Retirement Planning Webinar – 19 October 2021 | Australian Catholic Superannuation
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
When you ' re young, that ' s why you probably wear ' t assume about placing a whole lot of money into very cuz well, I can ' t touch it for 20, 30 years yet as you ' re coming close to that 60 barrier, well, you ' ve obtained the downside of accessibility is going or gone Um so, you ' ve got all the upside of utilizing Supra as a tax vehicle.Lovely. There is a whole lot of adaptability that you can look at when you ' ve reached a particular age.And I mean Tom that ' s where I kind of like till individuals will look this is where you need to have a look at the options that you ' re offered. or if you ' re retired you can access super tax obligation cost-free as lump sums or a revenue stream as Paul ' s currently mentioned.And then once more 65 is a key age where if you ' re still functioning complete time that ' s where you ' ve got complete access to your very like a bank account.
Don ' t feeling because well you ' re investing even more than the comfortable lifestyle that you ' re doing anything incorrect. When you ' re young, that ' s why you probably put on ' t assume about putting a whole lot of cash into very cuz well, I can ' t touch it for 20, 30 years but as you ' re approaching that 60 barrier, well, you ' ve got the downside of access is going or gone Um so, you ' ve got all the upside of making use of Supra as a tax obligation vehicle.Lovely. There is a lot of flexibility that you can look at when you ' ve got to a specific age.And I intend Tom that ' s where I sort of like till people will certainly look this is where you need to have an appearance at the options that you ' re offered. Um or if you ' re retired you can access extremely tax complimentary as lump sums or an earnings stream as Paul ' s currently mentioned.And after that once again 65 is a key age where if you ' re still working full time that ' s where you ' ve obtained complete accessibility to your extremely like a bank account. Um can you explain the tax if you ' re accessing your super at fifty-9 after that let ' s state that there ' s just an account balance of claim a 00 000 bucks.And to have actually met customers who back in the early 90s when you can actually access incredibly cuz there there wasn'' t preservation regulations on particular amounts of extremely that'they ' ve taken cash out.And that would count in the direction of any type of threshold. So the tax office in fact keep a running total amount of how much you'' d in fact gain access to from superannuation under the age of 60. Yeah many thanks for that To Thanks for your question, Terrence. I mean why so we'' ve looked at'the vehicle. We ' ve looked at the fast what you require to base it on. I mean the fast concern is is that well, exist still advantages in income giving up and I describe to people is is that well, when you contribute on a salary sacrifice basis, the money as opposed to obtaining taxed at your marginal rate, get sent out to your superannuation fund and tax obligation to simply 15 percent. Now, you can see slide below that the typical taxpayer that gains a buck over 45 strange thousand bucks obtains tired at thirty-two and also a half cents in the buck for each dollar over that forty-five thousand buck limit. You can see there that all those bucks that you'' re making if you bypass them and put them into your superannuation fund instead of obtaining exhausted in your hand at 32 as well as a half cents in the dollar.You ' re
obtaining them sent out to your superannuation and also only exhausted at fifteen cent in the buck. There can possibly be some considerable tax cost savings. Salary sacrifice is still an extremely essential amount. Um or a an essential benefit. We simply require to make sure that it matches you. I'' ve never ever fulfilled any individual that wishes to pay more tax obligation than they should. Um as well as I suppose the one point that if you you need to evaluate just how much earnings that you'' ll be obtaining this fiscal year. Cuz as you can see that people wear'' t pay tax obligation. Anything under eighteen thousand two hundred dollars. So it requires to be something that you require to examine year in year out.So, Tom, I would certainly envision that there are people caught in the catch that oh well, I'' m retiring or you know, I'' m uncoupling that wage sacrifice not being could not be proper for them. That'' s. You constantly have to consider the individual circumstance. So, as you can see, if you'' re gross income'' s low anyhow, you put on'' t wan na be paying a a flat tax of 15 percent on cash that you would certainly have got free of tax cash since your low tax obligation price is absolutely no. Um just returning to that though if you are around in 40 over 45, 000. The instance I constantly provide Paul is that well if every for a 00 bucks over 45, 000 if you had that as cash it'' s really 65 as well as a half dollars after the Medicare Levy cuz they take an additional 2%. You can have 65 as well as a half dollars money in hand. To go and also spend, conserve, as well as pay for financial debt. Do what you desire with. Or if you state well placed that $1hundred right into super due to the fact that they only take 15% tax where you'' ve obtained $85 in your incredibly fund. Now the between the two.If you consider it as a portion, it'' s actually a 30 percent distinction. There'' s, as well as that ' s a guaranteed simply since of the tax distinctions. Once more, the catch is, well, that$85 that you'put in the extremely fund, you can ' t touch it up until you ' ve fulfilled that condition of release. Um, as well as so, that ' s where you have to think, well, if you want to, if you desire to conserve for your retired life do, can you afford to minimize your take home pay? Yet then there are strategies, which I believe we ' re gon na talk about, in a pair of slides regarding whether you can actually, if you are over sixty, access very free of tax as an earnings stream.So then that allows individuals to be able to take advantage of this tax advantage with wage sacrifice and also still keep the same level of revenue on the whole. So it'' s certainly a a really usual approach that we consider. Yeah wonderful. Many thanks Tom. Completely your instances. Got ta love them. I intend the following thing is is that well fine there'' s such a wonderful tax obligation financial savings that I obtain from it.Why wear'' t I do a substantial quantity? Well regrettably government has actually assumed concerning that. Um as well as they'' ve put restrictions in. We chatted concerning concessional payments right here. So as concessional contributions are your company'' s sustain. So currently 10 percent. Your your vendor, your employer has to put in 10%. Since they might put in an added contribution as an outcome of a commercial contract. You require to talk with your company concerning that. If you include in wage sacrifice they are all thought about under concessional contribution contributions or their all considered as concessional contributions. As well as the restriction this economic year from one July is 27 and a half thousand. So it'' s gone up a bit. So it gives us the choice of making certain that we can income compromise a bit. Currently, undoubtedly, there'' s extra bring forward provisions. There'' s additional tax, there ' s some couple of problems on it. So, I would certainly suggest individuals examine however basically, if your employer is putting in $10, 000 a year into superannuation as SG employer contributions.Well after that you ' re
entrusted 17 and a half thousand bucks to salary sacrificed if it ' s proper for you. To make sure that ' s just how the the limit functions. So Tom I would certainly visualize that you ' d have a lot of individuals attempting to rise to cuz'we ' ve spoken regarding the tax savings that you can obtain. Think of there ' d be a whole lot of individuals attempting to obtain right up close to this limit.Yeah well as as we ' ve currently chatted regarding it ' s an ensured return on
your cash. So if you are in those greater tax obligation braces as well as you can afford to have actually minimized take home pay. Um after that most definitely it ' s among the main means that you can develop retired life savings as a guaranteed return through'the tax obligation system. So simply going back to what is extremely. All incredibly is is a tax obligation car. Um just another type of a short instance is I frequently see customers that could concern me maybe in their 50s and also they ' ve been concentrating on financial obligation, financial obligation debt, financial obligation financial obligation, financial debt, financial obligation. They wan na pay down the debt. Um which is undoubtedly a good idea to do since we all wan na be financial debt totally free by the time we retire. Due to the fact that passion rates are so low, then they haven ' t concentrated on, well, maybe accumulating a little bit of extremely as well and also benefiting from these tax obligation benefits. So, I commonly see customers that could come to me once they have actually paid down the financial obligation, then, they have all this surplus cash money flow which they can take into super but their problem is they can ' t obtain it into extremely tax obligation properly because of these limits.So, definitely intending and exactly how you do it to capitalize on these restrictions cuz as we understand government can change these restrictions as they have done in the past. Um I imply they they ' ve sort of established some rules in place yet you you never ever know if they are gon na transform how these limits are are tired or what the real limits are. Lovely. Thanks for that. I'expect that ' s talking about concessional payments which is company income sacrifice. There ' s a limit there. Great deal of individuals believe well that ' s it.Okay however we ' ve obtained ta allow individuals'understand that there is what we call non-concessional payments. Now I ' ll shot and obtain this one around properly time. Cuz I mean this is spare cash money that you
' ve got resting there. Maybe a an after tax reduction from your income. You might have won lotto. Um or you ' ve might have entered an inheritance. These are funds that you ' re allowed to top'approximately your account to boost your account. Currently there are limits on those amounts too. Under 67 you can place in a hundred 000 a year. You can also place in 2 various other'years or advance to various other years to ensure that you can set up 330. Remembering this is partners. Each can do this. So we ' re discussing large amounts right here that can still be taken into incredibly. So that 3 years worth may be available in benefit if you if you ' ve won Lottery Big. And also if you do ideally you ' ll offer me a telephone call as well. Or call into our Brisbane workplace and provide us a cake Tom.Um I expect once you obtain between the ages of sixty-seven as well as 74 the door somewhat begins to close on you. Um for you'to be to contribute to incredibly you need to meet a job examination. And the job test is 40 hrs over a 30 successive day duration. You need to fulfill that test every year to be able to make that payment of as much as $110, 000 of non-concessional payments. Essentially as soon as you hit 75 years of age the door ' s closed.Um for non-concessional contributions. You you can ' t place any kind of a lot more in. As opposed Tom it comes down to if there ' s a sale a financial investment building or a sale of an additional house. Um you ' ve really got ta
begin considering the timing of what you need to do to obtain this into incredibly. 100 %Paul yeah. That again that ' s what we speak about commonly with clients. that if you ever heard the term asset rich cash inadequate so they might not have a whole lot of extremely. They ' ve got a possession in terms of a a couple of financial investment properties.The issue with investment properties is you can ' t simply liquidate the front space to take place a cruise ship. You ' ve obtained ta market the entire thing or maintain the entire point. 'or else you ' re on a set income from the rental fee.
Um so, this is where if you ' re wishing to obtain that cash right into a tax-free atmosphere in retired life you ' ve got these restrictions on just how much you can place in.So, how you structure it in is gon na'be extremely essential going forward. One, caveat which with any luck'will certainly surpass is that they have actually recommended to remove the work tests next year or from the very first of July twenty twenty-two.
Um so, simply for people that may be over 67 as well as under 74 currently as well as as well as have cash that they formerly have beyond Super. If that regulations gets passed after that you need to be thinking, okay, well, do we wan na top up our extremely funds due to the fact that we put on ' t need to fulfill that work examination any longer if that regulations goes through.Yeah, without a doubt. and also I will state if that regulations experiences. Just to state that. I mean the something is is that the government did bring in us one more possibility for us to have a last possibility of placing cash into incredibly. So, Tom, would certainly you
mind experiencing simply swiftly the downsizer stipulations? Yep. So, once more, speaking about the mother-in-law. So, this is where she utilizes provision to be able to top up her incredibly. With the stipulation, you ' ve got ta be over 65. There is once more a proposal to reduce that age to 60 from the 1st of July. Again, it ' s not legislated. So, at the minute, you need to be over 65 to utilize that downsizer contribution and basically, if you ' ve stayed in your own house for more than ten years, or a residence that you ' ve lived in a minimum of component of the moment as well as possessed property for more than ten years, then, any proceeds from the sale of that property, you can put into extremely as much as 3 hundred thousand each if you'' re a member of a couple.Um as a means to obtain cash right into extremely under the disadvantages of arrangement. Currently, the terrific thing is this downsizer payment is completely separate to all the various other limits that we ' ve spoke about. So, the non-concessional, the concessional restrictions, also if you'' ve obtained$ 1.
6 million bucks in very or in fact 1. 7 currently. Um if you ' d like sufficient to have that much in extremely. Typically speaking you can ' t in fact add anymore cash to incredibly'from your very own cash. This downsizer policy you you can really still make use of that downsizer rule. And afterwards the other caution is that well you don ' t in fact have to'use the proceeds from the sale of the property to place that cash into super. You'can make use of various other moneys that you may have. So there ' s an example where we ' ve had a client that downsize however properly purchased the building at the very same worth that they cost but they had an inheritance that they had out of cider incredibly. Um and also due to the fact that they couldn ' t obtain it right into incredibly due to the fact that they didn ' t satisfy the job examinations etcetera and also there mored than sixty-seven. however we might make use of a downsizer guideline to actually utilize that cash and also top up their incredibly. So once again there are manner ins which you can make use of these rules to your benefit. So again that ' s a vital trigger trigger sort of factor Paul that if you are offering your residence as well as you ' ve remained in
it greater than one decade as well as over 65. Exists any kind of unity below about what we need to do. I constantly state to individuals if you do require any kind of even more info on that particular please enter call with your local regional supervisor of the fund and we can certainly assist as well as provide some info on that particular. or if you desire you can additionally get some financial planning guidance. Many thanks Tom. I suppose there ' s no such point as a poor tax rebate or a tax obligation credit score to them. Um partner payments. If you ' ve got a partner that earns under forty thousand dollars of earnings this this economic year. Um you can a payment to your partner ' s account and also you can get yourself a tax obligation refund of approximately 500 and also I was gon na claim 450 but it ' s 540, forty thousand.Five hundred and forty dollars. That ' s right. I fail to remember a tax obligation discount of 5 hundred and also forty thousand but let ' s go 5 hundred as well as forty dollars. Partner payments are additionally something. It ' s a bit of an unknown thing or I intend rarely utilized. Um formerly, the threshold was a great deal
reduced. Your spouse needed to gain much less than'thirteen 000. The the federal government that limit that if you you you have a low income making spouse under 40000 as well as you add up to$3000 to their super then you obtain a tax obligation offset in'in the the partner ' s tax return whose gaining the the the larger quantity. So once again it depends upon just how much you ' re earning and if you ' re paying tax obligations also whether you ' ll really have the ability to make use of that balanced out. yet once more it ' s something to assume regarding cuz when you consider what ' s the return all I I return to what ' s the return accurate Paul.And that five hundred$40 for a$3, 000 payment. That ' s an 18 %return guaranteed. Not several investments that offer you that guarantee. Entirely true. Completely real. The other point is is that we always suggest that when you get'closer in the direction of retirement if you ' ve got various other superannuation accounts out there is to settle them with each other. Bring them with each other for their what I call the final area before we enter into an account based pension. There are some items that you need to consider like in terms of insurance policy advantages and the like. Um however we can definitely assist via those I suppose we ' ve we ' ve type of touched on the subject yet exactly how can we access our incredibly. We ' re going to begin now speaking regarding Tom the choices that you can have in retired life Um.I suppose the fantastic point is is that with people these days they still have the flexibility and control over their retired life financial savings as well as they have options. Um can you take us with what what their choices are when they do retire? Yeah yeah absolutely awesome therefore I guess again the very best method to think concerning your very when you ' re retired and also you ' re over sixty it ' s generally like a savings account. It is invested really in a different way cuz you pick the threat that you wish to take with the cash. That ' s the vital difference. You can access money as a lump amount. If you leave your extremely there then you can actually just take a swelling amount whenever you want.Um it ' ll still build up'passion. Or if you can convert it to an income stream. That ' s where the the among the called an account based pension plan. Assigned pension. Or earnings stream. They got names. Effectively, that ' s where you get a normal settlement from your incredibly. You can pick to earn money fortnightly, monthly.
You can take a yearly settlement yet basically you become your employer then as well as you pay yourself.'As well as inevitably I guess that you you ' re accumulating your incredibly throughout your working life with your contributions. And then generally speaking you wan na convert that to a revenue stream where you ' re simply replacing the earnings that you were making while you were working have the way of life that you desire in retirement. The. various other feature of a pension account, once you ' re retired, is that if you want to take a round figure from it, you can.So, a whole lot of clients that I see, they they fail to remember that they can in fact just dip into it. Again, like a savings account. but the essential difference between having money in an account-based pension when you ' re retired or an extremely account is how the rate of interest that you make is taxed. Any kind of cash in the extremely stage, we call it', where it ' s simply sitting there and also gaining in you don '
t really see this but the extremely fund has to pay 15 %tax on the interest that you earn as well as after that they offer you your returns. Any kind of cash in an account-based pension, well, the interest that you earn on that account, the super fund doesn ' t pay any kind of tax obligation. Also if you ' ve got the very same investment account within the incredibly and also the pension plan, the pension over the long term will always have much better returns and it ' s purely a tax difference at the extremely fund isn ' t paying any kind of tax obligation on the rate of interest that you make in pension plan. Usually talking, it can be about a 1 percent distinction on the returns'. So, if you'have 5% return in very, it should be around regarding 6% return in pension plan phase.So, that can obviously have a large difference on how much time your money ' s gon na last. So', that is just one of the essential reasons that individuals look at placing cash into pension plan phase and it ' s also among the crucial reasons that the government has restricted exactly how much you can enter pension plan stage. There is a a limit of one factor 7 million.
Look, the majority of people not gon na not gon na need to fret about that but if it is a trouble, it ' s a nice problem to have, number one, but then you need to prepare around that due to the fact that the government just enable as much as$1. 7 million in that pension plan phase regarding that tax-free standing of the interest that you make. Charming and also I mean we do encounter individuals that are rather pleased for it to stay in very. Um you ' re not forced to do it. but we constantly attempt as well as make them knowledgeable about that well, look, there is a tax-free nature financial investment car there readily available which ' s why you ' re potentially losing out on.Does make a distinction in the returns. I constantly tell people look at our investment alternatives on our internet site and also just how they vary in between the designated pension strategy and also the superannuation fund. That is essentially tax in the distinctions in the returns. Yeah it certainly can total up to a a reasonable amount. Allot a pension Tom.'Yes so as we ' ve already discussed you ' re contributing to very. You ' re building that up. And also once you ' ve reached your conservation age that beautiful age where you can access your very. Fifty-eight 5960 plus Um that ' s where you can start converting it to that pension plan. Currently we type of discussed it prior to that when you turn sixty even if you ' re still functioning you can access super through an earnings stream. It ' s called Transition to Retirement Um so if you ' ve ever listened to that term. What that suggests is you'can actually transform what you ' ve currently constructed up in incredibly into a transition to retired life earnings stream and also attract down a repayment. Currently there are limitations while you ' re still functioning. Um so, the limits are the minimum is presently two percent and also after that the maximum you can attract down is 10%. Currently you can draw that down as a biweekly payment,'monthly payment, yearly payment. Now, why would you'want to do that? So, we consider doing that because well, leading, if you'' ve obtained an extra income source, well, it may then permit you make the most of the maximum amount you can take into super income sacrifice'and minimize income tax.So it ' s a method that you can really construct wide range while keeping the same degree of earnings. Second you can actually pay down financial debt quicker if that ' s something that ' s crucial to you as well as you actually wan na get rid of financial obligation. You can utilize those repayments to help do that. And after that number three I presume what it was actually designed for is really transitioned to retired life. . that ' s where you may be going from full-time to three days a week. You still want a full time salary to live on. Um that you can cover up that part time 3 days a week with a little bit of very. Um to make certain that you ' ve got the the degree of earnings that you want moving forward. So there are lots of ways that we can utilize that. When you ' re retired or transform 65 then that maximum amount goes. There ' s no limit on just how much you can attract down. Lovely. Um there exists is a number of concerns coming through in the Q&A. I will certainly park among them.Um and also we ' ll come back to that at the end. Um the other one the one question that I assume that we simply require to state is is that there ' s a concern from Peter. Can you take the total'as real money as opposed to staying in an account? I expect you can address that concern.
Again, the catch is, well, that$85 that you'place in the incredibly fund, you can ' t touch it up until you ' ve met that condition of launch. Again it depends upon exactly how much you ' re earning as well as if you ' re paying tax obligations as well whether you ' ll in fact be able to utilize that offset. but again it ' s something to assume regarding cuz when you look at what ' s the return all I I go back to what ' s the return on the cash Paul.And that 5 hundred$40 for a$3, 000 payment. Yeah yeah absolutely awesome as well as so I think again the ideal method to assume concerning your extremely when you ' re retired as well as you ' re over sixty it ' s essentially like a bank account. Also if you ' ve got the exact same financial investment profile within the very and also the pension, the pension over the lengthy term will certainly constantly have far better returns and it ' s purely a tax obligation distinction at the super fund isn ' t paying any tax obligation on the interest that you earn in pension.I presume the things so as soon as you'' re retired as well as you ' ve met your obtaining cash out there ' s no problem is obtaining cash back in those limits. For a lot of people that are retired, and not functioning, then, I would say 97%of Australia is gon na qualify for this card because the method that they do the income examination, they don ' t actually take what you, they put on ' t in fact look at what you ' re taking from your extremely in terms of a payment. The where aged care comes in is really I speak to it ' s generally customers that are retiring and also they ' ve obtained elderly parents and they ' re going with that process of looking at aged care or having to place them in aged treatment can be really made complex.
I guess the points so as soon as you'' re retired and you ' ve met your obtaining cash out there ' s no problem is getting money back in those limitations. Will certainly depend upon on exactly how much possessions will send out a web link permit us to have prior to they start decreasing the age pension, what they'' re going to pay us.So, as a solitary home owner, if you'' ve got assets of under 270 thousand dollars, so that'' s not consisting of the residence however it includes everything else, includes your car, your components, cash in the bank, shares, outside a super, the worth of your super, that if that is above $270 thousand, that'' s when they begin minimizing how much you get in age pension as well as after that, inevitably, if you ' ve got 5 and 000 as a single house proprietor, then, that ' s where they pay you zero in age pension over that limit. For a lot of individuals who are retired, and not functioning, after that, I would state 97%of Australia is gon na qualify for this card since the means that they do the revenue examination, they wear ' t actually take what you, they wear ' t actually look at what you ' re taking from your super in terms of a settlement. That ' s normally around exactly how usually you ' re working. The where aged treatment comes in is really I speak to it ' s generally clients that are retiring and also they ' ve got senior moms and dads and they ' re going with that process of looking at aged treatment or having to put them in aged treatment can be very made complex.What'' s the the costs that we ' re gon na need to pay? Um so this is where we really aid with the economic side of points is putting a plan together to state okay well this is the best structure that if you intend to money aged care in the most effective means consider potential estate worths to see to it that that that they'' re maximized.Getting the very best care for your moms and dads. Exactly how do we do all that? This is where we can we can assist out. So it ' s simply to advise I guess our members that we can assist in a whole lot of means. as well as this is as you claim a growing location given the intricacy. of the regulations around aged treatment. Many thanks Tom. Um I was just going to state is is that if you ' ve got any type of inquiries send them via. We ' re we ' re coming to the end really swiftly. Um if you ' ve obtained any questions, you can undergo on the Q&A function on the on the on the Zoom telephone call and we ' ll we ' ll come back to your questions in a moment if'you ' ve got any type of. I understand that there is a couple there already. Tom, can you simply experience on what items you can actually you most likely touched a sprinkling of them right via this session tonight. Yeah. Um simply promptly finish up on what you can actually give as an economic planner.Yeah, most definitely. So, I I think the function of these seminars is to not
just educate you however to try and I presume cause you to think of, alright, have we obtained a strategy in position? You may have an organizer, be seeing them, that ' s fantastic. However this is where if you come and see us, these are the type of'things that we concentrate on. Conserving much more for retirement having, strategies to do that. Just how do we maximise Centrelink? Okay? Checking out if you are concerned about how much time your cash ' s gon na last. Having a strategy in place to take a look at scenarios. We often look at alright well if we retire earlier how does that look? If we retire later at the office part-time. Giving you a bit extra info we ' ve currently touched on those'estate planning kind of advantages that we can look at. And additionally any kind of non-super financial investments that you could have that you may desire to get involved in Super. having a technique about well tax obligation efficiently offering them down. Um restrictions on just how much we can obtain right into super. Just an alternative plan once again with regards to all these kinds of subjects. And also when we take a look at guidance for there ' s always what we call tangible and also intangible benefits to advice. So I believe on the next slide that we ' ve got. oh well I thought we had one there but no. Speaking regarding benefits to suggestions. Um there ' s a tangible side of things. We saved on tax. We developed the incredibly. We ' ve got more Centrelink. That ' s where we can really include worth. But we likewise include worth on the intangible side'of things which is extra that well we ' ve got a plan in place. We ' ve obtained a plan that we can function towards and track. Um'to ensure that ' s usually what a great deal customers like as well is they just wish to be have that secure understanding that they ' ve got a plan in area that they can follow entering into retirement. Lovely. Thanks for that Tom. What I will claim is is that I suppose would certainly you mind running via the economic recommendations offerings.I mean the initial thing that I require to claim is is that if you do require any kind of basic details or basic advice you can call our call centre. You can call our local managers. So if you do wish to acquire more info from the fund as well as the basics of your account checking out the website which I ' ll touch on momentarily. Please do not hesitate to provide either myself or among our regional supervisors a call.I intend the various other thing is is that Justin our aide behind-the-scenes has simply placed in a link into the conversation facility. So if you desire additional information from the
fund you can utilize that web link as well as it can take you via as to which option you would certainly like. that is completely as much as you. Um currently the one point that I would certainly say is Tom would certainly you mind experiencing both various solutions that we have available? Yeah so for the a lot more individual advice to ensure that ' s where you you ' re being being given some recommendations.We ' ve obtained a number of options. The over the phone guidance. To make sure that ' s a free solution at the fund office. we ' re totally qualified advisors can give you personal recommendations but just on certain subjects associating with your incredibly. Those the primary subjects that'they look at are the investment selection within your very. If you ' re having any concerns around that or looking at any type of different investment choices payments to incredibly. So, that ' s quite a popular one particularly with the increase in the cap. Um that if you intend to check and you wish to try and stand up to that'cap because you can pay for to do so. The minimal guidance team can provide you some suggestions. How do we make certain we do that? Um and after that the 3rd location is around insurance coverage within your incredibly fund that if in we sanctuary ' t really touched on it cuz this is a retired life preparation seminar but if insurance policy is essential the appropriate degrees of insurance coverage they offer you some suggestions on that.So that ' s the totally free solution a or complimentary solutions being a member of the fund. The detailed guidance service, well, this is where we consider your whole scenario. Um if you ' re a participant
of a couple, we always look at you as a couple. It ' s extremely vital as well as you you don ' t have to belong to Australian Catholic Super to get advice cuz with this service, it ' s what we call a FIFA service model.So, the initial appointment, if any one of you have gone with it previously, if you always sit down, generally for concerning an hour as well as a hr and also a half, consider your circumstance and also go', fine, exactly how can we aid? We go, well, in my professional viewpoint, you need to focus on X, Y, and also Z. This is what I would certainly check out as component of the strategy. Um and this is the kind of strategy that I would put together.Um if we can ' t aid you, we would say so. We ' d state, well, appearance, you ' re doing whatever that you truly can. There ' s very little truly that we can assemble partially part of a strategy Yet if there is, we would explain, well, this is what we can do. These are the benefits and then, we offer what we call a dealt with quote for the statement of suggestions and placing that blueprint with each other which ' s a fixed quote to primarily place the recommendations with each other, experience the guidance, as well as execute the guidance. We don ' t charge any kind of ongoing charges. I don ' t get any payments or bonus offers for any advice that I do. It seems'a little bit altruistic but I got right into doing guidance due to the fact that I love to assist individuals pass on my understanding, placed them in a much better position.Um however eventually, if we spend time doing that and also that the individual is profiting from that advice, thorough, we have to bill for time it takes. So you get a quote generally speaking it can be anything in between 1500 to 2 and also a fifty percent thousand bucks.
Relying on the complexity of the plan. Um so but you choose whether you wish to proceed after that phase. Um to put that strategy together. For certain. I mean Tom there was an inquiry there from Gail. I will set up for somebody to give Gail a telephone call in regards to the timing issue of tonight ' s webinar.So Gail someone will certainly offer you a phone call from our office tomorrow in regards to to the tonight ' s webinar. Tom I mean the the important things with extensive advice is is that people need to well I mean either see one-on-one or you recognize look for some comfort to see to it that they ' re on track.
I always tell people that by involving consult with you there ' s reached be a sensible advantage in you doing the guidance. Can you simply undergo in terms of the expense framework as well as exactly how you you understand work with clients to discuss the price and and what benefits that would certainly emerge from that? Yeah.So, I guess with concerns to the the benefits, it comes back to that tangible and also abstract benefit yet occasionally I can show quickly that well, you ' re gon na save 10 times out that you ' re gon na pay for the advice in tax or interested minimized fundings. To make sure that ' s fairly an easy, I think, profit since again, it doesn ' t benefit me what the client does, whether they whether they listen or they wear ' t.Um so, we simply charge for the time it takes for placing that insurance claim with each other. That ' s how we bill for the suggestions.' After that, there ' s the abstract benefit also that some individuals like to spend for the advice since they desire that feeling that they understand they ' ve obtained a plan in position as well as they ' re on track. 'it may not be that we can conserve from thousands in tax'but that they feel it ' s worth paying for the guidance due to the fact that of the feeling.Now, that ' s an extremely individual option that some individuals are pleased to pay that charge. Some people aren ' t. All I would certainly claim is returning to the charges pool. We ' re not a profit-making business. We ' re just a cost-recovery service in
terms of recovering the costs it takes to to for the time it requires to put that recommendations with each other. Generally speaking, if obtain a quote from myself. You can most likely to one more financial planning organisation and also obtain a quote that I assume we you ' d find we ' re very competitive in terms of any kind of plan that we would place with each other to assist members. Yeah as well as I ' d likewise or I constantly inform individuals that they ' re going to get a method plan that ' s what? 60, 70, 80 web pages long often.'Yep. Um if'you intended to you can allow it exist under the cushion. Um absorb it. Offer you assurance understanding that you ' re on track at each as well as every day if you wanted to'. We ' re all So, if you do obtain a strategy placed with each other, we don ' t just give you the strategy and claim, there you go. We aid you.We, we, we, it ' s all the the time it requires to implement any kind of recommendations also which which would typically be over a 12 or 18'month duration. That ' s what the cost is covering is additionally the time it takes to execute and yeah.
I mean after tonight ' s there ' s a web link there that is being placed in the conversation if you desire to engage in that solution. Someone can give you a phone call to organize a visit time or otherwise will be a study sent to you after the session tonight. that will certainly likewise include some an opportunity for you to offer some comments in in regards to tonight ' s session.But it ' ll also enable you that if you intended to obtain additional info you can suggest where you would certainly such as that. And also we ' ll arrange for someone from the fund workplace to provide them a phone call quite soon. Thank you extremely much for that Tom
. I intend the important things that we additionally need to address is the is the brand-new or the the your future your super regulations that was recently presented. I mean it has a little of a a background in the sense that it was presented back in October of twenty twenty. Um it was passed only just recently Um and afterwards the means the examination would run was just given in early of August. Um I intend there has actually been some considerable conversation in relation to the test and also the make-up of the test. We were only alerted that our My Super Financial investment option. Um the My Super Financial investment or Default alternative did not pass test and we ' re just informed on the 30th of August Basically the test is a 7 year examination and also what it ' s done is is that it ' s contrasting it to a fixed benchmark.So we have a life time one alternative that has just been available for the last three weird years and what they ' ve done is united and utilized our previous default financial investment option of being the conservative well balanced alternative. Generally they ' ve used two very different products to integrate them together to establish our efficiency on the examination. So basically the combination of these 2 products that'we ' ve assembled did not pass this mandated test.So we just intended to make certain that this only puts on the default choice. It does not put on'the various other 13 investment choices that we have in the fund. And after that to date we have not been advised of the exact setting on on on the on the criteria. The reason that the under efficiency is is that our definitely
our shares financial investment product has not certainly fulfilled the statutory criteria. Since is a historic product. Um as well as the paradox is is that we ' ve constantly mentioned and you ' ve if you ' ve reviewed the please note or had you the the the one of the factors there is is that past efficiency is not a sign to future efficiency. As well as yet this examination is recalling traditionally over the last seven years. Back in two thousand and eighteen we'have reorganized our share portfolio to ensure that it ' s taking the best advantages that are offered there for our participants. The various other item that has actually resulted in the detraction or or or the outcome is is that our different financial investments have actually been I expect put together at a standard and compared with each other at a standard of an asset that'considerably greater in growth orientation which consequently if it ' s a greater growth positioning it ought to have performed.Um a a greater amount over a longer period of times. This is certainly adversely influenced the profile. We ' ve formerly acknowledged our under efficiency six as well as 7 years earlier. However I can honestly claim considering that with the introduction of life time one in the last three years we ' ve seen stronger performance and I ' ll supply you with some performance figures in a moment. The one point that I would claim if desire more details in relation to this YFYS examination that we have a specialized page on our web site. Um the government has given a my incredibly contrast device. and also I would say Tom we ' ve both recognized clients that have actually viewed that. as well as we ' ve additionally seen lots of people comparing our fund over the three years. We acknowledge the fund has actually had efficiency under efficiency several years earlier. Six and seven years earlier. We recognize that in the last 3 years since Lifetime One has actually been around.This Life time one or or items that is currently our current has actually been very affordable versus various other superannuation funds. And I we'would certainly ask as well as advise for you to go and compare those. I intend there are numerous various perspectives and there ' s a whole lots of various short articles and also we ' ve put a few of those on that web site page also. In terms of ah the objectives of the product it '
s been it ' s it ' s it ' s it ' s a tended objectives.It ' s for instance members under 40 years of age. My children that are in this item. And last entrance year ending June 30. a return of 20. 9%after fees and also taxes'. A a return that ' s not extremely not not extremely seen in our life time of our of financial investments. Whilst we ' re sitting in a superannuation fund. Lifetime one essentially is high threat for younger participants. They have a high growth alignment. Merely as well as totally they have an extended period of time to retired life As well as this way of living investment. Once they hit the age of 40 they progressively minimize down in danger. So it ends up being increasingly more traditional as you get closer towards retirement And also I believe that ' s a wonderful and also it ' s a life process product. that we claim in the market.
As well as it ' s certainly one that I discover that it ' s as people we obtain an increasing number of conservative. I think of Tom that you ' ve seen people closer to retirement coming to be increasingly more traditional as they age. Getting closer to retired life They ' re. seeing their dimension of their account equilibrium and that ' s specifically what'this item has done. as well as it'' s done it ' s it ' s absolutely done what it was meant to do as well as created to do. So you can see there last financial year a 40 year old the greatest threat direct exposure was 20.88 %. As you can see there ' s a general decrease in the returns as well as what we ' ve done is is that every year'you ' ve got a very gradual and I state I attempt to emphasise that when it ' s a very gradual decrease down in danger. So when you ' re looking
at comparing products you need to ensure that you ' re comparing items that are danger ideal to that age. Therefore I would certainly refer people to the financial investment truth sheet that ' s on our internet site in concerns to the various structures of terms of danger. You'can see there ' s a person that ' s aged 60 in a conventional environment. Um the return was 13. 87 for last fiscal year. And also the three years average was six factor 5 5 percent. You can see there that the lifetime ones returns has actually absolutely done what it is planned to do.So I mean our future the'overview. The trustee has definitely always ensured that we are looking after the members finest monetary passions. And they ' re going to proceed to do so. They ' re going to be I mean you might say acting in the very best financial interests of the participants
By looking for range. Um the has actually come with each other with huge superannuation funds. There ' s been a great deal of merges of late. As well as the fund will certainly in the not also distant future be revealing a merger companion that will certainly offer us with scale. The federal government has certainly advised that to make it through in the superannuation fund moving forward. You require to be of a fund of a minimum of 50 billion bucks. We ' re absolutely seeming a mosting likely to a partner that will certainly remain in excess of that. Um that it by means is mosting likely to be caring for the member ' s best monetary interest is is that it will create scale. It will certainly provide greater benefits to members. Um with the economic climates of scale maybe lowering costs.We ' ve currently in minimized prices in the in the past couple of months and also we will be lowering indirect investment prices quickly. Certainly if you ' ve obtained any questions in regards to the fund I ' d ask you to get to out to your specialized regional supervisor and they can offer you better info in regards to this performance examination.
I ' d likewise urge you to go as well as look at that super comparison device as well as do a comparison on the fund.And take a look at that and also take a look at that 3 year efficiency figure. I mean the other options that we do supply is is that we can take a look at the upcoming webinars Now we do a quarterly financial investment webinar as well as I would certainly envision the one would certainly be showing up in the next month. and also these are all detailed on our website. So much like you ' ve registered for tonight ' s webinar.
There are certainly many webinars that you can do.You can take a look at to sign up to acquire some more info. I mean the other thing is is that if you wish to get some additional information as I pointed out, there ' s the link for the for there however there ' s likewise the study type. We ' ve obtained any type of inquiries. we can we can absolutely give you a phone call. I mean the individuals that have asked inquiries, I'' m going to ask your local regional manager to reach out to make certain that all of your questions have actually been answered this evening. Um I posture the various other item that I inform individuals to consider is the portal.Little little bit small in font dimension. I ' m delighted I ' ve obtained my glasses on check out these. Yet I intend the participant portal is an excellent area where you can have a look at your account. You can do a variety of items there. You can make a contribution. Obviously you can see your account balance similar to this individual has. You can alter your financial investment options. The really remarkable thing is is that in the center there you ' ve got handled my insurances. As Tom points out. Retired life Planning Webinar tonight. However if you wan na just have look at your insurance'arrangements. You can even get a quote for boosting them. Certainly I would motivate you to do that. Um you can additionally nominate yet it ' s a non-binding beneficiary. That is absolutely available. The various other item is is that in the top right-hand man image of the slides it ' s obtained a retirement forecast. So if you ' re intending to have a look at just how your account is tracking towards retirement that is definitely a a good tool that you can make use of. It ' s a preparation device that we ' ve given based on your account equilibrium as at today. Based upon your payments over the last one year. And we can do some preparation as to where your account or our company believe your account will certainly go to based on your chosen threat profile.Now there ' s a little terms there. Risk profile. I would certainly additionally recommend that if you do not understand what'kind of a financier you are we likewise have a remarkable device on our internet site called the danger profile calculator that it can provide you with some assistance as to your selected investment items. Absolutely the participant website as well as the website is there ' s a lot of sources there. I would certainly suggest that you have a look at that. and I have to confess and also I ' ve just recently downloaded it is the application. Um the app is back.
Yeah so for the much more personal guidance so that ' s where you you ' re being being provided some recommendations.We ' ve obtained a pair of alternatives. That ' s quite a very easy, I guess, profit since once more, it doesn ' t benefit me what the client does, whether they whether they take recommendations or they wear ' t.Um so, we just charge for the time it takes for putting that claim with each other. There ' s the abstract advantage as well that some people like to pay for the recommendations because they want that sensation that they know they ' ve obtained a plan in area and also they ' re on track. Um the My Super Financial investment or Default option did not pass examination as well as we ' re only notified on the 30th of August Essentially the examination is a seven year test as well as what it ' s done is is that it ' s comparing it to a predetermined benchmark.So we have a lifetime one option that has only been readily available for the last 3 weird years as well as what they ' ve done is brought with each other and utilized our previous default financial investment choice of being the traditional balanced alternative. In terms of ah the objectives of the product it '
s been it ' s it ' s it ' s it ' s a tended objectives.It ' s for example participants under 40 years of age.Um and I must confess you understand you'' re trembling your head there Tom yet can I nodging? Responding. I had a client actually asked me the other day. When when is the application back? As well as I simply discovered that it'' s simply come back on in the last couple of weeks I think. It has come back in the last few weeks so you can download and install download that from the Application Store. Um and also and go right into your account similar to you would your member portal.So realistically if you ' re lugging your phone anywhere if you actually desired to understand I would urge as well as say probably you shouldn ' t. yet if you actually wanted to recognize if you ' re out and also concerning you'can click the app and it does some terrific things. So I ' d definitely encourage'you to look at that. I intend if you ' ve obtained any kind of additional information from tonight as I ' ve pointed out there ' s the survey Um there'' s the that will be sent to you.You can certainly ask any type of inquiries there as well as we'' ll prepare for someone to give you a phone call. Um Tom I mean the one inquiry I have for you prior to we go. Um there'' s a number of concerns there and also we'could park those and get cuz we ' re running out of time really promptly. Retirement preparation is all very complicated. Um I expect there are a variety of different choices. You recognize you may be one year out 2 years out. I intend the inquiry I always listen to is when should I consult? Is it right at the last minute, an all year? 5 is that? The the first thing is is never too late. Commonly people think, well, it'' s too late. I I won ' t bother. Never far too late. Also if it'' s just a year out. Um 6 months out. There'' s points that we can do yet clearly, the earlier, the better.Um as well as never anybody ' s had anybody'say oh, I shouldn'' t have come. They always state I must have come earlier. So, undoubtedly, the earlier, the much better that you intend that that you'' ve got a strategy in position yet I would all always claim too, it'' s never far too late. Don'' t be placed off. Um if you think it'' s far too late cuz it it'' s not. Love Thanks, Tom. Search in the rate of interests of individuals, I would certainly envision that if they'' re had a glass of a glass of wine over the hour and also a fifty percent, that'' s possibly checked out one or 2 Supper is calling us right here in Brisbane or Sunlight Shore for you.Um so, thanks Tom for your presentation tonight. It'' s been valuable. Um I'' d likewise like to thank Justin Colley, our coworker in Sydney workplace, remains in the background aiding us out. So, thanks Justin for your time. Um I keep in mind that it'' s 830 for you. I would picture that it'' ll be obtaining to the factor of getting the book as well as hitting the going to bed quickly. Need to be bright and also early for the following functioning day. I wear'' t additionally like to thanks all for participating in tonight'' s session. Thank you extremely a lot. It was substantially valued. Um if you'' ve got any inquiries you ' ve absolutely got our numbers there. The one300 number and the local regional supervisor will certainly obtain in call with you if you'' ve obtained any kind of more inquiries. Once again thank you quite for attending. as well as have a good evening. Thank you. Many thanks Paul.Thanks for your time.
Um and also I must admit you understand you'' re trembling your head there Tom however can I nodging? As well as I simply found out that it'' s just come back on in the last few weeks I think. Certainly, the earlier, the far better that you plan that that you'' ve got a plan in location but I would certainly all always state as well, it'' s never as well late. Um if you'' ve got any inquiries you ' ve definitely obtained our numbers there. The one300 number and the local regional supervisor will certainly get in call with you if you'' ve got any further questions.
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