ASSET PROTECTION
Asset Protection is a way of protecting an individual’s assets in the event of legal proceedings being brought against the individual.
The list below are options depending on your specific circumstances:
- Choose the right business entity or entities.
- Have a solicitor create proper contracts and procedures.
- Acquire the appropriate business insurance, both life and general insurance.
- Certain assets may be best under your spouse’s name.
- Estate Trusts are a way to accumulate a lifetime of Assets under one Trust.
- Superannuation can be suitable in certain circumstance.
- Ownership to be arranged under Tenants in Common.
- The application of leverage against certain exposed Assets.
Asset protection is similar to an Insurance Policy for your investments, which can, when set up correctly,
give you that elusive ‘sleep-at-night’ factor.
If you are a business owner, landlord, professional, doctor or investor, how do you protect your investments?
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RETIREMENT PLANNING
Have you had your Retirement Funding Assessed?
Are you on Track to have sufficient funds to generate the income you require in Retirement?
It is crucial when you retire you have sufficient funds to generate the Income you require. These funds can come from many different investment sources:
| Shares | Superannuation | Direct Property | Commercial Property |
| Inheritance | Business Sale | Savings | Saleable Assets |
We can assist you by reviewing your investable assets including your superannuation funds and where possible, project the potential growth of these assets and superannuation funds through to your retirement. This will then enable us to determine whether you have a retirement funding shortfall.
If you have a shortfall we may be able to assist you to improve your net position for retirement.
A SOUND RETIREMENT PLAN CAN HELP YOU:
- Prepare for your retirement
- Select the best Investment Strategy
- We can assist you in obtaining the maximum tax and social security benefits
- Help secure you Superannuation Assets
- Utilise tax-efficient strategies to transfer your wealth
- Plan your estate so your loved ones are taken care of
Retirement has never looked more attractive. Tax concessions on superannuation are making it easier to grow your retirement nest egg, helping you to fund a retirement lifestyle you will really enjoy. Whether you’re approaching retirement or it is still some years away, professional advice can help you structure your finances to save tax and maximise future returns.
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SUPERANNUATION
WHAT IS SUPERANNUATION?
Personal superannuation (often simply known as ‘Super’) is money that’s put aside and saved while you are working, which can provide you with a regular income or lump sum later in life when you retire. These days, the average Australian may expect around 20+ years of retirement.
Superannuation is a good long term savings plan, which will provide you with an income and or a lump sum in retirement. Also, superannuation can provide benefits to the member if they become totally and permanently disabled or to beneficiaries upon the members’ death or the member on disablement. For many Australians, super will be their main form of retirement income.
During your working life you make contributions to your super fund and the earnings you receive are reinvested, building up the value over time. Generally, your superannuation benefits must remain in super until you satisfy a condition of release such as reaching age 65 or your preservation age and you have permanently retired or when you begin your transition to retirement, both after a set minimum age.
If you would like to know more CALL US
HOW DOES SUPER WORK?
To understand how super works, it’s important to keep in mind that super is a framework for holding investment assets. It’s not an investment in itself. Super funds can offer a range of investment options and asset classes that may include cash, property, shares and fixed interest.
When you put money into your super fund and choose your investment options, you are actually buying units in these funds (if the super fund is unitised). The number of units you receive depends on the daily unit price. This price will vary daily according to changes in the market.
Money can be placed into your super fund by you, your employer, your spouse and sometimes even the Federal Government.
WHAT TYPES OF SUPER FUNDS ARE THERE?
There are several different types of superannuation funds. The mains ones are:
- Employer/corporate/staff funds
These are funds established by an employer for the benefit of their staff. - Personal funds
As the name implies, you personally join as an individual through a super provider. There are many available and most will offer a wide range of investment choices and other features. - Industry funds
These were originally set up for people working in a particular industry, e.g. builders or health care workers. Many are now available to the public. - Self-managed super funds (SMSF’s)
These funds can have up to a maximum of four members and are generally used by people with larger amounts in their super and who want to have more control and flexibility.
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SELF MANAGED SUPER FUNDS (SMSF)
There are billions of dollars worth of investments operating within Australia, under Self Managed Superannuation Funds. The majority of these funds have been established to enable members to take control of their investment assets under superannuation.
WHAT IS AN SMSF?
An SMSF is one where you, as a trustee and member, have responsibility over the management, investment and administration of your super fund. SMSFs are different from other super funds because you run them, for your own benefit and that of any other member of the SMSF. SMSFs are established for the purpose of building retirement savings.
IT’S ABOUT GREATER CONTROL OF YOUR SUPER
Being the trustee of your super fund means you make all the investment decisions and can put your Super to work for you, A Self Managed super fund can allow you to access investment opportunities other non-self managed super funds may not be able to take advantage of such as direct held leveraged residential property. But with such control and flexiblity also comes the responsibility of managing the administration, compliance and auditing of a SMSF.
Please read the ATO linked Press-Here on understand your obligations.
WHAT ARE YOUR RESPONSIBILITIES AS A TRUSTEE?
SMSFs give you full involvement in your fund’s operation and the opportunity to make decisions around how your super is managed. However, as an SMSF trustee, you’re also responsible for running the fund in accordance with your fund’s trust deed, as well as super, taxation and corporations law and other general rules such as trust law.
You need to ensure your fund’s ongoing compliance requirements including tasks such as fund reporting, record maintenance and monitoring, meeting minutes, statutory obligations, tax, audit and actuarial reporting.
YOU GET TO MAKE THE DECISIONS ON YOUR OWN INVESTMENTS
An SMSF gives you the ability to develop your own investment strategy and make decisions on when to buy and sell individual investments. An SMSF offers a wide choice of investments including corporate bonds, managed investments, listed shares, listed investment companies (LICs), REITs, exchange traded funds (ETFs) and direct property and even precious metals.
THERE IS AN INBUILT ASSET PROTECTION:
Like all other complying superannuation funds in Australia, SMSF can protect your assets under the fund from litigation or bankruptcy. In either of these events, your benefits are protected, even if you withdraw some of this to live on. Note – this is the same with commercial super funds.
There is a lot to consider in the establishment and structuring of an appropriate SMSF. However, an SMSF gives you the opportunity to outsource some aspects of the overall management of the SMSF, such as administration, compliance and auditing to save you time and free you up to focus on what’s important to you. You can also outsource the investment planning to Wealth Professionals!
WHAT DO YOU NEED TO CONSIDER BEFORE STARTING?
As an SMSF trustee, it is important that you are aware of and understand the duties, responsibilities and obligations of being a trustee. You will need to ensure that your fund operates in accordance with all applicable laws. You will also need to be aware of and follow the rules set out in your fund’s trust deed.
You need to be comfortable making investment decisions around when, where and how to invest or consider working with an adviser to help you. In particular, you should seek advice around borrowing if this is of interest to you. Depending on your own circumstances, gearing in your super may not be appropriate.
If you would like more information about Asset Protection, Retirement Planning, Superannuation or SMSF,
Please call us on (07) 3720 9222 and ask for Michael.
General Advice Warning:
The information contained in this website is for general information purposes only. The information is provided by BDM Financial Services and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
Before investing in any product BDM Financial Services recommends that you first obtain a copy of the relevant Product Disclosure Document before making any decision regarding the purchase of or investment in that product or service in order to ensure that it is suitable for your own personal financial needs and circumstances.