Wednesday, 27 July 2011

National campaign to showcase the best that Financial Planners can be

Released by the Financial Planning Association Australia - 20th July 2011

The Financial Planning Association (FPA) will continue to reinforce its role as the leading voice of professional financial planning for members and to the benefit of all Australians with an advertising campaign taking place in national and regional media in September.

The campaign, funded by member contributions, aims to raise awareness among all Australians that not all financial planners are the same and positions FPA members as financial planners working to professional and ethical standards much higher required by law. In particular, Certified Financial Planner® professionals are positioned as working to the highest global standards in financial planning.

The advertisements, developed by Sydney advertising agency Banjo, are expected to appear on national free-to-air metropolitan, regional and national TV, mainstream and regional newspapers and online, throughout September.

To date, over 2,000 FPA members have been consulted on the proposed advertising approach and the TV advertisement is now in post-production following filming last month.

“This campaign is critically important to our members, especially our 5,800 Certified Financial Planner® professionals, who deserve respect and recognition for the very high standards they work to. Just as important, though, it will provide consumers with a way to find a much-needed trustedn adviser to manage their finances. Because of this, the campaign serves our members and the national interest in a powerful way,” FPA CEO Mark Rantall said.

“We are on track to roll this out later this year and are very excited about the creative we’ve already seen and the strong support from early consumer testing.”

To drive the new brand and advertising campaign the FPA has appointed Lindy Jones as its new General Manager of Marketing. Ms Jones brings to the role over 17 years’ experience in business development and marketing roles in financial planning and funds management in Australia and overseas, notably the UK.

That includes experience as Marketing Director for Deutsche Bank in Europe and the UK, launching retail funds for Macquarie Bank in London and, most recently, in a key business development role at Co-operative Financial Services in the UK. Ms Jones has also worked privately as a marketing consultant to the financial services industry.

“Bringing Lindy on board at this stage marks the next logical step in our development and our continuing campaign to raise the professionalism, standing and profile of our members and our
organisation,” Mr Rantall said.

“We’re excited about the upcoming launch of the new FPA advertising campaign and we believe that someone with Lindy’s credentials and wide ranging industry experience will help us promote both the benefits of financial planning to the wider community and the advantages of seeking an FPA member when seeking advice.”



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

It's not just about the money

Over the course of the last 200 years or so psychiatrists have been keeping track of what events in our life cause us the most stress. The list has changed as our way of life changes, but ultimately the top reasons for stress remain the same.

Death or serious injury/illness of a spouse or family member always ranks No 1 followed closely by other family issues - Divorce, Separation, Infidelity, becoming a single parent, a new baby, assuming responsibility for a sick or elderly family member.

Financial issues such as foreclosure on a mortgage, becoming unemployed, general financial stress, loss of income through illness or accident form a core component of the top 20 concerns we have.

What might be surprising is that Retirement usually ranks in the top 10 and not just because of concerns over how you might afford it. The transition from fully occupied with constant contact with other people on a daily basis, to perhaps only seeing your significant other each day, and being solely responsible for occupying your daylight hours can be huge.

The emotional and social impacts of these life events should be considered in equal measure to the financial outcome.


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

Investment Doubts

I don't know about you, but I'm finding the sheer volume of opinions being broadcast from every direction very akin to trying to detect a single cicada voice from the millions that invade our summer evenings. Every voice is loud and strident, all talking about the same thing, but each with a different opinion varying wildly from - we're on the edge of recession,  through to a highly optimistic that we're on the edge of a great recovery.

I've had more then one conversation in the last few weeks with investors concerned about where the markets are going. The over-riding fear seems to be that the markets will tank to the same degree that we saw only a couple of years ago cutting investment values by up to half again. Confusion and uncertainty abounds about what, if anything, should be done.

I am not blessed with the predictive powers required to tell you with any certainty what the future holds. 

I can suggest that if you're losing sleep, or your current investments are leaving you feeling out of control or stressed, then you should consider how appropriate they are for you at this time.

The really complex financial universe can be broken down into some very simple rules that work just for you.

Don't forget that your super is also an investment that you own!
Kerrianne Hebinger
Financial Planning Essentials
w: www.finplans.com.au

Friday, 22 July 2011

Gotta Laugh

"People are living longer than ever before, a phenomenon undoubtedly made necesssary by the 30 year mortgage" - Doug Larson

"Despite the cost of living, have you noticed how it remains so popular?"

and a  joke to round it off.

The Australian Federal Police sent three photographs of a man wanted for tax evasion to their Irish counterparts, saying that they had reason to believe that he had escaped to Ireland. The photos were front face and two side shots.

Three weeks later, the Irish police sent back a message: "We got the fellow in the middle, but we are still looking for the other two."



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

Lost Super

In Australia, there are an estimated 5.8 million super accounts worth approximately $18.8 billion dollars currently separated from their owners. 

It can be challenging enough to fund retirement,  without losing money that belongs to you along the way.

The Federal Government are doing their bit - they've recently introduced legislation to enable super funds to use Tax File Numbers to identify the owners of these lost souls, and are intending to introduce laws enabling consolidation of the various accounts by January 2012.

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

Tuesday, 19 July 2011

How much do you need to Retire?

The Association of Superannuation Fund of Australia Ltd (ASFA), last week released updated figures on what you'll need to fund your retirement.

For those wanting a comfortable retirement which will allow you to participate in recreational activities, travel occassionally, and generally enjoy a standard of living that involves new clothes, a good car, and required updates to domestic objects such as fridges and electronic equipment, you'll need $54,562 per year for a couple, and $39,852 per year for a single.

An annual income of $31,263 per couple and $21,587 for a single  will cover the basics but not much more.

If you'd like to look at the report in detail you'll find it here:


Planning for Retirement is not so much about planning for not working, but rather organising your financial situation so that you can choose how you want to live.

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

Proposed changes to Super Contributions

Amongst the many things the Govt constantly fiddles with is how much you are allowed to contribute to your super fund. In this years budget they're at it again, and are now proposing that:

       If you are 50 years or older,
    • and have a total super account balance of $500,000 or greater, they will only allow you to contribute $25,000 in pre tax dollars.
    • If your account balance is less then $500,000 then you will be able to add up to $50,000.
This is due to take effect from July 1, 2012 which leaves you with this year to consider your options and take action to keep your account balance under the $500,000 mark so that you can continue to take advantage of the higher contribution limit.

This measure is only a proposal and has not yet made it to legislation, and may not come to pass, but I would at least start looking at your options, because you may run out of time to get eveything in place if it does.

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

Monday, 18 July 2011

Super Wars

I find it utterly bizarre that the financial services industry can spend so much of its' energy effectively self destructing. For an industry who's entire reason for being is to support and improve the well being of others, it is just staggering that it is so hostile internally.

There are multiple issues in dispute, but the super funds seem to have taken out their own special license to wage public warfare, and they have blazed a trail of destruction and confusion that rivals (and at times is very akin to) a pack of 6 year olds rampaging around on a treasure hunt in a lolly shop.

Superannuation will form a major part of the funding for retirement, and will most likely become the second largest asset you own, second only to your house.

In the end there is no black and white - it's not grey either.

Of the three main options for super - industry funds , retail funds, and your own self managed super fund - the best one is......the one that suits you.

It's that simple.

Your super is an investment you make all your working life, and will depend upon for 20-30 years later on.
It's not about expensive advertising campaigns and sensationalist headlines.

It is about you.

Kerrianne Hebinger
Financial Planning Essentials

Sunday, 17 July 2011

Flood Levy

If you earn over $50,000 of taxable income in a year the tax man will be asking for a small contribution to assist in paying for the rebuilding required in the aftermath of the recent natural disasters.

The actual contribution required will depend on your taxable income:
  • The first $50,000 will not be affected.
  • Income between $50,001 and $100,000 will be taxed at half a cent
  • Income over $100,000 will be taxed at $250 plus 1c for each $1 over the $100,000
It started on July 1 2011, and should finish on 30 June 2012.

Here's the link to the Tax Office website if you'd like more information.

http://www.ato.gov.au/individuals/PrintFriendly.aspx?ms=individuals&doc=/content/00216565.htm

Some quality time spent at the beginning of each financial year can make a significant difference to the amount of tax you pay each year.

Kerrianne Hebinger
Financial Planning Essentials

Saturday, 16 July 2011

Property in Super - Borrowing

There's a lot of general interest in the concept of purchasing a residential investment property inside superannuation, particularly over the last couple of years when the stockmarket has given the roller coasters at the theme parks are run for their money.

To add to the enticements of an investment that most people feel they understand (at least they can see it), and that has been fairly stable for decades, the banks have been working on developing options whereby a super fund can borrow to buy.

A few quick pointers:
  • This is only an option if you have a Self Managed Super Fund (SMSF)
  • On average you can borrow about 70% of the value of the property so you need a balance in your super fund of at least 30%.
  • You need to contribute enough to your SMSF to ensure that all the expenses and the mortgage repayments can be met.
  • If something goes wrong the bank will only be able to sell the house in question to recoup their funds. These loans are set up as 'non-recourse' and prevent access to other assets the super fund may have.
  • It is possible that if you have enough funds outside super, that you can be the lender to the super fund, but the same rules apply to you as to any other commercial lender. 
  • Your SMSF will own the property - not you.
  • Your fund is required to hold its assets solely to provide a retirement income and is, generally speaking, unable to provide any current day entitlements. This means that no-one in your immediate or extended family, or who is in any way related to you, will be able to use the property.
  • There can also be issues with renovations/repairs whilst the property is funded through borrowings.
Let me know if you're thinking about getting into an investment property in super, or you already have one and would like to chat about any concerns you have.

Kerrianne Hebinger
Financial Planning Essentials

Friday, 15 July 2011

Life after Death

An interesting conversation with my best friend last night started whilst discussing the variable nature of the 8 week old who has invaded her house, and much to her surprise, (said child also being the first) totally turned her life upside down. What started out as our usual light and breezy catchup spiralled quickly into a serious, and rapid, planning session when I blithley asked her if she'd updated her will, and had a Power of Attorney and insurances organised to support the major changes that had occured in her life in the last year - namely marriage and newborn.

"No" was quickly followed by OMG!

The impact if anything were to happen to either partner (or both) would be significant not only to the immediate family of mum, dad and child, but also potentially to their support network - grandparents, aunts, uncles and friends.

Most of us consider what might happen if mum or dad were no longer around, but who will take on the responsibility & cost of raising this child  - as you would want them raised - if something were to happen to both parents? Unfortunately these events do happen, and more and more grandparents in particular, are finding themselves starting again, raising young children and guiding them through their education until at least age 18, at a time when they were expecting to have more time to themselves and take life a bit easier. Even more sadly, if the parents didn't have appropriate insurance and clear wills, this can also become an increasingly stressful time as the guardians seek to cover the costs of raising a child when their income levels are dropping significantly - sometimes with a pension only.

Needless to say, my friend has a list of things to do today.

She and her husband need to:
  • think about who they would be comfortable with raising their son
  • make sure that person is aware of what their preferences for his life are, and is prepared to take on this awesome responsibility
  • also consider how to protect the financial legacy left to their son if they are unable to raise him. You want to be absolutely certain that the funds left are used to the benefit of the child.
  • Get Life/TPD, Truama, and Income Protection insurances sorted out so that if an unexpected event occurs, money is not one of the issues they have to deal with
  • Gather a list of what they own/owe, and talk to a solicitor about how that should be distributed, taking into consideration all the possible combination of events
  • Organise an Enduring Power of Attorney with medical clauses to ensure that control of their assets remains in their hands if one of them is incapacitated.
Our sole focus today is protecting this precious child and ensuring that his future is well cared for.

If you have young children in your extended family, speak with the parents, or show them this blog if that's easier, and encourage them to consider everything we've discussed. 

Take 5minutes in your busy day - think about what you may need to do, then start - today.

If you would like some help with that just let me know.

Kerrianne Hebinger
Financial Planning Essentials

Thursday, 14 July 2011

Welcome

Welcome to the Financial Planning Essentials online blog.
www.financialplanningessentials.com.au