The phone call you don’t want to make



Yes we had the call at 8.30pm last night. It is the call an adviser doesn’t want to hear.

My son has been killed & you do his insurance.

We are in shock & just want to say nothing as anything is a platitude.

We are very sorry.
It happens to the wrong people.
Our prayers & sympathy.
You don’t deserve this has you have worked so hard.

Then we ask ourselves these questions

Who does he have his insurance with?
Who is his beneficiary?
Who do we contact & what is the process?
How much insurance does he have & is it enough?
What did we advise him to take?

 We don’t ask & no one ever does Now

How much was the premium ?
What did we charge?
What is the ongoing service fee for?
Let me think about it.
And all those other procrastination excuses for an opt out of the real world

This event affects everyone, parents, girl friend, work colleagues, customers, suppliers & all his friends.
May he LMC rest in Peace 

He worked very hard, he was ambitious, he cared for many years his girlfriend who is estranged  from her family  & his father was passing the business that he had built up to him.

Unfortunately this is not the first claim that we have had. 
We recall our first claim @ Easter 1986 when ADR was killed by a road train. 
We had advised cover six week earlier & he had to ask his wife who was a solicitor. 
We still recall to this day she quivering in shock at the funeral.  

No  she says .
 Hence we always wonder how she has survived. 

Insurance certainly doesn’t help the grief but   it helps all those left behind .

His cover is with TAL and TAL paid $885 million in claims in the 12 months to 31 March 2014, representing a 38% upsurge on the previous period.
and
For the first time in its history, the Australian life insurance industry has paid out more than $5 billion in claims in a single year.

As nearly all on our list has contacted us for cover & procrastinated then today is the time to call us again.
Is it our job to call you?  How many times should we?

After the PUP’s kitten’s petulant decision this week then maybe there won’t be an adviser left for you to call.

As others do call us today on   07 3848 1088 or email us or visit our websites.

We believe that we can generate significant financial certainty for you throughout our relationship & importantly add substantial value to ensuring you achieve all that is important & valuable to you as you have articulated to us.’

If we were to sit down in three years time & looked back what do we need to do today so that you are financially & personally better off & happier.


John McAuliffe

ADVANTAGES for ‘Belfast*’ asking our super advice



  • ‌Below is a comparison of your current and proposed positions which illustrates the changes to your superannuation structure and the cashflow effect that this will have.

Belfast*
Current
Proposed
Pension Income

 $  19,957.00
Salary Sacrifice Contributions
 $                  -  
 $  28,255.00



Income Tax (Personal)
 $      8,561.00
 $        263.00
Contributions Tax (Super)
 $         518.00
 $     4,756.00
Total Tax
 $      9,079.00
 $     5,019.00



Take Home Pay
 $   42,868.00
 $  42,868.00

  • Establishing a Transition to Retirement Income Stream will provide you with additional income via a pension to help you make additional salary sacrifice contributions to superannuation which will in turn reduce your personal taxation position.
  • Implementing this strategy will reduce your tax payable position by $4,060.
  • Your take home income level after our recommendations will remain the same as your current position.
  • Your superannuation will be moved into a tax-free environment.  Based on current legislation, earnings generated by your underlying investments whilst in the accumulation phase of superannuation are taxed at 15% whereas in the pension environment, earnings are 100% tax-free.
  • By moving funds from superannuation (where earnings are taxed at 15%) into a pension, this effectively prevents tax from eroding your income returns.
  • Rebooting your pension annually will ensure that the bulk of your superannuation monies remain consolidated in a tax advantaged environment and invested as per your risk profile.
  • You are currently able to contribute up to $35,000 per annum to superannuation via Concessional contributions. 
  • Salary Sacrifice contributions are tax deductible.
  • All pension payments will be tax-free.
  • You are able to alter your income level (but must remain above the minimum) at any time.
·         Investment earnings on your capital within the Account Based Pension environment are completely tax-free.
·         ‌There is no capital gains tax implications for any capital gain that you realise while invested within the Account Based Pension environment.
·         ‌The capital invested in the account based pension can be accessed at any time by making lump sum withdrawals tax free.
·         Account Based Pensions are “Centrelink friendly” investments, as a significant portion of the income you receive will be exempt from Centrelink’s Income Test.
·         ‌Your capital is not lost on death.  The balance can be paid to your dependants, or paid in accordance with your Will or estate.
·         ‌If you have nominated a reversionary pensioner on the account (e.g. a spouse), in the event that you pass away, the reversionary pensioner may choose to continue to receive regular pension payments, or commute the remaining capital to a lump sum.

DISADVANTAGES
 Yes there are a couple which are fully explained  but we won’t include them here as our advice document for Belfast* is 21 pages.

We also provided this disclaimer

In addition to the above, we need to inform you that the provider of the advice can outline general taxation implications of any strategic information. However,

  1. the provider of the advice is not a registered tax (financial) adviser under the Tax Agent Services Act 2009; and
  2. if the receiver of the advice intends to rely on the advice to satisfy liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law, the receiver should request advice from a registered tax agent or a registered tax (financial) adviser.


We could have added this but Belfast* who we have advised for 13 years knows this.

‘Good Morning John,
I refer to our conversation yesterday.
It gives me great pleasure to advise that your Application for the Certified Financial Strategist (CFS) certification has been successful……’

As others do call us on

07 3848 1088 or email us or visit our websites.


We believe that we can generate significant financial certainty for you throughout our relationship & importantly add substantial value to ensuring you achieve all that is important & valuable to you as you have articulated to us.’
If we were to sit down in three years time & looked back what do we need to do today so that you are financially & personally better off & happier.


John McAuliffe


It’s what they don’t tell you that you need to know



Let’s look at recent graphs that do tell a different story to what is promoted by the big guys.
Remember the big guys are big because they tell the big white lies.



 
And this is the result


i.e. a difference of 4%p.a. over 10 years compound makes a big difference.


When we calculate what 100,000 will grow to at 9% over 10 years we get 236,736
                                                                                   At 5%                          we get 162,889
                                                                                           A big difference of 73,847
That is the emotional cost of investing as shown by research & data & there is plenty out there in Google land .
All those little white lies told by self interested others that investing is easy & why not have your own SMSF as you can do better. 
As the Tui would say ‘Yeah right’.

In fact there is a literature on this subject.

We listened yesterday to Vince a professional fund manager with a company that manages 30B. He  has been such for 20 years. He strongly disliked Australian banks as they were too dear & too highly leveraged. He hasn’t been in Telstra for 10 years. What have all the SMSF invested in????.

That is without mentioning all the compliance rules that the ATO CREATES for trustees to comply to.
Do you really want to be a SMSF trustee??

As we are only a small guy with our name that we don’t want to lose then as others do call us on
07 3848 1088 or email us or visit our websites.

We believe that we can generate significant financial certainty for you throughout our relationship & importantly add substantial value to ensuring you achieve all that is important & valuable to you as you have articulated to us.’ 

If we were to sit down in three years time & looked back what do we need to do today so that you are financially & personally better off & happier.

John McAuliffe