Financial Planning
Consolidating your super
If you’ve had more than one job, it is highly likely that you have more than one super fund. As a result, millions of Australians face some common problems, many without even knowing!
At Jordan Financial Solutions, we help (1) locate your super funds; (2) research their features & performance; and (3) roll it all into a single account that is most suitable to your specific needs.
As a result of consolidating your super, you may be able to benefit in the following ways:
- Reduce the fees you pay
- Simplify your paperwork and monitoring of your super
- Have all your super money invested in line with your investor profile
- Increase the total return on your super
- Have your desired levels of personal insurance cover inside your super
Contributing into Super
Many Australians will not have enough super to support the lifestyle they want to lead in retirement. According to the latest AMP Superannuation Adequacy Index, almost 4 million workers (37% of the workforce) are falling behind where they need to be in preparation for retirement.
No matter how young or old you are, boosting your super should be an important consideration.
SUPER GUARANTEE:
- By law, employers must contribute a minimum of 9.5% of your salary to your super.
- For those who are self-employed, there is no mandatory requirement (however this is strongly encouraged from a retirement savings and tax perspective)
SALARY SACRIFICE:
- You can also make contributions from your after-tax pay by making one-off or regular contributions.
- By making these contributions, you may be entitled to a Government co-contribution (i.e. if you meet the requirements, for every $1 you contribute after-tax, the government will match it with a contribution up to a maximum of $1,000 per annum)
AFTER-TAX CONTRIBUTIONS:
- Salary sacrifice is simply contributing more to your super from your before-tax pay.
- This reduces the amount of income tax you pay while boosting your retirement savings.
- These contributions are taxed at 15% rather than your normal marginal income tax rate (which can be as high as 46.5% including Medicare)
Disclaimer
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments.
Wealth Creation and Investments
Sound strategic planning and financial advice enables a smooth transition throughout the various phases of your life, whether it is buying a house, paying the school fees or enjoying life’s pleasures in retirement.
We understand that wealth creation means different things to different people. This is why we work with you to create a strategy that is based upon your needs and objectives.
Jordan Financial Solutions can help you build your wealth with quality advice from one of our highly qualified Financial Advisors.
Having a strategy in place can provide you with the peace of mind that comes with knowing you are on track to meet your goals.
To maximise your wealth creation potential, we review the effectiveness of your overall financial structure, focusing on:
- Tax effectiveness
- Investment management
- Cash flow management
- Asset allocation
- Potential risks
Strategies to help you build your wealth may include:
- Establishing a self managed super fund (SMSF)
- Minimising tax through strategies such as co-contributions and Salary
- Sacrificing, and
- Investments such as Managed funds
Strategies to help you build your wealth may include:
- Establishing a self managed super fund (SMSF)
- Minimising tax through strategies such as co-contributions and salary sacrificing, and
- Investments such as Managed funds
We can arrange a Financial Advisor to meet with you to discuss your individual situation and then develop appropriate financial strategies based on your current financial situation, your attitude to investment risk, and your short, medium and long term investment goals.
When developing your financial strategy, your Financial Advisor will take into account your current financial situation including your:
- Income from all sources including salary, investment returns and rental income
- Current tax situation including any salary packaging options
- Assets and liabilities
- Dependants, if any
- Superannuation.
What you need to know
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments.
Personal Insurances
Personal Insurance is often something that we place at the bottom of our ‘to do’ list. A fundamental reason for this is because we simply do not wish to think of the ‘worst’ case scenario occurring in our lives. It is common for so many of us to insure our possessions such as our house or car but we forget about what matters most to us – our loved ones and our ability to generate an income.
Unfortunately, many of us only see the value of personal insurance when we actually need it and when it is too late. Preparing for potential risks through tailored insurance protection can enable you to ensure your family and your future remains financially secure in the event of any unforeseen circumstances. Through any misfortune, worrying about the financial aspects should be your last concern.
We can assist you in understanding the various types of personal insurance that may be relevant for your needs, including:
- Life insurance
- Total and Permanent Disability
- Trauma or Crisis insurance
- Income Protection
- Incorporating insurance into your Superannuation plan
- Business insurance
At JFS, we pride ourselves on providing you with suitable protection for your specific needs. Our planners take a more personalised approach to ensure that you receive peace of mind and security in knowing that you will not be financially burdened against any misfortune. With such a huge price to pay without any protection, why risk it?
What you need to know
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments.
Retirement
Planning for your retirement is not something you should contemplate only once you reach a predetermined age. It is something that begins from the moment you receive your first pay slip and your employer pays the mandatory super contribution.
Nevertheless, the strategies associated with your retirement come to the fore in the years leading up to your anticipated retirement.
There are a number of important factors that you should consider, such as:
- When do I want to retire?
- How much income will I need each year in retirement to maintain my lifestyle?
- How will I fund my retirement?
- Have I organised my will and considered estate planning?
By identifying these primary goals, we can analyse your current position and help you take advantage of the various concessions and other entitlements available.
If you’d like to stop working soon, we can show you some simple strategies that will give your super a real boost before you retire.
If you’d like to cut down on your working hours, we can also introduce you to some great techniques you can use – like transition to retirement strategies – that let you cut back on your hours without cutting back on your lifestyle.
And even if you’d like to stay in the workforce for another decade or more, we can show you ways to make the most of your working life so by the time you retire your nest egg is a more substantial one.
What you need to know
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments.
Estate Planning
Estate Planning can be a complicated area that requires close attention to ensure our assets are passed on in accordance with our wishes. It is fair to say that nobody wishes to consider a world without ourselves in it, yet we all know that day will come for everyone. We all work hard to build a foundation for ourselves and our families and as such it becomes equally as important to ensure that everything we’ve worked for will be distributed to our selected beneficiaries should any unforeseen circumstance take place.
A sufficient estate plan guarantees that the ownership and control of all of our assets can be properly passed on and that the transition of assets is as tax-effective and efficient as possible. Having our affairs adequately looked after in the most tax-friendly manner allows us to be sure that our legacy will be handled appropriately and hence delivered according to our own desires.
At JFS, we place immense value on walking you through every stage of the financial advice process. As a highly specialised area, JFS works in collaboration with trusted solicitors to establish estate plans to meet your specific needs and wishes. This ensures that you are able to control your assets with the appropriate structure to capitalise on any tax concessions, as well as, sufficiently pass on your legacy to future generations.
What you need to know
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
The proposed website includes information regarding services that are not covered by AMP Financial Planning Pty Ltd. These services include, the establishment of estate plans.
Centrelink & Aged Care
Assessing your eligibility for the Age Pension can be a daunting and complicated task, when there are many variables to consider. Centrelink assess any entitlement to the Pension under the Incomes Test and the Assets Test, but applies that Test which produces the least entitlement. It is a matter of determining which Test applies to your circumstances.
For example, under the Incomes Test, ‘financial assets’ are ‘deemed’ to earn a regulated rate of return, which can change at any time. Furthermore, there are two levels of ‘deeming rates’ applied, within an asset value threshold. The ‘deeming rates’ apply, regardless of the actual earning rate of the respective investments. Yet not all financial assets as we define them, are treated as ‘financial assets’ for Incomes Test purposes.
Furthermore, once other income exceeds a certain low threshold, the pension is reduced progressively to an upper threshold, at which level, the pension entitlement will cease.
Similarly, under the Assets Test a low and upper threshold for both homeowners and non-homeowners), exist. While the personal residence is exempted from the Assets Test, personal use assets – motor vehicles, caravans, personal effects and so on – are treated as assets.
We are able to sort through the maze for you and provide an assessment of your potential entitlement, as well as strategies that maybe available to enhance a benefit or to obtain a benefit.
Aged Care
Aged Care is an even more daunting issue, both emotionally and strategically. In addition, the implementation and the cost of Age Care is closely linked to an Age Pension benefit. Aged Care costs can often encompass three separate fees – the Basic Daily Care Fee, the Daily Income Tested Fee and an Accommodation Bond or Charge.
We can assist you in calculating the various Fees levels, as well as to devise strategies to reduce the level of fees.
For people moving into Aged Care, obtaining Financial Advice is increasingly important to not only understand the options available to them but also the payment options, especially when the Centrelink criteria is in conflict with many aged care centre rules and the impact of these on the client’s financial position. Negotiating the Age Care maze is a stressful time, not only for the person entering care but also for their family members who are often the ones who are left with the task of:
- Arranging assessment
- Locating a suitable facility
- Negotiating costs for care
- Deciding whether to pay a bond or accommodation charge or some of each
- Dealing with Centrelink
- Making decisions on whether to sell or retain the family home
Getting any of this wrong can have significant impacts on client cash flow, Centrelink entitlements and estate planning goals.
Getting the right advice when it comes to transitioning to an Aged Care Facility is very important. The process is complicated and without the right advice could have major implications on your Centrelink entitlements and or assets at death.
Desirable outcomes from seeking professional advice:
- Maximising Centrelink entitlements (aged pension)
- Minimising Aged Care Costs
Whether you are reaching the age where you will soon require Aged Care or you are assisting your elderly parents to transition to aged care, it is IMPORTANT to seek professional assistance.
What you need to know
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments.
Cost of Raising Kids
Being a parent is the most important and rewarding role you’ll ever play in your life. While the hours are long and the pay is poor, the satisfaction is enormous.
But, whether it’s learning the piano, early morning swimming lessons or ballet classes, the reality is, as your kids grow, the costs could rise with them!
Will your finances keep up with your kids?
According to a recent AMP report, the cost of raising children has grown by 50% in five years, while household incomes have only risen by 25%.
Private education accounts for much of the cost for high income families, but as tablets replace textbooks, expectations in the classroom are changing across the board.
Many parents are now planning ahead to give their children the best possible start in life.
Will your finances keep up with your kids?
$812,000 Cost of raising two children for a typical middle-income family (weekly gross income of $2,274).
$1.1 million
Cost of raising two children for a high-income family (weekly gross income of $4,984.)
We can help with solutions to manage the costs
As interesting as it is to know the costs, it’s more important to get some help with possible solutions. There are several strategies that could help:
- Maximising the equity in your home to invest in your kids future
- Creating a structured long term savings plan for your kids
- Reducing the interest you pay on your home loan to free up cash, and
- Finding better ways to keep track of your money and manage your spending.
Like some help?
There are financial paths that can help you keep up with the costs and set your children up for the best. Why not talk to us today? Contact Damien Jordan on 03 9853 4637 or email damien@jfsplanning.com.au
1 Source: AMP.NATSEM Income and Wealth Report: The cost of raising children in Australia, Issue 33, May 2013 visit www.amp.com.au/raisingkids; Australian Scholarships Group; Australian Bureau of Statistics.
What you need to know
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments.
