Articles and News

Weekly Article: Effectively Using Your Inheritance

Weekly Article: Effectively Using Your Inheritance

Inheritances can be a tricky thing to navigate, most of us have options and questions go around in our heads for months before making a solid decision.

This week’s article addresses some of the common questions asked about what to do after receiving an inheritance, how it impacts your pension eligibility, and how to best invest it.

See the link below for the full article:

https://www.smh.com.au/money/super-and-retirement/how-to-use-an-inheritance-in-most-effective-manner-20191031-p5367t.html

Weekly Article: MySuper Heatmap

Weekly Article: MySuper Heatmap

This week’s article takes a look at the Australian Superannuation watchdog, APRA, and the “MySuper Heatmap” that they have created to provide a clear ranking of the performance of MySuper funds.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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A great read for those who would like to learn more about their superannuation fund and who may be interested in comparing funds by utilizing this tool.

See the link below for the full article:

https://www.canstar.com.au/superannuation/mysuper-heatmap/

Federal Budget 2019

Federal Budget 2019

Under the Government’s economic plan, jobs are being created and the
budget is returning to surplus. The 2019-20 Budget reinforces
the Government’s plan to invest in Australia’s future by strengthening
the economy while keeping taxes low and guaranteeing essential
services.

In this Budget, the Government is providing additional tax relief of
$158 billion. This is on top of the $144 billion in tax cuts legislated
in last year’s Personal Income Tax Plan. The Government is
also helping businesses reinvest, employ more workers and grow, by
increasing and expanding access to the instant asset write-off.

For more information on the budget, please view the Federal Budget Overview attached below;

Budget 2019 2020

In addition, if you would like to discuss any of the Federal Budget topics feel free to contact Marijana Ravlich on (08) 9322 1882.

Federal Budget 2018

Federal Budget 2018

Small tax cuts and more relief over the next seven years are at the heart of the 2018 federal budget, with a dramatic shake-up of the tax system beginning in July. Federal Treasurer Scott Morrison announced there will be up to $200 a year for low-income earners and up to $530 extra a year for people on middle incomes.

For more information about the budget visit https://budget.gov.au/2018-19/content/sections/overview/downloads/Budget_2018-19_Budget_Overview.pdf 

In addition, if you would like to discuss any of the Federal Budget topics feel free to contact Marijana Ravlich on (08) 9322 1882.

We have had a number of enquiries about Loans v Gifts to Children

Loans v Gifts to Children

We have had a number of enquiries about Loans v Gifts to Children

In many families, there is a movement of money from parents to children. How do you want to record the transaction? Should it be a gift or should it be a loan?

Giving your children money. Loans vs Gifts

What is the best way to provide children with financial assistance. Many parents think they are being kind when they gift money to children. However, such is not always the best course of action. If the child divorces or goes bankrupt the money is lost.

But I love my children

There is nothing wrong with helping your children financially. However, it is important to protect the monies in case the following occurs:

  1. they divorce
  2. go bankrupt
  3. suffer from drugs
  4. suffer a mental condition
  5. stop loving you and there are family disputes
  6. you run out of money yourself, in your old age or retirement

Therefore, to protect your loan a law firm can prepare loan agreements that comply with the Family Court. Homemade loan agreements may not work as they carry less weight with the Family Court and Bankruptcy Court. Why take the risk, discuss with a lawyer your situation?

Documenting loans to children

Never ‘give’ your children money. Always ‘lend’ them money ‘payable on demand’. Get it back if something goes wrong.

A loan is not always for property and the grandchildren’s school fees. You can also fund the children’s Superannuation fund, discuss this with a lawyer.

At different times, it is common to benefit one child over another with money. If you benefit one child over another it can be  adjusted automatically at the time of your death. Say you lend one child $500,000 and the other child $300,000 that can be adjusted after your death. This will allow everything to remain fair.

When making loans to children:

  1. talk with all your children together about the loans
  2. never gift children money – only loan them money (this protects both you and them)
  3. don’t rely on home-made loans or IOUs – we can assist you in having a legally prepared Loan Agreement through a law firm.

Loan Accountants & Unpaid Present Entitlements

In a Family Trust the parents will often distribute income to the children to take advantage of lower rates of tax. The children never see the money. Instead, they loan it back to the Family Trust. This is called an Unpaid Present Entitement (UPE). Sadly, at any time the child can ask for the money. Deeds of Debt Forgiveness can be prepared.

It may be wise to speak to a lawyer about the following:

  1. Loans to children – get 100% of the money back if the child divorces, overrides the Family Court.
  2. Loans to high risk spouse – ‘safe harbour’ mum lends money to an ‘at risk’ husband who is a professional or business owner.
  3. Deed of Debt forgiveness – children forgive debt that the Family Trust owes them

(Legal Consolidated Barristers & Solicitors, 2017)

 

Federal Budget 2017

Federal Budget 2017 

The Australian Government is creating incentives to improve housing outcomes, including the proposed legislation of:

‘Helping first home buyers to save a deposit through voluntary contributions into superannuation’. This is still being considered

For further information about the budget visit http://budget.gov.au/2017-18/content/glossies/overview/download/Budget2017-18-Overview.pdf

In addition, if you would like to discuss any of the Federal Budget topics feel free to contact Marijana Ravlich on (08) 9322 1882.

IFA Excellence Awards 2016

IFA Excellence Awards 2016

The IFA Excellence Awards are the only industry awards dedicated exclusively to boutique and non-aligned financial advisers.

LIFE Financial Planners is proud to announce that we have been nominated as finalists for the third year in a row in the category of Best Client Servicing – Company. As an independently-owned financial advice company that pride ourselves on providing the best personal advice and customer service we are extremely honoured to be finalists in this category again.

 

IFA 2016

From the Financial Planner

From the Financial Planner

Marijana shared her five top tips for women to get ahead financially in The West Australian’s Mind+Body lift out on Wednesday, March 26th, 2016.

If you’re looking to get your finances in order and start planning for the future, these tips are a great place to start. For further information or to get started with your free Financial Health Check you can contact us here https://www.lifefinancialplanners.com/contact-us/

The article from the Mind+Body life-out is available here:

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Matters of death and life

Matters of death and life

Marijana was once again asked to contribute to an article by Neale Prior in The West Australian on Monday, March 6th, 2016.

In ‘Matters of death and life’ Marijana discusses the importance of completing a full analysis of your current super funds before consolidating them. Many of us have insurance attached to our super that we may not even know about. Marijana explains how important it is to look at what you already have before you make any changes.

As Marijana mentions, it’s always important to consider the implications before making alterations to your super. If you’re looking to sort out your super, contact us first for your free initial consultation here: https://www.lifefinancialplanners.com/contact-us/

The full article from the ‘Your Money’ lift-out is available here:

Matters of death and life – The West 6 March 2016 (Pg 1)

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IFA Excellence Awards 2015

IFA Excellence Awards 2015

The IFA Excellence Awards are the only industry awards dedicated exclusively to boutique and non-aligned financial advisers.

LIFE Financial Planners is proud to announce that we have been nominated as finalists for the second year in a row in the category of Best Client Servicing – Company. As an independently-owned financial advice company that pride ourselves on providing the best personal advice and customer service we are extremely honoured to be finalists in this category again.

FINALIST_BEST_CLIENT_SERVICING_COMPANY (3)

The IFA Excellence Awards will be announced at a ceremony in Sydney on Friday, August 7th.