http://www.continuumfp.com.au/ Sun, 20 May 2012 00:09:30 Continuum Financial Planners Pty Ltd Articles http://www.continuumfp.com.au/articles/Why-income-protection?.html http://www.continuumfp.com.au/articles/Why-income-protection?.html Are you sure.. ..that if you suffer an illness or injury that takes you out of work for an extended period will your family be able to - Meet the monthly commitments to preserve their lifestyle? Continue to pay the mortgage/ debt repayments? Service the long-term investment needs your strategies for them require? Meet the medical costs during the term of incapacity? Manage the financial capacity to... http://www.continuumfp.com.au/articles/Investor-Risk-Profiling.html http://www.continuumfp.com.au/articles/Investor-Risk-Profiling.html How comfortable are you with unpredictable adversity? What is your level of comfort as an investor? Obviously the answer each reader gives will be affected by their stage of life; the status of their wealth accumulation; and their experience as an investor. Risk profiling helps your investment adviser know how to set your portfolio – and how to help you understand what is happening to that portfolio over time. For a... http://www.continuumfp.com.au/articles/Budget-Update-2012---Parenting-Payment---tightening-of-eligibility-for-grandfathered-recipients.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Parenting-Payment---tightening-of-eligibility-for-grandfathered-recipients.html Effective from 1 January 2013 Currently, recipients of Parenting Payment (PP) who were granted the payment prior to 1 July 2006 do not lose eligibility until their youngest child attains age 16. The Government will align PP eligibility for all recipients so that the payment will cease when the youngest child attains age 6 (for partnered recipients), or age 8 (for single recipients). Recipients who cease to be eligible for PP will... http://www.continuumfp.com.au/articles/Budget-Update-2012---Living-away-from-home-allowances-(LAFHA).html http://www.continuumfp.com.au/articles/Budget-Update-2012---Living-away-from-home-allowances-(LAFHA).html Payments of a LAFHA generally can qualify for tax exempt treatment as well as concessional (or exempt) treatment for fringe benefits tax (FBT) purposes. Subject to some exemptions, the Government has proposed to amend the FBT treatment and prevent misuse of the exemption by allowing non-residents to only access the benefit if they also maintain a home for their own use in Australia, which they are then living away from to qualify for... http://www.continuumfp.com.au/articles/Budget-Update-2012---Removal-or-reduction-in-Private-Health-Insurance-rebate-(already-legislated).html http://www.continuumfp.com.au/articles/Budget-Update-2012---Removal-or-reduction-in-Private-Health-Insurance-rebate-(already-legislated).html Whilst not raised in this year’s Budget, it is important to be aware that from 1 July 2012 the existing Private Health Insurance rebate will be scaled back or removed for those earning $84,000 or above (singles) or at least $168,000 (couples), with an increase in the Medicare Levy Surcharge for those who opt out of private health insurance. The level of rebate  available or potential Medicare Levy Surcharge that could be... http://www.continuumfp.com.au/articles/Budget-Update-2012---Personal-income-tax-changes-(already-legislated).html http://www.continuumfp.com.au/articles/Budget-Update-2012---Personal-income-tax-changes-(already-legislated).html The changes to personal income tax rates and thresholds was not a 2012 Budget measure, although was referenced in the Treasurer’s speech. These changes were initially announced with the introduction of the Carbon Pricing Scheme back on 10 July 2011 and have since been legislated.   Current 2011/12 From July 1 2012 From 1 July 2015 Taxable Income ... http://www.continuumfp.com.au/articles/Budget-Update-2012---Other-superannuation-measures.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Other-superannuation-measures.html Whilst not specifically discussed in the 2012 Budget, the Government has previously announced a number of other superannuation measures that will have an impact from 1 July 2012 (or later years). These include: The introduction of a low-income earner contribution from 1 July 2012 of up to $500 for those with incomes up to $37,000. This essentially represents a refund of tax on concessional contributions. The reduction in... http://www.continuumfp.com.au/articles/Budget-Update-2012.html http://www.continuumfp.com.au/articles/Budget-Update-2012.html This year’s Federal Budget was returned to surplus while ensuring families and small business share in the benefits of the resource boom. It would be fair to say that everyone will be impacted in some way by the measures contained in the Budget itself, or by other recent announcements from the Government that will apply from 1 July 2012. Many of the measures in the Budget had been alluded to in the days leading up to... http://www.continuumfp.com.au/articles/Budget-Update-2012---Employment-termination-payment-tax-offset.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Employment-termination-payment-tax-offset.html From 1 July 2012, only that part of an affected employment termination payment (ETP), such as a golden handshake, that takes a person’s total annual taxable income (including the ETP) to no more than $180,000 will receive the ETP tax offset. Amounts above this whole-of-income cap will be taxed at marginal rates. The whole-of income cap will complement the existing ETP cap ($175,000 in 2012-13, indexed) which ensures that the... http://www.continuumfp.com.au/articles/Budget-Update-2012---Reduction-of-tax-concession-for-concessional-contributions-high-income-earners.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Reduction-of-tax-concession-for-concessional-contributions-high-income-earners.html From 1 July 2012, individuals with income greater than $300,000 will have the tax concession on their concessional contributions reduced from 30% to 15% (excluding the Medicare levy). The definition of ‘income’ for the purpose of this measure includes taxable income, concessional contributions, adjusted fringe benefits, total net investment loss, target foreign income, tax-free Government pensions and benefits, less... http://www.continuumfp.com.au/articles/Budget-Update-2012---Liquid-assets-waiting-period.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Liquid-assets-waiting-period.html From 1 July 2013, the maximum reserve amount will increase for the liquid assets waiting period for recipients of particular income support payments. Liquid assets are assets in the form of cash or those which can be easily converted into cash, including shares and term deposits. A single person without dependents will now have an increased maximum reserve amount of $5,000, while a person who is a member of a couple and/or has a... http://www.continuumfp.com.au/articles/Budget-Update-2012---New-income-support-supplement.html http://www.continuumfp.com.au/articles/Budget-Update-2012---New-income-support-supplement.html Commencing on 20 March 2013, an ongoing, non-taxable payment will be made to recipients of Newstart Allowance, Sickness Allowance, Youth Allowance, Austudy, ABSTUDY, Special Benefit, Parenting Payment Single, Parenting Payment Partnered, Transitional Farm Family Payment and the Exceptional Circumstances Relief Payment to assist with the cost of living pressures. The new supplement will provide $210 per annum for eligible singles and... http://www.continuumfp.com.au/articles/Budget-Update-2012---Australian-working-life-residency.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Australian-working-life-residency.html From 1 January 2014, Age Pension recipients who are overseas for more than 26 weeks will be paid their maximum entitlement of pension only if their Australian Working Life Residence (AWLR) is 35 years or more, rather than 25 years as applies under current arrangements. Pension recipients with less than 35 years AWLR will be paid a proportional rate. Pensioners overseas on the date of implementation will not be affected by this change... http://www.continuumfp.com.au/articles/Budget-Update-2012---Deferral-of-higher-concessional-contribution-cap.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Deferral-of-higher-concessional-contribution-cap.html The start date of the higher concessional contributions cap will be deferred by two years, from 1 July 2012 to 1 July 2014. Under the higher concessional contributions cap measure, individuals aged 50 and over with superannuation balances below $500,000 will be able to make up to $25,000 more in concessional contributions than allowed under the general concessional contributions cap. For 2012-13 and 2013-14, all individuals will be... http://www.continuumfp.com.au/articles/Budget-Update-2012---Portability-of-Australian-Government-payments.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Portability-of-Australian-Government-payments.html From 1 January 2013, the period of time that people who travel overseas will continue to be paid will be reduced from 13 to 6 weeks for most income support and family payment recipients. Beneficiaries who are outside Australia on the date of implementation will retain the 13 week portability of their payments until they return to Australia. The Age Pension will be excluded as it can be paid overseas indefinitely, once certain... http://www.continuumfp.com.au/articles/Budget-Update-2012---Increase-in-managed-investment-trust-final-withholding-tax-rate.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Increase-in-managed-investment-trust-final-withholding-tax-rate.html The managed investment trust final withholding tax rate will be increased from 7.5% to 15% from 1 July 2012. This reverses a 2009-10 Budget decision to lower the tax rate Increase in managed investment trust final withholding tax ratefrom 30% to 7.5%. http://www.continuumfp.com.au/articles/Budget-Update-2012---Change-to-age-of-eligibility-for-Family-Tax-Benefit-Part-A.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Change-to-age-of-eligibility-for-Family-Tax-Benefit-Part-A.html From 1 January 2013, the eligibility for Family Tax Benefit (FTB) Part A will be limited to young people under 18 years of age or, where a young person remains in secondary school, the end of the calendar year in which they turn 19. Individuals who no longer qualify for FTB Part A may be eligible to receive Youth Allowance subject to usual eligibility requirements. http://www.continuumfp.com.au/articles/Budget-Update-2012-Increasing-the-rate-of-Family-Tax-benefit-Part-A.html http://www.continuumfp.com.au/articles/Budget-Update-2012-Increasing-the-rate-of-Family-Tax-benefit-Part-A.html From 1 July 2013, the maximum payment rate of FTB Part A will increase by $300 per annum for families with one child and $600 per annum for families with two or more children. For families receiving the base rate of FTB Part A, the increase will be $100 per annum for families with one child and $200 per annum for families with two or more children. http://www.continuumfp.com.au/articles/Budget-Update-2012---Company-loss-carry-back.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Company-loss-carry-back.html Companies will be allowed to ‘carry back’ their tax losses so they receive a refund against tax previously paid. Currently, businesses are only able to carry forward their tax losses to offset future profits and reduce future tax liabilities. From 1 July 2012, companies will be able to carry back up to $1 million worth of losses to get a refund of tax paid in the previous year. From 1 July 2013, companies will be... http://www.continuumfp.com.au/articles/Budget-Update-2012---Accommodation-Supplement.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Accommodation-Supplement.html From 1 July 2014, for aged care homes that are newly built or significantly refurbished from 20 April 2012, the maximum rate of the accommodation supplement will be increased from $32.58 to $50.00 a day (in current prices). In addition, all residentsentering permanent residential aged care from 1 July 2014 will have the choice to pay for their  accommodation through a fully refundable lump sum payment, periodic payments, or a... http://www.continuumfp.com.au/articles/Budget-Update-2012---Company-tax-cut.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Company-tax-cut.html The proposed measure to lower the company tax rate from 2013-14 (to 29%) and to implement an early start to the company tax rate cut from 2012-13 (to 28%) for small business will not proceed. The Government has been unable to progress this measure through the Parliament and will direct some of the savings to a loss carry back arrangement for companies. http://www.continuumfp.com.au/articles/Budget-Update-2012---CGT-broadening-the-exemptions-for-certain-compensation-payments-and-insurance.html http://www.continuumfp.com.au/articles/Budget-Update-2012---CGT-broadening-the-exemptions-for-certain-compensation-payments-and-insurance.html Minor extensions to the CGT exemptions for certain compensation payments and insurance policies will be made with effect from 2005-06. The measure will disregard CGT consequences where a taxpayer receives compensation, damage or certain insurance proceeds indirectly through a trust. This will ensure that the taxpayer has the same CGT outcome as a taxpayer who receives such proceeds directly. It also ensures that insurance policies... http://www.continuumfp.com.au/articles/Budget-Update-2012---Means-Testing.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Means-Testing.html From 1 July 2014, a new income test will be introduced for Home Care packages. Under these arrangements, full pensioners will not pay any income-tested care fee, while partpensioners will contribute up to a maximum of $5,000 a year, and self-funded retirees up to $10,000 a year, for their care. Care recipients will continue to pay a basic fee of up to 17.5% of the basic Age Pension. From 1 July 2014, income and assets tests will be... http://www.continuumfp.com.au/articles/Budget-Update-2012---Capital-gains-tax-and-loss-relief-to-facilitate-super-reforms.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Capital-gains-tax-and-loss-relief-to-facilitate-super-reforms.html Amendments will be made to ensure income tax considerations do not prevent mergers of superannuation funds or transfers of existing default members’ balances and relevant assets in the transition to Stronger Super and MySuper. From 1 June 2012 to 1 July 2017, optional loss relief will be available for mergers of complying super funds on the same terms and conditions as the former temporary loss relief that applied from 24... http://www.continuumfp.com.au/articles/Budget-Update-2012---Removal-of-capital-gains-tax-discount-for-non-residents.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Removal-of-capital-gains-tax-discount-for-non-residents.html The 50% capital gains tax (CGT) discount will no longer be available for non-residents on capital gains accrued after 7.30pm on 8 May 2012. The CGT discount will remain available for capital gains accrued prior to this time where non-residents choose to obtain market valuations of assets as at 8 May 2012. http://www.continuumfp.com.au/articles/Budget-Update-2012---50%-discount-for-interest-income.html http://www.continuumfp.com.au/articles/Budget-Update-2012---50%-discount-for-interest-income.html The 50% tax discount for interest income announced in the 2010-11 Budget will not proceed. The measure was to provide a 50% tax discount on up to $1,000 of interest earned. http://www.continuumfp.com.au/articles/Budget-Update-2012---Schoolkids-Bonus.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Schoolkids-Bonus.html The existing Education Tax Refund for school expenses will be replaced with a ‘Schoolkids bonus’ from 1 January 2013. Each year, families will receive a Schoolkids bonus worth $410 for each primary school child and $820 for each child in high school. The payment will be automatic and paid upfront, twice a year, in January and July. This means that parents will not have to keep receipts to receive a payment as with... http://www.continuumfp.com.au/articles/Budget-Update-2012---Standard-work-related-deduction.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Standard-work-related-deduction.html The Government has announced it will not proceed with the standard deduction for work-related expenses which was announced in the 2010-11 Budget. http://www.continuumfp.com.au/articles/Budget-Update-2012---Dependency-tax-offsets-consolidate-into-one.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Dependency-tax-offsets-consolidate-into-one.html The Government will consolidate eight dependency tax offsets into a single, streamlined and non-refundable offset that is only available to taxpayers who maintain a dependant who is genuinely unable to work due to carer obligation or disability from 1 July 2012. The offsets to be consolidated are the invalid spouse, carer spouse, housekeeper, housekeeper (with child), child-housekeeper, child-housekeeper (with child), invalid relative... http://www.continuumfp.com.au/articles/Budget-Update-2012---Changes-to-the-net-medical-expenses-tax-offset.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Changes-to-the-net-medical-expenses-tax-offset.html A means test will be introduced for the net medical expenses tax offset from 1 July 2012. For people with adjusted taxable income above the Medicare levy surcharge thresholds ($84,000 for singles and $168,000 for couples or families in 2012-13), the threshold above which a taxpayer may claim net medical expenses tax offset will be increased to $5,000 (up from $2,060 currently) and indexed annually and the rate of reimbursement will be... http://www.continuumfp.com.au/articles/Budget-Update-2012---Changes-to-tax-rates-for-non-residents.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Changes-to-tax-rates-for-non-residents.html The personal income tax rates and thresholds that apply to non-residents’ Australian income will be adjusted. From 1 July 2012, the first two marginal tax rate thresholds will be merged into a single threshold. The marginal rate for this threshold will align with the second marginal tax rate for residents (32.5%) and will apply to all taxable income below $80,000. A non-resident with Australian taxable income of $80,000 is... http://www.continuumfp.com.au/articles/Budget-Update-2012---Medicare-low-income-thresholds.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Medicare-low-income-thresholds.html The Medicare low income thresholds will increase to $19,404 for individuals and $32,743 for families for 2011-12. The additional amount of threshold for each dependent child or student will also increase to $3,007. The Medicare levy threshold for single pensioners below Age Pension age will increase to $30,451 for 2011-12. This ensures that pensioners below Age Pension age do not pay the Medicare levy when they do not have an income... http://www.continuumfp.com.au/articles/The-Value-of-Advice.html http://www.continuumfp.com.au/articles/The-Value-of-Advice.html “Free advice: it costs you nothing; and is worth the price” or so the old adage goes! In our position as financial planners we are very much aware of what the government, through Minister Bill Shorten, has been attempting to get in place by way of further regulation of the financial services industry (an aftermath of the Storm Financial situation no doubt). The regulatory regime we are having framed for us has been... http://www.continuumfp.com.au/articles/Superannuation.html http://www.continuumfp.com.au/articles/Superannuation.html Why would you invest in superannuation when it has delivered such poor results over the past few years? This is a question we are frequently asked - and key to the answer to the question is the fact that superannuation itself is not an investment product. It is however a very effective structure in which to accumulate wealth. As a wealth management structure it ‘ticks a lot of boxes’: Contributions can be... http://www.continuumfp.com.au/articles/Records-for-FBT.html http://www.continuumfp.com.au/articles/Records-for-FBT.html   March 31 was only a few days ago: have you recorded all the items you needed to ensure your FBT (that’s Fringe Benefits Tax for those not involved) return can be accurately prepared for lodgement – and more importantly, so that you don’t pay any more than is necessary? Are you aware which records you need to keep? Are you sure that you are not required to lodge and pay FBT? ... http://www.continuumfp.com.au/articles/Free-Money!-[Superannuation-Co-Contribution].html http://www.continuumfp.com.au/articles/Free-Money!-[Superannuation-Co-Contribution].html The government has tightened the purse-strings again this year, but they are still giving away money for those who are ‘means-test’ eligible; and who have made a Non-Concessional Contribution1 to a complying superannuation account. You make the contribution to your superannuation account, then some months after the end of the financial year, the government makes a co-contribution to your fund (and their contribution... http://www.continuumfp.com.au/articles/Preparing-a-family-budget-doesn't-have-to-be-hard.html http://www.continuumfp.com.au/articles/Preparing-a-family-budget-doesn't-have-to-be-hard.html Doing a family budget doesn't have to be hard, and it will help you understand where your money is being spent, ways to better manage personal finances, and how to save cash to meet your financial goals (including saving to invest for longer-term goals). Follow some expert tips to help you compile a budget and start saving: Write down what you spend your money on The first step to take when thinking about organising a... http://www.continuumfp.com.au/articles/Trauma-Insurance---Peter-&-Jenny's-Story.html http://www.continuumfp.com.au/articles/Trauma-Insurance---Peter-&-Jenny's-Story.html Peter and Jenny are like many other young couples in Australia. They have two great kids aged 11 and 14, and Peter works fulltime and the main breadwinner for the family. Jenny has a small eBay store that she runs from home to make a few extra dollars. Peter and Jenny were by no means wealthy, but because Jenny's brother is a financial adviser, he has instilled the important of personal risk insurance into both of them over a... http://www.continuumfp.com.au/articles/Retirement-Planning---You-are-going-to-retire---right?.html http://www.continuumfp.com.au/articles/Retirement-Planning---You-are-going-to-retire---right?.html You are going to retire - right? Will you be ready to retire at the time you would like to? The question we most frequently hear when clients raise this matter with us is: How much will I need invested to be able to retire and live comfortably? Whilst the answers will be different in each person’s case, the key matters will include: how long until you would want to retire (and how old will you be then)? ... http://www.continuumfp.com.au/articles/Market-Outlook---February-2012.html http://www.continuumfp.com.au/articles/Market-Outlook---February-2012.html   Wow! What a year we had in 2011! (and in 2010! ..and in 2009! ..and in 2008!) What is the outlook for the 2012 calendar year? The ‘markets’ are looking volatile no matter which asset class is being considered: let’s break them down – Regionally (Australia; USA; Europe; Emerging Markets; Asia); and by Asset type (Cash/ Fixed Interest; Equities – Global and... http://www.continuumfp.com.au/articles/From-Deep-Panic-to-Hope---lessons-to-learn.html http://www.continuumfp.com.au/articles/From-Deep-Panic-to-Hope---lessons-to-learn.html        Over the six weeks following early-September, the US Stock Market Dow Jones Index has risen over 19%!  ‘Well done’ to those investors who stuck with their portfolio when the roller coaster ride of August/ September 2011 started – especially our clients who heeded our special advice. (Investors with Advisors - wealthier and wiser!)   ... http://www.continuumfp.com.au/articles/Is-it-safe-to-invest-in-Superannuation?.html http://www.continuumfp.com.au/articles/Is-it-safe-to-invest-in-Superannuation?.html        There is an undercurrent of distrust of superannuation – a distrust that arises more out of misunderstanding than valid concern: perhaps the more appropriate question might be ‘is it safe to invest through a superannuation account?’ Whether to invest in superannuation or not is a question being asked more frequently since the Global Financial Crisis struck... http://www.continuumfp.com.au/articles/A-'fair-go':-is-Industry-Super-Fund-advertising-giving-that?.html http://www.continuumfp.com.au/articles/A-'fair-go':-is-Industry-Super-Fund-advertising-giving-that?.html        The superannuation marketplace is about to get a shake-up: and Industry Funds are about to be called to account for the competition that will deny them their key message – lower fees! What the claims don’t compare is the actual performance of superannuation accounts where advice has been taken and implemented. There is empirical evidence that such accounts are better... http://www.continuumfp.com.au/articles/Light-hearted-use-of-stats:.html http://www.continuumfp.com.au/articles/Light-hearted-use-of-stats:.html        Have you ever noticed how much our world runs on statistics? That's because statistics never lie, of course. So I am here to offer help with statistics – to sort out all those conflicting truths. Here are a few very alarming statistics. Almost half of the world's population earns a below-average income. These demographics totally shocked me. I was under... http://www.continuumfp.com.au/articles/Twitter---why-bother?.html http://www.continuumfp.com.au/articles/Twitter---why-bother?.html        Twitter has been maligned by many (mainly non-users), as being idle ‘chatter’ and a time waster.  We are doing our bit to bring some usefulness into the wealth management space on Twitter: following is a selection of recent ‘tweets’ from Continuum Financial Planners.  Have a look and see if you can use Twitter effectively... http://www.continuumfp.com.au/articles/The-Markets-are-Manic!.html http://www.continuumfp.com.au/articles/The-Markets-are-Manic!.html        Two problems with the above heading: firstly, the Markets don’t have a mind – they reflect the emotions of the traders and investors; secondly, they are behaving roughly in line with expectations. Those traders and investors have been unsettled over the past few years (since early 2008) and are not helped by the constant barrage of negative reporting about markets, the... http://www.continuumfp.com.au/articles/The-Risk-of-not-securing-affordability.html http://www.continuumfp.com.au/articles/The-Risk-of-not-securing-affordability.html        The affordability of homes in Australia is continuing to decline: Serious concerns hover over the community when the key for the majority of Australian home-owners to retaining their home is to service their mortgage. Whilst servicing the repayment costs of the home mortgage may not seem a problem whilst there is a regular income flowing into the household (one with sufficient surplus... http://www.continuumfp.com.au/articles/Cost-for-kids-activities.html http://www.continuumfp.com.au/articles/Cost-for-kids-activities.html       In an article published on 2 September 2011 in news.com.au (author Sonja Koremans), one of the modern dilemmas for family budgeting was exposed: funding the cost of activities for the children. Some extracts from that article, follow – Many households are forsaking financial security and family well-being by taking out loans and running up credit cards to pay for the schedules of... http://www.continuumfp.com.au/articles/Wealth-Management-strategy---stay-the-course!.html http://www.continuumfp.com.au/articles/Wealth-Management-strategy---stay-the-course!.html        Now that reports from another volatile year are being distributed, most investors are looking over the results and many are drawn into short-term thinking about where their investments sit and what the more immediate future means. When considering your investment portfolio it may be helpful to understand the following asset allocation data as it may apply to your situation.... http://www.continuumfp.com.au/articles/What-your-children-are-learning-from-you?-(about-financial-matters).html http://www.continuumfp.com.au/articles/What-your-children-are-learning-from-you?-(about-financial-matters).html Are you a saver – or a spendthrift? Is your family budget constantly a topic of negative discussion? Are your ‘bills’ always on display and a source of anxiety? Do you actively try to demonstrate successful financial control of your affairs? Your dependant children are watching – AND LEARNING!! As much as we try to avoid generalizations, there is one commonly-held understanding about the... http://www.continuumfp.com.au/articles/Risk-management:-some-thoughts-for-your-consideration--.html http://www.continuumfp.com.au/articles/Risk-management:-some-thoughts-for-your-consideration--.html Private Health Insurance; Comprehensive Motor Vehicle Insurance; Compulsory Third Party Insurance; Travel Insurance; Public Liability Insurance; you’ve got the idea…we usually insure our ‘things’: why should we take it for granted that our family’s greatest asset – ourselves and our ability to bring home an income (or perform the household tasks), will not create distress and... http://www.continuumfp.com.au/articles/Market-volatility:-we-were-looking-out-for-you.html http://www.continuumfp.com.au/articles/Market-volatility:-we-were-looking-out-for-you.html During the extreme volatility of the past couple of weeks we were on the job and mindful of the concerns that would be troubling our clients. We didn’t sit back and hope that you would be OK – we contacted you promptly, early in the days of extreme market movements, up and down! Clients with particular strategies that would be more highly exposed received a special communication alerting them to our process of... http://www.continuumfp.com.au/articles/Market-Volatility-continues:-a-down-run-day-on-the-rollercoaster!.html http://www.continuumfp.com.au/articles/Market-Volatility-continues:-a-down-run-day-on-the-rollercoaster!.html Whilst we don’t want to add to the concern about the direction (or frequent changes of same) over recent weeks – and more particularly, days – we issue this note to reassure our clients that we are carefully watching the action and closely monitoring the views being expressed as to reasons, potential range of activity (bottom of the market; and volumes of participation) and what action needs to be taken to... http://www.continuumfp.com.au/articles/Dollar-Cost-Averaging-and-Currency.html http://www.continuumfp.com.au/articles/Dollar-Cost-Averaging-and-Currency.html In May 2011, a News Limisted Newspaper journalist wrote about dollar-cost-averaging the acquisition or accumulation of currency to take away on an overseas holiday. He gave a personal example as to why he suggests such a course of action – and a simple explanation of what that strategy entails. We have long-advocated this same strategy as a useful one for investing, particularly during volatile times such as we have been... http://www.continuumfp.com.au/articles/We-are-looking-for-your-help...html http://www.continuumfp.com.au/articles/We-are-looking-for-your-help...html As you know, financial planning businesses are ‘service’ businesses. Like all businesses new clients are important to us, they provide the necessary lifeblood to keep the business flourishing. As most of you will be aware, the best way to find a good service-provider is to ask your friends or workmates about their experiences. So how can you help? We would appreciate and respect your referral: whether that is... http://www.continuumfp.com.au/articles/Early-age-pre-retirement-access-to-Superannuation-is-limited---consider-alternative-investments-now.html http://www.continuumfp.com.au/articles/Early-age-pre-retirement-access-to-Superannuation-is-limited---consider-alternative-investments-now.html If you are thinking about early retirement you will need to establish an income source that is an alternative to your superannuation. If you are planning to retire before you reach the age when you can receive your superannuation benefits you need these alternative investments now to develop your (early) alternate retirement nest egg. You can only receive your superannuation benefits tax-free when you are aged 60 or above (to the... http://www.continuumfp.com.au/articles/Networking;-Getting-together;-Sharing-thoughts---where-do-we-get-the-time?.html http://www.continuumfp.com.au/articles/Networking;-Getting-together;-Sharing-thoughts---where-do-we-get-the-time?.html As technology develops (and note we didn’t say ‘gets better’, ‘improves’ or ‘makes our lives easier’) we all find it interesting to find new ways to stay in touch with family, friends and colleagues – especially as our civilisation has become much more transitory than was the case even a couple of generations ago. Telephone calls returned within 24 hours;... http://www.continuumfp.com.au/articles/You-shouldn't-go-without---but-how-do-you-measure-value?.html http://www.continuumfp.com.au/articles/You-shouldn't-go-without---but-how-do-you-measure-value?.html Whilst only 2 in every 10 Australians who have invested funds seek the advice of a Financial Planner, those very wise investors have been shown to be better off than their un- (or should that be ill-) advised friends: in fact the findings from a survey that was published during last year showed that those investors who worked with a financial planner were – Readily able to discuss the strategy they were working to; ... http://www.continuumfp.com.au/articles/The-Tortoise-and-the-Hare...-not-just-a-fable!.html http://www.continuumfp.com.au/articles/The-Tortoise-and-the-Hare...-not-just-a-fable!.html          Saving regular, affordable amounts consistently over time will in many cases accumulate more wealth than waiting for the large chunks of wealth becoming available. The magic of compound interest/ earnings is as valid today as it was when you first started your school-based bank account: invest regularly, don’t sell down (withdraw) – and reinvest the... http://www.continuumfp.com.au/articles/Get-your-act-together!.html http://www.continuumfp.com.au/articles/Get-your-act-together!.html To maximise the outcomes for this financial year, attend to the matters in our recent client bulletin before 30 June! To eliminate the rush at this time next year, make plans now… We’ll return to the end-of-year matters shortly, but it is now time to start to make plans for next year. Apart from ensuring that your record-keeping is ‘up to scratch’, you could be looking at any number of the... http://www.continuumfp.com.au/articles/Thou-shall-not-back-date-documents...unless-you-want-to-go-to-jail..html http://www.continuumfp.com.au/articles/Thou-shall-not-back-date-documents...unless-you-want-to-go-to-jail..html In a case we currently have, one of our clients is a director of a corporate trustee for his late father's self-managed superfund. Non-compliant fund Years before our client's father died, he had the superfund buy what in reality was a principal place of residence for himself and his defacto wife. The accountants for the estate and ourselves have advised the client of the consequences of the fund not being... http://www.continuumfp.com.au/articles/Year-end-financial-planning:-Tax-effective-measures-to-consider-before-30-June.html http://www.continuumfp.com.au/articles/Year-end-financial-planning:-Tax-effective-measures-to-consider-before-30-June.html        The effectiveness of some of the strategies mentioned below will depend on your personal taxation circumstances: whether an employee, a sub-contractor or a self-employed business operator (carrying on business under a structure): you need to confirm any proposed course of action with your accountant, tax agent or financial planner before acting on them. (Please refer to the general... http://www.continuumfp.com.au/articles/Budget-Update-2011---Reduction-in-the-minimum-payment-amounts-for-account-based-pensions-in-2011/12.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Reduction-in-the-minimum-payment-amounts-for-account-based-pensions-in-2011/12.html The Government initially provided a 50% pension draw down relief in the 2008/09 financial year to assist account based pension holders to recoup capital losses experienced as a result of the global financial crisis. This measure was extended for the 2009/10 and 2010/11 financial years. The Government proposes to phase out this drawdown relief by reducing the minimum pension payment by 25% for the 2011/12 financial year. For example a... http://www.continuumfp.com.au/articles/Budget-Update-2011---Family-Tax-Benefit-A-&-B-Indexation.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Family-Tax-Benefit-A-&-B-Indexation.html Family Tax Benefit Parts A and B supplements are normally indexed by the Consumer Price Index from 1 July each year. This indexation will be paused for 3 years until 1 July 2014. The current levels, which will remain until 1 July 2014 are: Part A supplement $726.35 per child Part B supplement $354.05 per child Family Tax Benefit Parts A and B are paid according to assessable income which is generally indexed each year.... http://www.continuumfp.com.au/articles/Budget-Update-2011---Paid-Paternity-Leave-Implementation-Date.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Paid-Paternity-Leave-Implementation-Date.html The measure to provide eligible working fathers or other partners who provide a child care with two weeks leave paid at the minimum wage has been deferred from 1 July 2012 to 1 January 2013 for children born on or after 1 January 2013. http://www.continuumfp.com.au/articles/Budget-Update-2011---Family-Tax-Benefit-Advances.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Family-Tax-Benefit-Advances.html As from the 1 July 2011 families in receipt of Family Tax Benefit Part A will be able to access an advance of their entitlements. An advance from $160 to $1,000 but not more than 7.5% of total entitlement may be claimed at any time in the year. Repayment will be over 6 months by reducing fortnightly Family Tax Benefit payments. http://www.continuumfp.com.au/articles/Budget-Update-2011---Family-Tax-Benefit-/-Youth-Allowance.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Family-Tax-Benefit-/-Youth-Allowance.html Currently, the maximum rate of Family Tax Benefit Part A will be reduced from $208.46 per fortnight to $51.24 per fortnight. This amount is the basic rate payable when a child reaches age 16. Above age 18, the rate increases to $68.74 for each qualified child. In many cases the child is eligible to claim Youth Allowance. The Government has announced that from 1 January 2012 Family Tax Benefit Part A paid in relation to a child in... http://www.continuumfp.com.au/articles/Budget-Update-2011---Baby-Bonus.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Baby-Bonus.html As from the 1July 2011 the Government has announced an increase in the proportion of the Baby Bonus that can be received as an upfront payment. Baby bonus claimants who become eligible on or after 1 July 2011 will be able to receive $879.77 out of the total of $5,294 (per child) upfront in the 2011/12 year. In subsequent years the amount will be 16.18% of the total baby bonus. http://www.continuumfp.com.au/articles/Budget-Update-2011---Operation-of-the-higher-concessional-contribution-cap-for-over-50s.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Operation-of-the-higher-concessional-contribution-cap-for-over-50s.html From 1 July 2012 individuals over 50 who have a superannuation balance of less than $500,000 will have the ability to contribute up to $50,000 of concessional contributions. Earlier this year the Government released a consultation paper seeking comment on the application of this previously announced measure. Currently it is unclear how this measure will operate. http://www.continuumfp.com.au/articles/Budget-Update-2011---Changes-to-government-co-contribution.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Changes-to-government-co-contribution.html In last year’s Budget the Government announced that the thresholds applying for co-contribution eligibility will be frozen for 2010/11 and 2011/12. As a result, the maximum co-contribution is only available for those with income levels of up to $31,920, and no co-contribution will be available once the individual’s qualifying level of income reaches $61,920. In this year’s Budget, the Government has... http://www.continuumfp.com.au/articles/Budget-Update-2011---Refund-of-excess-concessional-contributions.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Refund-of-excess-concessional-contributions.html Currently if a superannuation member exceeds their concessional contribution cap they are subject to excess concessional contributions tax of 31.5%. This is in addition to the 15% contributions tax. This liability may be paid from the superannuation account or paid by the member. This measure has impacted a considerable number of contributors, particularly those who inadvertently breached the cap. The Government has announced that... http://www.continuumfp.com.au/articles/Budget-Update-2011---Small-business-instant-write-off.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Small-business-instant-write-off.html Effective from the 1 July 2012, small businesses that purchase a vehicle on or after 1 July 2012 will be able to immediately write off up to $5,000 of the purchase price in the first year. The measure complements the previous reforms for small business, also set for introduction from 1 July 2012, including: an immediate write off on all assets under $5,000; a write off on all other assets above $5,000 (except buildings) in a... http://www.continuumfp.com.au/articles/Budget-Update-2011---Fringe-Benefit-Tax---reforms-of-the-car-fringe-benefit-rules.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Fringe-Benefit-Tax---reforms-of-the-car-fringe-benefit-rules.html Effective as at 7:30pm (AEST) on the 10 May 2011 the Government has announced they will reform the statutory formula method for determining the taxable value of car fringe benefits. Instead of determining the fringe benefit value based on the number of kilometres travelled, the Government has proposed to replace this with a single rate of 20% regardless of the distance travelled. This measure will be phased in over four years and will... http://www.continuumfp.com.au/articles/Budget-Update-2011---Flood-and-cyclone-reconstruction-Levy.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Flood-and-cyclone-reconstruction-Levy.html Effective from the 1 July 2011 the Government reaffirmed the implementation of the temporary Flood and Cyclone Reconstruction Levy in the Federal Budget. The levy will apply to taxable income included in both resident and non-resident individuals’ tax returns for the 2011/12 financial year only. The table below outlines the income thresholds and rate of levy applicable.    Taxable... http://www.continuumfp.com.au/articles/Budget-Update-2011---Phase-out-and-removal-of-dependent-spouse-rebate.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Phase-out-and-removal-of-dependent-spouse-rebate.html Effective from the 1 July 2011 the Government has announced that the dependent spouse rebate will be will be removed for taxpayers who have a dependant spouse born on or after 1 July 1971. The intent is that the removal of this offset benefit will result in the spouse actively looking to rejoin the workforce. The offset will remain available where the taxpayer: Has a spouse born before 1 July 1971 Has a spouse who is an... http://www.continuumfp.com.au/articles/Budget-Update-2011---Personal-Taxation-Changes.html http://www.continuumfp.com.au/articles/Budget-Update-2011---Personal-Taxation-Changes.html For the first time in eight years, no changes have been announced to personal income tax rates, thresholds or tax offset amounts for future income years. Personal income tax rates and thresholds will remain at the levels in the following table.    Taxable income range  Tax payable in 2011/12 (excluding Medicare)  $0 - $6,000 ... http://www.continuumfp.com.au/articles/Rules-of-successful-investing.html http://www.continuumfp.com.au/articles/Rules-of-successful-investing.html Rules were created for a number of reasons we could all speculate on, but one of the reasons has been to provide for an orderly conduct of our lives in a relatively safe environment. The following rules from the manager of a ‘managed fund’ in New York are easily applied to our local environment and to investors who rely on fund managers to do the hard ‘stock picking’ work. Where relevant, we have... http://www.continuumfp.com.au/articles/Strategic-wealth-management.html http://www.continuumfp.com.au/articles/Strategic-wealth-management.html We have most heard the expression that ‘he who makes no mistakes, makes nothing at all’; and another, ‘if you fail to plan, you plan to fail’; and again, the reminder that you rarely set out on a motor journey without having a roadmap (even if in your mind) as to how to get there. You know where this is going so let’s not beat about the bush: having a plan, based on individual factors and... http://www.continuumfp.com.au/articles/Beyond-the-Tempest.html http://www.continuumfp.com.au/articles/Beyond-the-Tempest.html The Early Warning Alert comes out: severe winds, heavy rain and damaging hail are on the way – areas to be affected are named and some safety measures accompany the alert. What do most people do when they receive the alert? How soon after the severe weather event is life back to normal? In the main, unless we are directly affected there is only passing interest shown; and if our area is affected, unless the storm causes our... http://www.continuumfp.com.au/articles/What-are-investing-conditions-like-right-now?.html http://www.continuumfp.com.au/articles/What-are-investing-conditions-like-right-now?.html Almost without doubt, the indicators are that equities are the current best performer: investors are being rewarded for including some economic risk in their portfolios! Why is this so at present? In a global sense, whilst inflation over the past several quarters has been benign (very flat), interest rates are also (almost spectacularly) low. Whilst there is little inflationary reduction in the spending power of cash, there is... http://www.continuumfp.com.au/articles/What-will-the-travel-be-like?.html http://www.continuumfp.com.au/articles/What-will-the-travel-be-like?.html Not like an Ocean Cruise – starting out slowly, stays at the one level and finishes in a relaxed state; Not like Air travel – steep hard take-off; cruise at one level and then slow decline to the destination; more like a Road Journey (through some mountainous terrain) – starts out with some orientation through the near-home streets, on to a freeway, then up and down hills and mountain ranges – and so... http://www.continuumfp.com.au/articles/Are-We-There-Yet?.html http://www.continuumfp.com.au/articles/Are-We-There-Yet?.html With Easter holidays just around the corner (and some already enjoying them) this might be a familiar call from the younger, less patient passengers when touring. As investors look at the performance of their funds over periods of time, they might well ask the same question: the fact is that there are cycles; there are trends – and there are events, none of which can be ignored (and each of which need understanding). ... http://www.continuumfp.com.au/articles/How-did-I-go?...-improving-position….html http://www.continuumfp.com.au/articles/How-did-I-go?...-improving-position….html Those of us who work to a plan need to review the progress of that plan at a convenient and consistent time each year: for many of us, this time of year is as convenient as possible. If you started the year with a listing of your assets, your income stream expectations and your goals you can now start to update the list in an adjoining column and determine whether you are able to get a good feeling in answering the question ….... http://www.continuumfp.com.au/articles/Where-did-it-go?...the-money….html http://www.continuumfp.com.au/articles/Where-did-it-go?...the-money….html A question often asked at year’s end: we look at the statement of our salary or profits and then we look at our Bank account and wonder what happened in between the earning of the money and what is now left! For most of us it is fairly obvious where it went – firstly, the tax man took his share; then the Bank wanted its share to cover the interest and repayments on the house mortgage; then we may have had some finance... http://www.continuumfp.com.au/articles/Where-did-it-go?...the-year….html http://www.continuumfp.com.au/articles/Where-did-it-go?...the-year….html 30 June is only a fortnight away and it seems only yesterday that we were talking about the financial year that ended 30 June 2009 – and the fact that the year whilst down overall, was finishing with a strong improvement in most markets. When we take the trouble to watch the market movements on a daily basis in so far as shares and bonds are concerned, the time seems to pass incredibly slowly at times (and we can start to think... http://www.continuumfp.com.au/articles/Briefing-briefing...html http://www.continuumfp.com.au/articles/Briefing-briefing...html We have now concluded the round of mid-year Client Briefings: those who attended and took advantage of this aspect of their service offering were treated to some interesting facts from our own Peter Cashman; from Zurich’s Brad Mackay (alt. Ray Killey); and from Ascalon H3 Global Investors’ Dale Robinson. The events were held in Warwick and Noosa in late March; and Brisbane this week. Attendees have feedback that they... http://www.continuumfp.com.au/articles/To-Market,-to-market.html http://www.continuumfp.com.au/articles/To-Market,-to-market.html We have now passed the anniversary of the turn-around in the equities markets and the domestic share market (All Ords) was up over 53% for the twelve months to 10 March 2010; and the Dow Jones was up (in their local currency) around 70% in the same period. Whilst we all know that the share market is meant to anticipate economic change (and price it in), do any of us believe that the economy has lifted by these factors? If we are in agreement... http://www.continuumfp.com.au/articles/Don’t-risk-the-unknown.html http://www.continuumfp.com.au/articles/Don’t-risk-the-unknown.html One of the greatest concerns for all generations is financial security: this concern is held by most at an individual or family level; and it is also the concern of governments and other community leaders from time to time. A concern that we face as a nation is that of being under-insured, even for events that we know are almost inevitable; as well as one that is in fact inevitable! Personal risk insurance is known by that name because that... http://www.continuumfp.com.au/articles/Hunter-Hall-Global-Ethical-Trust.html http://www.continuumfp.com.au/articles/Hunter-Hall-Global-Ethical-Trust.html The Hunter Hall Global Ethical Trust invests solely in International Shares. The Fund aims to outperform the MSCI World Total Return Index; Net Dividends Reinvested in Australian Dollars; over the medium to long-term by 5% p.a. without incurring significant risk to capital. The fund has a higher exposure to small cap stocks within the portfolio which adds a dimension of risk that may not suit all investors. The portfolio is also... http://www.continuumfp.com.au/articles/No-Income-Protection?.html http://www.continuumfp.com.au/articles/No-Income-Protection?.html If you can’t answer ‘Yes’ to each of the questions detailed below, you must read more… Why consider Income Protection? To provide an income when the life insured cannot earn one because of becoming disabled or severely ill. To ensure that business continuity is catered for even when the owner can no longer run the business. Are you so sure? If you suffer an illness or injury that takes... http://www.continuumfp.com.au/articles/Client-Briefings---March-2010.html http://www.continuumfp.com.au/articles/Client-Briefings---March-2010.html Don’t miss this round of our briefings (being held at Warwick, Brisbane and Noosa). We will be providing an update on activity with Continuum – which we hope you will find as exciting as we do; an overview of what market conditions have prevailed for our decision making – and your entertainment; what our guest Fund Manager view is on the market outlook for the near-term; and our special guest will be telling us... http://www.continuumfp.com.au/articles/Investing-for-Children-(usually-by-their-relatives).html http://www.continuumfp.com.au/articles/Investing-for-Children-(usually-by-their-relatives).html From time to time we are asked about investing for children’s futures. This is a difficult one to provide a ‘one size fits all’ appropriate response because, like most situations, individual family situations vary from client to client. The most difficult thing for us in this arena is that we are more focused on providing strategic advice than we are product advice (and that is not to say that we don’t... http://www.continuumfp.com.au/articles/Insurance/Investment-bonds.html http://www.continuumfp.com.au/articles/Insurance/Investment-bonds.html Investment bonds are provided by life insurance companies and friendly societies. Although the term “bond” is used, they are essentially like managed funds and receive special taxation treatment. Insurance bonds have a range of investment options ranging from the more conservative fixed-interest type assets right up to funds that include growth-style assets such as property, Australian and international shares. The bond... http://www.continuumfp.com.au/articles/Children’s-savings-accounts.html http://www.continuumfp.com.au/articles/Children’s-savings-accounts.html ‘Children’s Savings accounts’ are ‘high(er) interest’ bank accounts that operate in the same manner as a ‘regular’ bank account. They usually are low- or no-fee accounts and may offer bonus interest rates subject to minimum deposits or no-monthly withdrawals. As with regular savings accounts there are no prescribed payment amounts and parents may deposit money regularly or... http://www.continuumfp.com.au/articles/Scholarships-funds.html http://www.continuumfp.com.au/articles/Scholarships-funds.html Scholarship funds are managed investments, where contributions from parents and/or relatives are pooled to help save for a child’s future education costs. They are usually only offered by friendly societies. Like managed funds there are fees charged on these products for maintaining the investments – and the provider makes the investment decisions. There is a wide variety of funds, but the majority have a higher... http://www.continuumfp.com.au/articles/More-movements-as-we-strengthen-Continuum.html http://www.continuumfp.com.au/articles/More-movements-as-we-strengthen-Continuum.html We have previously advised that our new Administration Assistant – Amy – had started with us (that was four weeks ago already); and that Lisa, replacing Kathy in the Client Services Officer role had started with us: we can now announce that Peter Cashman – who you have all known of as a Joint Venturer with us over the past 2 ½ years – will be joining us as a shareholding partner as from 1... http://www.continuumfp.com.au/articles/Continuum-awarded-Qld-Securitor-Practice-of-the-Year.html http://www.continuumfp.com.au/articles/Continuum-awarded-Qld-Securitor-Practice-of-the-Year.html We are proud to announce our naming as 2010 Practice of the Year at the recent Queensland Securitor Professional Development Day event. Continuum was awarded for its outstanding client communications and highly developed business processes, and also for its contributions to, and advocacy for, Securitor as a Dealer Group. During the recent global financial crisis Continuum’s team, including Eric Walters, Warwick Bragg and Peter... http://www.continuumfp.com.au/articles/Modern-Awards-and-Superannuation….html http://www.continuumfp.com.au/articles/Modern-Awards-and-Superannuation….html Is your workplace impacted by the Modern Awards legislation? Why are two particular dates critical in the application of the legislation? What happened in the workplace as from 1 January 2010? As forewarned, the Rudd Labor Government has completed its undertaking to remove the previous government’s Work Choices legislation, replacing it with the Modern Awards legislation – with effect from 1 January 2010; and impacting on... http://www.continuumfp.com.au/articles/Commodities-are-more-than-a-commodity….html http://www.continuumfp.com.au/articles/Commodities-are-more-than-a-commodity….html Every day in every way, we use products, substances and materials that are either mined or grown for our benefit and convenience: why are we now considering ‘commodities’ to be an investment asset or class? It is accepted in investment circles that there are three criteria to satisfy to establish that an ‘investment’ opportunity is indeed an asset class: they are – an asset class must... http://www.continuumfp.com.au/articles/Interest-Rate-interest…..html http://www.continuumfp.com.au/articles/Interest-Rate-interest…..html We should all be interested in what happens on the first Tuesday each month (not just in November!), as we are all impacted in one way or another by the determinations of the Reserve Bank on the interest rate that it applies to loans it makes to the Trading Banks. For some of us it means higher deposit interest on savings and investments; for some it means higher borrowing costs; and for all of us, it affects the flow of money in the... http://www.continuumfp.com.au/articles/Modern-Awards---Default-Fund-and/-or-Super-Choice.html http://www.continuumfp.com.au/articles/Modern-Awards---Default-Fund-and/-or-Super-Choice.html The default fund for your employees is an important classification – and in the context of the Modern Awards regulatory process plays a significant role in determining the amount of administrative procedure you have to concern yourself with as from 1 January 2010. It is also worth noting that your employees are at an advantage in the present circumstances – and can benefit further if additional members are added to the... http://www.continuumfp.com.au/articles/Modern-Awards---Critical-Dates.html http://www.continuumfp.com.au/articles/Modern-Awards---Critical-Dates.html From a Superannuation viewpoint, there are perhaps two critical dates to be considered when determining whether there will be an impact on the way you manage your super-annuation guarantee obligations to employees going forward: they are - 1 January 2010: this is the date on which The Fair Work Act 2009 specified as the date on which Modern Awards would be effective. Within some of those Awards, particular superannuation funds are... http://www.continuumfp.com.au/articles/Buy-Sell-Agreement-cover.html http://www.continuumfp.com.au/articles/Buy-Sell-Agreement-cover.html In our article on Buy-Sell Agreements we disclose how important it is to have a clear understanding well in advance of ‘events’ as to what happens when they occur. One important issue in relation to business succession planning is how any financial arrangements are to be settled at the relevant time. Whilst the business involved will have a given value, it is also the case that any continuing... http://www.continuumfp.com.au/articles/Negative-Gearing.html http://www.continuumfp.com.au/articles/Negative-Gearing.html What is negative gearing? Gearing simply refers to the act of borrowing money to invest. Negative gearing occurs when the expenses associated with an investment, including interest on the money borrowed, are greater than the income from the investment. This means that you are making an income loss on the investment which is generally tax deductible. Because the loss is tax deductible, your overall tax is reduced. This helps to reduce the... http://www.continuumfp.com.au/articles/Mortgage-Trusts.html http://www.continuumfp.com.au/articles/Mortgage-Trusts.html What is a mortgage trust? A mortgage trust is a unit trust investment where your money is pooled with that of other investors. The money is then invested by the manager of the trust in a range of mortgages. The money is invested by lending to another party for the purpose of purchasing a property. In most cases the property will already exist but some mortgage trusts will lend to people undertaking property development. The loan is secured... http://www.continuumfp.com.au/articles/Listed-Investments.html http://www.continuumfp.com.au/articles/Listed-Investments.html What are listed investments? Listed investments are investments quoted on the Australian Stock Exchange (ASX) or another stock exchange located overseas and are able to be bought and sold through the sharemarket. Listed investments allow you to gain ownership of any publicly listed company via the purchase of shares. Shares in companies, listed property trusts and investment companies are the three main types of listed investments in... http://www.continuumfp.com.au/articles/Investing-Overseas.html http://www.continuumfp.com.au/articles/Investing-Overseas.html Investing in overseas markets opens up a range of potential investments much greater than that available in Australia. In global terms, the Australian market is quite small and is less than two per cent of the total money invested in the world’s sharemarkets. This represents only a small proportion of the world’s investment opportunities and investing overseas allows you to diversify your investment portfolio across the... http://www.continuumfp.com.au/articles/Dollar-Cost-Averaging.html http://www.continuumfp.com.au/articles/Dollar-Cost-Averaging.html What is dollar cost averaging? Dollar cost averaging is an approach to investing within managed investments which involves investing a set amount of money at regular intervals rather than a larger lump sum at one time. By investing this way you are not attempting to pick the highs and lows of the market but rather the cost of your investment is ‘averaged’ over many periods. What are the advantages of dollar cost... http://www.continuumfp.com.au/articles/Who-Gets-Your-Superannuation-When-You-Die?.html http://www.continuumfp.com.au/articles/Who-Gets-Your-Superannuation-When-You-Die?.html One of the most important decisions you make when you join a superannuation fund has nothing at all to do with investment choices. Superannuation is not an estate asset, meaning that it does not automatically get distributed by your Will. It is therefore important that you consider how and to whom you will leave your superannuation benefits. Who can receive your superannuation when you die? Strict superannuation rules govern how your super... http://www.continuumfp.com.au/articles/Partnership/-Shareholders-Agreements.html http://www.continuumfp.com.au/articles/Partnership/-Shareholders-Agreements.html When businesses are being established, owners usually undertake extensive research and due diligence processes to satisfy themselves that the investment (of time, energy, emotion and finances) is going to achieve particular outcomes. This is all part of business planning. One important aspect of business planning is to ensure that business succession arrangements are in place to deal with risks to the business continuity in the face of... http://www.continuumfp.com.au/articles/Newstart-Allowance.html http://www.continuumfp.com.au/articles/Newstart-Allowance.html Newstart Allowance (NSA) serves to support those who are actively seeking employment or temporarily incapacitated. Certain criteria must be met before the applicant becomes eligible and these include: The applicant must be unemployed, or regarded as unemployed (this can include some people who work), Aged 21 or over but under Age Pension age. Willing to undertake suitable paid employment, Unless exempted, must... http://www.continuumfp.com.au/articles/Maternity-Payment-(Baby-Bonus).html http://www.continuumfp.com.au/articles/Maternity-Payment-(Baby-Bonus).html A Maternity Payment of $5,185 is paid to families for each child born after 1 January 2009. This payment replaces the previous Maternity Allowance and Baby Bonus arrangements. From 1 January 2009 the payment will only be available where the estimated combined adjusted taxable income (ATI) is not greater than $75,000 in the six months following birth and will be payable in 13 fortnightly instalments of approximately $398.85 per fortnight.... http://www.continuumfp.com.au/articles/Liquid-Assets-Waiting-Period.html http://www.continuumfp.com.au/articles/Liquid-Assets-Waiting-Period.html What is the Liquid Assets Waiting Period test? The Liquid Assets Waiting Period (LAWP) is a period that you must wait before being paid an allowance (Newstart, Sickness and Youth Training), if you have ‘liquid’ funds above the threshold. The maximum LAWP is 13 weeks and is applied from the date that your employment ceased. Liquid assets are any readily available funds, including those of your partner, which you can... http://www.continuumfp.com.au/articles/Income-Maintenance-Period.html http://www.continuumfp.com.au/articles/Income-Maintenance-Period.html What is the Income Maintenance Period? Income Maintenance Period (IMP) treats lump sum payments for outstanding leave and redundancy received at termination of employment as assessable income for the period relevant to the leave and the weeks of pay included in the redundancy. The IMP commences on the day that you receive the leave payment. What Centrelink benefits are affected? The IMP is applied to all non-age pension income support... http://www.continuumfp.com.au/articles/Gifting.html http://www.continuumfp.com.au/articles/Gifting.html In order to prevent you from simply giving away your assets to qualify for age pension and other social security benefits, Centrelink and the Department of Veteran Affairs have introduced rules that impact income support recipients who “gift” away their assets. These gifting rules can be summarised as follows: Two tests apply in respect of asset gifting: a maximum of $10,000 in gifts is allowed... http://www.continuumfp.com.au/articles/Intergenerational-Assets.html http://www.continuumfp.com.au/articles/Intergenerational-Assets.html By this term, we at Continuum Financial Planners refer to those assets that a family accumulates over time and pass from one generation to another. By medium of well-structured Estate Planning, such assets may pass directly to future generations, or be held in testamentary trusts for their benefit. Those assets that already exist in family discretionary trusts are managed differently, but can still be part of the Estate Planning, albeit not... http://www.continuumfp.com.au/articles/Business-Succession.html http://www.continuumfp.com.au/articles/Business-Succession.html Succession is the passing of something from the current holder to the next holder: you might think of it as a baton in a relay race. Sometimes succession happens in an orderly, planned way – and on other occasions, it is thrust upon us. Business Succession is no different: we can plan for it; or we can wait for events to catch up with us. The two main areas for which Business Succession Planning is undertaken, are:- ... http://www.continuumfp.com.au/articles/Beneficiary.html http://www.continuumfp.com.au/articles/Beneficiary.html A beneficiary is a person who has a legal right to the use or enjoyment of an asset, even though the asset is not owned in his or her name. In Trust and Estate situations, the beneficiary must be named to be able to start to enjoy the status bestowed on them: in a Will for bequest purposes, from an estate; but may initially have recognition eligibility by ‘class’ in Trust situations (whether the Trusts are within estates... http://www.continuumfp.com.au/articles/Legal-Adviser.html http://www.continuumfp.com.au/articles/Legal-Adviser.html As is the case in so many professions, the legal fraternity is comprised of generalists and specialists amongst the ‘lawyers’ we generally recognise in legal firms (other than barristers). At Continuum Financial Planners we have developed an extensive network of legal firms from whom specialist advice is available on a range of topics. Areas that are of particular interest to us in our financial planning role, include... http://www.continuumfp.com.au/articles/Enduring-power-of-attorney.html http://www.continuumfp.com.au/articles/Enduring-power-of-attorney.html A document by which a person gives an agent (the attorney) authority to act on his or her behalf. The power is enduring when the document states that the authority to act shall continue regardless of the later mental incapacity of the person giving the power. In Queensland, the Power can be restricted to financial matters or extended to dealing with health issues: in either case, it is possible within the EPA document (which grants the power... http://www.continuumfp.com.au/articles/Buy-Sell-Agreements.html http://www.continuumfp.com.au/articles/Buy-Sell-Agreements.html Even if you’re looking to stay on in your business for longer or have no plan for retirement, a buy/sell agreement ensures the future of the business continues as you wish in circumstances prescribed in the agreement. Some of those circumstances might not be planned – and could arise without notice: accidents, serious illness, even death are amongst the more obvious situations of concern. A buy/sell agreement is a legal... http://www.continuumfp.com.au/articles/Disability-Support-Pension.html http://www.continuumfp.com.au/articles/Disability-Support-Pension.html The Disability Support Pension (DSP) aims to provide a level of support to people whose physical, intellectual or psychiatric impairment prevents them from working. This pension is also payable to people who are permanently blind. The rate of DSP and the income and assets test are the same as for the Age Pension. Basic conditions of eligibility for Disability Support Pension (DSP) are: Aged 16 or over but less than Age Pension age at... http://www.continuumfp.com.au/articles/Deeming.html http://www.continuumfp.com.au/articles/Deeming.html What is deeming? Deeming is the term which describes the method used by Centrelink and Veteran’s Affairs to calculate your assessable income from certain investments when determining the level of entitlement to be paid. Deeming means that you are assumed to earn a certain return on ‘financial’ investments, irrespective of the actual rate of interest or capital growth you earn. If you earn more than the deemed... http://www.continuumfp.com.au/articles/Estate-Planning.html http://www.continuumfp.com.au/articles/Estate-Planning.html A recurrence of life-changing incidents within a circle of contacts often brings the subject of Estate Planning back into focus. This is an area that each of us who has dependants, particularly financial dependants, owe it to them to ensure that what is being provided for their ongoing well-being is both secured for them and delivered in as timely a manner as possible. Some of the issues that need to be considered, include – ... http://www.continuumfp.com.au/articles/Family-Tax-Benefit-Parts-A-and-B.html http://www.continuumfp.com.au/articles/Family-Tax-Benefit-Parts-A-and-B.html What are Family Tax Benefits (FTB)? Family Tax Benefits help families with the cost of raising children by offering ongoing financial assistance. Specific requirements have to be met for a family to qualify for the benefit. The benefits can be claimed fortnightly through Centrelink, as part of your yearly tax return or as an adjustment of PAYG tax. Family Tax Benefits are divided into two categories known as Part A and Part B. Who can... http://www.continuumfp.com.au/articles/Compensation-Preclusion-Period.html http://www.continuumfp.com.au/articles/Compensation-Preclusion-Period.html What is the Centrelink compensation preclusion period? If you have received, or are about to receive a lump sum payment of compensation, there will be a period during which you will not be able to receive an income support payment from Centrelink or the Department of Veterans Affairs (DVA). This period is called the ‘preclusion period’ and it will usually date from the time of the accident or the cessation of regular... http://www.continuumfp.com.au/articles/Referrals-are-the-most-valuable-gift-you-can-give-your-adviser.html http://www.continuumfp.com.au/articles/Referrals-are-the-most-valuable-gift-you-can-give-your-adviser.html Referrals are treasured by our company – and we take this opportunity to reiterate our sincere appreciation to those of you who have made referrals to us: we trust that the tangible expressions of our appreciation have been appropriate – and enjoyed. We will always acknowledge the generosity of those who have been kind enough to let their family, friends or work colleagues know how much they appreciate our service (when... http://www.continuumfp.com.au/articles/Commodities-are-an-important-asset-in-modern-portfolio-construction.html http://www.continuumfp.com.au/articles/Commodities-are-an-important-asset-in-modern-portfolio-construction.html Commodities are an emerging market in the diversified portfolio space with quite a bit of attention being given to the ‘equity-like’ performance as an asset, but without the shocks that accompany the share markets. Securitor has made a couple of commodities funds available to our clients through their product approval system – and we have given them some consideration and analysis. During 2010 we will most... http://www.continuumfp.com.au/articles/Markets-to-continue-improving-in-2010….html http://www.continuumfp.com.au/articles/Markets-to-continue-improving-in-2010….html Markets are rising around the world on the various stock exchanges in response to the ever-so-slow increase in economic activity – and share prices are generally staying ahead of any foreign currency exchange headwinds to generate continuing improvement in share portfolio values. As Continuum Financial Planners has shared in other places, we anticipate that this trend will continue through 2010 – and we are in the camp... http://www.continuumfp.com.au/articles/Interest-rates-to-rise-in-2010.html http://www.continuumfp.com.au/articles/Interest-rates-to-rise-in-2010.html Interest is increasing in what the Reserve Bank will do when next they meet in February 2010 – and the odds being given by ‘the usual crowd’ of economists suggest that there will be a 0.25% (25 bps – ‘basis points’) rise in the official interest rate on that first Tuesday. Will the Banks have the temerity to increase by a factor greater than the RBA? Will the government have enough... http://www.continuumfp.com.au/articles/Overview-of-the-superannuation-guarantee-scheme.html http://www.continuumfp.com.au/articles/Overview-of-the-superannuation-guarantee-scheme.html What is the superannuation guarantee? The superannuation guarantee scheme requires all employers to provide a minimum level of superannuation support in each financial year for their employees, subject to limited exceptions. Employers who fail to provide the prescribed minimum level of SG support are liable to an SG charge as well as additional penalties. Who is covered under the superannuation guarantee? In general terms an employer is... http://www.continuumfp.com.au/articles/Clearing-House-facility.html http://www.continuumfp.com.au/articles/Clearing-House-facility.html A clearing house facility exists within the Asgard Business Superannuation offering with the effect that all of your employee superannuation contributions can be processed in the one transaction – even those where through Choice of Fund action has meant that particular employees wish their contributions to go to different providers. This is an online facility that saves considerable administrative process and has no extra cost to... http://www.continuumfp.com.au/articles/Choice-of-Fund.html http://www.continuumfp.com.au/articles/Choice-of-Fund.html What is Choice of Super(annutaion)/Fund? Choice of superannuation fund is a law that was introduced to give a significant number of employees the right to choose which superannuation fund will receive their employer superannuation contributions. It has applied since 1 July 2005. Who Does Choice of Superannuation Affect? Employers, employees, superannuation funds and their trustees, and financial advisers all have obligations under choice... http://www.continuumfp.com.au/articles/Superannuation-Death-Benefits.html http://www.continuumfp.com.au/articles/Superannuation-Death-Benefits.html A death benefit is a payment made following a person’s death and has the benefit of being concessionally taxed. A death benefit cannot be rolled over. Lump sum death benefits are payable: From an employer, superannuation fund, approved deposit fund (ADF) or life company, On the conversion of, or payment of, a superannuation pension or annuity, On the conversion of a reversionary pension or annuity made within the... http://www.continuumfp.com.au/articles/Children’s-Education-funding.html http://www.continuumfp.com.au/articles/Children’s-Education-funding.html Overview It is widely reported that the costs of raising children from birth until adulthood are very significant (by one recent survey, around $1,000,000 – 2009 value – from birth to age 25). By far the most important aspect of investing for the future of children is to save regularly and start early. There are several different investment vehicles for savings and the preferred option, along with whose name the... http://www.continuumfp.com.au/articles/Dealing-with-Negative-Returns.html http://www.continuumfp.com.au/articles/Dealing-with-Negative-Returns.html Why do negative returns occur? Some investments, like cash and term deposits with banks, never fall in dollar value. However, they can create problems for investors over the medium to long-term as they produce only modest returns with no capital growth or no tax effectiveness. The purchasing power of these investments decreases in real terms over time (that is, after taking into account the effects of inflation). In order to achieve higher... http://www.continuumfp.com.au/articles/Continuum-Financial-Planners-Newsletter-|-Edition-3-2009-|.html http://www.continuumfp.com.au/articles/Continuum-Financial-Planners-Newsletter-|-Edition-3-2009-|.html Click here to view our Newsletter online http://www.continuumfp.com.au/articles/Superannuation-Splitting.html http://www.continuumfp.com.au/articles/Superannuation-Splitting.html It is allowable for a member to split superannuation contributions across to their spouse’s account. A spouse is defined as a person who lives with another in a genuine domestic relationship as husband and wife. This definition includes de facto couples as well as same sex partners (watch this space). The rules relating to this strategy allow for 85 per cent of concessional contributions (including contributions made by your... http://www.continuumfp.com.au/articles/Non-concessional-Contributions.html http://www.continuumfp.com.au/articles/Non-concessional-Contributions.html What are non-concessional contributions? These are contributions made to a superannuation fund by an individual member for which a tax deduction has not been claimed. These used to be known as undeducted contributions and count towards your non-concessional cap. Why make non-concessional contributions? There are many advantages in making non-concessional contributions: Non-concessional contributions are not subject to the 15 per... http://www.continuumfp.com.au/articles/Eligible-Termination-Payments.html http://www.continuumfp.com.au/articles/Eligible-Termination-Payments.html What payments may I get when I leave work? When you leave your job and meet the definition of “bona-fide redundancy” because you have accepted a voluntary redundancy or have been made redundant involuntarily; or accepted an early retirement under an approved scheme, you will generally receive additional payments to those you would normally expect had you resigned or been dismissed for disciplinary reasons. These... http://www.continuumfp.com.au/articles/Who-Can-Contribute-to-Superannuation?.html http://www.continuumfp.com.au/articles/Who-Can-Contribute-to-Superannuation?.html If you are under 65, you can contribute to superannuation personally or have contributions made on your behalf without the need to be employed. If you are aged 65 or over, the following requirements apply: Aged 65 to 74: You can make personal contributions or receive employer contributions as normal if you satisfy ‘the work test’ (that is, you have been gainfully employed for at least 40 hours in a... http://www.continuumfp.com.au/articles/Investing-in-Superannuation.html http://www.continuumfp.com.au/articles/Investing-in-Superannuation.html Why invest in superannuation? Superannuation is a tax effective way of accumulating wealth for your retirement. The Government provides tax incentives to encourage you to utilise superannuation to provide for your retirement. Because of the generous tax concessions, the Government places restrictions on how much can be contributed and concessionally taxed on withdrawal and when you can actually take your benefits out of superannuation. How... http://www.continuumfp.com.au/articles/Self-funded-Income-Streams.html http://www.continuumfp.com.au/articles/Self-funded-Income-Streams.html There are a number of ways in which a retiree can provide the income stream required to meet their lifestyle (and emergency) needs when not able to qualify for the age pension. We understand that most people – by the time they reach retirement – are looking for two key features about their retirement wealth: consistency of adequate income; and preservation of capital. Falling behind these key requirements is... http://www.continuumfp.com.au/articles/Term-Allocated-Pensions.html http://www.continuumfp.com.au/articles/Term-Allocated-Pensions.html What is a term allocated pension? A term allocated pension is a superannuation account that provides for your super to be paid to you as regular income for a fixed period. They can commence after retirement or as part of a “transition to retirement”. The pension payments made to you are set each year based on your account balance and the term remaining on your pension. After a 6 month cooling off period it cannot be... http://www.continuumfp.com.au/articles/Allocated-Pensions.html http://www.continuumfp.com.au/articles/Allocated-Pensions.html What is an allocated pension? An allocated pension is simply an account within a superannuation fund, designed to pay you regular pension payments. Within the pension account, you can invest into a range of managed investments and shares, or simply hold your money in a cash account. Investment earnings such as dividends and capital growth in underlying investment assets are added to the account and a pension is paid from the account to you... http://www.continuumfp.com.au/articles/Time-out-for-a-comfort-test....html http://www.continuumfp.com.au/articles/Time-out-for-a-comfort-test....html If your family’s principal income earner meets with a sudden and unexpected accident, illness or death, how would the family survive? Not just the next three years, or thirty years – albeit that those terms are very important – but how about the next month, the next three months or the next year? If there is cash in the bank (or even a pre-arranged line of credit) will this event mean that access is not readily... http://www.continuumfp.com.au/articles/Bulls?-Bears!...Who-cares?.html http://www.continuumfp.com.au/articles/Bulls?-Bears!...Who-cares?.html What is a Bull – and what is a Bear (– in financial market terms)? What defines a Bull Market, or a bear Market? Whether the Bulls are running or the Bears are roaring – the markets continue to operate: so should you be concerned about the state of the market at any time in your long-term planning? In financial markets a Bull is a positive investor: one with a view that the markets are improving and are... http://www.continuumfp.com.au/articles/Diversifying-your-portfolio-to-mediocrity???.html http://www.continuumfp.com.au/articles/Diversifying-your-portfolio-to-mediocrity???.html Is the diversification of your investment portfolio just a way for your financial planner to protect themselves: or is it a valid tool for the design of your portfolio and selection of assets/ managers to achieve your strategic goals? We reveal the elements that need to be assessed to ensure that your portfolio attains optimum outcomes – not mediocrity. Investment assets come in three basic forms: cash (including fixed income... http://www.continuumfp.com.au/articles/Don’t-fix-your-home-mortgage-interest-rates???.html http://www.continuumfp.com.au/articles/Don’t-fix-your-home-mortgage-interest-rates???.html The Reserve Bank of Australia recently raised the Bank Lending rate by 0.25% (25 basis points; or bps) and that has caused people to become alarmed about whether they should fix rates now. In response to the RBA action, all of the major banks have increased their Variable – and their Fixed – rates by the same amount. We recently calculated the current disadvantage of fixing at the wrong time in the cycle and found that... http://www.continuumfp.com.au/articles/Client-Briefings-brought-new-insights.html http://www.continuumfp.com.au/articles/Client-Briefings-brought-new-insights.html Our final client briefings for 2009 were held in Warwick, Brisbane and at Noosa during the first week of October. Those who attended have rated the event well and commented that they learned quite a bit about the reasons behind the changes in the market over the past two years – and more importantly for many of them – about the importance of having a correctly drafted, valid Will based on Estate Planning principles. Mr... http://www.continuumfp.com.au/articles/Market-performance-up-to-expectations.html http://www.continuumfp.com.au/articles/Market-performance-up-to-expectations.html The well-known investment adage that the market foretells economic developments has once again proven correct: watch the move in market prices for a particular sector and the economy for that sector will most likely take that path within 5 to 9 months. Since early March (around 9th), the US and Australian equity markets have risen by more than 50% (at time of writing): whilst a significant portion of this growth is because of a massive... http://www.continuumfp.com.au/articles/Client-Survey.html http://www.continuumfp.com.au/articles/Client-Survey.html You’ve had your say in our most recent Client Survey and we are very gratified by the results as we have analysed them so far. We will continue to analyse the information we have received and make the following commitments:- We will report the ‘warts’ as well as the positives;  We will work to improve performance at all levels; and We will let you know as we make changes as a... http://www.continuumfp.com.au/articles/International-offer:-is-it-‘too-good-to-be-true’?.html http://www.continuumfp.com.au/articles/International-offer:-is-it-‘too-good-to-be-true’?.html One of Eric’s clients recently alerted the office that an offer had been put to them by telephone, to participate in an investment in a company in the United States of America. Prudently, the client asked the sales person to contact Eric: needless to say, as at the time of writing there has been no contact with Eric – or with Continuum Financial Planners by this group. This is not an unusual event but it has brought to... http://www.continuumfp.com.au/articles/Happy-New-Year.html http://www.continuumfp.com.au/articles/Happy-New-Year.html The financial year is coming to an end. We trust that your budgets have balanced, your portfolios are strategically strong, your tax records are in order and that all those year-end tips we sent out earlier in the month have been helpful. Have a Happy New (financial) Year!! We look forward to bringing you better news over the course of the year as it unfolds. http://www.continuumfp.com.au/articles/We-will-soon-be-looking-for-your-appraisal-of-our-performance-in-a-client-survey-being-prepared.html http://www.continuumfp.com.au/articles/We-will-soon-be-looking-for-your-appraisal-of-our-performance-in-a-client-survey-being-prepared.html Our regular survey of clients will soon be published – and this year you will be able to undertake your appraisal of what we are doing – or planning to do – online through our own website. Look out for further news on this front in the coming few weeks. Early contributors will be eligible to win some of the prizes we are assembling to send in appreciation of your time taken to respond. http://www.continuumfp.com.au/articles/Another-disappointing-year-on-the-‘return’-front,-but-closing-out-with-a-warm-glow....html http://www.continuumfp.com.au/articles/Another-disappointing-year-on-the-‘return’-front,-but-closing-out-with-a-warm-glow....html A positive finish but still negative returns for our investment portfolios during the 2008/09 financial year. With two major low points on the market during the past year (September/ October 2008; and March 2009) this will be the second year in succession with negative returns reported on most portfolios. Interestingly, as we have reminded clients over the several months from November through until March, there was an exciting upturn from... http://www.continuumfp.com.au/articles/Year-end-tax-planning:.html http://www.continuumfp.com.au/articles/Year-end-tax-planning:.html The effectiveness of some of the strategies mentioned below will depend on your personal taxation circumstances: whether an employee, a sub-contractor or a self-employed business operator (carrying on business under a structure): you need to confirm any proposed course of action with your accountant, tax agent or financial planner before acting on them. (Please refer to the general disclaimer published with this commentary.) Maximise... http://www.continuumfp.com.au/articles/Personal-risk-insurance---Income-Protection.html http://www.continuumfp.com.au/articles/Personal-risk-insurance---Income-Protection.html Who is it for? All individuals generating an income from their personal exertion, or from personal management of investment portfolios, need to seriously contemplate – and act on –Income Protection insurance. Initiating cover and/ or revising it are equally important: the latter on a reasonably regular basis. How does it work? A valid and eligible claim under an Income Protection policy is usually paid on a monthly... http://www.continuumfp.com.au/articles/Investment-Market-Behaviour.html http://www.continuumfp.com.au/articles/Investment-Market-Behaviour.html All of the following comments are directed towards investment philosophy: readers who follow a more intense trading pattern in their financial management will need to look to other articles for guidance. Continuum Financial Planners work with clients who are traders, but do not advise on timing or product for that purpose. Persisting theme Over any given period of time – and regardless of the market circumstances at the time of an... http://www.continuumfp.com.au/articles/Budget-Update-2009---Commonwealth-Seniors-Health-Care-Card.html http://www.continuumfp.com.au/articles/Budget-Update-2009---Commonwealth-Seniors-Health-Care-Card.html It was announced as part of the 2008-2009 Federal Budget that gross tax-free superannuation lump sum and pension income was to be included in the adjusted taxable income test for the Commonwealth Seniors Health Care Card. The Government has decided not to proceed with this measure. http://www.continuumfp.com.au/articles/Budget-Update-2009---Increase-in-Age-Pension-Age.html http://www.continuumfp.com.au/articles/Budget-Update-2009---Increase-in-Age-Pension-Age.html The qualifying age for the Age Pension will gradually increase from 65 to 67 by 2023. The qualifying age for men and women will be increased by six months every two years, commencing 1 July 2017 and reaching 67 on 1 July 2023. Only new entrants to the pension system from 1 July 2017 will be affected. The qualifying age for the Veterans’ Service Pension will remain at 60. The table below highlights how the pension age will... http://www.continuumfp.com.au/articles/Budget-Update-2009---Increase-to-Medicare-levy-low-income-thresholds.html http://www.continuumfp.com.au/articles/Budget-Update-2009---Increase-to-Medicare-levy-low-income-thresholds.html The thresholds will increase to $17,794 for individuals (up from $17,309) and $30,025 for individuals in families (up from $29,207) from 1 July 2008. The additional amount for each dependent child will increase from $2,682 to $2,757.   The Medicare levy threshold for pensioners below Age Pension age will increase to $25,299 ensuring pensioners below Age Pension age do not pay Medicare levy when they don’t have a tax... http://www.continuumfp.com.au/articles/Budget-Update-2009---Extension-of-the-First-Home-Owners-Boost.html http://www.continuumfp.com.au/articles/Budget-Update-2009---Extension-of-the-First-Home-Owners-Boost.html For eligible first home buyers entering into contracts between 1 July 2009 and 30 September 2009 the First Home Owners Boost will continue to provide $7,000 for the purchase of established homes and $14,000 for the purchase of new homes. This means that first home owners will receive a total of $14,000 for established homes and $21,000 for new homes.   For eligible first home owners entering into contracts between 1 October 2009... http://www.continuumfp.com.au/articles/Budget-Update-2009---Private-Health-Insurance-Rebate.html http://www.continuumfp.com.au/articles/Budget-Update-2009---Private-Health-Insurance-Rebate.html Effective from the 1 July 2010 there will be three new tiers applying to the Private Health Insurance Rebate. Under the existing arrangements tax payers who have private health insurance are entitled to a 30% rebate of their premiums. From the 1 July 2010 this will remain unchanged for singles with income less than $75,000 per annum and families with incomes less than $150,000 per annum. The table below outlines the different rebates that... http://www.continuumfp.com.au/articles/Budget-Update-2009---Temporary-Reduction-of-the-Government-Co-contribution.html http://www.continuumfp.com.au/articles/Budget-Update-2009---Temporary-Reduction-of-the-Government-Co-contribution.html The matching rate and maximum co-contribution payable will beb reduced from 1 July 2009. For the 2009, 2010 and 2011 financial years where you make a non-concessional contribution to superannuation and are eligble to receive the Goverment Co-contribution the government will match this contribution 100% upto a maxiumum payment of $1,000.  For the 2012, and 2013 financial years where you make a... http://www.continuumfp.com.au/articles/Budget-Update-2009---Account-based-pension-minimum-drawdown.html http://www.continuumfp.com.au/articles/Budget-Update-2009---Account-based-pension-minimum-drawdown.html The Government has announced that the minimum pension payment required to be withdrawn from an account base pension (Allocated Pension) will be halved for 2009/10 financial year. The table below outlines the minimum pension you must draw from your pension account during the 2009/10 financial year based on your age. http://www.continuumfp.com.au/articles/Budget-Update-2009---Superannuation-Contribution-Limits.html http://www.continuumfp.com.au/articles/Budget-Update-2009---Superannuation-Contribution-Limits.html Federal Government announced that the concessional contributions cap are proposed to halve to $25,000 per annum with effect from the 2009-2010 financial year, limiting the ability to salary sacrifice into super for higher income ear earners. 'Transition to Retirement’ pensions remain, however the strategy will be somewhat limited with the transitional cap of $100,000 for those aged 50 or older also being halved from 2009-2010 to... http://www.continuumfp.com.au/articles/Budget-Update-2009---Overview.html http://www.continuumfp.com.au/articles/Budget-Update-2009---Overview.html A number of reforms and new annoucements were made in the Budget handed down by the Federal Government on Tuesday 12 May 2009. The links below outline these reforms and announcements and how they affect you. For further details on these budget annocuments please click on the links. Superannuation Contribution Limits Increase in Age Pension Age Reduction in Private Health Insurance Rebates Temporary Reduction... http://www.continuumfp.com.au/articles/Investing-under-way-(Dollar-cost-averaging).html http://www.continuumfp.com.au/articles/Investing-under-way-(Dollar-cost-averaging).html As the ‘dark becomes less dark’ (perhaps there is a light at the end of the tunnel after all?) we are recording improvements in client portfolios and believe that even greater gains are yet to be made. We have been encouraging investors to consider their investment objectives and their timeframes – and then acting to benefit from the changing level of confidence. We are pleased to see that a number of clients... http://www.continuumfp.com.au/articles/..and-what-about-that-‘stimulus’-package??.html http://www.continuumfp.com.au/articles/..and-what-about-that-‘stimulus’-package??.html Have you received your ‘bonus’ from the government? How are you planning to ‘spend’ it? In a recent newsletter from the people at Vanguard Investments, an article by James Dunn (a financial journalist and media consultant) took our eye here at Continuum. The article complements the AXA article "The Economy and Investor trends: de-leveraging" also published in the article... http://www.continuumfp.com.au/articles/The-Economy-and-Investor-trends:-de-leveraging.html http://www.continuumfp.com.au/articles/The-Economy-and-Investor-trends:-de-leveraging.html Saving .. clearing debt and investing - In a recent article in which the CIO of AXA – Australia and New Zealand published his point of view to advisers: the following comments show a favourable view for the long-term investor (and probably a better outlook for households generally) – beyond the next several months. His headline indicates that “far from lagging the rest of the world, there are signs that... http://www.continuumfp.com.au/articles/Investing-in-a-Perfectly-Rational-Sharemarket.html http://www.continuumfp.com.au/articles/Investing-in-a-Perfectly-Rational-Sharemarket.html Peter Thornhill, Author, recently addressed the Asgard Investor Forum in Queensland and those attending were given an entertaining and statistically forceful argument as to what proves that the sharemarket is a rational vehicle, why shares are a safe, dependable, boring, high income investment, as opposed to highly RISKY Term Deposits. Peter is passionate in his faith in Industrial Shares on the Australian share-market. He cleverly showed... http://www.continuumfp.com.au/articles/Economics-101.html http://www.continuumfp.com.au/articles/Economics-101.html Economics and some market facts As most investors will be aware, Central Banks, such as the Reserve Bank of Australia, play an important role in managing their economies through a combination of both fiscal policy and monetary policy. Fiscal policy relates basically to the level of interest rates. For example, when Central Banks raise interest rates they are said to be “tightening” liquidity with the result that... http://www.continuumfp.com.au/articles/A-Global-Economic-&-Market-Outlook.html http://www.continuumfp.com.au/articles/A-Global-Economic-&-Market-Outlook.html Dr Chris Caton, Economist, recently addressed the Asgard Investor Forum in Queensland and those attending were given statistical ‘argument’ making the case that, even if the Markets haven’t bottomed, now is an ideal time to be investing – for the LONG TERM. In a series of slides – that you may wish to contact our office to receive a copy – Chris demonstrated that from an economic... http://www.continuumfp.com.au/articles/Closed-/-Frozen-Funds-Management.html http://www.continuumfp.com.au/articles/Closed-/-Frozen-Funds-Management.html Investors who have a portion of their portfolio invested in some of the mortgage and/ or income funds, or wanting to do so have been frustrated since the government decided to provide a guarantee for deposits at ‘Banks’ – which has led to a run on other ‘cash deposit’ managers, including these funds. They have had to respond in turn by restricting further deposits and only allowing redemptions... http://www.continuumfp.com.au/articles/Client-Update-Events.html http://www.continuumfp.com.au/articles/Client-Update-Events.html Clients being serviced from our Noosa office and in the Warwick District should be on the lookout for an invitation to our update seminars being held on March 10 (Noosa Lakes) and Clients being serviced from our Noosa office and in the Warwick District should be on the lookout for an invitation to our update seminars being held on March 10 (Noosa Lakes) and March 11 (The Jackie Howe Motel). We are pleased that BT Investment... http://www.continuumfp.com.au/articles/Do-not-destroy-the-essential-catalyst-of-risk.html http://www.continuumfp.com.au/articles/Do-not-destroy-the-essential-catalyst-of-risk.html Since the spring, and most acutely this autumn, a global contagion of fear and panic has choked off the arteries of finance, compounding a broader deterioration in the global economy. Much of the past year has been deeply humbling for our industry. People are understandably angry and our industry has to account for its role in what has transpired.   Financial institutions have an obligation to the broader financial system. We... http://www.continuumfp.com.au/articles/Client-Briefing-Wrap-2008.html http://www.continuumfp.com.au/articles/Client-Briefing-Wrap-2008.html Our 2008 season of Client Briefings are now concluded and because of the number of apologies from clients who were unable to make the particular occasions we finally settled on for the year, we are pleased to circulate this overview of the presentations made. At the same time, we take the opportunity to thank the clients who attended – and express our appreciation for the warm, open and high level of confidence you have expressed... http://www.continuumfp.com.au/articles/Failing-Memory.html http://www.continuumfp.com.au/articles/Failing-Memory.html ‘Fundamentally, the Australian economy is in much better shape than previous recessionary episodes. Whilst time can dim our memories, the environment and financial strains that existed in the early 1990s were a greater risk to the Australian economy than the current global slowdown.’ As investors fret over the uncertainty in both the global and local economy I was reminded by an experienced central banker that it always... http://www.continuumfp.com.au/articles/Panic-and-Fear.html http://www.continuumfp.com.au/articles/Panic-and-Fear.html How should we respond in these most uncertain times? It is not helpful to focus on the failure of regulators and the greed of executives of free-wheeling financial institutions that resulted in an untrammelled expansion of debt. (You can count on the system to be overregulated in the near future).   The key is that we are in the midst of a massive deleveraging process which causes risk assets to be re-priced.   In this... http://www.continuumfp.com.au/articles/US-Government-bailout-package-is-not-dead!.html http://www.continuumfp.com.au/articles/US-Government-bailout-package-is-not-dead!.html The announcement this morning that the US Government’s financial rescue package “Troubled Assets Relief Program” (TARP) was not approved by the US House of representatives (with a vote of 228 against and 205 for), has had a significant impact on global financial markets overnight. Equity markets have had sharp declines while bond markets (Sovereign Government Bonds) moved sharply higher in price, benefiting from... http://www.continuumfp.com.au/articles/Market-Volatility---Question-&-Answers.html http://www.continuumfp.com.au/articles/Market-Volatility---Question-&-Answers.html   Market Volatility Questions and Answers     Q. What is causing market volatility?   A. The Australian and international stockmarkets have been subject to a range of global pressures such as the US sub-prime mortgage ‘crisis’ and the fear of recession in the US. In our own backyard, we have seen relatively successful companies have their share prices dramatically fall. These... http://www.continuumfp.com.au/articles/There-is-always-a-light-at-the-end-of-a-tunnel!.html http://www.continuumfp.com.au/articles/There-is-always-a-light-at-the-end-of-a-tunnel!.html There is always a light at the end of the tunnel! Whilst we are surrounded by doomsayers and headline seekers, be aware that the current level of volatility in market valuations is not unusual in the cycles of market trading. We at Continuum, remain optimistic about the long-term prospects for the share and property markets – and have been working with our clients to understand that what is happening is part of the working of... http://www.continuumfp.com.au/articles/Employers:-revised-definition-of-OTE-('ordinary-times-earnings').html http://www.continuumfp.com.au/articles/Employers:-revised-definition-of-OTE-('ordinary-times-earnings').html more of what you pay to staff and sub-contractors is now considered to be OTE, which now includes (performance-related) bonuses; regular over-award payments; commissions; and expense allowances. The statutory rate has not changed from 9%, but with these inclusions the cost of meeting your superannuation guarantee obligations may have increased as from 1 July 2008! [Note - If you engage sub-contractors in your business who are principally... http://www.continuumfp.com.au/articles/Should-I-be-investing.html http://www.continuumfp.com.au/articles/Should-I-be-investing.html Should I be investing more – or withdrawing??       The most important consideration in these times is whether or not you are working to a carefully – and personally-customised strategy for your investments (whether inside or external to, your superannuation account). In the formulation of that strategy, your financial adviser – particularly at Continuum – will... http://www.continuumfp.com.au/articles/Credit-Crunch-Share-Markets-and-Media-Reports.html http://www.continuumfp.com.au/articles/Credit-Crunch-Share-Markets-and-Media-Reports.html There is always a light at the end of the tunnel! Whilst we are surrounded by doomsayers and headline seekers, be aware that the current level of volatility in market valuations is not unusual in the cycles of market trading.   We at Continuum, remain optimistic about the long-term prospects for the share and property markets – and have been working with our clients to understand that what is happening is part of the... http://www.continuumfp.com.au/articles/Employers:.html http://www.continuumfp.com.au/articles/Employers:.html superannuation guarantee charge is imposed on employers who fail to meet their superannuation guarantee pay-ments in a timely fashion. The charge itself is extremely penal and should be avoided at almost any cost: it applies if you do not meet your payment obligation within 28 days of the end of the quarter in which an amount becomes payable. The above changes (and updates) should be carefully considered as the charge also applies to... http://www.continuumfp.com.au/articles/Employees-(and-certain-sub-contractors).html http://www.continuumfp.com.au/articles/Employees-(and-certain-sub-contractors).html Be aware of your rights and entitlements     Whether in times of volatility in share-market valuations or otherwise, the superannuation guarantee legislation is designed to ensure that, with careful attention and appropriate management your superannuation will substantially subsidise your lifestyle in retirement.  If you have any concerns that your entitlements are not being paid correctly, or timely, you... http://www.continuumfp.com.au/articles/Is-my-investor-risk-profile-standing-the-test?.html http://www.continuumfp.com.au/articles/Is-my-investor-risk-profile-standing-the-test?.html finding that the current market volatility is stressful – and particularly if you genuinely lose sleep over it – please contact our office and arrange for an updated ‘Comfort Test’ and/ or a psychometric evaluation of your investor risk aversion profile.   Is my investor risk profile standing the test? If you are http://www.continuumfp.com.au/articles/General-Newsletter-September-2008.html http://www.continuumfp.com.au/articles/General-Newsletter-September-2008.html http://www.continuumfp.com.au/articles/Investor-Report-for-30th-June.html http://www.continuumfp.com.au/articles/Investor-Report-for-30th-June.html Market volatility has been front page news recently. The Australian and international stockmarkets have been subject to a range of global pressures such as the fear of recession in the US and the sub-prime mortgage ‘crisis’.   You’ll soon be receiving your Asgard 2007-08 investor report and I wanted to let you know in advance that your results are unlikely to be positive, and may leave you feeling... http://www.continuumfp.com.au/articles/Asgard-Super-products-retain-highest-possible-star-ratings.html http://www.continuumfp.com.au/articles/Asgard-Super-products-retain-highest-possible-star-ratings.html The Heron Quality Star Ratings for 2008-09 have recently been announced, with Asgard super products retaining their highest award rating. Five Heron Quality Stars has been awarded to Asgard Employee Super in the ‘Corporate Products’ category, along with Asgard Elements Super/Pension and Asgard eWRAP Super/Pension in the ‘Retail Products’ category. The Five Star rating means the product is recognised... http://www.continuumfp.com.au/articles/Financial-Market-Commentary.html http://www.continuumfp.com.au/articles/Financial-Market-Commentary.html Now that the very volatile year has closed off, most investors are looking over the results and considering their short-term approach to where their investments sit and what to expect into the future. When considering your investment portfolio it may be helpful to understand the following data as it may apply to your situation. On the above basis, a Balanced Investor should anticipate at least one negative year in every... http://www.continuumfp.com.au/articles/Reduce-Interest-Cost-by-Borrowing-to-Invest.html http://www.continuumfp.com.au/articles/Reduce-Interest-Cost-by-Borrowing-to-Invest.html The Continuum Financial Planners 'debt recycling strategy' utilises debt in appropriate structure to convert ‘bad’ debt to ‘good’ debt. This strategy will reduce the 'after-tax' interest cot on your private home loan borrowing(s). You will lower the interest costs by borrowing to build an investment portfolio Directing investment income and tax benefits... http://www.continuumfp.com.au/articles/Philanthropy.html http://www.continuumfp.com.au/articles/Philanthropy.html Establish a Philanthropic Endowment Fund – This is a rewarding experience and is more achievable than might appear at first consideration. The initial capital contribution will give an immediate tax deduction and the ongoing benefits from the investment of the endowment capital will provide a source of funds to allocate to charities from your selection. http://www.continuumfp.com.au/articles/Have-you-made-a-Capital-Gain-during-the-year?.html http://www.continuumfp.com.au/articles/Have-you-made-a-Capital-Gain-during-the-year?.html If you have made a capital gain during the year due to the sale of an investment asset did you know that the capital gain can be offset by either business losses or carried forward capital losses. You may also consider the use of following strategies help reduce your taxable gain for the year Rebalancing your investment portfolio, taking losses on underperforming assets (and reinvesting to others if cash flow permits: beware buying... http://www.continuumfp.com.au/articles/Government-Co-Contribution-.html http://www.continuumfp.com.au/articles/Government-Co-Contribution-.html If you make a personal after tax contribution to your superannuation before the end of the financial year, the government will match your contribution on a three-for two basis up to $1,500. Using this strategy you can generate a 150% tax free return on your investment within one year. To see if you are eligible for the Government Co-Contribution and to see how much you will receive click on the links below. Am I eligible for the Government... http://www.continuumfp.com.au/articles/Personal-Superannuation-Contributions.html http://www.continuumfp.com.au/articles/Personal-Superannuation-Contributions.html If you are self employed or a partner in a partnership, you can make personal deducted superannuation contributions that will reduce your taxable income for the financial year. The amount that you can contribute to Superannuation and claim as a deduction will depend on your age (refer to the table below for limits). These contributions must be made before the 30 June 2008 to ensure you are entitled to claim a deduction for the 2008 financial... http://www.continuumfp.com.au/articles/Employers-making-Superannuation-Guarantee-Contributions.html http://www.continuumfp.com.au/articles/Employers-making-Superannuation-Guarantee-Contributions.html As an Employer you are aware that you must make ensure your Superannuation Guarantee Contributions and Salary Sacrifice Contributions for the June quarter must be made before the 28 July. However did you know if you want to claim a deduction in the 2008 financial year for the Superannuation Guarantee Contributions and Salary Sacrifice Contributions made in the June quarter you must pay it before the 30 June 2008. http://www.continuumfp.com.au/articles/CONTINUUM-welcomes-Peter-Cashman.html http://www.continuumfp.com.au/articles/CONTINUUM-welcomes-Peter-Cashman.html CONTINUUM welcomes Peter Cashman As part of our strategy to strengthen the financial strength of and advice experience available through Continuum Financial Services we are pleased to welcome Peter Cashman (Cashman Financial Services) into a Joint Venture under which we will provide wealth accumulation and protection advice to a growing range of clients. A profile on Peter appears in our website 'About Us' page. We also take this... http://www.continuumfp.com.au/articles/Financial-Year-end-checklist:.html http://www.continuumfp.com.au/articles/Financial-Year-end-checklist:.html   You want to save tax, right? The following checklist is of items that we can help you get in place by the end of this financial year so as to minimise your tax for this year, or ensure that next year’s tax burden is lightened: Capital Gains: offset strategies are available Superannuation Contributions: can you contribute more without breaching the ‘cap’? ncome Protection... http://www.continuumfp.com.au/articles/Back-Pain.html http://www.continuumfp.com.au/articles/Back-Pain.html Back pain is often a cause of concern when applications are being made for insurance protection, particularly for TPD (Total and Permanent Disability), Trauma and Income Protection policies. The statistics in the following article highlight the importance of taking insurance cover before the onset of back pain experiences: once they have occurred, the risk of a claim from a back disorder being excluded in the conditions of the policy are... http://www.continuumfp.com.au/articles/Budget-Update-2012---Business-instant-write-off.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Business-instant-write-off.html From 1 July 2012, small business will be able to immediately deduct the cost of any new business asset costing less than $6,500 for as many assets as they purchase. Businesses will also be able to write-off assets costing $6,500 or more in a single pool (15% in the year they are purchased and 30% in each subsequent year). From 1 July 2012, small businesses will be able to instantly write off the first $5,000 of the cost of a new or... http://www.continuumfp.com.au/articles/Budget-Update-2012---Mature-age-worker-tax-offset.html http://www.continuumfp.com.au/articles/Budget-Update-2012---Mature-age-worker-tax-offset.html The mature age worker tax offset will be phased out from 1 July 2012 for taxpayers born on or after 1 July 1957. Access to the mature age worker tax offset will be maintained for taxpayers who are 55 or older in 2011-12. The maximum offset of $500 is currently available for mature age workers with net income from working between $10,000 and $53,000. http://www.continuumfp.com.au/articles/Managing-a-Mortgage.html http://www.continuumfp.com.au/articles/Managing-a-Mortgage.html “A mortgage is probably one of the largest and scariest transactions anyone will undertake, yet I am always surprised when clients don’t know or understand what features and benefits their mortgage has – and there are literally hundreds to choose from! Worse yet, they don’t seem to understand that a mortgage is not that easy – or cheap – to move if they are in the wrong product.... http://www.continuumfp.com.au/articles/Fruit-Mince-Pies.html http://www.continuumfp.com.au/articles/Fruit-Mince-Pies.html     Ingredients 2 tablespoons brown sugar 2 tablespoons rum 1 small apple, peeled, cored, coarsely grated 85g raisins, coarsely chopped 85g currants 85g sultanas 60g glace cherries, coarsely chopped 1/3... http://www.continuumfp.com.au/articles/Keeping-a-lid-on-credit-over-Christmas.html http://www.continuumfp.com.au/articles/Keeping-a-lid-on-credit-over-Christmas.html The festive season is synonymous with overindulgence. But along with some unwanted kilos, Christmas can also leave us lumbered with a bloated credit card debt. The pre-Christmas spending season traditionally sees Australians give their credit cards a solid workout. Last year we collectively spent $3 trillion more on our cards in November and December than in any of the previous ten months. Rather than undo all the healthy... http://www.continuumfp.com.au/articles/Insurance---why-take-the-risk?!.html http://www.continuumfp.com.au/articles/Insurance---why-take-the-risk?!.html        Want to bet you don’t need it? That’s exactly what you are doing when you fail to ensure that you are insured! You bet your family that you will stay in great health for the rest of your very lengthy life! So why don’t we take out adequate protection with an insurance company? Some of the reasons we hear include – Never thought of it; ... http://www.continuumfp.com.au/articles/Death-is-a-fact-of-life.html http://www.continuumfp.com.au/articles/Death-is-a-fact-of-life.html        There is nothing more certain than ‘death and taxes’ as we have all been reminded over many decades: tax commitments can, with assistance from expert advising accountants, be determined both as to amount and timing; our mortality is less capable of being programmed! When we have a family death experience, there are generally-speaking, two major issues to deal with... http://www.continuumfp.com.au/articles/Market-'corrections'-(falls)-call-for-reasoned-action...html http://www.continuumfp.com.au/articles/Market-'corrections'-(falls)-call-for-reasoned-action...html        In a recent article published to financial planners across the country, the independent ‘risk appraisers’ FinaMetrica provided guidelines for consideration by investors in coping with recent volatile markets. This group uses psychometric tools to help assess the investment risk profile held by individual investors – they have a sound understanding of the emotions... http://www.continuumfp.com.au/articles/ONE-of-the-most-common-questions-I'm-asked-by-colleagues-is-whether-they-should-buy-foreign-currency.html http://www.continuumfp.com.au/articles/ONE-of-the-most-common-questions-I'm-asked-by-colleagues-is-whether-they-should-buy-foreign-currency.html But back to the question: If you're travelling in the next year or two, should you buy your currency now? My advice is to borrow a strategy common to the investment world. It's called dollar-cost averaging, and basically means buying a bit now, a bit more a bit later, and a bit when you go. This means you spread your currency risk. If the Aussie dollar drops, at least you got some when it was high, and if it rises... http://www.continuumfp.com.au/articles/Advised-investors-are-happier-investors....html http://www.continuumfp.com.au/articles/Advised-investors-are-happier-investors....html IF you are one of the almost 70 per cent of Australians who do not have a financial adviser, it could be time to bite the bullet. Some people will always want to go it alone in investment. They approach looking after their investments as their job, studying investments thoroughly, and they are well-informed and capable. It's no accident that, according to research house Rainmaker Information, self-managed super funds at... http://www.continuumfp.com.au/articles/Income-Protection-&-Salary-Continuance-Insurance.html http://www.continuumfp.com.au/articles/Income-Protection-&-Salary-Continuance-Insurance.html        Income Protection Insurance covers a person against a loss of income whilst they are unable to work due to illness or injury. The policy will pay the insured a benefit after the waiting period is over.   Generally, to qualify for an income protection benefit the insured must be unable to perform at least one of the duties of their occupation, not be working, and be... http://www.continuumfp.com.au/articles/Share-Markets---what-should-you-read-into-them?.html http://www.continuumfp.com.au/articles/Share-Markets---what-should-you-read-into-them?.html Which issues are of greater concern to you: there is a strong list of contenders for the item that will make you most nervous about investing – but think about previous events, almost invariably, the current events should be seen as buying opportunities for the medium- to long-term investor? For some months now we have been suggesting that whilst we are positive about the markets for 2011, we anticipated that there would be a... http://www.continuumfp.com.au/articles/Insurance-Bonds---You-remember-them!.html http://www.continuumfp.com.au/articles/Insurance-Bonds---You-remember-them!.html Want to put some money aside for the future of a child (your own, a grandchild etc)? Want to do it in a tax-effective way? What about the Estate Planning benefits? First: a quick refresher! An insurance bond is an investment vehicle that can be started with a relatively modest amount of money: that money is invested in an appropriately designed mix of assets held by the insurer – and after 10 years, the proceeds can be... http://www.continuumfp.com.au/articles/Life-Insurance:-It's-Simple!---isn't-it?.html http://www.continuumfp.com.au/articles/Life-Insurance:-It's-Simple!---isn't-it?.html “FACING dirty nappies, the dentist or a pap smear is better than the reality of getting life insurance for many Australian mums, a survey has found.” A recent article published on news.com.au/money gave details of some research by Lonergan’s that showed some disturbing statistics: amongst women who are Mums – 62% do not have Life Insurance protection 83% say their untimely death... http://www.continuumfp.com.au/articles/Japanese-Earthquake---Market-Update.html http://www.continuumfp.com.au/articles/Japanese-Earthquake---Market-Update.html The disastrous events in Japan have dominated market sentiment this week and will no doubt continue to do so in the short-term. Equity markets around the world have been significantly impacted with the Japanese Nikkei 225 index plunging more than 16% in trading this week as the fallout from this catastrophic event continues to unfold. Adding to the tragedy already seen, and fueling further investor concern is the uncertainty surrounding... http://www.continuumfp.com.au/articles/Case-Study:-Estate-Planning.html http://www.continuumfp.com.au/articles/Case-Study:-Estate-Planning.html Gloria, (in her mid 70’s) has substantial investment assets, including $2.2 million from the recent sale of her lifelong family home. As part of her estate planning, she wishes to leave $50,000 to each of her five grandchildren. (The youngest is two and the eldest is 14). Under her Will, Gloria has provided for her own two children – one of whom is estranged – and for her late husband’s two... http://www.continuumfp.com.au/articles/Case-Study:-Education-Funding-and-Optional-Endowment-Plan.html http://www.continuumfp.com.au/articles/Case-Study:-Education-Funding-and-Optional-Endowment-Plan.html David and Kate are determined to see that one year-old Nicholas goes to a private school in his secondary years. They have $2,500 to start their Savings Plan from Kate’s parents, and hope that with their own monthly savings they can finance his school fees, and possibly have some funds left over for a second honeymoon, or perhaps for Nicholas when he turns 23. Strategy and outcomes: After seeing their Financial... http://www.continuumfp.com.au/articles/Case-Study:-Specific-Endowment-Plan-for-Child.html http://www.continuumfp.com.au/articles/Case-Study:-Specific-Endowment-Plan-for-Child.html Steve, an airline captain and sworn bachelor is the proud god-parent of best mate James’ first born, Stephanie. Steve wants to set up an investment for Stephanie to give her a financial head-start in life. Steve wants a “Set-and-Forget” investment where he doesn’t have to worry about tax administration (including paying tax on investment returns himself) and something that will automatically... http://www.continuumfp.com.au/articles/How-confident-are-Investors?.html http://www.continuumfp.com.au/articles/How-confident-are-Investors?.html Generally speaking, investors are ‘ordinary folk’ like you and me! Why open with such an obvious statement? Because as ‘ordinary folk’ we are bombarded on a daily basis with financial information – what is sometimes difficult to discern is whether the information is ‘economic’ or ‘market’ (or indeed market-related). So as an investor what does the... http://www.continuumfp.com.au/articles/How-strong-are-the-Markets?.html http://www.continuumfp.com.au/articles/How-strong-are-the-Markets?.html The markets in which most of the funds we commit as investors are located in Australia; and there is little dispute that the performance of those markets has been substantial during the past two years (although participants in the Unlisted Property space may want to challenge that assertion!). As Financial Planners we tend to refer to ‘Markets’ as being the share market and other markets that deal with financial... http://www.continuumfp.com.au/articles/How-strong-is-the-Economy?.html http://www.continuumfp.com.au/articles/How-strong-is-the-Economy?.html Many of us have experienced economic crises and natural disasters in the past: what hasn’t broken our spirit in the past has strengthened our resolve to deal with the future. When addressing the question as to the strength of the economy, we could all deliver responses that are either ‘in concert’ with each other – or, vary to different extents, through to total disagreement. In posing this... http://www.continuumfp.com.au/articles/Welcome-to-our-2011-communication-suite!.html http://www.continuumfp.com.au/articles/Welcome-to-our-2011-communication-suite!.html In the interests of cost-saving and efficiencies, we are continuing the eNewsletter schedule this year but will not be sending printed Newsletters as in the past. For clients that haven’t registered an email address with us, a hard copy of the eNewsletter will be posted out. Our ‘Bulletins’ (eNewsletters) will issue each month throughout the year. You are invited to provide feedback on the content; and... http://www.continuumfp.com.au/articles/Perspective-on-Risk-and-Volatility.html http://www.continuumfp.com.au/articles/Perspective-on-Risk-and-Volatility.html In the share market, as we have seen over recent years, investor behaviour can typically swing from the fervour of punters wanting to get on a sure thing for fear of missing the boat, to that of rats deserting a sinking ship (or even lemmings leaping off a cliff). These random swings of fear and greed create what is commonly referred to as “volatility” i.e. a measure of the upward and downward movements of the market... http://www.continuumfp.com.au/articles/Who-do-you-love?.html http://www.continuumfp.com.au/articles/Who-do-you-love?.html … and how can you protect them in the event of a serious illness, injury or other ‘health-related’ event in your life? Insurance is often used in this process but are you properly prepared with estate planning issues to avoid the situation that we were recently confronted with: see details below. Case Study The above family, starting at ‘Mum and Dad’ level, includes three... http://www.continuumfp.com.au/articles/Where-is-the-value?.html http://www.continuumfp.com.au/articles/Where-is-the-value?.html We are all conscious of the costs of running various aspects of our lives: at the end of the day, we don’t want to spend on goods or services that don’t give at least, perceived value. This applies as much to washing machines and e-devices as it does to professional services and we are conscious that there has been considerable publicity in recent months regarding the way in which the professional services of financial... http://www.continuumfp.com.au/articles/'wrap'-of-the-Client-Briefings.html http://www.continuumfp.com.au/articles/'wrap'-of-the-Client-Briefings.html The recent round of Client Briefings finished this week with Warwick presentation held Wednesday 13 October – at the Jackie Howe Motel. The agenda for the meetings included presentations from key speakers on Economic Update and Financial Market projections; as well as Intergenerational Wealth Planning. A brief précis of these presentations follows: The Noosa presentation started the round this time and our... http://www.continuumfp.com.au/articles/Ashley's-Story.html http://www.continuumfp.com.au/articles/Ashley's-Story.html Professional services provider Ashley was employed by a small but growing advisory services company in a senior role. Ashley and his partner had recently acquired an investment property against which a mortgage debt had been raised. He consulted a Continuum Financial Planners Pty Ltd adviser and agreed that any interruption to his earning ability would prove difficult both for the payment of his mortgage obligations; and for his... http://www.continuumfp.com.au/articles/How-do-advisers-keep-portfolios-under-review?-(How-do-they-earn-their-fees?).html http://www.continuumfp.com.au/articles/How-do-advisers-keep-portfolios-under-review?-(How-do-they-earn-their-fees?).html All investor clients have investment products included in their portfolio. Most investor clients expect that their adviser is reviewing their portfolio on a regular basis: and most expect to be contacted to be advised of the progress of their portfolio – especially if there is a weakness that should be addressed. How are these portfolios ‘packaged’ in each case? How are the individual needs of investors... http://www.continuumfp.com.au/articles/A-claim-about-claims-paid.html http://www.continuumfp.com.au/articles/A-claim-about-claims-paid.html Do you ever wonder whether the insurer will actually pay you out when the time comes? We recently received a report from AXA that showed their total claims paid for the 2009 calendar year: Their tally was as follows: Income Insurance - $149.3 million Life Insurance - $127.5 million Trauma Insurance - $ 32.2 million TPD Insurance - $ 36.4 million Over the next few months we’ll bring you some... http://www.continuumfp.com.au/articles/Some-good-advice:-'take-advice'.html http://www.continuumfp.com.au/articles/Some-good-advice:-'take-advice'.html There have been a number of recent articles published (including one in the Wealth liftout of The Australian on Wednesday 1 September) about the superior performance of investor portfolios that are subject of a plan (under advice and management of an effective financial adviser). It is the finding of researchers that fewer than forty percent (40%) of all investors actually seek the advice of a financial planner: but those who do see... http://www.continuumfp.com.au/articles/Preparing-the-next-generation.html http://www.continuumfp.com.au/articles/Preparing-the-next-generation.html Your home, your furniture and other personal assets, your superannuation account and your insurance policies - what does all of that add up to? Is your family responsibly able to manage the wealth you have worked hard to accumulate; that you have taken care to protect; that you have set up into an appropriate Estate Plan? Continuum Financial Planners Pty Ltd is working with a number of clients to ensure that their next generation will... http://www.continuumfp.com.au/articles/Making-your-tax-liability-less.html http://www.continuumfp.com.au/articles/Making-your-tax-liability-less.html So the end of the financial year finds you short in the tax credit department and you have to plan payment of the last year’s tax - and think of ways of managing your tax affairs so as to not be ‘caught short’ for the current financial year. There are a number of ways that you can effectively reduce your potential tax liability: not all of them are effective. Remember that for every dollar spent on a tax... http://www.continuumfp.com.au/articles/Making-your-tax-refund-bigger.html http://www.continuumfp.com.au/articles/Making-your-tax-refund-bigger.html Around this time of year some of us will be receiving a refund from the ATO: this is not a generous gesture on behalf of the Tax Commissioner, it is a return to you of what you should have had working for you during the past year. Now that you have it back under your control, we offer the following suggestions as to how you might make it worth more to you: Check that you have enough insurance to provide peace of mind to your... http://www.continuumfp.com.au/articles/Slowly-but-surely-(may-well-win-the-race)-….html http://www.continuumfp.com.au/articles/Slowly-but-surely-(may-well-win-the-race)-….html Dollar-cost-averaging (DCA) is a tried and tested financial wealth strategy that has proven itself effective in the continuum of market cycles: what is it? And why does it work? What is it? DCA is a process of investing a similar amount at regular intervals into one portfolio. An example of this is say, $100 per month into a bank passbook account. (Before you jump to the obvious, yes – this is an example of ‘the magic of... http://www.continuumfp.com.au/articles/Greed-ISN’T-good-….html http://www.continuumfp.com.au/articles/Greed-ISN’T-good-….html Whether looking at investment opportunities or making lifestyle decisions, living beyond one’s means can lead to terrible outcomes – outcomes that we won’t detail here, but our readers will know that spending more than earning can only result in negative outcomes. When investing, choose assets that are diversified from each other, have different income and capital risk characteristics and that have different... http://www.continuumfp.com.au/articles/Happy-New-Financial-Year...-.html http://www.continuumfp.com.au/articles/Happy-New-Financial-Year...-.html 2011 is a new financial year with challenges, opportunities, disappointments and great expectations: have you made adequate preparation to seize the best of these issues for the coming year? Some matters you might want to pay attention to before the year gets away include – if your Will hasn’t been reviewed in the past 3 years, or if you have experienced a ‘major event’ since the last review,... http://www.continuumfp.com.au/articles/How-we-helped-….html http://www.continuumfp.com.au/articles/How-we-helped-….html The 2010 financial year saw a number of our clients and associated professionals call on the services of the Continuum Team to resolve issues, both financial and ‘personal’ for themselves, their clients or related families. We did this in a number of ways: reviewed asset allocation (what investments monies are put into) to ensure the appropriate strategic goals were still achievable; initiated, or in some... http://www.continuumfp.com.au/articles/Income-&-Assets-Test.html http://www.continuumfp.com.au/articles/Income-&-Assets-Test.html What are the income and assets tests for the pension? These tests are designed for use by Centrelink in determining the level of pension, allowance or other support you will be entitled to under the government’s welfare regulations and legislation. The tests apply so that you will be paid the least benefit allowable after each test is considered – with the effect that if one of the tests ‘rules you... http://www.continuumfp.com.au/articles/Testamentary-Trusts.html http://www.continuumfp.com.au/articles/Testamentary-Trusts.html Testamentary trusts can best be thought of as trusts that you create to look after some or all of your estate after your death. If correctly written Testamentary Trusts can reduce the amount of tax that your beneficiaries will pay on income earned from the estate. In particular, they will reduce the impact of the penalty tax that children under the age of 18 pay on unearned income. They can also protect beneficiaries from the possible loss... http://www.continuumfp.com.au/articles/Business-Expense-Insurance.html http://www.continuumfp.com.au/articles/Business-Expense-Insurance.html Business Expenses allows you to insure monthly business expenses on a monthly reimbursement basis, to help keep your business viable if you can’t work because of sickness or injury. How would your business survive without you? What would happen if you had to take time off work because of sickness or injury? Or worse, if you could never go to work again? If you run your own business, the consequences could often be dire... http://www.continuumfp.com.au/articles/Employee-Education.html http://www.continuumfp.com.au/articles/Employee-Education.html As part of our service to business superannuation clients we provide seminars and printed material for their employees. These resources are directed at improving the awareness of employees about the value of their superannuation account (and maximising that); and the importance of prudent financial management of their affairs otherwise. These services, usually in the form of newsletters and occasional direct mail, are provided at no cost to... http://www.continuumfp.com.au/articles/SMSF-Administration-matters.html http://www.continuumfp.com.au/articles/SMSF-Administration-matters.html Check you have met your reporting and administration obligations Some of the functions that must be performed annually on behalf of a superannuation fund include – Appoint an approved auditor to audit your SMSF. Lodge your SMSF annual return withy the ATO for your SMSF each year by the due date, providing all the information required – and paying the supervisory levy. If you are having trouble lodging by... http://www.continuumfp.com.au/articles/Trustee-obligations-for-an-SMSF.html http://www.continuumfp.com.au/articles/Trustee-obligations-for-an-SMSF.html As an SMSF trustee, you are ultimately responsible for running your SMSF. It is important you understand the duties, responsibilities and obligations of being a trustee. As a trustee of an SMSF, you need to act according to the following: your fund’s trust deed the provisions of the super laws, including – Superannuation Industry (Supervision) Act 1993 (SISA) – Superannuation Industry (Supervision)... http://www.continuumfp.com.au/articles/Spouse-Superannuation-Contributions.html http://www.continuumfp.com.au/articles/Spouse-Superannuation-Contributions.html A spouse contribution refers to when a person makes a contribution into their spouse’s superannuation account. Provided certain income thresholds are met, the contributing spouse can receive a tax rebate of up to $540 on the contribution. Whilst there are no limits on the age of the person making the contribution, the receiving spouse must be under 70. Further, if the receiving spouse is over 65, they must meet a work test before... http://www.continuumfp.com.au/articles/Self-Managed-Superannuation-Funds.html http://www.continuumfp.com.au/articles/Self-Managed-Superannuation-Funds.html What are self-managed superannuation funds? A self-managed superannuation fund (SMSF) is your own private superannuation fund that you manage and control. They are sometimes referred to as DIY funds – although they are rarely able to be a completely Do-It-Yourself arrangement. You may have up to 4 members in the fund and both you and your employer can contribute to the fund. There are many benefits to starting your own SMSF.... http://www.continuumfp.com.au/articles/Transition-to-Retirement.html http://www.continuumfp.com.au/articles/Transition-to-Retirement.html If you have reached your preservation age (currently 55), and wish to continue working, you will not have full access to your super – full access is only possible once you fully retire or reach age 65. However, you can access your super as an income stream. The income stream must be a non-commutable income stream (meaning that you can not take lump sums from it). The most common form of this is an allocated pension. If an allocated... http://www.continuumfp.com.au/articles/Wealth-Protection.html http://www.continuumfp.com.au/articles/Wealth-Protection.html Wealth Protection advice What would be the financial consequences if you were injured, became ill or died? Would your family or other ‘dependants’ (including business partners) be adequately provided for and remain financially secure? How would you cope financially if you were no longer able to work either for an extended period of time; or permanently? Wealth protection is an essential part of every wealth creation... http://www.continuumfp.com.au/articles/Wealth-Creation.html http://www.continuumfp.com.au/articles/Wealth-Creation.html Wealth creation advice Wealth creation occurs when sound investment strategies are implemented with account of your personal and financial circumstances, available resources, needs and goals being matched with your investor risk profile and relevant timeframe(s). Wealth is more than a financial score: it is also a feeling of well-being. Your Continuum adviser will work with you to devise the personal plan that suits you; and will help you... http://www.continuumfp.com.au/articles/The-Blended-Portfolio.html http://www.continuumfp.com.au/articles/The-Blended-Portfolio.html What is a blended portfolio? Put simply, a blended portfolio is a portfolio comprising of a mix of carefully constructed assets, which complement each other with the aim of producing the optimal outcome for the investor. Modern portfolio theory is the common basis on which investment portfolios are constructed for both private individuals and large institutions. One of the essential elements of modern portfolio theory is the need to hold a... http://www.continuumfp.com.au/articles/Tax-on-Children's-Income.html http://www.continuumfp.com.au/articles/Tax-on-Children's-Income.html Children under 18 years (‘minors’) are subject to special tax rules on their investment income. These rules were introduced to discourage people from investing in children’s names and accessing the lower marginal tax rates multiple times. The special tax rules apply to what is called ‘unearned income’. This generally includes bank interest, share dividends and distributions from trusts where... http://www.continuumfp.com.au/articles/Share-Trusts.html http://www.continuumfp.com.au/articles/Share-Trusts.html What are share trusts? Share trusts, sometimes called equity trusts, are unit trust investments that allow you to pool your money with other investors and purchase a portfolio of shares. They provide you with the means of participating in the sharemarket without the need to purchase shares directly. Why invest in a share trust? A share trust allows you to have a portfolio of shares managed by a group of professionals who are skilled in... http://www.continuumfp.com.au/articles/Property-Securities.html http://www.continuumfp.com.au/articles/Property-Securities.html Why invest in property? Most Australians believe that property is a sound ‘growth’ investment that produces rental income and long-term capital growth. However, this also means that it has the capacity to fall in value in poor market conditions. Most major institutions that manage large amounts of money, eg. Superannuation funds, life insurance companies and fund managers, may have some of their portfolio invested in... http://www.continuumfp.com.au/articles/Types-of-Managed-Investments.html http://www.continuumfp.com.au/articles/Types-of-Managed-Investments.html Different types of managed investments are used to achieve different investment sector allocations and varying investor goals. Managed investments can be categorised according to four main criteria: Investment Tax Structure – Superannuation (including Rollover funds), Trusts, Insurance Bonds, Friendly Society Bonds, Term Allocated Pensions, Allocated Pensions/Annuities. Asset Classification – Income... http://www.continuumfp.com.au/articles/Unit-Trusts.html http://www.continuumfp.com.au/articles/Unit-Trusts.html What is a unit trust? A unit trust is an investment vehicle for pooling the money of investors. Unit trusts are a form of managed investment that can include superannuation and rollover funds, insurance bonds and friendly society bonds. The essential differences between the different forms of managed investments are their legal and taxation structures. However, the common feature of managed investments is that they allow people to combine... http://www.continuumfp.com.au/articles/Risk-and-Reward.html http://www.continuumfp.com.au/articles/Risk-and-Reward.html What does risk mean? Risk, in its simplest sense, is the possibility that things do not turn out the way you expect. To investors it has many different meanings. For some, it means the risk of losing capital, others see it as the risk of not getting the best returns on their money. For retirees it may be the risk of not producing enough income to live on or running out of money. Risk is both a positive and a negative for investors. There... http://www.continuumfp.com.au/articles/Dividend-Imputation-(Franking-Credits).html http://www.continuumfp.com.au/articles/Dividend-Imputation-(Franking-Credits).html What is dividend imputation? When shareholders receive dividends, they are essentially treated as having received a distribution of the pre-tax profits of the company. That is, they must include in their assessable income the actual amount of the dividend received plus the amount of company tax paid on that dividend (referred to as the ‘grossed up dividend’). However, to ensure the dividend is not taxed twice, (once in... http://www.continuumfp.com.au/articles/Capital-Gains-Tax-Small-Business-Concessions.html http://www.continuumfp.com.au/articles/Capital-Gains-Tax-Small-Business-Concessions.html A measure of CGT relief is available for the disposal of certain assets by qualifying small business taxpayers. This relief applies in addition to any CGT discounting relief the taxpayer may be entitled to. What are the concessions available? The small business CGT concessions available include: Where you are over 55 and retiring, a total exemption of the gain on “active assets” held for 15 years, A 50 per... http://www.continuumfp.com.au/articles/Capital-Gains-Tax.html http://www.continuumfp.com.au/articles/Capital-Gains-Tax.html Capital gains tax (CGT) is a tax payable on the increase in the capital value of investments when a CGT event occurs. There are a number of CGT events that can happen in relation to an asset, however the two main ones occur when an asset is sold, or when an asset is transferred. Assessable income from a capital gain is taxed in your hands in the same manner as other assessable income. The actual amount of the gain that becomes subject to tax... http://www.continuumfp.com.au/articles/Asset-Protection.html http://www.continuumfp.com.au/articles/Asset-Protection.html Asset protection is about reviewing the way you carry on your business, trade or profession, how you own your private and business assets and how to ensure that if the worst occurs, you do not lose everything you have worked so hard to create. Asset Protection is about sensibly organising your affairs while things are going well to minimise the risk to the wealth diligently created in the event that things go wrong. This is not just a... http://www.continuumfp.com.au/articles/Wills.html http://www.continuumfp.com.au/articles/Wills.html A Will is a written declaration describing how a person's assets are to be distributed after his or her death. It is revocable during the lifetime of the person who made the Will. The Will must be executed properly for it to be accepted as a valid statement of the deceased's intentions. The Last Will and Testament validly prepared and signed, is the last opportunity for a testator to provide for the distribution of their estate –... http://www.continuumfp.com.au/articles/Discretionary-Trusts.html http://www.continuumfp.com.au/articles/Discretionary-Trusts.html A discretionary trust is a structure that holds assets and earns income on behalf of the beneficiaries. It may be created as the result of a Will (a testamentary trust) or to hold a family’s investments (a family trust). A discretionary trust is created by a written document called a trust deed. Contained in this deed is a set of rules, which in conjunction with trust law, determine what the trustee can and cannot do with the... http://www.continuumfp.com.au/articles/Trauma-(Critical-Illness)-Insurance.html http://www.continuumfp.com.au/articles/Trauma-(Critical-Illness)-Insurance.html Trauma insurance offers cover in the event of a major one off event which may render a person unable to return to work for a period of time. Trauma insurance, (also known as dread disease insurance) is available as either a component of a life insurance policy or as a separate product. Trauma insurance is not normally available within a superannuation fund. Although there are some rare exceptions, trauma insurance policies are usually only... http://www.continuumfp.com.au/articles/Total-(Temporary)-and-Permenent-Disability-Insurance.html http://www.continuumfp.com.au/articles/Total-(Temporary)-and-Permenent-Disability-Insurance.html Total and permanent disability (TPD) insurance generally covers a person against an illness or injury that prevents them from returning to their previous type of work. It forms part of wealth protection strategies, providing asset protection when needed most. TPD is offered as an extension to a term life, trauma, whole of life policy or standalone policy. TPD insurance means the 100% disability of the insured. A lump sum may be paid in the... http://www.continuumfp.com.au/articles/Life-(Death)-Insurance.html http://www.continuumfp.com.au/articles/Life-(Death)-Insurance.html Term life insurance is the most common form of life insurance policy. It provides cover in the event of death and terminal illness. How they work These policies are usually available to people aged between 16 and 70, though cover can be renewed to 99. The standard term life insurance policy offers no surrender value – that is, there is no investment or savings component. There is a cooling off period of 14 days following the... http://www.continuumfp.com.au/articles/Insurance-Reviews.html http://www.continuumfp.com.au/articles/Insurance-Reviews.html Recognise that your personal risk insurance is an important part of your financial plan: even if you don’t currently work to a documented plan. Personal Risk Insurances (Life (Death) Insurance; Total (Temporary) and Permanent Disability – TPD; Trauma (Critical Illness); Income Protection – Salary Continuance; and Business Expense) are part of your Wealth Protection strategy. We at Continuum... http://www.continuumfp.com.au/articles/Personal-Risk-Management.html http://www.continuumfp.com.au/articles/Personal-Risk-Management.html What is personal risk management? A well-constructed financial plan has two parts – wealth creation and wealth preservation. Wealth creation is designed to build and preserve capital based on the assumption that you will have continued good health and live to a certain age. However, wealth preservation is transferring the risk to another party in the event that something may happen that will prevent you from meeting your long-term... http://www.continuumfp.com.au/articles/Defined-Benefit-Pensions.html http://www.continuumfp.com.au/articles/Defined-Benefit-Pensions.html What is a defined benefit pension? A defined benefit pension is a regular income stream paid to you from a superannuation fund. The income can be payable for your lifetime (and in some cases, the lifetime of your spouse), or it can be payable for a pre-determined term. It differs from an allocated pension in that the level of payments received each year set at the start of the pension is either fixed or indexed to inflation. Unlike an... http://www.continuumfp.com.au/articles/Age-Pension.html http://www.continuumfp.com.au/articles/Age-Pension.html The Age Pension is a safety net for older people who are not able to fully provide for themselves in retirement. This is to ensure that these people have enough income to meet basic living expenses. To qualify for the Age Pension, a male must be aged 65 years or over. Depending on their date of birth women will qualify at different ages. Due to changes in the legislation in 2009 budget the Age Pension age will be lifted to 67. This will be... http://www.continuumfp.com.au/articles/Strategy-is-King--.html http://www.continuumfp.com.au/articles/Strategy-is-King--.html take advice on it always being the case that in business or financial management, as in many other ‘project’ circumstances, well-devised strategy will always outperform ad-hoc decision-making over the longer-term: ensure that your strategy is based on current information and regularly reviewed to ensure that your own changing needs are reflected in the ongoing strategic plan. Economic cycles are just that: cycles... http://www.continuumfp.com.au/articles/How-can-we-help-you?.html http://www.continuumfp.com.au/articles/How-can-we-help-you?.html Give us your feedback in the survey that was sent to your email Inbox and provided a broad enough cross-section of clients respond, we promise to act on the information to improve the content and frequency of the items in our service packages. Whilst it may appear to be something of a cliché, we do value your feedback as to how you think we are going in providing our services to you. There has been much talk in the media over the... http://www.continuumfp.com.au/articles/R-U-up-to-date?.html http://www.continuumfp.com.au/articles/R-U-up-to-date?.html Client Briefing seminars coming up in Warwick, Brisbane and Noosa in early October. They will be in a similar format to those over the past couple of years – but with a little extra this time: we will present speakers who will address the topic of Estate Planning. Clients will be aware that this is an area to which we pay a lot of attention: this is not just about your Will; nor is it just about Insurance – what it is... http://www.continuumfp.com.au/articles/Annuities.html http://www.continuumfp.com.au/articles/Annuities.html What is an annuity? An annuity is an income producing investment that provides you with a guaranteed level of income. It is purchased with either superannuation or non-superannuation money. Life insurance companies are the main providers of annuities. An annuity is a contract between you and the provider. It is the responsibility of the provider to invest the underlying asset and bear the risk of the investments. The annuity will pay you... http://www.continuumfp.com.au/articles/Tax-Planning.html http://www.continuumfp.com.au/articles/Tax-Planning.html There are certain actions we can take early in the year to ensure tax costs are managed effectively from a cash flow and financial advantage perspective: by planning now, you can avoid a last-minute rush (that may prove an expensive action) at year’s end. Some of the things you can get in place now to ensure your tax burden is minimized for the 2009/10 financial year include – Ensure that you carry adequate Income... http://www.continuumfp.com.au/articles/Interest-Rate-Fixing.html http://www.continuumfp.com.au/articles/Interest-Rate-Fixing.html Interest Rates: should you fix them; or risk them dropping further before climbing again? This is a question that has arisen more frequently again recently and so we set out below some of the issues that need to be considered when making such a decision. Which direction do you anticipate interest rates moving next? [A fixed interest rate may look attractive when signing up, but prove expensive if rates either fail to climb at the anticipated... http://www.continuumfp.com.au/articles/Merger-and-Acquisition-Strategy.html http://www.continuumfp.com.au/articles/Merger-and-Acquisition-Strategy.html Merger and Acquistion Strategy Continuum Financial Services is growing.... and that growth has brought a need to expand its resources. To ensure economic viability of this expansion, compatible financial planning practices are being actively sought to merge into our business or to be bought outright by us. If you know a financial planner who is seeking to move out of the industry (whether because of retirement, to seek other opportunities...