Featured News Story
It is never too soon to begin the Estate Planning process. It is much more than simply making a Will. Estate Planning is all about ensuring your assets are distributed to your chosen beneficiaries, distributed according to your wishes in the most financially efficient and tax effective way.
Inadequate Estate Planning comes at a cost. The worst case might see the “wrong” people inheriting your estate. Or the cost might be expensive legal or trustee company fees or perhaps heartache for your family and friends.
Surprisingly, 60% of Australians do not have a Will.
For those who don’t, the law determines who inherits their belongings. Their spouse and children may not automatically be the main beneficiaries. That is why it is so important to regularly review an Estate Plan, particularly if personal circumstances change. If you re-marry, become divorced, commence living in a de-facto relationship, have a blended family (consisting your own children and step children), or have new members in the family..... you should review your Estate Plan.
A well constructed Estate Plan can help to avoid unexpected taxes and protect assets from claims and challenges. Our advice is to consider choosing someone to be your Power of Attorney, name someone in your Will to become your children’s legal guardian, list your beneficiaries in your insurance policies and nominate binding beneficiaries in your super fund.
Make your Estate Plan easy to administer for your executors. Talk to us to arrange for an Estate Planning Information Kit to identify and organise your estate planning needs.
To contactTiffany phone(08) 8333 2488 oremail any queries or comments to her.
Read full article
Welcome to Wakefield Partners
 We are a boutique financial planning practice conveniently located on the Adelaide City fringe. We offer local service but also offer a global reach through our association with the national (and international) RBS Morgans network.
If you would like to establish a long term relationship with a dedicated adviser, then talk to us. We aim to be approachable, friendly, and flexible. Our clients have needs and objectives. Our role is to guide them through the advice and investment process with sound financial planning strategies.
Come and talk to us, check us out. We are good listeners. And we promise to explain complex concepts in plain English!
|
In a recent speech made by the Reserve Bank of Australia (RBA) Deputy Governor, in June 2010, Ric Battellino raised the question “are Australian households over geared”? Following this question he states that household debt has risen significantly faster than household income since the early 1990’s.
RBA figures indicate the average personal credit card debt is approximately $3,300. With credit card interest rates heading towards 20% or more, people with a large balance are facing very high repayment amounts. If only paying the minimum payment, this could take six or more years to pay off.
If you are struggling with paying off your debt then take control of the situation today. Even if you feel completely hopeless, you do have options. Once you start taking simple baby steps you’ll feel more in control of your finances.
Try some of these helpful tips below;
Take time to analyse your income & expenses. Do a budget by visiting FIDO’s budget planner. It is so important to track your spending so you get an understanding where your money is going.
Distinguish between what you ‘want’ and what you ‘need’. Cut down or cut out altogether on what you ‘want’. Making sure you spend less than you earn should provide more money to repay your debts.
Make short term and long term goals. Short term goals will keep you motivated and help you achieve your long term goals.
You may consider selling some household items you no longer need. Have a garage sale or use Ebay to sell those unwanted items. If necessary sell down some investments to pay off high interest debt. There is no point having money in the bank earning little interest and a debt carrying a higher interest.
Research credit card deals. You can compare credit card features and interest rates visiting www.ratecity.com.au. By switching over to the right deal may lower your interest rate and therefore pay off your credit card debt faster.
Consolidate all your credit cards if you have more than one card. Try to switch to a credit card that provides balance transfers and discounted or nil interest rates for the first six months.
If you cannot consolidate debt then start paying off the card that has the highest interest rate first. Tackle one debt at a time. Once a credit card is paid off, consider closing the account.
Don’t fall into the trap of continuing to use a card with high interest rates just because it carries a reward program. Often the extra interest you pay negates any benefit from receiving the rewards.
Learn how to pay “cash” for your purchases and not the credit card. Alternatively set up a debit visa card, that way you need to have cash in the account before you are able to purchase.
To get further information contact Tiffany Cosh via email or ph (08) 8333 2488.
Read more
I (Scott Keeley) spend much of my day speaking with the families of people who are preparing to enter Aged Care Facilities. This is a particularly traumatic time for most family, and this trauma is only compounded by the complex nature of the various fee structures. In my contact with clients, often the same questions come up. There is the opinion that the cost of Aged Care is far too expensive, and unaffordable for those who own their own home, but have little in the way of other assets.
I thought I'd provide here a list of the most common myths that I hear that relate to the cost of Aged Care.
My ongoing fees will only be 85% of my pension!
While the Basic Daily Care Fee is linked to 85% of the full Age Pension, additional fees can also be charged. These include Daily Income Tested Fees, Accommodation Charges (for high level care) and potential Extra Services Fees. As a result, the total ongoing fee may be a lot higher than 85% of the pension.
I will have to sell my home to pay for the Accommodation Bond!
Maybe, but not necessarily. While this may be the most commonly explored option, renting the home and organising to pay the Accommodation Bond via periodic payments may also achieve an affordable outcome.
Only the rich who can afford to pay a large Accommodation Bond can get into a low level care facility!
The Government does in many cases subsidise the costs associated with providing Aged Care for those residents who are unable to afford large Accommodation Bonds. Furthermore, Aged Care Facilities are required to set aside a certain percentage of beds for "concessional" or "assisted" residents, ensuring everyone has equal access to care.
The Accommodation Bond is dead money!
A large proportion of money paid as an Accommodation Bond is refunded to the resident when they leave the Aged Care Facility, or to their estate when they pass away.
I'd be better off giving everything away so I can avoid or lower the fees!
As with most things in life, money buys choice. Having assets at your disposal should ensure you can choose an Aged Care Facility that is close to family, can provide the required care, and that you are happy with. Giving away assets may not improve your position. It can have significant implications from a Centrelink and an Aged Care Fee perspective. Seek specialist advice before considering this!
If we set up a family trust, we can avoid or lower the fees!
While this may be sometimes true, again specialist advice is required before considering this. The utilisation of family trusts may have some impact in reducing Daily Income Tested Fees, however I'm yet to be convinced of the merit. The Daily Income Tested Fee is only reduced because the resident's income is reduced! Sure, you pay less fees, but only because you receive less income! Robbing Peter to pay Paul?
Summary
Too much emphasiscan beplaced on keeping the full rate of Age Pension, or paying the lowest possible ongoing fees for Aged Care. In my mind, this focus is misplaced. Overall cashflow is far more important (regardless of the source). Let us help you find the best outcome. Crunching the numbers, and being aware of all of your options, should ensure that the financial aspects of entering Aged Care are far less intimidating.
Scott Keeley - enquiries@wakefieldpartners.com.au
(08) 8333 2488
Read more
It is never too soon to begin the Estate Planning process. It is much more than simply making a Will. Estate Planning is all about ensuring your assets are distributed to your chosen beneficiaries, distributed according to your wishes in the most financially efficient and tax effective way.
Inadequate Estate Planning comes at a cost. The worst case might see the “wrong” people inheriting your estate. Or the cost might be expensive legal or trustee company fees or perhaps heartache for your family and friends.
Surprisingly, 60% of Australians do not have a Will.
For those who don’t, the law determines who inherits their belongings. Their spouse and children may not automatically be the main beneficiaries. That is why it is so important to regularly review an Estate Plan, particularly if personal circumstances change. If you re-marry, become divorced, commence living in a de-facto relationship, have a blended family (consisting your own children and step children), or have new members in the family..... you should review your Estate Plan.
A well constructed Estate Plan can help to avoid unexpected taxes and protect assets from claims and challenges. Our advice is to consider choosing someone to be your Power of Attorney, name someone in your Will to become your children’s legal guardian, list your beneficiaries in your insurance policies and nominate binding beneficiaries in your super fund.
Make your Estate Plan easy to administer for your executors. Talk to us to arrange for an Estate Planning Information Kit to identify and organise your estate planning needs.
To contactTiffany phone(08) 8333 2488 oremail any queries or comments to her.
Read more
|