Young Independents

You are gaining financial independence and saving for the next best thing - either a car, an overseas adventure or for your first home. You have no dependents and your first priority is furthering your career to support your savings as well as a relatively expensive social and recreational lifestyle.

Set out below are examples of what you need to consider when managing your affairs. Starting a financial plan to help you map out how to best manage these matters is a great start. Why not ask us how we can help you work out the best plan for you?

Please contact us to discuss: or phone on (02) 9734 6111.

Things to consider:

Protecting income in the event of accident or illness to be able to fund:

• Rent
• Bills and Cost of Living
• Lifestyle
• Saving for home deposit and travel
• Education
• Financial independence
• Debt repayments

Starting an investment portfolio and or a savings plan to work towards:

• Purchasing first home/car
• Traveling overseas
• Education costs
• Building wealth over the long term

Business Succession

To ensure the ongoing success of your business you need to effectively plan for the future.

What would happen to your business if you suddenly lost a partner, director or other key person due to disability, trauma, death or even retirement?

By implementing an effective succession plan for your business, you can avoid some of the potential problems that can arise from the loss of key personnel. Problems, that in some cases, could lead to the failure of a business.

Why not ask us how we can help you work out the best plan for you?

Please contact us to discuss: or phone on (02) 9734 6111.

Set out below are examples of what you need to consider when managing your affairs.

Things to consider:

Asset Protection

Provides cover for "Capital Purpose" debt in the event of the death or disability of a Business Principal or key person.

Identifying your needs:

• Cash required to repay business debt such as; Business Loan, Mortgage, Overdraft, Lease Commitments or Proprietor Loans.
• Identify each owners share of the commitments.
• Is the liability joint or several.
• Who is the person on whom the firm's success and profitability mainly depends?
• If something happened to that person, would your firm have difficulty meeting it's commitments under the loan?

Shareholder or Director Loan:

• Is the loan on call?
• Could your company repay the loan today?
• If there was a way to guarantee that the funds would be available on death/disablement to repay the loan and free the assets, would you want to know about it?

Revenue Protection

Provides cover for the loss of Revenue generated by a Key Person in the event of their death or disability.

A key person is:

• The main revenue producer of the business (i.e. salesperson).
• The "owner" of key intellectual capital.
• The "name" behind the business (goodwill).
• All employees or business principals that are essential to the continuing profitability of the business.

Who is the person in the firm that the success and profitability mainly depends?

What would be the effect on your business if this key person died or was disabled?

What cash is required to compensate for loss of revenue and replacement costs?

If there was a way to provide you with a cash cushion to offset loss of profits if he or she dies or becomes disabled, would you want to know about it?

Ownership Protection

Provides funding for Business Succession in the event of the death or disability of a business principal.

• If something happened to your partner, would you want to buy his/her share of the business?
• Do you have a Buy and Sell Agreement that gives you the right to buy?
• How important is it to you to be able to buy that share and keep outsiders out of your business?
• Have you sufficient cash in reserve to fund the transfer of a terminating owner's equity, due to death or disability, as a continuing owner?

If there was a way to purchase at an agreed price, and that the money was available when needed with.

Developing Professionals

Living independently, you rely on your income to give you the control and security you want. You are wealth accumulators, working towards saving for your future goals. You have disposable cash and you choose to spend it on personal needs, leisure and travel. Your health and appearance are important to you.

Why not ask us how we can help you work out the best plan for you?

Please contact us to discuss: or phone on (02) 9734 6111.

Young Families

You are busy with young children and trying to secure the dream of owning your own home outright. Many young families are trying to accumulate wealth through house renovations and/or investments but your main priority is providing for your family. Your mortgage repayments can restrict your otherwise healthy incomes.

Why not ask us how we can help you work out the best plan for you?

Please contact us to discuss: or phone on (02) 9734 6111.

Things to consider:

Budgeting, cash flow and debt reduction.

Protecting income in the event of accident or illness to be able to fund:

• Debt repayments
• Bills and cost of living
• Children’s education
• Family vacations
• Investments
• Lifestyle and entertainment.

Protecting family against financial hardship in the event of death, disability or major illness by taking out:

• Life insurance
• Total and permanent disablement insurance
• Trauma insurance.

Starting an investment portfolio and or a savings plan to work towards:

• Purchasing property (own/invest)
• Traveling
• Children’s education costs
• Building wealth over the long term using tax effective strategies
• House renovations.

Mature Families

You are a family with teenage children. You are working towards owning your own home and accumulating investments. Your disposable cash is limited due to your children’s expenses, however you are experiencing more free time and enjoy spending money on cars and holidays. You are all too aware of maintaining good health.

Why not ask us how we can help you work out the best plan for you?

Please contact us to discuss: or phone on (02) 9734 6111.

Things to consider:

Budgeting, cash flow and debt reduction.

Protecting income in the event of accident or illness to be able to fund their:

• Debt repayments
• Bills and Costs of Living
• Education
• Investments
• Vacations and cars
• Savings for retirement
• Investments and negative gearing
• Lifestyle and entertainment.

Protecting themselves and their families against financial hardship in the event of death, disability or major illness by taking out:

• Life insurance
• Total and permanent disablement insurance
• Trauma insurance.

Building on their investment portfolios and savings plans to work towards:

• Vacations
• Tax effective wealth accumulation for retirement
• Buying a caravan or motor home
• Updating a car
• Home renovations
• Estate planning.

Pre-Retirees & Retirees

You may still be working and have paid off the majority of your mortgage. Accumulating wealth for your retirement through superannuation is your main priority. You also enjoy spending money on travel and other luxuries you couldn’t afford earlier. As well as this, you may provide a moderate level of financial support to your children. Your health and insurance is of great importance to you as, with age, the likelihood of illness increases.

It's never to late to start planning for the best future you can afford. Why not ask us how we can help you work out the best plan for you?

Please contact us to discuss: or phone on (02) 9734 6111.

Things to consider:

Budgeting, cash flow and debt reduction.

Protecting income in the event of accident or illness to be able to fund their:

• mortgage
• bills and cost of living
• savings for retirement
• house renovations or a sea change
• travel and treats
• lifestyle and entertainment.

Protecting themselves and their families against financial hardship in the event of death, disability or major illness by taking out:

• Life insurance
• Total and permanent disablement insurance
• Trauma insurance.

Building on their investment portfolios and savings plans to work towards:

• Vacations
• Tax effective wealth accumulation for retirement
• Buying a caravan or motor home
• Updating a car
• Home renovations
• Grandchildren’s education
• Insurance policies for children
• Estate planning.

Aged Care

Considering your aged care options or those of your parents as part of your plan for retirement? It may seem too early to think about a future you can’t imagine, but the reality is, and experience has shown, that it’s probably too late to consider aged care when the need for it has actually arrived.

It's never to late to start planning for the best future you can afford. Why not ask us how we can help you work out the best plan for you?

Please contact us to discuss: or phone on (02) 9734 6111.

Things to consider:

• Family home – Retain/Rent/Sell
• Funding your RAD/DAP (e.g. Bond) upon entry to an Aged Care home.
• Ongoing costs of Aged Care
• Entitlements from Government (e.g. Centrelink/DVA Pensions)
• Investments

Aged Care Advice

Considering Aged Care for yourself or a loved one is extremely difficult. It may seem too early to think about a future you can’t imagine, but planning ahead will give you great peace of mind.

If you or a loved one has reached the stage where some form of aged care is needed, then you’ll have many things to consider. Sometimes family and friends will be able to help with things like shopping, cooking or transport, but there are several professional aged care packages available.

John, our Practice Principal, has a keen interest and truly enjoys assisting clients with any transition into additional care. We will:

• Understand the financial implications of various aged care solutions
• Assess your aged care options taking into account your assets and liabilities, Centrelink, tax and estate planning considerations
• Manage your retirement strategy and provide you with a long-term income plan

By thinking ahead early, you can consider alternative options and put a plan in place that reduces the emotional stress for you and your family. We will help you reach the right outcome so you can live the best life you can – whether it’s in your own home or a care facility. We will specifically develop a plan for you which considers the impact of aged care on your loved ones financial affairs. We also have positive relationships making any transition as smooth as possible.

When considering Aged Care your first consultation with us is complementary. After determining your needs and objectives with you, we will be able to provide you with a highly competitive and fixed fee quote for our personalised Aged Care advice.

If you're seeking advice on aged care, please contact us to discuss: or phone on (02) 9734 6111.

Personal Insurance Solutions

Personal Insurance is an essential investment in your financial security.

Life Insurance will provide a lump sum benefit to your financial dependents or beneficiaries in the event of your death or terminal illness. This benefit will help reduce financial and emotional hardship as it may be used to cover your loved ones living expenses and any outstanding debt that you may have. This means that your loved ones can maintain their current standard of living in the event of your death or terminal illness.

Income Protection or Small Business Insurance is a type of insurance that pays out a steady stream of income on a monthly basis in the unforeseen event that you become disabled and are unable to work because of an illness or injury. This benefit will ensure that the financial and emotional impact of an unforeseen event are minimised.

We can help you consider the policies best suited to your needs and the level of cover that will ensure that your loved ones are well cared for should the unforeseen occur.

At Abacus Wealth we know how to protect your wealth and will recommend solutions that best suit your needs. Please contact us to discuss: or phone on (02) 9734 6111.

Self-managed Superannuation Fund Advice

Self-Managed Superannuation Funds (SMSFs) offer a good strategy option for many individuals, families and small business owners to build tax effective wealth and to protect assets over time. SMSFs are becoming popular for those who are ready to take control of their own super investments as they give you ultimate control and flexibility to manage your retirement benefits.

It must be noted though, that you will have increased responsibilities as a trustee of the fund. As a SMSF Trustee you need to keep up to date with all required regulations and keep up with the fast paced financial markets.

Abacus Wealth can work with you to understand your personal financial situation and decide whether a SMSF structure is appropriate for you. We will also make sure your assets are invested in the most effective way to maximise your retirement benefits.

It is generally agreed that there are a number of benefits of an SMSF but it is important that you also understand that an SMSF may not suit your situation, see below for some of the reasons why.

Benefits:

• Control - the trustees make the investment decisions.
• Asset allocation – the trustees are in control of asset allocation decisions as well as issues related to borrowing.
• Tax strategies – trustees have control of tax strategies and other planning options.
• Transparency – your SMSF provides you with good transparency concerning investment decisions and gives complete visibility over taxation treatment.
• Cost – the cost of running and administering a SMSF fund are not based on a percentage of the value of the fund but more on the time needed to prepare reports and address relevant compliance matters.

Disadvantages:

Running and managing a SMSF may not be suitable to everyone. For example, many of the advantages are also a disadvantage. Costs may be relatively high, there can be too much flexibility for prudent investing, remaining on top of trustee responsibilities can be complex and time consuming, and poor personal knowledge of the investment landscape can have serious consequences.

Should you wish to consider establishing a SMSF then we can help with:

• Establishing your fund:
• Annual Compliance Services:
• Portfolio Administration Services:
• Pension advice:
• Superannuation Advisory Services:

At Abacus Wealth, we will provide the time and expertise needed to help you implement the best financial strategy possible. Please contact us to discuss: or phone on (02) 9734 6111.

Retirement Planning

Retiring on your own terms is not always easy to achieve, however it is evident that those who plan for retirement are more likely to do so. Research also shows that obtaining professional help during the pre-retirement years further improves the probability of attaining your retirement objectives. The earlier you start implementing a plan the better the outcomes.

Retirement planning is about the lifestyle you will have after you stop work. Planning focuses on issues such as how much superannuation is enough, taking a super pension, making superannuation contributions while receiving a pension from a super fund, estate planning and looking after your family.

We can also assist with claiming the Aged Pension. Planning properly is becoming even more important now we are expected to live longer. This greater need means that professional help has never been more important as well. At Abacus Wealth we will provide the time and expertise needed to help you implement the best financial strategy possible.

When considering Retirement Planning your first consultation with us is complementary. After determining your needs and objectives with you, we will be able to provide you with a highly competitive and fixed fee quote for our personalised Retirement Planning advice.

If you're interested in beginning the journey in planning for retirement, please contact us to discuss: or phone on (02) 9734 6111.

Gearing and Lending Advice

Many of our clients borrow money to invest. This is known as ‘gearing.’ If you have borrowed money to invest and you’re making a profit, you are positively geared. If you’re making a loss, you are negatively geared. Negative gearing is a popular tax minimisation strategy. If you are borrowing to invest, choosing a positively geared investment will increase your income and increase your overall return on investment.

Some benefits of Gearing:

• Increases the funds you have available to invest
• Allows for a larger investment portfolio, so you can start investing sooner rather than later
• Offers diversification across a range of investments through a wide selection of acceptable investments
• Provides flexibility, allowing you to choose the degree of gearing that meets your investment objectives
• Gearing can potentially be tax efficient, depending on individual circumstances

One form of gearing is margin lending. A margin loan is a line of credit that allows you to borrow money to invest. You can leverage an existing portfolio or create a new investment portfolio to help meet your financial goals.

A margin loan lets you borrow money to invest and uses your shares or managed funds as security. It can help you increase your returns but it needs to be managed very closely as there are margin call risks should the asset value drop.

If you’d like to discuss how gearing and margin lending can help develop your investment plans then please contact us to discuss your thoughts further: or phone on (02) 9734 6111.

Centrelink Advice

Centrelink Age Pension

We provide professional assistance for individuals and families with navigating the Centrelink age pension options and benefits. Whether you're looking to help a loved one or in need of solutions for yourself we're here to help you.

As your appointed Agent we can help in the following ways:

• Preparation of your age pension application and review forms.
• Attending your pension application reviews on your behalf.
• Identification of opportunities that may assist with increasing and maximising your pension.
• Ensure you are receiving the correct amount and appropriate pension for your situation.
• Aged Care Assessment Team (ACAT) - We arrange for and attend all ACAT assessments and assist with documentation prior to your admission into your selected "Assisted Living Aged Care Facility".
• Estate Planning - We arrange for a solicitor to prepare "Enduring Powers of Attorney" and "Enduring Guardianships" and Wills as required.
• Bill Paying Services - We can arrange for all your regular accounts to be paid via a direct debit arrangement and your credit or debit card to be paid automatically on the due date.
• Connecting you with care assessment teams and home support services.
• Participating at family meetings to help ease the stress of challenging conversations during difficult times for your family.
• Working with your accountant and lawyer to ensure the needs of your parents are well supported.

If you're seeking advice on aged care, please contact us to discuss: or phone on (02) 9734 6111.

Useful Links

We've compiled a broad range of useful links for your use. These include tax resources, finance, media, Australian government assistance, business and accounting software.

Tax Resources

Financial Videos

What Can A Financial Adviser Do For You

Duty of Disclosure

Debt Management

SMSF – Individual vs Corporate Trustee

Cup of Advice - Baby On The Way

Cup of Advice - Changing Careers

General Calculators

These calculators are powered by ASIC’s MoneySmart developers, which allow you to calculate mortgage payments, detail retirement cost modelling as well as many other calculators detailing different aspects of your personal finances.