Plan 2 Prosper

As part of the Government’s wider initiative to give equality to same-sex couples, legislation has been recently passed to amend superannuation (and related) tax laws.

A major element of this reform is a change to the definition of both ’spouse’ and ‘child’ to ensure same-sex partners and their children can receive equivalent tax treatment with respect to death benefits afforded to other spouses and children.

These amendments have been introduced with retrospective effect from 1 July 2008.

The new rules give equal status to same-sex partners by amending the definition of spouse to include a person who:

• is in a relationship that is registered under a State or Territory law (whether that person is the same sex or a different sex), or
• although not legally married to the person, lives with them on a “genuine domestic basis in a relationship as a couple” (ie it’s no longer required they are living as husband and wife).

The definition of ‘child’ has also been extended to recognise the children of same-sex couples.

The main areas impacted by this change that you may need to review if in a same-sex relationship include:

• Beneficiary Nominations : You may now be able to nominate your same sex partner as a spouse and also nominate the children of your relationship as beneficiaries.
• Spouse Contributions : A same-sex partner will now be able to contribute to their partner’s superannuation account as a spouse. From 1 July 2009, they may also be able to qualify for a contribution tax offset of up to $540 each year.
• Nomination of reversionary pensioner : If you have applied for a pension, a same sex partner may now be nominated as a reversionary beneficiary for their partner’s superannuation pension.

What do you need to do, if these changes relate to you? Review your existing superannuation account(s) to see what changes you may now make to reflect your current circumstances and desires. If you would like assistance in working through the paper challenges that this may bring, please contact us or your funds current adviser for assistance.

In my opinion Superannuation continues to unfairly cop a hammering in most sectors of the media due to the follow on effects of the investment volatility of recent times … in the media a real distinction ought to be made between Superannuation as an investment structure and the underlying investments held in an individuals Superannuation fund.  

Whether you are in your first job after leaving school or only a few years from retirement, it pays to understand how superannuation works. By the time you are ready to retire, your superannuation could have grown to be one of the largest assets you will have in your life. Superannuation is an investment in your future … it’s important to understand why you need it, what you’re entitled to, how you can contribute, the choices you can make and how you as an individual can best manage your superannuation investment up to the point in time you retire; and the fulfilling life you choose to live in the period that follows. (more…)

On our shared journey through life we all experience common trials, challenges and other things life insurance companies may define as Personal Events. Generally these Personal Events include:

• you or your spouse adopt or give birth;
• you get married or divorced;
• you complete an undergraduate degree at a government recognised institution;
• you take out or increase a mortgage to buy or improve your home.

Increases without medical evidence are available inside most Life insurance companies through their plus range of contracts. Through Personal Events, you may be able to increase your sum insured, without any underwriting by up to 25% (of your original insured benefit) or a maximum of $200,000.

Why is this “Personal Events” Benefit important? 

The ability to increase a policy without needing to again be medically underwritten (more…)

Greetings to you all. I trust the information posted on website continues to provide you with additional value.

For an extended period of time prior to the biggest equity market bubble burst in history there had been evidence of significant risks underlying what was an apparently positive environment. Many repeatedly cautioned investors to make sure they weren’t taking more risk than they could stand. But how helpful was that when those comments were apparently proven wrong by continued positive market growth time and time again?

For a long time those advising caution must have sounded like “Peter” … perhaps you may recall the children’s story about the boy-who-cried-wolf.

We all know it’s extremely hard to adopt a more conservative investment strategy when investment returns have been strong. This is true for asset managers and individual investors alike … it’s a painful lesson for those who have experienced loss, but for others there is much to be learnt from the unfortunate and very real experiences of others. The reverse also applies in that its extremely hard to implement or maintain a strategic growth oriented strategy when the investment environment continues receiving so much bad news … in as much the same way that caution was condoned prior to bursting of the biggest equity market bubble in history,… now we are confident that over time the good sustainable returns will return …

Using an analogy:

You can’t hit a home run unless you step up to the plate.

You can’t catch a fish unless you put your line in the water

…only those who are actually in the markets will benefit from that return when it comes.

It is my firm conviction that now is a perfect time to get or regain control of your financial and lifestyle goals. With out clarifying our goals much of the focus on what is important to an individual is clouded by chasing returns - when the essence of the matter should be the real return versus the risks involved.

On March 24 and 26th 2009, I (Dan Smith) am planning to host two complimentary educational financial forums … please don’t think of them as free, just complimentary at my cost … I would appreciate your help in passing this information on to others within the Rockhampton Region. (more…)

If you’re approaching retirement, you may often be reflective on how life is going to treat you on the health and financial fronts. This reflection is confronting and challenging enough by itself.

Probably the last thing you’d expect to cope with upon retiring from the permanent workforce would be taking on a parental role again, but for around 22,500* Australians this is something they’re already experiencing.

If something happened to your son or daughter, like many Australians you’d likely want to make sure your grandchildren were looked after financially, whether you became the legal guardian or played a supportive role.

A growing concern

While financial worries wouldn’t be top of mind during such family trauma, if your child hasn’t planned ahead there could be financial pressure on your own retirement funds. (more…)