Why Having a Will is Not Enough

If you have a Will in place you may not think you need an Estate Plan. After all, it spells out the “who gets what” instructions regarding your estate, right?

“Successful retirement and estate planning can be complex. There are many legal, financial and tax implications that will not just take care of themselves.”
– Jason Roccasalvo, Partner, TAG Financial Services

Unfortunately, the estate you’ve specified in your Will may not include all of your assets. By law, your Will doesn’t include assets such as:

  • Jointly-held property
  • Superannuation
  • Company assets
  • Assets held in trust
  • Proceeds of life insurance policies

To control what happens to these assets, you need an Estate Plan.

6 Reasons to Have an Estate Plan

A well-written Estate Plan can do more than just distribute all of your assets the way you want. It can also help:

1 – Your beneficiaries (i.e. your loved ones) to reduce/eliminate tax on the income generated when they receive their inheritance, and every year thereafter.

2 – Protect your beneficiaries’ inheritance from unfortunate events such as divorce and bankruptcy.

3 – Minimise or even avoid the death benefits tax when distributing your superannuation benefits.

4 – Guard against a beneficiary wasting their inheritance because of their spending habits, mental health, drug addictions, gambling or other vulnerabilities.

5 – Make capital gains tax savings on the assets distributed through your estate.

6 – Ensure your assets are securely passed to your preferred beneficiaries rather than, say, an in-law or former spouse.

What should you do now?

 

 

 

 

Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). © 2019

 

 

8 Investment Principles for Success

At TAG, we don’t believe in get rich quick schemes and we don’t have magical investment formulas. What we offer is quality advice and support to reach your financial goals.

“Our 8 investment principles are based on years of experience and successful implementation which we use for ourselves and with our clients.”
Leigh Jobling, Partner, TAG Financial Services

 

1 – Have a plan and set goals
Identifying your financial goals and establishing a solid plan to help get you there, gives you clear direction and results.

2 – Establish your timeframe
Having a good sense of how you want to use your money, when you want to use it and how much you need drives your financial decisions. For example, don’t invest in shares for a quick gain if you will need money in 12 months. The intended quick gain could actually be a quick loss.

3 – Determine your tolerance risk
Almost everyone is happy to be an aggressive investor when times are good, but attitudes to risk change when markets fall. Ensure your investment choices reflect your tolerance to volatility and risk.

4 – Focus on quality and be patient
Invest in things you know will be there tomorrow – a great quality share portfolio or investment property. Sensible and controlled investing is not gambling, but speculative investing is. Stick with quality and be patient- you will be rewarded in time.

5 – Resist the temptation to follow the herd
For many, investment decisions are based on their emotions at the time. Following the herd or making snap decisions based on emotion is a recipe for disaster. Set your own goals and make rational and factual based decisions where possible.

6 – Invest regularly starting now
Commencing your investment strategy as early as you can allows you to build the foundations of future financial success. Even while markets are low, if you are disciplined and patient you will reap the rewards when markets recover. Having a process to invest smaller amounts on a regular basis reduces the chances of a poor decision to invest large amounts at the wrong time.

7 – Never over commit
Borrowing to invest can be a good way to increase your wealth over time, but ensure this does not place unnecessary pressure on your family finances or require compromises on your lifestyle. Ensure you have an emergency cash supply by making sure a portion of your investments are liquid and can be sold quickly if the need arises.

8 – Get advice
Most people that are financially content and successful don’t do it on their own, they get advice. If you have the right adviser that takes an interest in you and your family’s needs and provides you quality advice, then your chances of achieving financial security increases dramatically.

 

What should you do now?

 

 

Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).

Plan for Your Future with the TAG Wealth Projections Tool

Whether you are 25 or 65, our Wealth Projections Tool gives clarity.

“Many people are often overwhelmed and confused when starting their financial journey. The projections tool is a great starting point.” Michelle Griffiths, Partner, TAG Financial Services

 

When it comes to managing your finances the questions can be endless. Here are the most common questions we get asked:

– When can I retire?
– How long will my money last?
– What are the best investment options for me?
– What can I do now to make a difference?

We have the most powerful way to start finding the answers to these pressing questions – our Wealth Projections Tool. We input your current financial situation and project your future income, assets and expenditure.

 

In the above example, the projection shows that this couple’s money will run out at the age of 79. This is not ideal. We then can look at different ‘what if’ scenarios to see how this impacts how long your money will last. For example:

– What if I can reduce my expenditure by 15%
– What if I also retire at age 65 instead of 62

Clients have told us that this process is enlightening as they can easily see whether they are on track to obtain their financial goals, the options to get them there and if they need any help to make it happen.

What if I can reduce my expenditure by 15%?
In the below example (blue line), you can see that by the couple reducing their regular lifestyle expenditure by 15%, it means they can potentially pay off their home loan earlier, and the couple’s money would extend well into the 90s.

 

What if I retire at age 65 instead of 62?
In the below example (green line), you can see by working by even just 3 years more it is hugely beneficial towards your financial future.

 

What should you do now?

 

 

 

 

 

 

 

 

Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).

Helping You Find the Right Loan

Interest rates are at historical lows, lenders are fiercely competitive, and our customers are winning!

Finding a loan is a big financial decision which can have a profound impact on your financial situation. People often focus on obtaining the loan and miss the opportunity to negotiate the right loan and the chance to ensure they are correctly structured to obtain the most financial benefit.

At TAG Finance and Loans we know the questions to ask to help find the right loan for you.

 

Why TAG Finance and Loans?

Choice of Lenders
We help you select the most suitable loan from an extensive range of lenders.

Expertise
Our loan brokers are qualified, experienced and licensed to provide a professional service.

Savings
We work on your behalf to negotiate the right loan, saving you time and money.

Trusted Brands
We only arrange home loans with Australia’s leading and trusted lenders.

If you need a loan, we will help you fine the right one.

If you already have a loan, we will find a better one for you.

Home Loan Review
To book in a complimentary loan review contact TAG Finance and Loans on (03) 9886 0800 or email loans@tagfinancial.com.au.

 

 

Disclaimer: The information contained on this page is general in nature. Professional advice should be sought before acting on any aspect on this page.
TAG Finance and Loans Pty Ltd ABN 25 609 906 863 Credit Representative Number 483873
National Mortgage Brokers Pty Ltd ABN 88 093 874 376 Australian Credit License 391209

Estate Planning – How not to leave a trail of chaos

Let’s face it: no-one likes to think of death, especially their own. It’s not exactly a great conversation starter, is it? This might explain why so many people end up “dying Intestate” which means they die without a will and, as a consequence, have their assets distributed according to State law.

Sadly, the way State law distributes a deceased person’s assets among family members can often be a lot different to the way a deceased person wanted their assets distributed. It can create a lot of unnecessary stress and conflict within a family.

So unless you don’t have a single possession to your name, you need to not only think about preparing a Will, but do something about it.

You need more than just a Will. You need an Estate Plan.

Why having a will is not enough

If you have a Will in place, you may not think you even need an Estate Plan. After all, your will spells out your “Who gets what” instructions regarding your estate, right?

Unfortunately, the estate you’ve specified in your will may not include all of your assets. By law, your Will doesn’t include assets such as:

  • jointly-held property
  • superannuation
  • proceeds of life insurance policies
  • assets held in trust
  • company assets.

To control what happens to these assets, you need an Estate Plan.

 6 more reasons to have an Estate Plan

 A well-written Estate Plan can do more than just distribute all of your assets the way you want. It can also help:

  1. Your beneficiaries (i.e. your loved ones) to reduce (if not eliminate) tax on the income generated when they receive their inheritance, and every year thereafter
  2. Protect your beneficiaries’ inheritance from unfortunate events such as divorce and bankruptcy
  3. Minimise or even avoid the death benefits tax when distributing your superannuation benefits
  4. Guard against a beneficiary wasting their inheritance because of their spending habits, mental health, drug addictions, gambling or other vulnerabilities
  5. Make capital gains tax savings on the assets distributed through your estate
  6. Ensure your assets are passed to your preferred beneficiaries rather than, say, an in-law or former spouse.

Who should help you create your Estate Plan?

While a Will is a legal document, its creation shouldn’t be left solely to your solicitor. You need someone who knows about you, your family and your financial situation. Often the person who generally knows the most about that is your accountant or financial planner.

However, while they may know all about your finances, they may not have the legal qualifications needed to create a watertight Estate Plan. So you actually need your accountant or financial planner and a solicitor.

An Estate Plan will provide you with the clarity on what to say in your Will, so that the link between your wishes and reality can be secure.

According to TAG Financial Services partner Jason Roccasalvo:

“Successful retirement and estate planning can be complex.  There are many legal, financial and tax implications that will not just take care of themselves.  As many of our clients have already experienced, you will be enlightened and also relieved at how beneficial discussing these matters with knowledgeable advisers can be.”

 Avoid leaving a trail of chaos behind you.

Whether or not you have an active Will in place, without an Estate Plan there’s no telling who your assets may end up with. Avoid creating stress and conflict for your loved ones, and give yourself the peace of mind in the here-and-now that your affairs are well in order.

 

 

 

 

 

 

Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).

How much do I need to Set up a Self Managed Super Fund?

If you want to start a Self Managed Superannuation Fund (SMSF) the Australian Securities and Investment Commission (ASIC) recommends a minimum fund balance of $200,000. Less than this can be considered as not cost effective.

This is also dependent on your circumstances and objectives, as you should still consider setting up a SMSF with less than $200,000 if:

  • You are willing to do the administration and manage the investments yourself which will keep the running costs down.
  • You will be making contributions to quickly bring the balance to $200,000.
  • You have a large asset like a business property, an inheritance or funds in another fund that will be transferred into the fund quickly.
  • You want flexibility and/or control of your superannuation.

Some of the flexibility and control that attracts people to a SMSF include:

  • Greater control of your investments.
  • Ability to pool funds with up to three other individuals.
  • Effective tax management.
  • Retirement and estate planning flexibility.
  • Capacity to purchase a large asset e.g. property.

It also gets you actively involved with your superannuation and more focused on your end game.

What should you do now?

For most people, getting started is the hardest step. Here are a few actions that you can take today:

 

Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).

 

 

Financial Implications of your Downsizing Journey

Dealing with complex financial decisions can be overwhelming.
How can you ensure you have the right financial advisor to help you?

At TAG, our advisors clear the confusion and work with you to ensure your financial goals are achieved. Exploring your needs, your vision and your financial future, and the financial implications is such an important part of this journey.

When helping clients with downsizing, we walk them through all the financial implications, including;
–  How long will your money last?
–  Cashflow and asset planning
–  Superannuation strategies
–  Retirement planning
–  Tax minimisation strategies
–  Downsizer superannuation rules
–  Centrelink rules

” This process gives our clients a clear vision of their retirement plan meaning they can enjoy a clear financial direction and peace of mind.”
– Michelle Griffiths, Partner at TAG Financial Services.

 

 

 

 

Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).

How to Build your Retirement Dream

What do you want your future to look like?

Whether you want to start that hobby you have always wanted to start, travel the world, or just simply spend more time with your family, understanding the best ways to invest and how is essential so that you can secure the future you want.

In this 7 part series of short informative videos, Michelle Griffiths covers a variety of areas surrounding what retirement means for you, and how to get the future that you want.

We hope you find this video series valuable!

Part 1 – Will I have enough to retire?
Michelle talks about different scenarios surrounding building your Super and the important questions to consider.

Part 2 – Why Superannuation is Good for your Retirement
Michelle explains the power of Superannuation as a retirement vehicle.

Part 3 – Are SMSF Worthwhile and When?
There are many options other than Self Managed Super Funds that can support you in building your financial future. Michelle discusses the pros and cons to help you make the best decision.

Part 4 – How to Build up my Super Balance?
In this installment, Michelle talks wealth creation strategies that can help build your Super balance and secure your financial future.

Part 5 – Mortgage v Super – What is Best?
Mortgage v Salary Sacrifice in Super- there is no right or wrong answer as to which one is best. In Part 5 Michelle talks about things to consider surrounding this issue and the impact it can have.

Part 6 – Pre-Retirement Strategies to Suit You
It is never too early to start putting strategies in place for you and your family. Generally, pre-retirement strategies ae used by anyone 50+. Michelle discusses these important strategies that you should think about.

Part 7 – How to Evaluate Good Advice
Michelle discusses evaluating and utilising the good advice you receive.


 

 

Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).

New Financial Year – New Financial You

What does your financial future look like? As we begin a new financial year, now is the time to ask yourself what you want and how you can get it.

In this video, Michelle Griffiths talks about the importance of securing your financial future, discusses how we can assist you in answering your burning questions and help you take the necessary steps towards a secure financial future.

What should you do now?

For most people, getting started is the hardest step. Here are a few actions that you can take today:

Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).

How much Insurance is enough?

Like it or hate it, insurances are a necessary part of life. Given the risks involved when owning a house, driving a car, playing sport or running a business, insurance is the mechanism for protecting your financial interests against loss or damage. Just as people insure their material possessions, there is nothing more valuable than life itself and the income needed to live life.

 

When assessing the level of cover required, consideration must be given to such factors as (this list is not exhaustive):

• Level of income
• Income needs and desired lifestyle
• Large expenses – private school fees
• Other ongoing childcare costs
• Investment Assets
• Debts – mortgages, credit cards, etc
• Cost of refitting a house to accommodate a wheelchair

The ASIC Money Smart website has a great Life Insurance Needs Calculator .

What to do now?

 

 

Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).

 

 

 

Be the best SMSF Trustee – and benefit your retirement

A Self Managed Super Fund (SMSF) can help you focus on having the funds to maintain a good lifestyle in retirement.

When you set up a SMSF you become the trustee of your SMSF. You can have the fund’s technical aspects handled by qualified experts, but you are still the ultimate boss!  Yes, you are the head of the Board when it comes to running your SMSF and the regulators are making it very clear – ignorance is no excuse. 

You don’t need to fear this if you:

Have the advice of experts
Make sure you have a super adviser. At TAG, our advisers are superannuation specialists. We provide professional development to the accounting industry via our annual superannuation seminar. TAG Super Seminar is Australia’s longest running and most successful superannuation seminar and is designed to help financial advisers keep up to date with superannuation changes.

Ask questions
Our advisers meet with every Trustee on an annual basis, which gives the Trustee a great opportunity to understand and ask questions about their specific situation.

Understand your responsibilities
TAG offers all Trustees of the funds we administer complimentary Trustee Training, which explains your role and responsibilities.

How do you make this happen?
Come along to our next Trustee Training to ensure you are the best Trustee you can be and optimise your retirement.

Tuesday 18th June, 6-7pm. REGISTER HERE

 

Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).

10 Investment Principles for Success

At TAG, we don’t believe in get rich quick schemes and we don’t have magical investment formulas. Our 10 investment principles are based on years of experience and successful implementation which we use for ourselves and with our clients.

 

1. Have a plan and set some goals

2. Establish your timeframe

3. Determine your tolerance to risk

4. Focus on quality and be patient

5. Resist the temptation to follow the herd

6. Invest regularly

7. Understand your cash flows

8. Never over commit with investments

9. Do something, as soon as you can

10. Get advice

What Should You Do Now?

For most people, getting started is the hardest step. Here are a few actions that you can take today:

 

If you have any questions, please don’t hesitate to contact me or your adviser.

Leigh Jobling, CPA
Partner, Investment Advisory & Wealth
TAG Financial Services

 

Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).