Not enough time or money - Supercharge your clients’ super · Geoffrey Chaucer - “Time and tide...

transcript

Not enough time or money - Supercharge your clients’ super

Michael Harkin, National Manager – Training and Advice, Topdocs

What we will be discussing

1. Time and Money

2. Retirement Lifestyles

3. Supercharge Options

2015 SMSF Association National Conference www.smsfassociation.com

Time and Money

Geoffrey Chaucer - “Time and tide wait for no man”

Time and Money

Geoffrey Chaucer - “Time and tide wait for no man” Benjamin Franklin - “Time is money”

Time and Money

Geoffrey Chaucer - “Time and tide wait for no man” Benjamin Franklin - “Time is money” Shirley Temple - “Time is money - Wasted time means wasted money means trouble”

Time and Money

Geoffrey Chaucer - “Time and tide wait for no man” Benjamin Franklin - “Time is money” Shirley Temple - “Time is money - Wasted time means wasted money means trouble” Dr Seuss - “How did it get so late so soon”

Time and Money

= Age Money =

Retirement Lifestyles

How long will my super last?

• Longevity

• Accumulated Super

• Spending/Saving Habits

• Generation

Age Male Female Age Male Female

55 26.95 30.53 63 20.14 23.35

56 26.08 29.61 64 19.34 22.48

57 25.20 28.70 65 18.54 21.62

58 24.34 27.79 66 17.76 20.76

59 23.48 26.89 67 16.99 19.92

60 22.63 26.00 68 16.24 19.08

61 21.79 25.11 69 15.49 18.24

62 20.96 24.23 70 14.76 17.42

Table 1 – Life Expectancy Rates

Source: Australian Life Tables 2005-07

Effective Earning

Rate % 1 2 3 4 5 6 7 8

Drawdown %

5% 22.43 25.80 31.00 41.04

6% 18.32 20.48 23.45 28.01 36.72

7% 15.49 16.99 18.93 21.60 25.68 33.40

8% 13.42 14.53 15.90 17.67 20.10 23.79 30.73

9% 11.84 12.69 13.72 14.99 16.62 18.85 22.23 28.55

10% 10.59 11.27 12.07 13.02 14.21 15.73 17.79 20.91

11% 9.58 10.13 10.77 11.52 12.42 13.53 14.95 16.88

12% 8.74 9.21 9.73 10.34 11.05 11.90 12.94 14.27

13% 8.04 8.44 8.88 9.38 9.95 10.62 11.43 12.42

Table 2 – How long before my savings run out?

Pigeon holes: • Not enough

• Improvement

• Comfortable

Time and Money Helps Hinders Supercharging Super

Supercharge Options

• Grow

• Preserve

• Plan

Supercharge Options - Growth

• Contributions

• Investment

• Borrowing

Contributions

• Personal Injury

• CGT Cap Amounts

• Missed Contributions

• Consolidating Superannuation

• Excess Contributions

Personal Injury

• Personal Injury • Structured Settlements

• Compensation Orders

• No Limits/Contribution Caps

• Work Test

CGT Cap Amounts

• Small Business 15-Year Exemption

• Small Business Retirement Exemption

• Structures

• Work Test

Investment

• Adviser Role

• Risk Profile

• Prudent Investment

Borrowing

• Returns +/-

• Risk Profile & Prudent Investment

• Business Premises

Supercharge Options - Preservation

• Pensions

• Costs

• Penalties

Pensions

• Early

• One size fits all

• Tax environments

• Taxation

• Documentation

• Consolidation

• Penalties

Penalties

Supercharge Options - Planning

• Transition to Retirement

• Insurance

• Estate Planning

Supercharge Options - Planning Transition to Retirement

Do nothing Salary sacrifice + TRIS Package $122,000 $122,000 SG (included in package) -$10,585 -$10,585 Salary sacrifice - -$24,415 Year 1 taxable salary $111,415 $87,000 Year 1 TRIS - $19,720 Year 1 gross income $111,415 $106,720 Year 1 tax on gross income -$29,171 -$24,476 Year 1 total net income $82,244 $82,244 Balance accumulation account - end year 1 $326,847 $29,750 Balance TRIS - $301,280 Balance total super $326,847 $331,030 Difference - Year 1 - $4,183

Insurance

• Temporary Disability

• Total and Permanent Disability

• Death

Estate Planning ‘Lifecycle’

• Enduring Power of Attorney

• SMSF Strategies

• Equalisation of Benefit

Supercharge your Clients’ Super “How did it get so late so soon?” “Time and tide wait for no man”

Disclaimer

This presentation is for general information only. Every effort has been made to ensure that it is accurate, however it is not intended to be a complete description of the matters described. The presentation has been prepared without taking into account any personal objectives, financial situation or needs. It does not contain and is not to be taken as containing any securities advice or securities recommendation.

Furthermore, it is not intended that it be relied on by recipients for the purpose of making investment decisions and is not a replacement of the requirement for individual research or professional tax advice. This presentation was accompanied by an oral presentation, and is not a complete record of the discussion held. No part of this presentation should be used elsewhere without prior consent from the author.

Not enough time or money - Supercharge your clients’ super · Geoffrey Chaucer - “Time and tide...

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