension account and have lost your entitlement to a Part Age Pension due to changes in the Assets Test, you should consider contacting us.

We regularly find retirees are paying excessive superannuation fees that can usually be dramatically reduced. If we can reduce your fees and investment performance is not compromised, is it likely you will then have more money to spend in retirement?

HOT TIP: The need for honest, transparent and practical financial planning advice has never been greater, so contact The Financial Advice Shop without delay. New client places are strictly limited but to get things started, we can offer a very cost effective Financial Advice Health Check discussion to ensure you can access our experience to understand all of your fees and future superannuation investment strategy options.

We have never had anyone say that our Financial Advice Health Check wasn’t value for money! If you are referred by someone we know, you will even get a discount!

www.financialadviceshop.com.au

#agepension #partagepension #agepensionchanges #agepensionchanges2017 #retirementplanningcanberra

Don’t Let Your Future Retirement Concerns Become A Miserable Reality!!

Imagine a 30 year retirement where you couldn’t afford to enjoy yourself? No one would actively plan for this outcome but sadly it is a reality for a very large number of retirees. Don’t let this happen to you.

Relying on your employer’s superannuation contributions and holding your hand out at retirement for an Age Pension in the hope that this will make everything OK is a very poor choice. A far better outcome is to make smart investment decisions, save tax effectively through voluntary superannuation contributions in a low fee environment over many years and as a result make yourself 100% financially self sufficient in retirement. It really is time for everyone to start taking more responsibility for their retirement outcomes.

When it comes to achieving a comfortable retirement, making additional tax effective superannuation contributions over long periods of time is critical. The greater your retirement expectations, the more you need to do to ensure you achieve your goals. If you are planning to have less than $1,000,000 in investments (excluding the family home) at retirement you are probably setting your sights too low.

If you are starting to think about your retirement, or know you should be planning for your retirement, it is time to start taking action with a trusted financial planning advice discussion to “see what’s possible”.

HOT TIP: The need for honest, transparent and practical financial planning advice has never been greater, so contact The Financial Advice Shop without delay. To get things started, we offer a very cost effective Financial Advice Health Check discussion to ensure you can access our experience to understand all of your fees and future superannuation investment strategy options.

http://www.financialadviceshop.com.au

#retirementplanningcanberra #financialadvicecanberra #superannuationcanberra #retirementadvicecanberra

Are You Still Being Ripped Off With High Superannuation And Investment Fees?

There has never been a better time to review your superannuation investments and consider options to reduce costs. If you do not take action, you can be 100% sure that no one else will!!

In recent years investment costs have been slowly falling but unfortunately those costs are often not passed on to everyone. There are a variety of reasons why many investors are not benefiting from lower superannuation and investment costs, some of which relate to conflicted financial adviser remuneration.

None of the superannuation or investment recommendations from The Financial Advice Shop have hidden fees or commissions so you can be confident they represent excellent value for money. It is a fact that we regularly save many new clients thousands of dollars in ongoing fees every year.

HOT TIP: The need for honest and practical financial advice has never been greater, so contact The Financial Advice Shop without delay to arrange a cost effective Financial Advice Health Check to ensure you understand all of your fees and future superannuation investment options.

www.financialadviceshop.com.au

#superannuationfees #superannuation #financialadvicecanberra #superannuationcosts #financialplannercanberra #financialplanningcanberra #retirementplanningcanberra