Whether renunciation is right for you‘
Simon grills the world's foremost renunciation expert on the how-tos of giving up US citizenship. If you've ever wondered 'whether renunciation is right for you’ is an excerpt from Simon of sovereignman.com
& just maybe the option you are considering now that you will be slugged with another proposed taxx.
This Carbon Taxx just might be the last straw for you & maybe fleeing which is a prehistoric male mood maybe the solution for you.
We certainly know of several blue heeler Aussies who are very keen to leave their mummy or is it their nanny state.
There is David who has a MBA & MCommLaw who his wife says ‘We have to go as we have no option’. David just can’t wait to leave as what is the point of staying in the 14th most expensive city in the world when taxx takes close to half, 45%, his income after expenses.
There is Peter who not only spent 5 years on a horse in the Northern Territory but also built a successful consulting business & established various businesses. He to wants to leave permanently even though he has a granddaughter here.
In fact there would be over 1 million expatriates or Diaspora & they aren’t all doing the grey lap or the OE trip.
The frustration at what is happening in US is also happening here in AUS.
Today only 27% approve of the current big government & either persuasion is questionable.
Privacy is another issue for another day.
As we all know Taxx is wasted & spent on pet projects.
You can use your funds better.
This is reflected in the attitude that ‘If we don't keep cost competitive, (investors) will go elsewhere, that's the reality," she said’.
So mining jobs leave. Let’s kill the goose.
So your equities in your super fund which is your pension loses more.
Thank you very much poll dancers.
Dominic next door pointed out that he pays 45k in taxx. Ok he must earn a lot but then his employer believes he is worth it. We certainly don’t begrudge him his income as we know his occupation. He can’t leave his family just because his taxx is ridiculous.
So what is he to do.
We gather that costs will increase due to this carbon taxx.
That means to Dominic & home buyers that rates will go up when inflation picks up.
Thank you very much poll dancers.
We do have a simple strategy for him which is to have the taxx man over time ‘subsidise his mortgage’ & create a portfolio outside super.
There are many different ‘taxx structures’ available to you & you don’t need to investigate Labuan to minimise your taxx.
If you are our age then an allocated pension pays zero taxx on its earnings & there is also a 15% rebate to you.
If you are George & turned 55 recently then you to should convert all your super to a similar pension.
If your wife isn’t earning then income & assets in her name is a simple solution.
If you are both earning over 37K then you will be on 32.5% MTR. There is a better way.
And an idea that just entered our mail box.
From 1 July 2011 the exempt asset amount increased from $11,000 to $11,250. This means that a client can now receive up to $438.75 per annum in extra age pension. This is also an opportunity to review your existing funeral bond clients as they can top up their funeral bond so long as total contributions do not exceed the new $11,250 limit.
Not exciting but appropriate for many & a simple idea.
If your super ‘bats for the other side’ then maybe you should reconsider where your fund’s administration fees go.
We have argued the cost benefits to you recently.
We have many more ideas & you are welcome to call on 07 3848 1088 or email or visit our websites. Dominic also mentioned that you needed 2 million in capital to retire on. That is right & the traditional way won’t get you there.
Recall that the poll dancers believe 500K before capping contributions is sufficient for you
We promise you will know more about your finances after our meeting.
John McAuliffe
Have you compared the Two?
Have you compared the two?
Yes we are continually interrupted with an advt. asking us this question.
So we decided to do some HW by venturing to such an industry fund who somehow can afford the large sums [a contemporary recently suggested $18m] for TV advertising.
We didn’t find the answers on the first page of the website although they do have a calculator on their site suggesting you use it.
However we just wanted the answers & it will be in the PDS.
You have to search hard to find the PDS & then under fees you find the answer.
It is not that simple because they never are.
We have copied their fees page from their PDS.
An example of annual fees
Here’s an example of how the fees and costs in the Balanced option for this product can affect your superannuation investment over a one-year period.
You should use this table to compare this product with other superannuation products.
Example - the Balanced Investment Option Balance of $50,000 with total contributions of $5,000 during the year
Contributions fees Nil
For every $5,000 you put in, you will be charged $0.
Plus: Management costs
0.65% plus $78 ($1.50 per week)
And for every $50,000 you have in the fund you'll be charged $325 each year, plus $78 in administration fees regardless of your balance.
Equals: Cost of fund
If you put in $5,000 during a year and your balance was $50,000, then for that year you'll be charged fees of $403.
What it costs will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.
Account management costs Amount Administration fee $1.50 per week
Adviser service fee
This is deducted after you authorise payment to an eligible adviser for the advice you receive about your investment.
This fee is automatically set at zero but can be negotiated between you and your adviser up to the following limits:
Initial advice: $4,659.10
Once-off advice: $2,329.55
Member Benefit Protection (MBP) for 2009/10 # 0.05% pa
Additional service fee Amount Binding nomination fee
This is the annual fee charged if you decide to make a Binding Death Benefit Nomination. $10 per year.
This article suggests a very good reason why you do so.
Hence we conclude that their administration fees which is what they are wanting us to compare to are not as cheap as they suggest.
I.e. it is [0.65% & .05% = 0.70%] + $78p.a. + $10 = 0.70% +$88
Are we sure that it is their hands they are holding?
We suggest that for you we can generally do this cheaper.
It is implied that theirs is better than others but closer examination suggests that may not be so.
We heard 25 years ago that about from the weather the world’s most boring question is
‘what is the cost’?
And certainly cost is a factor & we have answered this for you.
There is No debate that the biggest cost is the government 15% taxx grab within the fund. Why doesn’t government reduce that?
They have made a start by refund contributions taxx next year but why not this financial year. A $ is worth less next year.
Why did the Liberals disagree with this excellent Labour idea? Is it their only one?
Apart from cost three other issues within your super are
• the returns & many funds on a platform will beat their fund returns.
• when is the contributions taxx paid as the ATO shouldn’t get it a day before necessary.
• the insurance definitions are a minefield & need close examination in many cases. You get what you pay for.
E.g. are you covered if your employer doesn’t pay or if you leave that employer.
And what about the trustees & beneficiaries?
We read today 5th July 2011 that
‘Serious concerns about longevity risk are being expressed by Australians over 50’.
The majority of Australians approaching retirement have grave fears they will outlive their savings, a new industry survey has shown.
The second MetLife International Employee Benefits Trends Study revealed 52 per cent of respondents over the age of 51 were extremely worried they would outspend their savings.
However, according to MetLife, only 40 per cent of individuals were actually taking action to boost their retirement savings while they were still working.
Currently, the average superannuation asset balance for people over 50 was $52,500, the research showed.
To compound this current lack of savings, the research found 25 per cent of participants were unable to plan for the future and were continuing to live from pay packet to pay packet. Furthermore, most people had some form of debt to service as well.
The survey did uncover a desire to take some action, starting with education, with a large number of employees calling for methods to improve their ability to plan their financial future.
Employers are also concerned about the generation on the verge of retirement and the impact it will have on the workforce. Reflective of this sentiment was the fact 90 per cent of respondents named employee retention as their first and foremost priority.
"Australians look to their chosen superannuation fund and their employers when they consider their personal insurance and financial protection needs. With both the economy and the labour market heating up, there is a real opportunity to explore innovation in benefits packages, including flexible retirement solutions,"
The survey was conducted between November 2010 and February 2011 by GFK Custom Research on behalf of MetLife, with the opinions of 258 people sought
We could conclude that you need advice today.
We will certainly suggest that our advice fee will be a fraction of theirs because we don’t have the ego or the advertising or the overheads or the party that they do.
And we have been helping & advising for 27 years which beats almost all.
Here to help you 24/6 if you wish.
Welcome to call on 07 3848 1088
or email info@wecoachwealth.com.au
or visit our websiteswww.wecoachwealth.com.au
John McAuliffe
Yes we are continually interrupted with an advt. asking us this question.
So we decided to do some HW by venturing to such an industry fund who somehow can afford the large sums [a contemporary recently suggested $18m] for TV advertising.
We didn’t find the answers on the first page of the website although they do have a calculator on their site suggesting you use it.
However we just wanted the answers & it will be in the PDS.
You have to search hard to find the PDS & then under fees you find the answer.
It is not that simple because they never are.
We have copied their fees page from their PDS.
An example of annual fees
Here’s an example of how the fees and costs in the Balanced option for this product can affect your superannuation investment over a one-year period.
You should use this table to compare this product with other superannuation products.
Example - the Balanced Investment Option Balance of $50,000 with total contributions of $5,000 during the year
Contributions fees Nil
For every $5,000 you put in, you will be charged $0.
Plus: Management costs
0.65% plus $78 ($1.50 per week)
And for every $50,000 you have in the fund you'll be charged $325 each year, plus $78 in administration fees regardless of your balance.
Equals: Cost of fund
If you put in $5,000 during a year and your balance was $50,000, then for that year you'll be charged fees of $403.
What it costs will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.
Account management costs Amount Administration fee $1.50 per week
Adviser service fee
This is deducted after you authorise payment to an eligible adviser for the advice you receive about your investment.
This fee is automatically set at zero but can be negotiated between you and your adviser up to the following limits:
Initial advice: $4,659.10
Once-off advice: $2,329.55
Member Benefit Protection (MBP) for 2009/10 # 0.05% pa
Additional service fee Amount Binding nomination fee
This is the annual fee charged if you decide to make a Binding Death Benefit Nomination. $10 per year.
This article suggests a very good reason why you do so.
Hence we conclude that their administration fees which is what they are wanting us to compare to are not as cheap as they suggest.
I.e. it is [0.65% & .05% = 0.70%] + $78p.a. + $10 = 0.70% +$88
Are we sure that it is their hands they are holding?
We suggest that for you we can generally do this cheaper.
It is implied that theirs is better than others but closer examination suggests that may not be so.
We heard 25 years ago that about from the weather the world’s most boring question is
‘what is the cost’?
And certainly cost is a factor & we have answered this for you.
There is No debate that the biggest cost is the government 15% taxx grab within the fund. Why doesn’t government reduce that?
They have made a start by refund contributions taxx next year but why not this financial year. A $ is worth less next year.
Why did the Liberals disagree with this excellent Labour idea? Is it their only one?
Apart from cost three other issues within your super are
• the returns & many funds on a platform will beat their fund returns.
• when is the contributions taxx paid as the ATO shouldn’t get it a day before necessary.
• the insurance definitions are a minefield & need close examination in many cases. You get what you pay for.
E.g. are you covered if your employer doesn’t pay or if you leave that employer.
And what about the trustees & beneficiaries?
We read today 5th July 2011 that
‘Serious concerns about longevity risk are being expressed by Australians over 50’.
The majority of Australians approaching retirement have grave fears they will outlive their savings, a new industry survey has shown.
The second MetLife International Employee Benefits Trends Study revealed 52 per cent of respondents over the age of 51 were extremely worried they would outspend their savings.
However, according to MetLife, only 40 per cent of individuals were actually taking action to boost their retirement savings while they were still working.
Currently, the average superannuation asset balance for people over 50 was $52,500, the research showed.
To compound this current lack of savings, the research found 25 per cent of participants were unable to plan for the future and were continuing to live from pay packet to pay packet. Furthermore, most people had some form of debt to service as well.
The survey did uncover a desire to take some action, starting with education, with a large number of employees calling for methods to improve their ability to plan their financial future.
Employers are also concerned about the generation on the verge of retirement and the impact it will have on the workforce. Reflective of this sentiment was the fact 90 per cent of respondents named employee retention as their first and foremost priority.
"Australians look to their chosen superannuation fund and their employers when they consider their personal insurance and financial protection needs. With both the economy and the labour market heating up, there is a real opportunity to explore innovation in benefits packages, including flexible retirement solutions,"
The survey was conducted between November 2010 and February 2011 by GFK Custom Research on behalf of MetLife, with the opinions of 258 people sought
We could conclude that you need advice today.
We will certainly suggest that our advice fee will be a fraction of theirs because we don’t have the ego or the advertising or the overheads or the party that they do.
And we have been helping & advising for 27 years which beats almost all.
Here to help you 24/6 if you wish.
Welcome to call on 07 3848 1088
or email info@wecoachwealth.com.au
or visit our websiteswww.wecoachwealth.com.au
John McAuliffe
