i. Lost Superannuation tracking Often times when a person moves from one job to another, the last thing on their mind is to remember to transfer their last superannuation into a personal superannuation plan especially ear-marked as their superannuation accumulation “basket”. It is a smart move but often left for a long time. Consolidating superannuation into a personal and private plan where you are in charge is an important right that we have in Australia. It can also save you money and helps you to plan to maximise its ongoing potential. We can establish such an account and alsosearch for any lost superannuation that you may have lost contact with, until we find it that is. If you have lost superannuation, or even just a string of small accounts that need to be brought together, we can help. Don't feel that you are alone, we have helped clients with more than 10 existing inactive superannuation accounts bring them all together and to help them grow.
Active superannuation accounts need careful planning, investment strategies and ongoing monitoring. At NFS we can help with all of those elements. Right from the start our focus is on matching your investor risk profile with the right selection of investments in an account that gives you clear and understandable information, access to that information 24/7 and with the backup of skilled ongoing advice.
We are mindful of the impact of ongoing fees and other charges, we are also mindful of the impact of not having proper advice and getting it wrong. Low fees with low returns may not be better than paying a reasonable fee with good earnings.
Over the years we have seen many examples of where people have been invested in the wrong place at the wrong time and have suffered losses. We have also seen people that have not had proper advice that have failed to include adequate Life insurance and TPD cover and have suffered a major medical catastrophe to the ultimate detriment of their dependants.
We have also seen situations where benefits have been paid out on retirement, only to find that they could not be returned to the relative sanctuary that the tax-free retirement income system currently provides.
These are real and costly mistakes that have arisen from not having a qualified adviser to help you along the way.
We have helped people to get legitimate early release of their benefits who were facing terminal illnesses so that they could distribute benefits before their death and in doing so they were able to mitigate the impact of tax on their benefits that flowed to adult non-dependant beneficiaries.
iii. Transition to retirement pensions Between the age of 55 and retirement age 65 a person is allowed to draw against their superannuation with considerablesavings in income taxand sacrifice some of their taxable salary into superannuation with further income tax benefits. In a simplistic way you `bank' the tax you save into superannuation and in this way help to accelerate your accumulation in the latter years of your working life. You need to seek our advice in this regard as there are many opportunities and some pitfallsin this process. We can prepare an illustration for you after a suitable Fact Find discovery session.
iv. Roll-overs & consolidations Sometime prior to retirement many thinking people take the opportunity to bring their superannuation into an environment where they can convert it into an account-based pension (an allocated pension with some modifications by a new name). At this time there are a number of important strategies that can be brought into play to maximise both the superannuation benefit and often Centrelink benefits after retirement. This is especially the case when one partner retires a number of years before the other. It may be possible to plan to maximise Centrelink supportfor the first person to retire by using a number of re-contribution strategies. It is at this time that we would look at the future tax liability at an assumed date of death and try to plan to reduce the potential tax payable by adult beneficiaries.
v. Investment strategies Depending on where a person is in the superannuation cycle there may be a need to reset the strategy to suit the phase. Traditionally we have focussed on younger people being aggressive investors, older people being more conservative. This is not always the case, many older clients choose to have aggressive strategies. But the point is that your needs must be checked from time to time, factors affecting your strategy include your age, health, other sources of income, other dependant or supportive people in your life. These issues are of extreme importance when a person is about to enter an aged care facility. A long range view is always better than a last minute rush. Let us help you to make the most of your opportunities and to avoid the traps along the way.
vi. Self Managed Superannuation Service At Nixon Financial Services we are fortunate to have a dedicated division in our business that provides support to people that want to have their own discreet superannuation fund. These are referred to as Self Managed Superannuation Funds. We can assist with their establishment, operations, investments and administration, all at very competitive rates. The key element of investment difference of a Self Managed Fund is that it allows its members toinvest in direct property and sharesand to borrow to help finance the cost. Masterfunds and Wrap accounts can allow members to invest in shares, often in a restricted range of choice, but they are not able to allow a member to purchase a directly owned property or to allow for borrowings to assist in that purchase. In general terms it needs about $200,000 - $300,000 to make it viable to establish and operate a self manage superannuation fund however we recommend a balance on the higher end of this estimate as there are substantial additional costs, both in terms of fees (such as accountancy fees) and in terms of responsibility. As the establishment of an SMSF requires a Trust Deed and to be registered with the ATO in the form of an Australian Business Number (ABN), there is much more administration involved with SMSF's. Additionally, the trustee of the SMSF (normally the client themselves) is responsible for all aspects of the fund from tax returns to investment decisions. This can place a burden on the members that they may rather be without. The Trustees of an SMSF can appoint an authorised financial adviser to perform some/all of these tasks. Enquire with us today if you have a need in this area.
This is a very important opportunity that is available for those that operate a Self managed Superannuation Fund (SMSF). Purchasing a property in a SMSF can be made via a full cash for property purchase or by arranging a loan, just as one would do if they were buying a house for personal use. However that is where the similarity stops. Buying a property in Superannuation with the assistance of mortgage loan money is full of technical issues that needs the help of experienced professionals.
We have that experience and we can help.
We have assisted quite a number of clients to purchase a property in their SMSF from the starting point of helping them to create their SMSF, evaluating the potential of a property to fit their needs, helping to form a "Bare Trust" as a subsidiary of their SMSF to hold the property and finally we also assist in securing a loan on favourable terms for clients.
We know the requirements, we know that we can help you and our experience will shine through.