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Superannuation as we know it for higher income earners has been savaged.

Super has changed

Super has changed

At one time superannuation in pension mode was taxed at 15 per cent. I have always regarded the tax-free status of pension mode superannuation as a bonus that Peter Costello handed to us. One day it might be taken back. I fully realise that many people with super savings will be hit hard particularly as interest rates are now so low. But at least there is certainty this time around, because the effect of the Morrison policy is not that different to the Chris Bowen plan.

What really changed the game are the restrictions on superannuation contributions.

There is a lifetime cap of $500,000 on tax paid funds (non-concessional contributions) that can be invested in superannuation and that cap cut in at 7.30 pm on May 3. Those who were waiting until just before June 30 to inject large sums have now missed out.

Those who already have larger sums in superannuation have a $1.6 million capital limit on the money that can be earned tax-free. I assume that if you have $1.6m in your funds, then all the earnings will be tax-free. If you have $3.2m in superannuation funds (twice $1.6m) fund, then half those earnings will be tax-free and the rest taxed at 15 per cent.

The practical outcome - the money will need to go in what appears to be a tax-free account, or it can be withdrawn.

This will need clarity and I am sure there will be more information. In addition tax-deductible contributions are limited to $25,000 per annum. The contributions tax of 30 per cent, which previously cut in at $300,000 income, will now cut in at $250,000.

If you want to try and accumulate a worthwhile sum in superannuation then my advice is that if you possibly can take up your contribution entitlement each year, do so. I realise this is not always easy to do because of the need to pay off mortgages, health costs, school fees etc., etc.

Do make a plan and allocate more to your Super. You can also looks at other options like Negative Gearing and investing in a larger family home. For any discussion on your specific goals and requirements, please contact us.

 

 

How to get back to work after Maternity Leave.

maternity

I recently attended a  ‘Women in Business’ event on Networking and met Tracey Spicer- the Redcliff Bogan turned national Newsreader par excellence. Tracey has left an indelible impression on me with her talk.

On returning from maternity leave, she was given unimaginable shifts that ended at 12.30am Sunday night only to return at 7.30am on Monday.  She felt it was unfair but she carried on, but after her second maternity leave she was penalised with difficult working conditions, as the employer hoped that she would leave. This time she stood up for her rights to return to work and she decided to take the matter to Court. She won back her job in full. Hurrah to all women!!

She spoke of the power of networking, especially for women, as there still is a gender pay gap, and we are still in a place where equality is reminded not given everywhere.

First-time mothers can find the workplace to be especially isolating. As professionals, we are often instinctively guarded about our personal lives in the office. Among other things, newly pregnant women worry about morning sickness, maternity leave, future work-life balance, being judged or losing all the momentum they’ve built in their careers, to date.

We believe better information can make this period less stressful. To that end here are some  practical data and checklists to consider while preparing for your leave (and return) and maternity leave policies.

How do we use networking to our advantage authentically in a way that yields real benefits?

The important things to keep in mind are

a) your network evolves over time

b) the more diverse your network, the more likely an opportunity will pop up for you

c) doing favors for other people and connecting with them about real things (including your transition to motherhood, back to work, etc.)

This is how you build a strong network that lasts and evolves. Don’t be afraid to ask other women questions, share your experience and be honest. It will pay off.

Tracy’s mother was a trailblazer ,being the first woman courier driver in Queensland. Be the role model for your children and pave the path for the future.

 

How negative gearing is expected to perform?

negative-gearing-968x731

How Negative Gearing works?

BIS Shrapnel has said the rate of property price growth in Sydney and Melbourne has slowed in 2015-16.

The report noted that national population growth in 2014/15 was at its second lowest level since 2005-06, with net overseas migration falling from 229,400 persons in 2011/12, to 176,500 persons in 2014-15.

The majority of net overseas migrations have been “long-term overseas visitors” that is, temporary but not permanent arrivals – this reduction is likely to be impact mainly the rental, and therefore apartment sector.

“As investor expectations of capital gains are reduced, investor demand is expected to weaken further, creating additional downward pressure on property prices,” he said.

BIS Shrapnel says all markets are forecast to experience falls in prices in real terms by June 2019.

Further weakness is forecast in the Perth, Darwin and Adelaide markets, with the report predicting that the Perth and Darwin markets will continue to be impacted by falling resource sector investment, weak population growth and excess supply.

Meanwhile, Adelaide is expected to continue to face economic headwinds and the closure of car manufacturing in 2017 will be a further drag on the local economy and in turn on prices.

“The real decline is forecast to be minimal at one per cent in Brisbane and Hobart, and as high as 12 per cent in Adelaide,” according to the report.

“Across the unit market, all capital cities are expected to experience greater real declines in unit prices ranging from eight per cent to 15 per cent over the three years to June 2019. With overseas buyers only able to purchase new apartments, the resale market will be more limited, being confined to local buyers.”

BIS Shrapnel forecasts the best prospects for median house price growth over the next three years are forecast to be in the Brisbane and Hobart markets, followed by Canberra.

Get in touch with us.

 

What are the soft skills of 2016?

It's all about YOU!

It's all about YOU!


Soft skills are all about having a non-invasive, neutrally worded conversation with another human being. Soft skills are more about your tone, approach and attitude, and less about the actual words used. The focus is on the potential client (you) not “me” (the financial planner / my KPIs).

“It is about YOU”
It is about me understanding my true role with you
It is about me helping you with what I know
It is about me helping you with what I have

Three questions to begin the journey- ALWAYS making it about “you” not “me”
What am I planning to say to YOU during the conversation I am about to have with YOU?
Who and what am I thinking about? It better be about YOU!
What is this conversation about – “me” or “YOU” my potential client?

Soft skills in Business.
This is a time of consciousness, connection, and co-creation.
A people business genuinely caring about their people, their clients, and potential clients is the formula for success in today's world.

I believe what I have to share changes lives for the better.
My purpose in doing this work is the joy it brings me when I see the light go on and the inspiration that follows.
My dream is to make a positive impact on as many people as I can.

Go, Buy and Devour @ the Farmers Market

Buy and Share

Farmers Market - Buy and Share

When I was young and managing 3 kids on a single income, one innovative neighbour suggested that we 3 families go to Flemington Markets on a Saturday/Sunday each by turn. I remember paying barely $30 for all the fresh vegetable and fruits. In addition it allowed me two free weekends to spend with my young kids and no shopping, which was a big gain!

Hitting up the local farmers market is one of life’s little pleasures—a place to pick up fresh fruits and veggies as well as eggs, cheese, baked goods and, depending on where you live, more exotic items like wine, honey, jerky, pickles and ice cream. It's also a great way to support the local producers and farmers, who often return to the markets to get that extra bit of money out of their produce which they may have already sold.

But as fun as it can be poking around all the different tables and doing your part to support local organic producers, farmers markets have a rep as expensive alternatives to regular supermarkets. When you buy in bulk and split it amongst a few of you, trust me it is super affordable.

Things to do:
1. Make a List and Budget beforehand
2. Do a Lap or Two First
3. Shop for What’s in Season
4. Ask for a Deal When You’re Buying in Bulk
5. Get to Know the Farmers and get the specials

How to multiply your savings!!

compound_interest

If you start calculating how many hours you have to work to earn $100 after taxes, you’ll view your Foxtel bill or even a cup of coffee differently.

Most people have a lot of debt and very little savings. Money just flows out of your pocket or account. The goal is just the opposite: You should save 15% of your pre-tax income via super contribution, and an additional 20%–25% of your post tax income.

This isn’t just for high income individuals, everyone can do it.

For example, just pack your lunch from home and reduce your coffee intake by just ONE $5 coffee and you will save $15 daily. That’s it? Wait…By saving $10 on lunch and a $5 overpriced coffee daily you’ll save $300 monthly. Keep going…. This amounts to $3600 annually! How cool is that?

Let’s keep the math simple and assume you save that $300 every month. If you save an additional $100 a month (that’s just another daily coffee), you’ll end up with nearly $5,000 annually. Big deal right? Not impressed? Imagine you earn a higher level of income, and multiple your savings amount by 10 to $4,000 a month. That’s $50,000 annually!

But if you invest the $5,000 saving for 20 years, it nearly doubles that is HUGE!! That is the power of Compounding. and this just a year's saving. Imagine what all your coffees can do.

A $5 coffee a day amounts to over a half million in 40 years.

What would you like to do next? Call to discuss your budgets over a cup of coffee!!!

Contact us now.

 

Moms are the best

Moms are the best

Moms, we are all tired and sleep deprived till the kids turn to double digits.

We all love to talk about how busy we are, don't we? How much laundry we have to do...

how little we sleep...how we wish we could find the perfect system.

 

Here is what I did to optimize my time and get everything done.

I want to share some of things that have helped me, raise my three kids ( my first born are

twins), bake cakes for their school, run a couple of businesses and do work in my

community.

However we slice it, we all have the exact same number of hours to use as we see fit. When

we start looking around at other parents who seem to get so much done, we don't really know how

they do it.

 

Well I've got a few ideas for you moms:

1. The most productive people I know spend a lot of time thinking & planning about what to

work on - they don't blindly do things without a good reason.

2. They know that there's no earthly way to get it all done - so they ruthlessly prioritize.

3. Bottom line: They know that choosing the right things to work on is far more important

than working efficiently (even very efficiently) on the wrong things.

I want to see if you can invest in your fun time, look at returning to job, or invest in thinking

about your future goals including buying that new car or the holiday. So contact us and invest in you!!

How to invest when on extended leave or while working part-time?

(iStockphoto) FABpentPic-040116-iStock Business woman is going up. Drawn skyscrapers on black chalk board as a growing bar chart and rocketing red arrow.

I want to share my Super Strategy which has definitely worked better than investing in Super from an early age. Young women taking time off work to raise a family should be particularly cautious about over-investing in their superannuation.

"Since every superannuation dollar taxed at 15 percent, from a tax point of view you’re better off investing any spare money in your own name rather than in super. You can earn up to $20,000 in investment income and not pay any tax."

For most women taking extended leave from the workforce or working part-time, this approach can be particularly beneficial. 

That invested money is obviously then accessible if they need to dip into their own savings when they have reduced work income, and might be raising children.

"Generally, their income is at such a low level [at this life stage] there’s no real benefit from putting money into superannuation in any case."

Rather, female clients looking to invest and get ahead they should look no further than their own backyard – particularly in this low-interest rate environment.

"Don’t even bother about any other strategy if your mortgage is above 50 percent of the home value – just concentrate on getting the mortgage down. To read more such insights follow us and read our blogs at http://www.financeandmortgage.com.au/

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