Archive for May, 2009

Be Lifewise as you travel through life’s journey

Thursday, May 28th, 2009

Your way of life is all about enjoying the things that matter to you most – family, friends, fun and freedom. Insurance can help safeguard everyday life. But for most people the amount they have may not be enough to protect what they treasure in the event of accident, sickness or death. Lifewise shows how you can take some simple measures to create a more secure future.

Lifewise is being coordinated by the Investment and Financial Services Association (IFSA) and is being funded by special contributions from IFSA’s life insurance and reinsurance members. Research conducted by IFSA in 2005 raised the profile of underinsurance, a problem the life insurance industry has been aware of for a while.

Despite the fact that almost every working Australian has a level of life insurance cover within their super, Australia has proved to be one of the most underinsured nations in the developed world. In fact, a 2007 Swiss Re research report found Australia ranks 16th in the world for life insurance density and penetration. And a 2008 survey by the Australian Institute of Superannuation Trustees (AIST) and Industry Funds Forum (IFF) revealed that “one in two industry fund members were underinsured by $100,000 or more”.

Lifewise is an initiative of the Australian life insurance industry aimed at addressing this issue. You can access the Lifewise website through The link following allows you to access the Lifewise website: http://www.lifewise.org.au/

Through Lifewise, Australians will be able to find out about:

  • the risks they face in everyday life;
  • the consequences of not protecting themselves financially from these risks;
  • how much life insurance cover they have; 
  • how much cover they need; and 
  • who they can talk to find out more.

Like always we welcome your queries to Plan2Prosper regarding these and any matters you may be considering while travelling along your life’s journey.

Where to from here?

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2009 Federal Budget Announcements

Thursday, May 14th, 2009

In challenging economic times, the Federal Government last night handed down one of the most eagerly anticipated budgets for many years. In the end, there weren’t many surprises with most of the major initiatives carefully ‘leaked’ in the days leading up to the official release.

Items released which were of particular interest to Financial Advisers and their clients include:

  • Halving the cap on concessional super contributions
  • Temporarily reducing the super co-contribution
  • Halving the minimum drawdiwn rates for account-based super pensions for 2009/10
  • Removing tax defferal for shares issued under Employee Share Schemes
  • Retention of previously legislated personal income tax cuts and low income tax off set changes
  • An increase to the maximum Age Pension payment for couples and singles
  • A phased increase in the age pension to age 67
  • Introduction of a Government funded paid parental leave scheme
  • Introduction of a means test for private health insurance rebate
  • Abolition of the Pension Bonus Scheme (excluding registered participants)
  • Removal of Tax-Free super/pension payments from the Commonwealth Seniors Health Card income test.

As we have observed in recent times these announcements may have further fine tuning before they receive the majority vote required to progress through the lower and upper house and be passed into legislation.

We know any announcements made by the Rudd Government regarding the 2009 Budget is something you’ll be watching closely to see how it affects you. We have sourced information through our strategic partnership with MLC, which we are happy to be able to pass on to you.

Video:

  •  In the Budget 2009 Video, technical expert Gemma Dale analyses and explains the key budget measures and how they are likely to affect investors.

Articles:

  • What next for self-funded retirees? Hit hardest by the global financial crisis, the article looks at why in most cases switching to a more conservative strategy is not the answer. Also spotlighted are to discuss which could help ease the pressure for account-based pension holders.
  • The upside of a recession. Theres not much to like about a recession, however this article uncovers four benefits which you could be taking advantage of.
  • Clever Year end Strategies. This article outlines four strategies which boost superannuation savings and save tax.

It’s important to consider this information in the context of your own personal circumstances and objectives… or in language we all understand better … Like with most things, what is right for you, may not be what is right for your mate in the smoko room or over the back fence.

While it is important to have an adviser (or counsel of advisers) whose technical abilities you respect, it will prove far more important to have an adviser whom you trust – literally with your families financial life. Do not care what they know, until you know they care. Thank you to those who are trusting us at the moment.

Where to from here?

Posted in General, Goals & Objectives, Insurance, Investment, Superannuation | No Comments »