Plan 2 Prosper

During tough economic times, you may look for ways to cut your expenses. However, when reviewing your budget, insurance should be one of the last items examined.

If the unthinkable were to happen and you didn’t have adequate insurance, the financial impact on you and your family could be quite dramatic. Regardless of whether you’re feeling the squeeze right now or looking for ways to reduce your expenses, there are a number of ways many of us can make personal insurance cover more affordable. Read the rest of this entry »

Many of us through our working life have had insurance through the super fund that our employer has organised as their default fund. Often these default funds are funds organised for employers in that particular industry or employees in that industry. Thus the term industry fund has become prevalent. Generally speaking industry funds offer two main benefits for their members, being reduced administration fees on their investments and access to discounted premiums on the insurance cover inside the fund.

It is important to review the paperwork received from the the Employer Super Fund/Industry Fund to ensure you are aware of the terms of cover being offered. Be mindful of:

• Pastime exclusions
• Pre-existing conditions
• offset clauses for sick leave
• policies terminating upon cessation of employment
• policies which cease if no contributions have been payable into the account for a specified period
• decreasing cover
• the right of the fund to cancel insurance at any time
• salary continuance cover which ceases after the insured has made a claim for TPD

This article will focus on the insurance components in the industry funds and the ‘tips and traps’ of these investment plans including:

• What are industry funds and how do they differ from group insurances schemes
• What are the advantages of insurance inside industry funds?
• What are the limitations of insurance inside industry funds?
• How do they compare to an insurance policy offered by an adviser? Read the rest of this entry »

Please allow us a moment to wish you all the best for the coming Christmas and New Year period.

Recently a ”Test” post was sent out by Jason. It was reassuring to get more than a few enquiries asking if Plan2Prosper had a new staff member … it made us understand that some of the posts made are actually read by the intended audience. No new staff have joined Plan2Prosper, it was just Jason from Almost Anything upgrading some of the tools used to make the posts and a “Test” message slipped through the testing controls. Everything works great again now.

Later this week we will be sending out a message via post to our clients. Our greetings for the season and thanks, an update on our availability over the coming school holiday period and some general comment … for a sneak peak check out – Christmas thoughts 2011

Where to from here?

If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australiabut predominately in Central Queenslandand specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

Many people have been asking about workers compensation when reviewing their wealth protection plans. Seeing a need to educate, we sourced content for this article from our research partner, ThreeSixty. This article will focus on the employer provided workers compensation benefits and the “tips and traps” of these plans including:

• What is workers compensation insurance and what is covered under the policy?
• What are the entitlements under workers compensation?
• What are the limitations of workers compensation cover?
• How does workers compensation differ from Income Protection Insurance?

An extract from a publication prepared by ThreeSixty, a division of GWMAS, appears below.

What is workers compensation insurance and what is covered under the policy?

Workers compensation insurance is compulsory insurance provided by the employer for all employees. Benefits are only payable for accidents which occur whilst completing the daily work related activities, including travelling to and from work. This does not extend to include sickness, unless it is directly work related and approved by the workers compensation provider.

Workers Compensation benefits are payable for death, incapacity to work, permanent loss or impairment to the body, and the need for rehabilitation or hospitalisation as a result of an injury which occurred during the activities of their work. The level of benefit payable is dependent on the state of residence, with some states providing more generous payments.

Proceeds from Workers Compensation benefits are assessable as income for tax purposes.

What are the entitlements under workers compensation?

(The below entitlements are correct as at September 2011)

The Workers Compensation Act (1997) and the Workplace Injury Management Act (1998) establishes provision for the compensation of workplace injuries. Entitlements vary between states, as outlined below.

New South Wales     Source: www.workcover.nsw.gov.au

This benefit is limited to the award wage and no more than $1805.00 per week for the first 26 weeks of invalidity. After 26 weeks, this benefit is limited to no more than $424.50 for clients under an award or $616.10 where no award exists.

After 26 weeks, the claimant would need to reconsider their circumstances if it is a long term claim.

Additional benefits are payable where there are financial dependants.

Benefits will be reduced for partial disability claims.

Victoria   Source:  www.workcover.vic.gov.au

Totally disabled:   This benefit is limited to 95% of the pre-disability earnings and no more than $1930.00 per week for the first 13 weeks. For 14-130 weeks, this benefit is limited to 80% of the pre-disability earnings and limited to no more than $1930.00 per week.

After 130 weeks, the benefit is limited to 80% of pre-disability earnings and no more than $1930.00 per week.

Partially disabled: The benefit is limited to 95% of the pre-disability earnings, and no more than $1930.00 per week for the first 13 weeks. Between 14 weeks to 130 weeks, if the claimant has returned to work, this benefit is 80% of pre-disability income less 80% of what they are currently earning to a maximum of $1930.00 per week.  If they have not returned to work, benefits remain at 75% of pre-disability income.

After 130 weeks and if the client is capable of working in any capacity but elects not to work, benefits will cease.   A client can apply to have partial benefits extended beyond 130 weeks if they are working at least 15 hours per week and it is evident that they are working towards their rehabilitation.

Western Australia   Source: www.workcover.wa.gov.au

If under an award wage: For the first 13 weeks, the benefit received is the regular award wage plus any benefits payable on a regular basis including overtime, bonuses and allowances. The maximum weekly amount is $2156.60.

From week 14, only the regular award wage is payable up to a maximum of $2156.60 (no additional benefits).

Not under an award wage: For the first 13 weeks, the benefit received is the regular award wage plus any benefits payable on a regular basis including overtime, bonuses and allowances. The maximum weekly amount is $2156.60.

From week 14, the regular award wage is a maximum of 85% of their pre disability income, not including overtime, bonuses and allowances to a maximum of $2156.60.

Queensland   Source: www.workcover.qld.gov.au

This benefit is limited to no more than 85% of the insured earnings before disability for a period of 26 weeks. Beyond this period and for up to 104 weeks, claimants will be entitled to benefits of 75% of salary (or 70% of the QLD ordinary full time earnings).  For benefits beyond 104 weeks, compensation is dependent on the degree of impairment.

South Australia  Source: www.workcover.sa.gov.au

A totally incapacitated injured worker is entitled, for the first 13 weeks of their incapacity, weekly payments at the rate of 100% of their average weekly earnings. Between 14-26 weeks, the worker is entitled to 90% of their pre disability income. After 26 weeks incapacity, an injured worker is entitled to weekly payments at the rate of 80% of their average weekly earnings.

Benefits may continue to retirement age where the insured is significantly disabled.

Tasmania   Source: www.workcover.tas.gov.au

For the first 26 weeks, 100% of income is paid. Between 26 weeks and 78 weeks, benefits are limited to 90% of average earnings or 95% where no suitable alternative duties are available.   After 78 weeks, benefits are limited to 80% of the average earnings. The duration of the benefits are associated with the level of impairment.

What are the limitations of workers compensation cover?

Workers Compensation benefits are limited to work related injuries. Between October 2010 and September 2011, MLC reported that 60% of all claims were for sickness, compared to 40% for accidents.

Of the 40% accident claims, you would need to consider how many of these are work related and entitled to workers compensation benefits.

This means that those who rely on workers compensation cover alone, leave themselves unprotected against sickness and accident claims which occur on weekends, around the home or outside of the workplace.

Furthermore, the benefits are limited to a percentage of the pre disability income which may not include other benefits of employment, including salary packaging, commissions and overtime.

How does Workers Compensation differ from Income Protection Insurance?

Income protection provides cover for up to 75% of the monthly income for any medical reason which prevents the individual from not working, with the benefits commencing to accrue following the cessation of the waiting period.  Additional benefits can be received where the insured has elected to purchase optional cover, such as nursing care allowance, advance benefits for trauma events to name a few.   Cover is global and claims are payable for both partial and total disability with benefits generally available to age 65.  Generally white collar occupations will not have their benefits offset against workers compensation claims, allowing the insured to claim from both sources.  Premiums are tax deductible and benefits are assessable as income.

Workers compensation on the other hand is limited to work related claims with the amount of benefit varying between the state of employment and the duration of the disability.  The maximum benefit period is dependent on the individual’s location with benefits ceasing as early as 26 weeks.   Premiums are paid by the employer and benefits are assessable as income.  There does not appear to be a waiting period with benefits accumulating from the first day of the accident occurring.

There is often a greater level of support from both WorkCover and the unions, for “return to work programs” for claims lodged through Workers Compensation, compared to an income protection policy given that the accident occurred in the course of their employment.

The information contained in this publication is current as at 11 October 2011 and is prepared by ThreeSixty, a division of GWM Adviser Services Limited ABN 96 002 071749, registered office 105-153 Miller Street North Sydney NSW 2060. This company is a member of the National group of companies.

Any advice in this publication has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on any advice, consider whether it is appropriate to your objectives, financial situation and needs.

ast performance is not a reliable indicator of future performance.

Before acquiring a financial product, you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.

To better understand the general concept of life insurance follow the link below to our website and then left click on “Understanding Insurance” – http://www.plan2prosper.com.au/benefits/understanding-series

With so many different types of life insurance available it’s important to discuss your needs with someone who has more than a basic understanding of the topic. Determining an appropriate insurance solution or an acceptable compromise can be very complex. A client commented to me it was a bit like an onion … at face value it’s just an onion, but the simple onion has many layers which can be peeled back, sliced, diced, cubed, filed, and cried.

To ensure you are adequately protected with a quality product, it is important to regularly review your existing arrangements and determine whether any cover provided by workers compensation and other existing insurance policies are sufficient to meet your needs.

As an adviser, my goal is to ensure that you are adequately protected, with a quality insurance product tailored to your individual circumstances.

Where to from here?

If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

Insurance is vital career protection for professionals.

Success as a white collar professional is often built on years of education and hard work. Once you’ve made it, there’s probably a temptation to feel like you have set yourself up for life.

There is no doubt a healthy income is a big help when it comes to building a comfortable lifestyle for your family. The challenge can be sustaining this income, and this lifestyle, if you suffer a serious illness or injury.

Serious illnesses and accidents can happen to anyone, at any time. It could happen walking down the street, it could happen milking a cow, if all of a sudden you stop and look out your window it could be happening … right now. Read the rest of this entry »

Improving Information, Intake and Assessment for Aged Care

The Australian Federal Government is making it easier for older Australians, their families and carers to access the Aged Care System.

On 1 July 2011, the Minister for Mental Health and Ageing, Mark Butler, announced the introduction of single, national information line to make it easier for older Australians, their families and carers to access information about aged care. The new number
1800 200 422
along with improvements being made to the national aged care website http://www.agedcareaustralia.gov.au/ are the first steps in the implementation of a new ‘front end’ for aged care.

The reform is supported by investment of $36.8 million to improve information, intake and assessment and make it easier, not harder, to access the aged care system. It is part of the Australian Government’s national health reform efforts to build a nationally consistent and integrated aged care system.

The new national phone number will initially be answered by the experienced aged care workforce of the Commonwealth Respite and Carelink Centres. The Government is working with Centres and other key stakeholders on continuous improvement to the quality and consistency of aged care information available, both over the phone and online. These improvements will provide information that is more comprehensive, up-to-date and relevant to people’s needs.

By implementing the new front end in stages, it allows time for service providers, care recipients and carers to adjust to the changes and be involved in the development of later stages. It means having sensible steps towards reform and continued opportunities to talk with people about how to roll out the later stages. The Australian Federal Government will continue to talk with state and territory governments, service providers and the aged care workforce. They will also be talking with older people, their families and carers.

The continuing development of the new front end will need to take into account existing regional infrastructure, partnership arrangements, and resources while considering opportunities to build on elements that are currently working well. The system will also be closely aligned with Medicare Locals and Local Hospital Networks to help ensure people’s health needs are detected and addressed, with services coordinated across the health and aged care systems.

As Government continue to work towards improving access and navigation of the aged care system, we urge you to stay informed and up to date by visiting http://www.yourhealth.gov.au/ and to participate in the opportunities to have your say in the future of aged care in Australia.

Where to from here?

If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

Various commentators have been writing about continuing positive developments in various markets. This reinforces the need to look beyond the negative headlines still prevailing in the media. Shared in this post is a September Market Update prepared by GWMAS trading as Three Sixty.

The Pulse

Gold á 12.2%

Oil (WTI 3 month futures) â 7.2%

         US downgraded by Standard & Poor’s

         European Central Bank helps support markets

         RBA leaves rates unchanged Read the rest of this entry »

Every evening (and regularly throughout the day if you are that connected), the news provides comment on what our aussie $$ is doing in comparison to a range of other currencies of our trading partners. Up, down, red triangles, green triangles … over the long term how much does it really matter?

Whilst currency exposure can materially impact returns over short and medium timeframes, over the long-term we’d expect the return on hedged and unhedged global shares to be similar. This is because currency markets are simply exchange mechanisms that do not produce real wealth; in the long term they are a zero-sum game.

A blog posted in 2007 explored the topic – “To Hedge or not to Hedge; Is that the Question?”

What was highlighted then in a different environment holds equally true now. Please read the viewpoint -offered by MLC Asset Consultant John Purtell, “Currency strategies: Managing risk or enhancing returns?” where he looks at this topical issue of currency risk in investors’ portfolios and the different measures which can be taken to address it.

Where to from here?

If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

To help you in with your thought during this volatile time, we’ve gained access to two of MLC Investment Management’s specialists and asked them the questions on investors’ minds: What’s happening in the markets, where to from here and, unlike the media, what opportunities are provided by the current circumstances.

Part 1

Global perspective – what’s actually happened to sharemarkets around the world and what positives are in the market at the moment.

Part 2

In part 2, the MLC Investment team look at the following questions on investors’ minds:

• - Is it safe to be in markets?
• - Should I stay invested?
• - What about investors closer to retirement, and
• - How Australia is positioned

Where to from here?

If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

With recent reports on falling markets, it’s not hard to imagine you’d be concerned about your investments.

I’ve had a number of clients contact me, some asking whether this volatility is a precursor to another global financial crisis; some wondering how long we can expect market uncertainty to last. Interestingly, a select few have asked if it’s a good time to buy investments cheaply!

Getting a balanced view

Globally, the appetite investors have for risk has significantly fallen since late April, which has seen global sharemarkets fall by around 18% (at 9^th August am). For the most part, this has been a reaction to the building concern for the slow but sure spread of the European debt crisis and the recent US debt situation.

In both cases, the delay in action by policy makers has taken its toll. You’ll have seen in the news the political football that saw President Obama’s debt deal agreed on the last possible day. In isolation, these media reports are disconcerting but there are a number of reasons I have confidence in sharemarkets.

While government debt is large, there are companies around the world faring much better. In the US alone, there’s $1.5 trillion in cash sitting on company balance sheets. These companies are less concerned about cutting costs and more focussed on increasing their capital expenditure.

And, thanks to the learnings from the GFC in 2008, banks are generally stronger, more transparent and the market has more certainty about where the banks are invested. Because of this, I think there are some great opportunities for those with a medium to long-term time horizon.

What this means for your investments

The Australian Federal Government continues to maintain its AAA credit rating and, although the economy has softened in 2011, we do have the benefit of strong export partners such as China and India.

However, we aren’t insulated from the global uncertainty and that’s reflected in large falls in the Australian sharemarket too.

How your money is being managed is even more important during times of global risk. Because of this, I’m receiving regular updates from many sources, including the MLC Investment Management team, to find out what they’re doing with your investment funds.

At a recent teleconference I attended, they described how they expect markets to remain jumpy for a while but they, and their managers, had increased their focus on investing in quality companies with low levels of gearing and strong cash flows. These companies would fare well even in this environment.

They also spoke of risk management strategies; areas they’re avoiding and how they’re testing different investment scenarios with various outcomes. Their investment managers are finding opportunities they expect will deliver long-term returns for investors.

In summary, they were confident in the sharemarket for many of the points I’ve outlined in this post. There was caution around market growth. They expect it would be slow and volatile for some time, but this was quickly followed up by the statement that, even in this difficult environment, they see opportunity.

Where to from here?

If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060