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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#superannuationreform #financialadvice #superannuationadvice #retirement #financialplanning #retirementplanning #superannuation

Stay Connected | Stay Informed | Stay Safe

Coronavirus (COVID-19) And Early Access To Superannuation

From 20 April 2020 the Australian Government is allowing early access to superannuation savings for people affected by Coronavirus (COVID-19).  If eligible, individuals can apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020, and a further $10,000 from 1 July 2020 to 24 September 2020.

https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/early-access-to-your-super/

There is plenty of discussion about why it might be a bad idea to access superannuation early but for anyone with high interest debt or an urgent need for cash it might be a very simply decision that can be based on some common sense and potentially create long term financial advantage if financial discipline is established for the future.

Consider the hypothetical example of someone who has a $20,000 credit card debt with an interest rate of around 20% p.a.  If they leave their super account intact, one thing they may need to consider is whether they are confident their superannuation will return anywhere near 20% p.a. on a continuing basis into the future?  Of course, there are many other things that need to be considered and ASIC has published additional information that must be considered before making any decisions.

https://moneysmart.gov.au/covid-19/accessing-your-super

It seems there may be many Australians who have high interest debt or an urgent need for cash and should consider if they could potentially benefit from the early access to superannuation that the current Coronavirus epidemic presents.  As always, the devil is in the detail so never make an investment decision without considering all the options and always seek appropriate advice from a licenced professional when required.

HOT TIP:  Beware of scams asking for a payment in return for assistance to access super early.  You only need to visit myGov to start the process.

financialadviceshop.com.au

#coronavirus #coronavirussuperannuation #earlyaccesstosuperannuation #coronavirussuperannuationaccess #earlyaccesssuperannuation #superannuationscams

Disclaimer: The information in this post is of a general nature only, is incomplete in the views expressed 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 and it must not be acted on. 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. Past performance is not a reliable indicator of future returns.

What Ought One Do When One Thinks They Need Financial Advice?

Finding a financial adviser who you think you will be able to feel comfortable with is probably one of the hardest parts of the process and it is impossible to guarantee you will make the right choice so what can you do to improve your chances?

ASIC has published some information to assist people with their search for a financial adviser and as you can see there are a lot of things to consider in selecting a financial adviser.  While the ASIC information doesn’t have all of the answers it certainly gives you plenty of things to think about and gives you some insights into the financial advice profession.

https://www.moneysmart.gov.au/investing/financial-advice/choosing-a-financial-adviser

In our experience, it is important to understand in detail the story behind the financial adviser and their business.  A recommendation from someone you know and trust is a good place to start when you are commencing your search for a financial adviser.

HOT TIP:  Before you sign up and commit to financial advice, make sure you understand how much the initial advice will cost, how much it will cost to implement any recommendations, how much the total ongoing portfolio costs will be on a per annum basis and finally how much it will cost for an ongoing advice service if one is required.  Complete transparency is very important.

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#financialadvicecanberra #pssfinancialadvice #cssfinancialadvice #financialplanningcanberra #pssfinancialplanning #cssfinancialplanning #retirementadvicecanberra #retirementplanningcanberra

 

When It Comes To Your Mortgage, The Landscape Is Very Competitive But You May Not Have The Best Deal?

It is absolutely astonishing that so many people have a mortgage and they have not recently tested their bank to make sure there isn’t a better deal available.

Even if you have no plans to make a switch with your mortgage, why not contact your bank, tell them you are thinking of switching to another bank, and let them know that you would like to give them the opportunity to provide you with a better deal and a lower interest rate.

If you have no idea how much difference a reduction in interest rate can make on your mortgage, check out the following link for a range or mortgage calculators from ASIC.  A lower interest rate, additional repayments and perhaps even the well disciplined use of an offset account has the potential to make a very big difference to your future wealth and financial security.

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/mortgage-calculators

Your current bank is unlikely to tap you on the shoulder to let you know they can offer you a better deal so you need to be proactive, take control and act in your best interests.  A phone call to your bank has the potential to be one of the smartest things you could ever do.

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 and it must not be acted on. 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. Past performance is not a reliable indicator of future returns.

http://www.financialadviceshop.com.au

Asgard® has recently introduced a new superannuation product that may be a game changer for many Asgard® investors.

It is a shame Asgard® will not actively tap existing investors on the shoulder to let them know there may be cheaper superannuation options now available.

If you are an Asgard® investor with a large superannuation investment balance, there has never been a better time to talk to an expert on whether your fees and commissions can be reduced. You may not even need to change your account number to reduce your fees and commissions!

www.financialadviceshop.com.au

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 and it must not be acted on. 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. Past performance is not a reliable indicator of future returns.

#asgard #asgardfees #asgardcommissions

The Final Report From The Royal Commission Into Misconduct In The Banking, Superannuation And Financial Services Industry Has Finally Been Publicly Released!

The Government is indicating it will commit to take action on all of the 76 recommendation.

https://financialservices.royalcommission.gov.au/Pages/reports.aspx

At The Financial Advice Shop we have reviewed the recommendations and concluded it really is business as usual for us and our clients, as most of the industry sensitive and more controversial recommendations are already our standard policy.

When it comes to Financial Advice, The Financial Advice Shop is a leading force.

Would you be better off partnering with The Financial Advice Shop?

http://www.financialadviceshop.com.au

#royalcommission #royalcommissionrecommendations #financialadvicecanberra

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.

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