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Establishing client type
A number of developments in the financial advice industry have caused many financial services professionals (advisers) to consider a shift in focus towards the ‘wholesale’ end of the client spectrum. These developments largely stem from the Hayne Royal Commission recommendations and the Financial Adviser Standards and Ethics Authority (FASEA) professional standards for financial advisers.
Maximising cash flow for aged care clients
The move to an aged care home is often an emotional and stressful one. This is where appropriate advice can give clients the confidence and peace of mind that the right decisions are being made.
One of the key financial concerns with the move to an aged care home is often around having enough cashflow to fund costs but there are fundamental strategies advisers can use with their clients to maximise cashflow.
STRATEGY ONE: PAY A REFUNDABLE ACCOMMODATION DEPOSIT (RAD)
New beginnings for the Newstart Allowance
From 20 March, 2020, the new JobSeeker Payment replaces Newstart Allowance as the main working age payment. As part of the Government’s welfare reform package, many other payments cease from 20 March, 2020. Legislation to implement the changes was passed in 2017. Advisers should advise affected clients of the changes in order to manage their expectations and to consider possible strategies to maximise their payment.
The following payments will cease on 20 March, 2020:
Understanding business insurance
Business insurance advice has grown significantly as a new avenue for financial advisers. While there are more than 2.3 million actively-trading businesses in Australia, research indicates that less than 20% of Australian businesses are equipped with a succession plan. This underinsurance gap presents an ideal opportunity for financial advisers to fulfill their best interests duty and add value to their customers.
THE IMPORTANCE OF BUSINESS INSURANCE
Will you still need me, will you still love me, when I’m sixty-four (or five)
Reaching age 65 has always been a pivotal time when it comes to superannuation and retirement planning – from meeting an automatic age based condition of release to accessing preserved super benefits (no matter an individual’s work practices or intentions), right through to the requirements, and indeed complications, of meeting the work test in order to make additional voluntary contributions to super.
However, no longer will this time be a hard finish when it comes to final contribution planning as someone approaches, or indeed enters retirement.
Tax (financial) advice, five years on…
It’s now more than five years since the commencement of the tax (financial) advice regime. The Tax Agent Services Act 2009 (TASA) was amended, generally with effect from 1 July 2014, to bring individuals and corporate bodies that provide tax advice in the course of giving advice that is usually provided by financial services licensees, or their representatives, within the regulatory regime administered by the Tax Practitioners Board (TPB).
Planning for co-investment owners and partnerships
It’s not commonly understood that co-owners of passive investments are partners in a partnership for tax law purposes, and therefore any associated financial planning considerations are often overlooked or misunderstood.
Securing consistent returns amid new world order
Buy-write overlay strategies are well-placed to capitalise on these tumultous conditions by adding a consistent and diversified source of real return to investor portfolios. It’s one of the most basic forms of derivative overlay strategy, where equity is owned, and a corresponding call option is sold over the underlying position. A buy-write strategy effectively replaces ‘expected but uncertain’ capital gains with far more consistent income streams, while still receiving all dividends (and franking credits on the ASX 200).
Benefitting from changes to lifetime income streams
The changes to the means testing of lifetime income streams from 1 July, 2019 presents a significant opportunity for retirement advice. The means testing changes provide an immediate exemption under the assets test where the lifetime income stream meets a capital access schedule. This means an asset-tested retiree can immediately increase their Age Pension entitlement by investing in a lifetime income stream. In this article we look at the retirement advice opportunity and the immediate benefits for asset-tested retirees.
When super’s not so super
Australia’s mandatory superannuation system is among the best in the world – and the most tax-effective long-term savings plan for most Australians. But that doesn’t mean it’s the most flexible investment for all Australians. In fact, the rules governing tax, contributions, and thresholds change over time – and rarely become more generous to contributors.
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