Getting married is a joyous time. However, if you are one of the 20 per cent of Australians who will do so for a second, or more time, children from a previous marriage can present complex estate planning challenges.
Aged care in Australia is not cheap. When you enter aged care, you are paying for somewhere to live, your meals, electricity and also a number of people to look after you. Aged care fees involve accommodation fees and also ongoing care fees.
Throughout my career as a financial planner, I’ve met with hundreds of people heading toward retirement. Physically most were ‘ready’ for retirement. Financially a good portion were ‘ready’ for retirement. Emotionally, there were many who were just not ready!
I’m quite certain this Instructional will take the mantle as “Least Sexy Blog” I’ve done, but if you are reading this, you at least have internet access. This covers the basic process of how to actually set up Centrelink online access for your Age Pension or similar, assuming you have limited experience with internet related matters.
Heraclitus is quoted as saying “change is the only constant in life”. Do you ever find yourself in the middle of an activity (whether it be a project, hobby, renovation or the like) and discover that the path you thought you were following needs to change?
If you are like me, the past few weeks have been full of thoughts about what Christmas gifts you are buying and for whom. And, if you are like me, you are probably finding this task challenging – even for those family/friends you are closest to.
Depending on your age, you may think of "alternatives" as a counterculture like hippies, punks, indies or hipsters. However, rather than finding them on a Melbourne street sporting a penny farthing and lederhosen, it may surprise you to know they’re in your super fund.
Leading up to the Global Financial Crisis, strong share market returns (2002-2007) and the loss of favourable Centrelink assessment (5O% assessable in 2004 and 100% assessable in 2007) resulted in annuities falling out of favour.
Making decisions about a loved one's transition into Aged Care can often be fraught with uncertainty and require information and assistance which is not always easily accessible. Recently we were able to help Greg* with the aged care needs of his grandmother for whom he is acting Power of Attorney. This is his story.
When it comes to insurance, it pays to know how a claim is processed. It simply makes sense to know what you’re entitled to if and when it comes to claiming on the policy you have been paying premiums for.
It is that time of year again when the annual performance comparisons of super funds are displayed in various media publications. Assessing the performance of super funds can be a difficult exercise for many investors particularly if they take too much notice of the media.
From 1 July 2018, if you are 65 years old or older and meet the eligibility requirements, you may be able to choose to make a downsizer contribution into your superannuation of up to $300,000 from the proceeds of selling your home. I will explain what it is, how it works and a strategy to save a ridiculous amount of tax.
The Royal Commission into Misconduct in Superannuation, Banking and Financial Services Industry has in recent month offered up an array of issues that has sent the media into a frenzy and left many investors asking questions.
The Reserve Bank of Australia (RBA) last raised interest rates way back in November 2010. Given the length of time that has passed, this article discusses some of the different impacts on rising rates.
A Will is defined as a legal document that indicates how a person wants their finances, property and possessions to be distributed after their death. It can be easy to assume a Will is all that’s required to ensure your estate is divided up exactly as you want.
A few weeks ago I received an anxious call from a client who needed to withdraw some money to pay off their credit card. They were left with a hefty hospital bill while they were travelling abroad. It reminded me of the time I landed myself in a foreign hospital.
It is concerning that we continue to hear about cases of financial abuse of our older Australians although I am certain that the vast majority of those reading this who care for an elderly parent/ relative or friend are well intentioned.
With all of the publicity surrounding the big players in the financial advice space, I thought it timely to share my experiences and observations from working for a large financial institution, and also being associated with another, prior to joining Goldsborough.
It has likely been a challenging few weeks for the PR departments of the major banks with the Financial Services Royal Commission turning the spotlight onto the poor practices associated with the Financial Planning divisions of Australia's largest financial institutions.
If death and taxes are the two certainties in life, we love talking about taxes (especially how much we dislike them), but avoid discussing death. Unfortunately, death and estate planning are necessary conversations!
There’s been some media commentary recently about the ATO ‘cracking down’ on holiday home owners who wrongly claim tax deductions on properties that are used for their own personal holidays.
Anyone who is on income support payments from Centrelink (Age Pension, NewStart Allowance, Disability Support Pension, Carer Payment/Allowance, etc) will know the frustrations that can occur when needing to update information to them.
A Home Care Package provides Government funded services that can help you remain at home for longer, as well as providing choice and flexibility in the way that the care and support is provided.
You know that feeling you get when your alarm jolts you out of a deep sleep? It’s a combination of shock, denial and disbelief.
It's been years in the making but real time bank transfers via the New Payments Platform (NPP) between Australian financial institutions is gradually being rolled out this year.
The thought of retirement can be a daunting prospect. There are so many considerations and unknowns particularly around investment markets and how they will perform in the early years of retirement.
“Don't sail out farther than you can row back.” This Danish saying is sound advice for anyone thinking of borrowing to buy a home, particularly now that interest rates are low and house prices are generally rising.
Aged Care in Australia is not cheap. However, a lot of the cost is paid by the Government, and you only have to pay a portion.
I could fill a book the size of Tolstoy's War and Peace with all the stories of dreadful Centrelink experiences my clients have come to me with over the years. Except it may as well be written in Russian as it won't make any difference to their backlog...
How would you cope if you suddenly had to take over the management of your parent’s finances? If your parent(s) were to fall ill or become incapacitated, someone has to take over the payment of bills, managing their money, and general well-being.
Interest rates are very important for many Australians, and rightly so – after all, whether it's the returns on savings accounts or mortgage repayments, the rate of the day can have a significant impact on the household budget for millions of Australians. So what influences interest rates, and why are they changed?
I read an excellent article from Marcus Padley (Marcus Today) recently and thought I would share a paraphrased version of it. It offered 10 Commandments of equity investing for new investors:
Not everyone has to pay to enter residential aged care, but if you are like most people and have assets or income of some sort (whether that’s from investments, superannuation, or rent from your home), you will need to contribute toward the cost of your care.
A granny flat right is established when accommodation is provided in exchange for a payment or a transfer of assets. It is important that Centrelink has provisions for people to transfer assets or make payments to live with another person so that the transfer is not counted as a gift under the deprivation of asset rules.
On our regular 5AA radio talkback session this week, Sam Martin and I were sharing some alarming statistics about scams.
There are 4 possible costs associated with a move into residential aged care, with 2 of those based on a person’s income and assets (refundable accommodation deposit (RAD) and means-tested care fee).
I always encourage people to start retirement planning as early as possible, but this might be taking it a little too far.
The Transition to Retirement (TTR) strategy was introduced many years ago with a number of benefits in mind. It allowed people to be able to access their superannuation (via a TTR account-based pension) while still working, thereby generating additional income.
About 40 years ago the psychology research of Daniel Kahneman and Amos Tversky changed the world's understanding of the human mind forever. It also changed our understanding how people make investment decisions.
Highlighted below are some important changes regarding both the Age Pension and Commonwealth Seniors Healthcare Card, effective 1 July 2017
We live in an era where the internet offers us an ‘answer’ to nearly everything in life. Whether it be Dr Google, renovating a dining suite, MasterChef-worthy meals or craft; there is generally a You Tube clip or internet reference that we can go to.
Placing a parent or loved one into an aged care facility can be a stressful and distressing time for a family. It is not a pleasant financial experience either!
Recently we have seen some organisations and politicians promoting the idea of first home buyers being able to dip into their superannuation to fund the purchase of a home.
Hot on the heels of the Centrelink reforms, a series of major new superannuation and pension rules will come into effect 1 July 2017. With only a few months left of this financial year, it is timely to consider what the changes could mean for you.
Since the Howard Government introduced the First Home Buyers Grant nearly 17 years ago, first home buyers (FHBs) have been dominating property headlines with the ever challenging housing affordability issue. As those FHBs back in 2000 are now on their second and third homes, this is not a new issue.
Quite often, the decision as to whether a loved one needs to access the Aged Care System in Australia is taken out of the hands of families.
You may have heard the theory about the left vs right brain and how it affects our interests, the way we think, feel, make decisions and learn. But what about the way we invest?
We are all aware of the recent 1 January 2017 asset test taper rate changes for CentreLink’s Age Pension recipients but there were additional changes affecting people entering aged care.
In less than 6 months, a big window of financial opportunity will get smaller. From July 1, Superannuation non-concessional contributions cap will nearly halve from $180,000 to $100,000 per annum.
In July 2017 Super SA members are expected to lose a major benefit of being in that fund.
What a ride we have seen in the world markets over the recent US election. Every financial commentator was throwing their 2 cents worth in and then some.
Apparently only around 4% of the Chinese population have passports according to an Asian investment guru at Macquarie Bank. Compared to other western countries such as the US where the passports per population is more in the 30 -40% range.
After 30 June 2017 it is likely that the concessional contribution cap (amounts put in to super before tax) will be reduced to $25,000, including Super SA members who previously benefited from an uncapped limit.
In our recent Retirement seminars, the conversation among attendees inevitably heads towards scandalous, successive governments wanting to stick their fingers in that fabulous pot of honey, our Super.
Succession planning is a topic that is often only considered once it's too late; by that I mean the business owner wants to get out suddenly, or worse, has passed away and the business is dragged through the probate process.