Thursday, 20 October 2011

Has all the Money Gone? - Brisbane

Has all the Money Gone? - Brisbane 25th October @ 6:15pm, Regatta Hotel.
Don't forget to RSVP today - for great advice on reaching your goals in the current financial climate.




Kerrianne Hebinger
Financial Planning Essentials
w: www.finplans.com.au

Monday, 17 October 2011

It's not all plain sailing

I had a fantastic day yesterday - the weather was superb, light winds that picked up over the afternoon, great company, and we were all chasing each other around bouys on boats  - perfect, right up until the time that 170kg boat was dropped on my foot. I was lucky - my foot is all shades of green & very tender, but no bones broken, and walking will be more of a  hobble for a few days.

The general ache down near the accelerator all the way home did have me thinking about the speed that it all happened at - there was no way I could have seen it coming, or avoided it.

Last week a friend of mine shared some of his frustrations over his current experiences with needing to make claims against his Income Protection insurance, and I share them here with his consent.

"We all know we need it and think we have it,  but how do we know if  we have the right coverage, and that the company we are covered with is morally legitimate. MY recent experience suggests they are only really  interested in shareholder returns and despite claiming to cover you for illness, death or floods, that they are experts in managing to weedleout of paying out, and you only find out when when you faced with such a crises.

Unfortunately, I have recently had experience in all these areas, and to my dismay an Insurance company I thought was respectable, is well kown as being litigous, have lots of fine print that even if you managed to read it, the wording is so obtuse that the real meaning of the clause is not clear. This well known company it turns out have a reputation for fighting every payout, their back office is slow and inefficent, so when you are waiting for a legitimate monthly payment they have been upto 6 weeks behind in sending it. This happens when you are so ill you cannot work."       

Insurance is essential, but insurance companies suffer from a poor public perception, that is caused by a few bad experiences usually with the same companies, and applied to all. It's a shame that those companies with a good reputation for handling claims well are tarnished with this brush, but claims are made at the lowest point in a persons life - when something has gone badly wrong - and it is unacceptable for an insurer to not step up to the plate and provide the support at the time when it is needed.

Not all insurance policies, or insurers, are the same -
Kerrianne Hebinger
Financial Planning Essentials
w: www.finplans.com.au

Thursday, 22 September 2011

You can make a difference

The arrival of each new day brings opportunities to brighten your world.
"A goal without a plan is just a wish" - Antoine de Saint-Exupery
Kerrianne Hebinger
Financial Planning Essentials
w: www.finplans.com

Caring for Older Australians


At the instigation of Nick Sherry, the assistant Treasurer, an inquiry has been held to consider what reforms may be necessary to meet the many challenges of supporting Australia's ageing and diverse population.

"These key points were released with the Caring for Older Australians inquiry report on 8 August 2011.

Over one million older Australians receive aged care services. The range and quality of these services have improved over past decades, but more needs to be done. 

Future challenges include the increasing numbers and expectations of older people, a relative fall in the number of informal carers, and the need for more workers. By 2050, over 3.5 million Australians are expected to use aged care services each year.

The aged care system suffers key weaknesses. It is difficult to navigate. Services are limited, as is consumer choice. Quality is variable. Coverage of needs, pricing, subsidies and user co-contributions are inconsistent or inequitable. Workforce shortages are exacerbated by low wages and some workers have insufficient skills.

The Commission’s proposals address these weaknesses and challenges and aim to deliver higher quality care. The focus is on the wellbeing of older Australians — promoting their independence, giving them choice and retaining their community engagement. Under this integrated package of reforms, older Australians would:
    • be able to contact a simplified ‘gateway’ for: easily understood information; an assessment of their care needs and their financial capacity to contribute to the cost of their care; an entitlement to approved aged care services; and for care coordination — all in their region receive aged care services that address their individual needs, with an emphasis on reablement where feasible
    • choose whether to receive care at home, and choose their approved provider
    • contribute, in part, to their costs of care (with a maximum lifetime limit) and meet their accommodation and living expenses (with safety nets for those of limited means)
    • have access to a government-sponsored line of credit (the Australian Aged Care Home Credit scheme), to help meet their care and accommodation expenses without having to sell their home. A person’s spouse, or other ‘protected person’ would be able to continue living in that home when an older person moved into residential care
    • choose to pay either a periodic charge or a bond for residential care accommodation
    • if they wish to sell their home, retain their Age Pension by investing the sale proceeds in an Australian Age Pensioners Savings Account
    • have direct access to low intensity community support services
    • be able to choose whether to purchase additional services and higher quality accommodation.
Limits on the number of residential places and care packages would be phased out, while distinctions between residential low and high care and between ordinary and extra service status would be removed.

Safety and quality standards would be retained. An Australian Aged Care Commission would be responsible for quality and accreditation; and would transparently recommend efficient prices to the Government"

The entire report can be found at http://www.pc.gov.au/

Productivity Commission 2011, Caring for Older Australians: Overview, Report No. 53, Final Inquiry Report, Canberra

Death - an expensive option

Without doubt, the laws surrounding Superannuation have numerous grey areas, and even after a couple of decades there continues to be debate over many aspects.

In July, the Australian Tax Office (ATO) released its view on when a superannuation income stream (a pension) commences and ceases. It would seem a fairly simple topic, but thanks to Capital Gains Tax and the tax free environment most pensions live in, it is now a hotly contested issue.

In its simplest form - the ATO have formed the view that as soon as you die, then you no longer can be paid your pension, and it also ceases. The big kicker here will be for those individuals with assets in super they've held for a reasonable period of time. Those assets will lose their tax free status prior to being paid out to a beneficiary, and will be assessable for Capital Gains Tax. So the next generation will potentially be poorer, and the Government coffers will be a happier place. 

To add insult to injury, they are also considering back dating this practice to 2007 - so if a pension has ceased and been paid out in the last 4 years, then there is some form of pain in the future in the form of administrative burden and additional tax.

Now, in defence of the Tax Office, they are merely the messengers. They can only interpret, and apply, the law that is written - they don't make the mess in the first place. At this stage this is only their preliminary view, there is room for debate, and many of the professional bodies have taken up the call.

I'll let you know what the final position is - in the meantime pop it under your hat for consideration.

Kerrianne Hebinger
Financial Planning Essentials
w: www.finplans.com.au