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In this episode Gavin Martin, Financial Adviser / Financial Planner, explains the personal finance and superannuation announcements the Federal Government made as part of the Mid-Year Economic and Fiscal Outlook (MYEFO) that has been termed a Mini-Budget due to the range of cut backs. The discussion, includes:

• Extension of draw down relief for super pensions – The Government has announced it intends to extend the 25% drawdown relief for the 2012/13 year.
• Low income superannuation contribution – The Government has previously announced and introduced legislation to effectively provide a refund of 15% contributions tax for low income earners from 1 July 2012. Taxpayers with adjusted taxable income of up to $37,000 will receive a low income superannuation contribution (LISC) up to a maximum of $500. The Government intends to simplify the process for eligible individuals.
• Superannuation co-contribution – The Government intends to reduce the matching rate and maximum payment for the superannuation co-contribution from 1 July 2012. This coincides with the commencement of the LISC. The co-contribution will reduce from $1,000 to $500. The matching rates remains at $1 for $1, however, eligibility for the co-contribution cuts out at $46,920. Currently the cut out threshold is $61,920.
• Abolition of age limit for Superannuation Guarantee contributions – Currently, employers are not required to make Superannuation Guarantee payments for employees age 70 and over. From 1 July 2013, employers will be required to make Superannuation Guarantee contributions for eligible employees aged 70 or older. Other existing exemptions from paying Superannuation Guarantee contributions will continue to apply, such as an employee earning less than $450 per month.
• Pause on concessional contribution indexation – The Government will pause the indexation of the concessional contribution cap (currently $25,000) for one year in 2013/14. It is expected that the concessional contribution cap will be indexed from 2014/15, increasing to $30,000. This also means the Non Concessional Contributions will not be indexed as it is six times the concessional contribution cap.
• Self Managed Superannuation Fund Trust deed clauses - Currently, some trust deeds include a clause which treats amounts that would otherwise be a contribution as not being accepted if that amount would lead to a breach of the contribution cap. Under the proposal, a fund will be deemed to have accepted the contribution if the contribution has not been promptly returned and effectively been intermingled with other fund assets. This is designed to ensure that such clauses are ineffective and penalty contribution tax payable.
• Dependent spouse tax offset - Effective from 1 July 2012, the Government will phase out the dependent spouse tax offset (DSTO) for taxpayers with a dependent spouse born on or after 1 July 1952. The original phase out was for taxpayers with a dependent spouse born on or after 1 July 1971.
• Deferral of tax reforms – The commencement of the standard $500 pa work related expenses from 1 July 2012 will be deferred until 1 July 2013 and the standard $1,000 pa work related expenses that were to commence on 1 July 2013 will now not start until 1 July 2014.
• The commencement of the standard $500 pa work related expenses from 1 July 2012 will be deferred until 1 July 2013 and the standard $1,000 pa work related expenses that were to commence on 1 July 2013 will now not start until 1 July 2014.
• The 50% discount for interest income will be deferred until 1 July 2013
• The commencement of the phase down of the interest withholding tax for financial institutions will be deferred until 2014/15.
• Car fringe benefit rules – In the Federal Budget the Government announced a transitional period to move from multiple statutory rates to a single flat rate of 20% when determining the taxable value of car fringe benefits. This announcement will be modified to allow employers to elect to apply the 20% flat rate immediately rather than apply the transitional rules. This measure only applies to new contracts.
• Pause on Baby Bonus indexation – From 1 July 2012, the Government will pause the indexation of the Baby Bonus payment for three years. The payment rate will also be reset to $5,000 per child from 1 September 2012. The current rate of the baby bonus is $5,437.
• FTB Part A conditional on immunisation – From 1 July 2012, the Government will make payment of the FTB Part A supplement conditional on a child being fully immunised.
• Question from Lyn about withdrawing funds from superannuation to invest in property – When can I access my superannuation and How can I access my superannuation may be useful videos.

Call 1300 275 428

• Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

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In this episode Gavin Martin, Financial Adviser / Financial Planner, is joined by Edward Teele to address the question “What happens if a country collapses and cannot pay back its debt?”, including:

• European plan to deal with Greece sovereign debt issues
• The difference between companies and individuals going bankrupt and countries going bankrupt
• Previous country defaults
• Possibly outcomes of the current economic situation
• Wisdom from Warren Buffett and Professor Burton G. Malkiel

Call 1300 275 428

• Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

• You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

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If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

• Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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In this episode Gavin Martin, Financial Adviser / Financial Planner, addresses your 3 questions, including:

• Selecting an SMSF adviser – Craig asks “My mother is looking to have someone else manage her SMSF. What points should does she need to consider when reviewing who should manage it.”
• Going guarantor – Mark asks “I have the property I am living in paid off ($400k), I will retire in 1 year. My daughter is planning to buy an investment property ($300k). She want to put my name in the property, but only 5%, she owns 95%. My questions are:
• In the future is it easier to transfer the property to me?
• Is there any other positive reason for doing so?
• And how will this affect my retirement payment?
• If my daughter buys the property on her own (without having my name on the property), what are the differences to having my name on for 5%?”
• Investing an inheritance for teenage children – Yolanda asks “what is the best way to invest in property so parents and rent off children (to pay outstanding loan)”

Call 1300 275 428

• Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

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Email me

• Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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In this episode (Part 2 of 2) Gavin Martin, Financial Adviser / Financial Planner, addresses your questions about your superannuation investment option, including:

• Luke: What’s the wisest place to put extra rainy day savings?
• Steve: Is it better to put money into super or buy an investment property?
• Vivian: Pay down the mortgage or direct funds to superannuation?
• Brian: Pay off mortgage or is there a better strategy?
• Anne-Marie: What is a realistic long term percentage (%) return on a cash investment option?
• John: Time in the market vs timing the market
• Amanda: Shares, Property or Cash
• Ingrid: How do I get to access my super fund savings?
• Daniel: Are the investment option targets still realistic?
• Rachael: Is owning a home an important investment or is it better to rent?
• Errol: I want a conservative to medium risk strategy
• Alan: Is it best to leave my super where it is and ‘ride out the storm’?
• Charles: What is the best way to invest in property if you are a young family, early on in life/work?
• Geoff: Is it better to put most of my money into Super, invest in shares, or keep in the bank?
• Wayne: Do I put all my money into paying off my home loan or still make super contributions?
• John: Would it be to my advantage to put my super into gold for the next 4-6 years?
• Gawie: Is now a good time to get into the real estate market?
• Karl: Where is the best place to invest $10,000?
• Felicity: Home to Investment Property and deductible debt
• Ruth: Are shares a wise investment in this financial climate and given my age?
• Anna: First 5 Steps to buying your first property
• Andrew: Do we have 15-20 year term life Insurance in Australia?
• Mark: When is a good time to switch or split my super from growth to stable investment option?
• Michael: Should I consolidate my superannuation funds?

The presentation slides (in PDF format) and video can be accessed at http://www.cornerstonewealth.com.au/investmentvideo.

Call 1300 275 428

• Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

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If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

• Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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In this episode (Part 1 of 2) Gavin Martin, Financial Adviser / Financial Planner, addresses What is the right investment option for your superannuation, including:

• Introduction
• New deposit guarantee cap of $250,000
• What is the right investment option for you?
• What investment structure should you use?
• What investments or asset classes should you invest in?
• Diversification Reduces Risk
• Understand your own circumstances
• Investment timeframe – How long are you investing for?
• What is your Age and Life stage?
• Christian Super Investment Options
• Risk Tolerance – What is your tolerance to risk or market volatility?
• Risk vs Lifestyle approach to determining your investments
• Is it a good time to get into or get out of the market?
• How do you prevent losses and how do you recover from losses in the value of your superannuation?
• Ethical Investing – How investing ethically adds values to your money?
• Summary
• Further Resources

The presentation slides (in PDF format) and video can be accessed at http://www.cornerstonewealth.com.au/investmentvideo.

Call 1300 275 428

• Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

• You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

• Twitter

Become a fan on Facebook

If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

• Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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In this episode Gavin Martin, Financial Adviser / Financial Planner, addresses two questions:

• What is the best superannuation fund with low fees
• Chant West
• Super Ratings
• Can I invest my super in gold and silver
• Gold standard
• Gold vs investing in gold mining companies

Call 1300 275 428

• Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

• You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

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If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

• Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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In this episode Gavin Martin, Financial Adviser / Financial Planner, addresses the issue of retiring when your superannuation assets are at a low point (low valuation) and also answers Kate’s question about how to invest in shares:

• Continuing to work rather than retiring while markets are at a low point
• “Wealth to Last, Money essentials for the Second Half of Life”, Larry Burkett, Ron Blue and Jeremy White, Broadman and Holman Publishers 2003
• How to invest in shares
• Kate’s question “I want to put some money, about $3000 into shares but don’t have much knowledge about it. How can I do this?
• First Home Saver Account
• Listed Investment Companies (LICs)
• Australian Foundation Investment Company (AFI)
• ARGO
• ATO link to Capital gains tax listed investment companies concession
• Managed funds
• Vanguard
• State Street
• Exchange Traded Funds (ETFs)
• Vanguard
• iShares
• Direct shares
• Online Brokers
• CommSec
• eTrade
• Search “online brokers” and you will see a range of online brokers

Call 1300 275 428

• Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

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If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

• Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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In this episode (Part 3 of 3) Gavin Martin, Financial Adviser / Financial Planner, addresses Retirement Planning including:

• How to reduce capital gains tax
• How can I maximise the benefit to my children when I die?
• Example of tax payable by a financial non dependent when receiving a superannuation death benefit
• Cash Out Re-Contribution Strategy
• Cash Out Re-Contribution Strategy Considerations
• Further Resources

The presentation slides (in PDF format) and video can be accessed at http://www.cornerstonewealth.com.au/retirementvideo.

Call 1300 275 428

• Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

• You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

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If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

• Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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In this episode (Part 2 of 3) Gavin Martin, Financial Adviser / Financial Planner, addresses Retirement Planning including:

• How to prepare for retirement?
• Strategies to help you save for retirement
• How does Salary Sacrifice work?
• What is the benefit of Salary Sacrifice?
• Salary Sacrifice Example
• How much should I salary sacrifice?
• What is Transition to Retirement (TTR)?
• What are the benefits of the TTR Strategy?
• Transition to Retirement (TTR) Example
• How does TTR work practically?
• What benefit could the TTR strategy provide me?

The presentation slides (in PDF format) and video can be accessed at http://www.cornerstonewealth.com.au/retirementvideo.

Call 1300 275 428

• Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

• You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

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Become a fan on Facebook

If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

• Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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In this episode (Part 1 of 3) Gavin Martin, Financial Adviser / Financial Planner, addresses Retirement Planning including:

• How much will you need for retirement?
• How to work out your retirement cost of living
• 65% of the after-tax income pre retirement
• Base on other’s experience
• Review expenses and make an estimate of how they may change in retirement
• Research Modest vs. Comfortable Lifestyle
• Modest retirement lifestyle – Better than the Age Pension, but still only able to afford fairly basic activities.
• Comfortable retirement lifestyle – Enabling an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as; household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel.
• How to provide for your retirement?
• Three broad sources of income:
• Superannuation
• Government Age Pension
• Other savings / investments
• 12 times rule
• $50,000 p.a. income * 12 = $600,000 capital
• How long your retirement savings will last
• When can you access your Superannuation?
• Preservation Age
• Conditions of release
• How can you access your Superannuation?
• Lump sum
• Pension
• Why use superannuation to save for retirement?
• Superannuation contribution limits

The presentation slides (in PDF format) and video can be accessed at http://www.cornerstonewealth.com.au/retirementvideo.

Call 1300 275 428

• Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

• You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

• Twitter

Become a fan on Facebook

If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

• Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.