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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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.

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Superannuation Is Irresistible If You Combine Makeup, Features and Confidence!!

Superannuation for most people is an investment that is not really of interest to them until they are approaching retirement. Unfortunately, by then it is far too late!

The reasons for a lack of interest in superannuation are varied. It can be seen to be dull and boring, the Government keeps fiddling with the rules, it’s an investment that you cannot accessed as a lump sum until they reach preservation age and retire, and for some it is even seen as an extremely risky investment.  With this lack of interest comes a lack of focus to maximise final retirement benefits.

To be a successful investor you should take the time to study your superannuation fund choices, consider your contribution options, examine how to strip out excessive fees and commissions, and then make sure you invest cost effectively and confidently to achieve competitive long term returns with a level of risk you are comfortable with. Then, as you watch your investments grow over many years, it can be a beautiful thing so see it steadily become an important and significant retirement asset.

As current and future Australian Governments grapple with the issue of providing Commonwealth support in retirement, there is little doubt that future retirees will receive less in Age Pension entitlements than current retirees. The reason for this is simple: as the Australian population ages there is a shrinking percentage of working people who are paying taxes to support the retired population.

When it comes to superannuation, many women are at a significant disadvantage. Women often put family before career, have breaks in employment and are not always employed in roles that reflect their true capabilities.  Over a working life, the negative effects of a fragmented working career on superannuation balances for women can be very significant.

There are two clear options for everyone with superannuation: do something or do nothing. Anyone who chooses to do nothing is foolish and should brace themselves for the ultimate consequences of a poor standard of living in retirement.

For those who have the energy and motivation to do something positive and would like to be successful, it is time to take action! You have many choices at your fingertips and with careful research, sound financial advice and an appropriate action plan including regular additional superannuation contributions, you have a real chance of being successful.  Importantly, the sooner you start planning, the more likely you will be successful with your retirement planning.

What should you do next? It’s really simple: if you are serious about planning for a secure financial future, we are serious about assisting you to be successful so contact us today to see how we can help you understand things more clearly.

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Make 2016 The Year You Stop Making Other People Rich And Start Taking An Interest In Your Financial Advice Future!

If you studied your financial advice affairs very closely and knew what to look out for, you might be astounded at how many people and organisations silently benefit from your investments in ways you have not thought possible.

Every dollar that someone discretely takes from your superannuation as a fee, commission or other payment is a dollar less for you to spend in retirement. Additionally, you shouldn’t think you can rely on The Future Of Financial Advice (FOFA) Legislation to protect you because it almost certainly will not.

If this topic strikes a nerve with you then it’s time you stopped thinking about it and started doing something about it. If you suspect your fees are too high then it’s definitely time for you to do something about it.

What should you do next? It’s really simple: if you have a reasonable superannuation balance and wish to cost effectively invest with sound financial advice for a more secure financial future, contact us today to see how we can help you understand things more clearly.

#financialadvicecanberra #financialadvisercanberra #financialplannercanberra

An Experienced Financial Adviser In A Boutique Financial Advice Business Can Be A Very Powerful Combination!

To be able to feel truly confident that you can trust your financial adviser, you have to be sure they are able to influence important business decisions that affect you and act in your best interests.

If your financial adviser is a Director or a key senior manager in the financial advice business then they can possibly influence important business decisions that affect you.  If they are simply an employee then it is possible they are compelled to follow company policy that they do not fully support and may not be able to share their true feelings with you.

The Future Of Financial Advice (FOFA) Legislation was intended to fix many of the perceived problems associated with Financial Planning.  Unfortunately, while large institutions are able to deliver financial planning services and also be involved in the manufacture of in house investment products, FOFA will to a large degree continue to be ineffective.

We have all seen the very effective industry super fund advertisements where the point is clearly suggested that big institutions offering multiple services may not be acting in clients best interests when it comes to superannuation.  Keep this in mind if your adviser starts suggesting you access a broader range of in house services.

When considering multiple services from one business, consider whether the business can provide all of the professional services you require, are the absolute best providers of those services and are also the most cost effective?  A highly unlikely scenario we would suggest, so always consider comparing another specialist professional in your area of need that is not part of a large institution.

It might be convenient for you to access services from a so called “one stop shop” but you are likely to get better results by allowing your trusted adviser to refer you to other externally road tested professionals where there is great service and knowledge, and no incentives or conflicts of interest associated with the referral.  In a large institution, you should expect in house referrals are linked to performance bonuses or other similar incentives which create conflicts of interest.

If you want to play an important role in changing the financial planning landscape for the better, consider distancing yourself from the large financial advice institutions and aligning yourself with a smaller financial advice business but only make the switch if you are confident in the proposal and it makes sound financial sense.

What should you do next?  It’s really simple: make contact with us to see how we can help you understand things more clearly.  Our clients are very confident in our integrity, knowledge, experience and capabilities.

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Looking For A Complimentary Financial Advice Newsletter?

To download a complimentary copy of our Winter 2015 financial advice and financial planning newsletter, click on the following link to visit our website and download it from there.

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Don’t Be An April Fool: There’s Only Three Months Until The End Of Financial Year And You Have Plenty Of Things To Think About!

So what are some of the things you might need to think about before the end of the financial year?

April is a great month to review your salary sacrifice contributions and make sure you are on track to maximise the opportunity in the current financial year.  If you have not made any salary sacrifice contributions in the current financial year, you still have time to make a solid start.  If you have been salary sacrificing and could do more, now might be a good time to think about ramping it up.

When it comes to tax effective superannuation contributions, there are a number of very simple strategies involving a drawdown from other assets to help you tax effectively contribute more than you might otherwise be considering.

April is also a great month to be thinking about splitting superannuation with your partner.  Reasons to split super can vary but common reasons include equalising super balances or an age difference that means one of you is much closer to retirement.  You have until the end of June this year to split 85% of last financial year’s concessional superannuation contributions.

There are also personal contributions for the Government co-contribution and spouse contributions for the spouse rebate that might be worthy of further consideration depending on your circumstances and eligibility.

If you have sold an investment property or another asset and have triggered a capital gain, don’t forget you may be able to use superannuation contributions to assist with managing any capitals gains tax liability.  You still have plenty of time to seek advice and think, plan and act.

There might also be things to prepay or purchase to bring forward a tax deduction in the current financial year.  Make sure you start the conversation with your tax adviser before it is too late.

If you are self employed, don’t leave it to the last minute to plan and make your superannuation contributions.  If you are planning a superannuation contribution, make sure it is received in your superannuation account well before the end of June.  I’ve seen it far too often where a contribution is delayed by an electronic transfer and the contribution ends up counting towards next year’s contribution limit and that can really stuff things up.

HOT TIP:  Don’t turn into an April fool because you are time poor or lazy.  Take a moment to get some sound advice and plan your course of action for the three remaining months in the current financial year!

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