Financial Tips for Starting a Family

Starting a family is an exciting time in anyone’s life. As exciting as it may be, raising a family is also expensive, with a 2014 study from the University of Canberra  and AMP stating the cost of raising two children is $812,000 over 18 years for a middle-income family.

Whether an impending new arrival was planned or not, having a financial plan and framework in place is going to be essential. Following these financial tips will help you to to live the life you want while providing for your child now and in later life, while also encouraging you to continue to save for yourself.

Start Saving Early

Whether you save money for your children in your own savings account, wait until your first child is born before opening a savings account in their name, or open an account for them to be held in trust, it is never too early to start saving for your child’s future.
While we all have hopes, aspirations, and plans for our children, it is impossible to know what will happen when they are 18 years old, what they will be interested in, and how they are going to approach life. If you have savings it will allow a degree of flexibility when your children reach adulthood, whether they are preparing to head off to University, are planning to travel and see some of the world, or are looking to move out and start a new job.

Involve Friends and Family in Everything

Close friends and family members will naturally want to be involved with your children. If they offer financial support, you could share the details of the savings account you have set up for your children so friends and family can make payments directly into it. This also means that on special occasions they can pay money straight into the child’s savings account too.
As well as offering direct financial support, family and friends will also offer to buy various products for your child. Use the money this saves you wisely, either to help you pay bills or to save for the future, either for yourself or for your children.

Don’t Be Afraid of Hand Me Downs

Car seats, strollers, and cot beds are all the type of thing you will want to buy brand new for your child. Other things, such as toys and clothes, might only be suitable for your child for a very short time as they grow quickly and their interests change.
It can be frustrating for parents spending money repeatedly on these two things in particular, so look to save money by taking advantage of any offers of hand me downs from those close to you. You might also want to consider shopping for baby clothes on websites like eBay, or finding out if there is a local ‘swap meet’ where you can exchange the things you no longer need for something more useful.
This can save you a small fortune, particularly in the early years of a child’s life.

Consider Your Budget and Lifestyle Changes

Depending on your income and personal circumstances, you may need to make some changes to your budget to cater for having children. Having children means you generally have less disposable income, but even then you may have opportunities to save You should also think about the essential spending you are going to incur when having children, so you can consider this a fixed and regular cost within your personal budget plan.
Don’t assume that certain aspects of your spending will be able to carry on as previously. If you do, you may suddenly find yourself unable to pay bills and other essentials.

Look After Yourself

As well as providing for your children, it is important to have things in place so you can look after yourself, but also provide a safety net for your children for the future.
Some things you can consider are:

• If you are not a homeowner, continue saving towards a deposit for a house. Owning your own home not only provides you with an asset but is also something you can pass onto your children when they are older or when you die.
• Remember to continue your own retirement planning. Having children makes it easy to put planning your own financial future on the backburner, but you should continue to think about planning for your future after retirement

When it comes to your own retirement planning, if you start doing this later in your children’s life you may find you need to save more leaving less available for your children later in life..

Financial Tips for Starting a Family

Considering these financial tips could help you maintain your lifestyle while providing for your children. Plan everything carefully so you can focus on raising your family and not your finances when you need to.


What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

How to break your debt cycle

One of the worst things about being trapped in a debt cycle is you might not even realise you’re stuck there. Credit cards and other personal financial products are such a part of modern life that buying on a credit card, paying the balance when you receive your salary, and repeat seems normal to millions of people.

Realising that this debt cycle is a dangerous thing is hugely empowering, and can give you the inspiration to do something about it.

Here are some steps you can take to help you break yours.

Understand how it happens

There are numerous ways you can fall into the debt cycle, but at its most basic point it usually starts with spending beyond your means, and often buying things you want rather than you need, and using credit to do this. You then see your access to credit as an extension of your lifestyle, but as your debt grows and you’re paying more to clear a credit card in full or part each month, credit can quickly start to seem essential for your day-to-day existence.

Commit Yourself

Breaking the debt cycle is tough, especially if you’re familiar with the feeling of relying on credit for essentials such as food or for paying bills. Committing yourself to achieving this is the first and often the most important step.
Once you’ve committed, it is time to start taking positive action.

“Even the most committed person can struggle to break the debt cycle, and still having the problematic credit card in your pocket all the time isn’t exactly going to help”

Cutting down Spending

As the debt cycle is reliant on you continuing to add more debt on a regular basis, the biggest difference you can make is to cut right down on what you spend. If you want to cut to the heart of the cycle immediately, look to stop spending on anything but essentials.
You might think that’s a big ask at first, but start writing down everything you spend your money on and you’ll fast realise there are plenty of ways you can save.

Utilise Friends or Family Members

Even the most committed person can struggle to break the debt cycle, and still having the problematic credit card in your pocket all the time isn’t exactly going to help. Remove the temptation by giving your credit card to a friend or family member. If you’re accessing credit through online lenders then look to change your password to something you won’t remember, or even close your account completely if you don’t have any outstanding borrowings.

Use Your Savings to Pay the Debt Quicker

Controlling or stopping your spending is a big step, and you can break and escape the debt cycle even quicker by starting to use the savings you’ll now make to pay towards your debt. You’ll also save yourself money by reducing the interest you’ll pay on any outstanding balance.
As you reduce your debt, you will find that maintaining your current spending levels is easy, which should prove a valuable incentive against you falling back into the debt cycle. Once you’ve broken it and you’re out, stay out, and don’t repeat the habits that took you into it in the first place.



What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

At Constancy Wealth Management we are always looking for new innovative ways to do things. Challenge what you already know and think outside the box as do many of our clients. I would like to share with you some very creative ways to get extra money you can use to pay off debt or avoid debt completely.

Start Mystery Shopping

Although mystery shopping won’t generate thousands of dollars of income for you, it’s something you can get paid for while doing the things you normally would, and is a fun way to generate a small additional income. The great thing about mystery shopping is that anyone can do it; you’re usually just judging a location based on the quality of the service and won’t need in depth knowledge of the catering or retail industries to be accepted for jobs.

Have a Clear Out

Now, going through the attic, cellar, and that rarely opened cupboard and just throwing things away won’t bring you any money, but selling the things you have in there could make you enough to make a sizeable dent in your debt. Sometimes, you might even find a hidden treasure or something of significant value that you’d forgot you even owned.
You can sell your old unwanted items on eBay, or if you prefer the personal approach and want to have even more fun, then simply have a garage and yard sale.
If you have plenty of other possessions around the house that you know in your heart you don’t really need, and that you wouldn’t miss if they were gone, then consider adding those in, too.

“Make your property work even harder for you by renting out your space in other ways”

Make Your Home a Superstar

Is your home sizeable, and does it have some notable or unique characteristics? If so, you might be able to rent out your home for filming! Many homeowners are looking to jump on this trend given the sums of money that can be earned, but only the very best properties are likely to receive an offer to rent the space.
While the most likely scenario is that your home will earn you relatively modest sums of money through ‘starring’ in a scene or two, there’s always the chance that a massive production could be coming to town and want your home to be the centrepiece.

Other Options for Renting Out Your Space

Make your property work even harder for you by renting out your space in other ways.
Renting out a spare room might be the idea that first jumps to mind, but if you don’t want a lodger you could alternatively consider renting it out as an office. You could allow your garden to be hired for children’s parties, or even rent out your drive as a parking space. The latter idea is brilliant if there are lots of commuters driving into a busy location near you or if you live near a stadium or arena that hosts highly attended events on a regular basis.
Paying off your debts is serious business, but it doesn’t have to be dull. Get creative with generating your additional income and have some fun while doing it!










What you need to know





Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.






This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

Personal Finance Frequently Asked Questions








Today getting finance is easier than it ever has been. One of the benefits of seeking financial advice before taking out a loan is that you can avoid many common pitfalls. We will be creating future blogs about how to best manage personal debt but this blog is not about that. Today I will answer some of the more frequently asked questions from clients who have already decided they want to apply for Personal Finance.







Q) Do I have to go into a bank branch to sign application forms?
A) No there is no requirement to sign the application forms at a branch. We can do this in person or e-mail you the required documentation as long as we have photographic identification.



Q) Can I get finance to pay out existing high interest rate debt?
A) Yes we can structure a loan to pay directly to any other credit provider.



Q) Can you finance private sales or do you need to purchase from a business such as a car dealership?
A) Yes you can finance private sales either straight to their account or yours in certain circumstances.




Q) What sort of deposit do I need?
A) You can get personal finance with no deposit. If you do have a deposit however you may be able to get a better deal.



Q) Can I borrow for business use?
A) Yes you can although not all credit providers off this service.



Q) How long does it take to get finance approval?
A) There are lenders who can provide same day approval and funds within two hours of all documentation being received.



Q) How long does it take to complete an application?
A) If we have all the information we require we can complete an application in around 10-15 minutes.



Q) What purposes can you borrow money for?
A) There are extensive lists of acceptable loan purposes including car purchase, other vehicle purchase, car repairs, auto upgrades, travel, home improvements, household furnishings, educational expenses, debt consolidation, medical and cosmetic surgery, dental surgery, mortgage cost funding, vehicle deposit funding and sporting equipment .








For a complimentary consultation please contact us through our website www.constancywealthmanagement.com.au


What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.


This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

2016-17 Federal Budget Report highlights

What it means for you

 

On Tuesday 3 May the Treasurer, Scott Morrison, released the Government's 2016/17 Budget - the Government’s economic plan for Australia’s transition from mining boom to a more diverse economy.

 

The budget contained a number of important changes to the superannuation system, including retirement income streams and tax changes. As some of these changes are significant, it is important that you discuss your particular situation with your financial adviser and how these changes may affect you.

 

Note: These measures are proposals only and will need passage of legislation to become law.

 

The key superannuation changes announced include:

• Reducing the concessional contributions cap
• New lifetime non-concessional contributions cap
• $1.6 million cap on the amount that can be transferred into a tax-free retirement income stream
• Increasing flexibility for contributions made after age 65
• Change to the taxation of transition to retirement income streams

Superannuation

Concessional contribution changes

 

From 1 July 2017:

 

• The concessional contributions cap will reduce to $25,000 per year (down from $30,000 per year for those under age 50 and $35,000 per year for those aged 50 and above). This will also apply to members of defined benefit schemes.  

 

• Individuals with superannuation balances of $500,000 or less will be able to accrue unused concessional contributions cap amounts (up to 5 years) and carry them forward for use in later years.

 

• Individuals with income and concessional contributions above $250,000 per year (reduced from $300,000 per year) will have to pay an additional tax of up to 15 percent on concessional contributions, which is in addition to contribution tax of 15 percent paid. Similar measures will apply to high earning members of defined benefit funds.
   
• All individuals up to the age of 75, regardless of their employment status, will be able to claim an income tax deduction for personal superannuation contributions made in an income year.  These amounts will count towards the concessional contributions cap and will be subject to contributions tax.
   

Non-concessional contributions

 

From 7:30 pm (AEST) on 3 May 2016, non-concessional contributions will be capped at a lifetime amount of $500,000 (indexed). The lifetime cap will replace the existing annual non-concessional contributions caps ($180,000 per annum and the $540,000 ‘bring-forward’ rule) and will include non-concessional contributions made since 1 July 2007. 

 

If the new lifetime cap has been exceeded prior to 7:30 pm (AEST) on 3 May 2016, those amounts can be retained in super however no further non-concessional contributions can be made. Where the lifetime cap is exceeded after this date, any excess will need to be withdrawn, or penalty arrangements will apply.

 

Similar measures will apply to members of defined benefit and constitutionally protected funds with excess non concessional amounts (plus earnings) being deducted from non-concessional contributions within any accumulation account they have.

 

Retirement income streams 

 

From 1 July 2017:

 

• The government will limit the amount of superannuation that can be transferred to tax-free retirement income streams to $1.6 million. Individuals with more than $1.6 million in tax-free retirement income streams on 1 July 2017 will be required to either withdraw the excess amount or transfer the excess back to an accumulation account. However, where the retirement income stream exceeds $1.6 million because of future earnings, the excess will not be required to be withdrawn or transferred.

 

• Existing and new transition to retirement (TTR) pensions will have investment earnings taxed at up to 15 percent, in line with superannuation in accumulation accounts.
   
• Remove barriers to innovation in retirement income stream products by extending the tax exemption on earnings to products such as deferred lifetime annuities and group self annuitisation products. This will allow product providers to offer new retirement income products that can help individuals achieve a broader range of retirement goals.

 

Other superannuation measures:

 

From 1 July 2017:

 

• Individuals aged 65 to 74 will no longer need to meet a work test to make a personal contribution or to receive a spouse contribution.

 

• The spouse contribution tax offset of up to $540 will be available to individuals contributing to their spouse’s superannuation fund who can earn up to $37,000 per annum (up from $10,800 per annum).

 

• A Low Income Superannuation Tax Offset (LISTO) of up to $500 will be available to those with adjusted taxable income below $37,000 per annum.

 

• Superannuation funds will no longer be able to pay an anti-detriment payment to an eligible dependant after the death of a member.
   
• The Government will enshrine into legislation the objective of superannuation which is ’to provide income in retirement to substitute or supplement the Age Pension’. 

 

Taxation

Increase to Medicare levy low-income thresholds

 

From the 2015-16 financial year, the Medicare levy low-income threshold will be indexed for individuals and families to take into account movements in the CPI.

 

	Medicare Levy threshold (2015-16)	Medicare Levy threshold (2014-15)
Single	$21,335	$20,896
Single eligible for SAPTO	$33,738	$33,044
Couple	$36,001	$35,261
Couple eligible for SAPTO	$46,966	$46,000
Additional threshold for each dependent child	$3,306	$3,238

 

Changing the income tax thresholds

 

From 1 July 2016, the income threshold where the 37% marginal tax rate starts to apply will increase from $80,001 to $87,001. The income threshold and marginal tax rates from 1 July 2016 are as follows:

 

Taxable income threshold	Tax payable (excluding Medicare levy)	% tax on excess
$18,200	Nil	19.0%
$37,000	$3,572	32.5%
$87,000	$19,822	37.0%
$180,000	$54,232	47.0%

 

Temporary Budget repair levy

 

The three year Temporary Budget Repair Levy on high income individuals will cease from 1 July 2017. Up until then the temporary levy will continue to apply at a rate of two percent on individuals’ taxable income in excess of $180,000 per annum. This will mean that the top marginal tax rate will reduce from 47% to 45% (excluding Medicare Levy) from 1 July 2017.

 

Negative gearing

 

The Government has announced officially that they will not remove or limit negative gearing because it would increase the tax burden on Australians trying to invest for their future.

 

Extending the existing freeze on the Medicare Levy Surcharge and Private Health Insurance Rebate thresholds

 

From 1 July 2018, the Medicare Levy Surcharge and Private Health Insurance Rebate thresholds will remain paused for three more years.  

 

Company tax changes

 

From 1 July 2016:

 

• The small business entity turnover threshold will increase to $10 million (from $2 million) for an incorporated entity, allowing eligible businesses to access the lower company tax rate of 27.5%.
   
• The Government will progressively reduce the company tax rate to 25 per cent over 10 years.

 

What to know before getting Insurance

When prompted most people can explain why insurance is important. We need it to support our families, replace valuables when they are lost or destroyed, pay for vital expensive medical treatment, keep food on the table, clothes on our back, pay rent and meet loan obligations so we are not left homeless. If you have been to a hospital recently you'll know you even need money for parking.
Even though we know these things most people have inadequate insurance. I believe one of the reasons for this is Insurance has become very transactional. Any day of the week you can turn on the TV, watch an insurance advertisement offering a 10 minute application over the phone, hand over your credit card details and you are done. Alternatively you can apply online, give some basic details, how much cover you want and they will send out your bill along with the PDS in the mail.


While I am not opposed to the fast paced world of information technology or think insurance should be harder to get it does have its draw backs. Firstly unless you make a claim insurance is an intangible service. What you are paying for is a promise. A promise that if something happens to you, you WILL be paid. For a promise to be made there needs to be trust and that is where this process falls short.


For trust to exist there needs to be a relationship and i put it to you that a relationship can not be built in a 10 minute transaction completing a questionnaire. For this reason the public can be skeptical that they will not get paid and the insurance company will find some loop hole. That they are paying too much and getting nothing in return. At Constancy Wealth Management we have recognised this issue and are addressing it with our clients.


We do this in many ways.


Assessing your needs - Insurance is about making sure if something happened to you there would be sufficient funds available. It is important that if you have been spending your hard earned money on insurance premiums at claim time there is enough money paid.


If you are significantly over insured then your premiums may become so expensive you end up with no cover at all when you need it the most.


Researching the Insurance companies - All insurance companies come with a Product Disclosure Statement but honestly how many of them do you read back to back?


Constancy Wealth Management read the Product Disclosure Statements for every Insurance company they compare so the recommended products promise to pay is suitable for your personal needs and circumstances.


Structuring your policy -  Insurance policies can be structured in many different ways.
Linked vs Stand alone, Stepped vs Level, Basic vs Advanced, Inside vs Outside, Index vs Non-Index, Buy back vs Reinstatement, etc.


By structuring your policies to suit your personal needs you can make sure you are paying for what you do need and not paying for what you don't need.


Discussing payment methods - There is a lot of flexibility when it comes to paying for insurance costs. Payments can often be made annually, quarterly or monthly.
If cash flow is still tight some insurances can be held and paid for by Superannuation. This has its limitations so a hybrid ownership and payment method may be suitable.


Scheduled reviews - Our world, lives and insurance companies are constantly changing. What was suitable last year may not be suitable next year or even this year. We make a point to maintain our client relationships so that we can pro actively keep your cover relevant.
If your insurance needs are higher we can help keep you covered. If your insurance needs have decreased we can also help reducing the cost of cover.


We have had scenarios where employees received a promotion and now worked in a lower risk occupation saving them money. Without scheduled reviews this would not of been picked up.


Claims concierge service - In my personal opinion this is the most important service a Financial Planner can offer their clients. If something serious happens in your life and you need to make an insurance claim your Financial Planner can help facilitate this. They will work as an intermediate between yourself and the claims officer to help you organise the information you need and get you paid sooner. By doing this you can keep reduce any additional stress and focus on a fast recovery.
So what is the end result? The end result is you will have

• A trusting relationship with your Financial Planner.
• Trust that your insurance cover will pay when it is supposed to. 
• That you are paying for what you need and not what you don't need.
• That the insurance is affordable and kept up to date.
• Importantly that at time of claim you will have a concierge service ensuring a smoother and faster claims process so you can focus on getting better.

Contact us today through our website for all your Personal, General and Business Insurance needs www.constancywealthmanagement.com.au

What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.


This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

First off let me say I am not against paying tax. Paying tax keeps the economy moving forwards, funds the socialist side of our government and stops us from experiencing the hardship that parts of Europe have recently endured.


As a financial advisor a big part of my job is optimising my clients’ tax structures. I would like to share with you some of the ways I do that using this two part series


Deductible expenses
Purchases that are tax deductible would have to be the most commonly known way to reduce your taxable income. Depending on your occupation these could include work uniforms, safety equipment, stationary or larger purchases such as work vehicles. The general rule of thumb is for it to be a deductible expense the purchase needs to be a requirement of your job so you may produce an income.
I often get asked close to tax time if someone should purchase tax deductible goods to get a larger tax return. My answer is to think of it like it was on sale. If you need it or were going to buy it anyway then it makes sense. If you are buying it simply because it is cheaper then it doesn’t make much sense.

Investment bonds
Investment bonds are can be suitable for investors wishing for a long term investment at a reduced tax rate. Generally speaking bonds held for 10 full years will have investment earnings taxed at the company tax rate of 30%. This can be significantly lower than the investors’ marginal tax rate. There are rules that must be followed for this to happen so it is best to talk to us first before investing in any bond.

Negatively geared investments
If the cash expense on an investment is more than the investment income received in a financial year it is called negative gearing. The best example of this is a negatively geared investment property. The investor may receive $300 a week rent but the cost of the investment loan, rates, body corporate fees etc. may cost $350 a week. As the cash expenses are more than the income produced the investment is negatively geared.
The benefit of a negatively geared investment property is that the investors’ assessable income for tax purposes is reduced. In the example above the investors assessable income would be reduced by $2,600. The saving in tax could be used to pay down debt or buy another investment.
Negative gearing is only beneficial if there is capital growth. In the example above the investment property needs to go up in value and incur a capital gain when it is sold otherwise the investor is losing money. If the investor wished to increase their living expenses they would consider a positively geared investment.

Australian Shares
One of the great benefits of investing in Australian companies is that they are governed by Australian tax laws. Companies that make a profit can nominate to re-invest or pay dividends to shareholders. These dividends can be unfranked, semi-franked or fully franked.
If they are fully franked that means the company has already paid company tax (30%) on the income. Semi-franked means part of the income has tax paid components and unfranked means no tax has been paid. The benefit to tax paid income is that if your marginal tax rate is higher than 30% you have paid less tax on your dividends. If your marginal tax rate is lower than 30% then you will receive a tax refund. This can be optimised even further through use of strategic investment ownership.

Ownership Structuring
Superannuation, Pensions, Trusts, Companies and Individuals are all taxed differently. Superannuation is concessionally taxed at 15% on investment earnings which is why it is ideal for building retirement savings. Pension accounts receive tax free earnings and once the investor has reached age 60 can receive tax free income. Companies are taxed at 30% on their assessable income and can pay fully franked dividends to shareholders. Trusts are more complicated and any earnings can be taxed at the highest Marginal Tax Rate. For obvious reasons this is not ideal but can be beneficial to distribute income, capital gains and tax credits to beneficiaries.
This can be challenging to fully understand how each are assessed and taxed but with challenge always comes opportunity. Your Financial Planner in combination with a preferred Accountant can discuss how the use of different ownership structuring and tailor a package to suit you. The benefit of this is optimised tax structuring, income distribution and asset protection.

Superannuation
Unfortunately what I hear a lot is that people do not trust Superannuation and are not confident it will exist in the future. Superannuation is not an entity. You do not invest in Superannuation and your S.G. contributions are not owned by Superannuation. Superannuation is a tax structure. It is the Australian Government saying we want people to be more self-sufficient in retirement by investing more during their working lives.
The government has put in many incentives to do this with the main one being concessional tax treatment. There are benefits to these tax concessions from the start of your working career and throughout your retirement. If you are a long way from retirement the concesionally taxed investment returns will grow by a significant amount over your working life. If you are close to retirement and still do not have enough savings concessional contributions makes it easier to boost your retirement savings. While you are retired the concessional or tax free environment will ensure your funds last longer.
In return for these tax savings the investment have to be used for the sole purpose of saving for your retirement. No one wants to work forever and everyone working in Australia has Super. For this reason every person in Australia needs to talk to a financial planner about how they can maximise their retirement potential.
 
Estate Planning
They say there are two guarantees in life; Death and Taxes. Unfortunately even after Death taxes still go on. Did you know that after you pass away someone must complete a tax return for that financial year on your behalf? Depending on where the money is coming from, who it goes to, when and how will affect the taxation treatment.
By planning your estate distribution and putting legal contracts in place we can optimise any tax implications maximising how much is left to your family. You can also nominate when your beneficiaries receive funds from your estate and under what conditions. This is ideal for parents of very young children, mixed families and caring for people with special needs.

What to do next?
This blog has a very important purpose which is not to provide you with financial advice. I have not taken into account your personal circumstances, goals, time frame or cash flow situation.
What I want you to take away is that you need to challenge what you already know. Learn how you can do the same thing better leaving more money in your pocket.
Accountants report your tax situation, Financial Advisors plan it. Talk to the experts at Constancy Wealth Management by visiting their website. www.constancywealthmanagement.com.au





What you need to know


Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.


This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.