T H E Q U A R T E R LY N E W S L E T T E R

F R O M P R O V I D E N T

A message from Paul Carter

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Mind your own businessInside this issue… Protect a

growing businessProviding for

future generations Meet our

team

f Have you been dreaming for years about that big trip around Australia - but you’re unsure how to get started? Here are some great tips and resources to help you plan a grand-scale adventure.

The old notion of retirement is fast being

replaced by a new and exciting life stage.

For those who have done their planning and

secured a reasonable income, this can be a

time of great opportunity. A time to revisit

long-held dreams and enjoy some rich life

experiences and amazing new adventures.

The choice is really only limited by your

imagination and energy.

DO YOU NEED TO UPGRADE YOUR VEHICLE?

The following questions will help you reach

a decision:

ff Will you be camping or towing a caravan?

ff Are you planning to travel to remote areas?

ff What sort of terrain will you cover?

ff Do you need a four-wheel drive?

It might be worth contacting caravan or

motorhome clubs to get some advice.

Caravan Industry Association of WA

(www.caravanwa.com.au) has links to clubs

in Western Australian and Associations in

other states.

Whether you are upgrading your vehicle or

not, you should have your vehicle serviced.

You may also want to think about doing a car

maintenance course.

Spring has truly arrived and with it are often plans for holidays and new adventures. This newsletter includes some tips for those who may be thinking about being part of the grey nomad experience. Of course, some of you are ‘young’ hands at this adventure and may now be looking further afield.

If you are travelling overseas, it is worthwhile having a talk to one of our general insurance consultants about travel insurance. If you are looking for inspiration for your next adventures, don’t forgot to check out our Enjoy Factor books at www.provident.com.au/enjoyfactor, which have amazing photos from some of our clients’ travels at home and abroad. It is through the delivery of our advice and service that we can help our clients achieve their Enjoy Factor. We are now collecting contributions to be published in the 2015 Enjoy Factor. To find out how you can be a part our next publication, email marketing@provident.com.au.

There are some interesting articles for business owners regarding their general insurance as well as retirement planning tips for self-employed. One of the key focuses at Provident is helping, our clients to be financially prepared and achieve greater control over the direction they wish their future to take. An important part of this is estate planning, while often not front of mind it is crucial for a strong financial plan. On page 3, is a good article on the reasons for and steps in estate planning. If you have a question regarding any of the articles in this newsletter, please contact one of our advisers and they will gladly explain and help you through the process.

This newsletter also includes the first in our new Meet our team series. Many of our clients have a great relationship with one adviser and although the Provident team work close with each other, you may only have briefly met or spoken on the phone to others in the office. So, in each quarterly newsletter, we will put a face and a bit of their personality to the names at Provident. Kind regards,

Paul Carter Managing Director

Cresmont Holdings Pty Ltd ABN 59 079 927 245 trading as Provident Insurance

Services Authorised Representative of Resilium Pty Ltd ABN 40 098 080 810 AFSL No. 232703 & Ausure Pty

Ltd t/as Ausure Insurance Brokers ABN 94 096 971 854 AFSL No. 238433

Provsight Pty Ltd ABN 14 160 210 079 trading as

Provident Business Solutions

Living your retirement A Grey nomad checklist

Paul Carter Pty Ltd ABN 16 079 780 895 trading as Provident Financial Services is an Authorised Representative and Credit

Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706

and Australian Credit Licence 232706

The Provident team had a relaxing afternoon with neighbouring

clients and businesses of Inspiration Business Park to celebrate

their first year of business in Wangara. Everyone enjoyed the

afternoon BBQ and we also raised $1,200 for our charity partner,

Kids’ Camps Inc. Thanks to all the business owners in the area

who came along and have made us feel welcome in Wangara.

Provident celebrates a year of business in Wangara

CHOOSING WHEN AND WHERE TO GO Whether you’ve got your heart set on seeing the spectacular wildflower displays in Western Australia or you plan on attending music festivals; take into consideration the weather and seasonal highlights when planning your itinerary. Most people travel north in winter and south in summer. Also, keep your travel plans flexible so you can stay longer in places you love or take recommendations from other travellers. Across Australia there are many free campsites and it’s worth using them during school holidays when caravan parks charge extra. For more information, visit tourism websites for each individual state.

GETTING PREPAREDWhat will you do about your house while away? There are a few options including renting or house-sitting. If you decide to rent, consider appointing a property manager to look after your affairs. Getting a house-sitter is an attractive alternative, as they will also collect mail, water plants and look after pets. For more information, visit: Happy House Sitters and Aussie House Sitters.

It is important to contact your insurance company or adviser regarding your home and contents cover. Leaving your home vacant

may attract a higher premium, a higher excess to claims or, worst case, you may not even be insured for extended periods of un-occupancy. You should also check whether the personal valuables that you are taking with you are covered away from home. Also, some insurance providers offer discounts to over-55s.

ADDITIONAL PREPARATION TIPS

ff Check expiry dates on credit cards, licences and vehicle registrations.

ff Register for internet banking.

ff Organise direct debits for bills.

ff Hire a gardener to mow your lawns.

ff Re-direct your mail and cancel newspaper delivery.

ff Consult your doctor, dentist and any other medical practitioner you visit regularly, for advice about life on the road.

ff Consider doing a basic first aid course.

STAYING IN TOUCHThese days wireless internet connections, mobile phones and global positioning systems have made it easier to stay in contact with loved ones. If you are travelling in remote areas consider investing in a satellite phone or high frequency radio, which will also allow you to contact the Royal Flying Doctor Service.

KEEP IN MIND THE FOLLOWING TIPSff A Seniors Card will give you access to

many discounts.ff Make copies of travel documents - one

for you and one to leave with a trusted friend or relative.

ff Carry copies of your health records.ff Pack enough medication or remember to

fill prescriptions in larger towns.

THE FINANCIAL PLANFunding the trip is the biggest consideration. Much will depend on how long you want to be on the road and where you want to go. Some people sell their homes and hit the road indefinitely. Others dip into savings or superannuation funds to go for a set time. Before making any big decisions, consult your financial planner (and Centrelink if you receive a pension). Call your financial planner at Provident on 9442 0000 or email advice@provident.com.au to develop a strategy for your Enjoy Factor. Being well prepared not only gives you peace of mind, but also sets you up for the adventure of a lifetime, so start your planning early.

MORE INFORMATIONPlanning: www.thegreynomads.com.au

DON’T NEGLECT RETIREMENT SAVINGSSelf-employed people often earn a decent income while working, but without the benefit of employer-paid superannuation contributions, find they have very little money to live on in retirement. Almost a quarter of self-employed Australians had no superannuation at all in 2012, according to research by the Australian Super Funds Association (ASFA).

Don’t rely solely on selling your business to fund your retirement. Many business ventures can be hard to sell. Instead, think about building a separate pool of retirement savings, along with an exit strategy and succession plan to move on from your business.

BUILD YOUR OWN SUPERIf you are self-employed or work as a contractor, you need to think about super more than anyone else. If you don’t act now, you might not have enough money to live on when you retire.

If you earn less than $49,488 per year, consider making after-tax contributions to super to qualify for the co-contribution from

the government. If you’re eligible and earn $37,000 or less per year, the government may make a further contribution of up to $500 to your super1.

GET A TAX DEDUCTIONIf you are self-employed you can claim a tax deduction on your super contributions.

As a guide, you or your business may be able to claim a tax deduction of up to $30,000 annually for contributions to your superannuation fund (or $35,000 annually if you are aged 50 or over) 2. It’s an easy way to trim your tax today while building a nest egg for the future.

Be sure to make your contributions before 30 June to claim them as tax deductions, but be careful not to go over the contribution caps so that penalty tax does not apply.

PROTECT YOUR INCOMEOne hazard of running your own business is being unable to work due to illness or injury. Without sick leave, your financial situation could take a turn for the worse if you become sick or injured.

Income protection insurance protects you financially if you can’t work because of illness or injury. It’s worth thinking about when you run your own show because bills don’t stop if you’re unable to work.

Premiums for income protection insurance are usually tax-deductible, which helps reduce the cost. Most large insurance companies offer income protection insurance, or you might be able to buy it through your superannuation fund.

Keep control of your cash, and draw a line between your personal and business’ money, to help you make the most of self-employment. Super may not be at the top of your priority list if you’re self-employed, but don’t leave it too late—putting super money away now will make sure you have enough to live on later.

LIKE TO KNOW MORE?

Talk to one of our financial planners on 9442 0000 or email advice@provident.com.au to learn more about succession planning and retirement strategies for self-employed.

Minding your own businessRetirement planning for self-employedf Many Australians dream of being their own boss, and with hard work and

careful planning, self-employment can bring financial and lifestyle rewards - along with enormous personal satisfaction. But without the backup of a regular wage or salary, running your own show calls for careful money management.

Article sourced from: https://www.moneysmart.gov.au 1 https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/super-contributions/super-for-self-employed-people

2 https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/super-contributions/contributing-extra-to-super

Note: Provident Financial Services does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Living your retirement – Grey nomad checklist continued from page 1…

Minding your own businessRetirement planning for self-employed

Article sourced from: http://www.resilium.com.au/advice-centre/business-blog/insuring-your-business

It’s exciting and rewarding when your business is enjoying a growth spurt. You feel everything is going according to plan. Then reality hits home. It can put you in unfamiliar territory – needing more staff, larger premises, a higher inventory. These are all indicators that it is time you had some expert advice on protecting your ‘new’ business. It is important to review and update your business insurance as it’s an investment in your business’s ability to survive and thrive.

NEW PREMISES Whether you are looking at leasing a larger premises, buying your own premises or adding more fixtures to accommodate your growing business, you will need to ensure your policy matches this growth. If you own your premises, ensure the policy is right for the property. If you’re leasing, you should check your lease to ensure all items you that are obliged to insure are covered in your policy.

NEW CONTRACTS

Are you using subcontractors? Have you bought new equipment? You may need to revise or add to the covers you had in place. Liability cover is often crucial as the potential losses from liability claims can be enormous. It can cover your legal liability for injuries to other people or damage to their property that you, your employees, or your business causes.

GROWING INCOME

The cost of a trading interruption can be huge on your business. Business Interruption cover can prove critical as it insures the loss of income caused by an interruption to your business arising from an insured event. When your income stops, expenses continue and it can be months before your turnover is back to normal. Business Interruption simply helps you stay in business.

INTRODUCTION OF MORE STAFF

If you’ve added new staff to your roster, you are legally required to update your Workers Compensation policy. You may also have to review your liability cover to ensure that is sufficient.

A growing business brings its excitement and its risks. So make the most of the good times but don’t put your business at risk.

Have a chat with Troy or Tanya on 9422 0000 or insurance@provident.com.au about your business and the protection it needs, you don’t need to leave it until renewal time. It is always worth discussing any changes in your business with your insurance adviser; whether it a simple change to a policy, a new policy or just peace of mind knowing that you have the right cover in place.

A growing business is exciting…But have your insurances kept up with the growth?

Estate planning is an effective method to take an overview of your assets, consider how they’re structured and how you’d like them to be distributed after you die. It’s just as important to provide for yourself as it is for the future.Whist having a will is an important part of estate planning, there are some other things that you may want to consider:

ff Reviewing your will.ff Granting an enduring power of attorney.ff Selecting an executor.ff Giving guardianship.ff Considering a family trust.ff What happens to your super and

insurance when you die?ff Who can be my beneficiary?ff Protecting what you have.ff Fine tune with help from a professional.

REVIEWING YOUR WILL A will sets out how you want your estate to be managed and distributed after your death. It can also include the appointment of a guardian for your children.

Without a will, management of your estate can be costly, time consuming and distributed according to state based legislation. It’s important to have a valid will and to review it regularly to make sure it is still in line with your intentions.

Do-It-Yourself wills have become more prevalent and are a cheaper alternative to a will prepared by a solicitor. While they may be effective for simple straight-forward estates, they don’t serve more complex estates as effectively1. A will with even a small flaw may lead to an expensive process if it is contested or it doesn’t have a residue clause which directs how to distribute assets not included in the original will.

GRANTING AN ENDURING POWER OF ATTORNEY

If you were to become incapable of handling your affairs, control of your assets could revert to a person appointed by a court.

It would be more useful if you had an enduring power of attorney set up now so that if you cannot manage your affairs, someone you trust and have chosen to act for you, can make the important decisions affecting you and your affairs.

SELECTING AN EXECUTOR

An executor distributes your assets after your death. This involves applying to the Supreme Court for probate, which gives them permission to execute your will. It can be a difficult job if your will involves setting up trusts and lodging tax returns and you should ensure they are willing and that you have nominated an alternate as a back-up in case they pass away before you do or change their mind.

GIVING GUARDIANSHIP A guardian can make decisions regarding where you live and your medical care if you lose the capacity, even in the event of an accident, to make your own decisions. It’s important to select someone you trust as soon as any signs appear that you may need these decisions made for you.

CONSIDERING A FAMILY TRUST A family trust, also known as a discretionary trust, is a common structure used by small businesses to share the business’ income in the most tax-effective way among beneficiaries within the family group and to protect family assets. It is most useful where the business is generating income and experiencing growth.

It involves setting up a trust with a nominated trustee, who has responsibility for distributing the estate to your nominated beneficiaries. It can also be used to protect assets from dependants’ creditors or if a dependant isn’t capable of managing money.

WHAT HAPPENS TO MY SUPER AND INSURANCE WHEN I DIE? The death benefit is usually paid to your nominated beneficiaries. The superannuation balance is transferred into the Cash option on notification of your death. The balance will be paid depending on who you have nominated as beneficiaries.

Providing for future generations f We’d all like to leave a legacy and provide for those closest & dearest to us once we’re gone.

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1 Mihm, U, Choice magazine, March 2010, Will Kit

fy What do you do at Provident?

I am the principal business consultant for Provident Business Solutions. I work with business owners, providing them with advice and support to plan and manage their business resulting in better staff engagement, greater profit and capital value.

fy What made you happy about your job last week?

I received a phone call from a business owner who was

referred to me from a happy client. A personal referral is a big deal, I truly value and appreciate any endorsement to friends/colleagues of what I do.

fy What do your colleagues give you a hard time about?

Being “too-good” (they call me ‘Trent too – good’ thanks to the Rhonda & Ketut ads)

fy What interesting job (paid or not) have you ever done?

Sailing instructor on Hamilton Island for 18 months after I left university.

fy What sports do you play/watch?

Sailing, AFL and Rugby Union (the rugby they play in heaven!)

fy What is on your bucket list?

The Sydney to Hobart yacht race which I’ll be doing at the end of this year. I’ll now have to add a lot of travelling with my family for many years.

fy What is your Enjoy Factor?

My kids – watching them grow up and have fun.

fy What do you do at Provident?

I am a financial planner at Provident Financial Services focusing on retirement planning and superannuation reviews.

fy What made you happy about your job last week?

A client complimented me on

my approachable nature at

the end of our first meeting.

People don’t often say such a

compliment, but it’s good to

know that the client and I have

the foundations for a successful

partnership.

fy What do your colleagues give you a hard time about?

The particular way I make my coffee – I heat my cup up first.

fy What interesting job (paid or not) have you ever done?

I worked at the Registry of Births, Deaths and Marriages in 2000 helping people track their family history.

fy What sports do you play/watch?

I play tennis and enjoy surfing (poorly). I like watching sports, but I mostly watch basketball, soccer and footy.

fy What is on your bucket list?

A home by the river.

fy What is your Enjoy Factor?

Travelling to Israel for my

50th birthday.

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WHO CAN BE MY BENEFICIARY?If you have insurance outside of superannuation, you can nominate anyone to be a beneficiary. If you are insuring through your superannuation, you need to understand the difference between binding and non-binding beneficiaries and issues to be aware of.

PROTECTING WHAT YOU HAVEThe best way to look after your family’s future is to ensure you have enough cover.

FINE TUNE WITH A PROFESSIONALGetting the right advice could make a significant difference to how well your estate is managed and distributed after your death and could help to avoid lengthy delays and legal challenges.

Call 9442 0000 to speak with one of our financial planners and find out how you can look after your estate for future generations.

Paul Carter Pty Ltd ABN 16 079 780 895 trading as Provident Financial Services and Paul Carter, Greg Neill, Brett Surman, Alan Stodel, Greg O’Connell, Tom Kooy and Kate Beaumont are Authorised Representatives and Credit Representatives of AMP Financial Planning Pty Limited ABN 89 051 208 327, AFSL 232706 and Australian Credit Licence 232706.

Cresmont Holdings Pty Ltd ABN 59 079 927 245 trading as Provident Insurance Services is an Authorised Representative of Resilium Pty Ltd ABN 40 098 080 810, AFSL No. 232703 and Ausure Pty Ltd t/as Ausure Insurance Brokers ABN 94 096 971 854, AFLS No. 238433 when providing services in relation to general insurance products.

We can also assist with Cover-More Travel Insurance issued by Great Lakes Reinsurance (UK) Plc trading as Great Lakes Australia (100% subsidiary of Munich Re).

The information in this newsletter does not take into account your objectives, financial situation or needs. Before making a decision you should consider whether it is appropriate in light of your particular objectives, financial situation and needs. Before deciding whether to buy or continue to hold any financial product including those referred to in this publication, you should obtain and consider the Product Disclosure Statement for the product, which is available from your financial planner.

136 Stirling Hwy, Nedlands WA 6009 Unit 43, Inspiration Business Park , Vision St, Wangara WA 6065PO Box 424, Nedlands WA 6909T 08 9442 0000 F 08 9389 5852E advice@provident.com.au W www.provident.com.au

TRENT CARTER GREG O’CONNELL

Providing for future generations continued from previous page

Meet our team

Meet our team