Protection in Super
Australians are notoriously underinsured, so it’s reassuring to know that affordable, tax-effective life insurance could be as near as your super fund. Most super funds offer members at least a basic level of personal insurance cover, and holding your insurance within super – rather than in stand-alone policies – can have its benefits. The article covers the following:
– Tax efficient insurance premiums
– Cost savings
– Automatic cover
– Insurance payouts
– Tax implications
– Will it be enough?
– Erosion of retirement savings
The RBA leaves rates on hold
The RBA has decided to leave the cash rate at its current levels. This may leave our home loan lenders in a bit of a quandary. All four majors have recently commented that they need to gain some profit margin due to their rising cost of funds. This move by the RBA may force the banks to increase our current rates despite the RBA’s decision to hold. We will wait and see.
Interestingly, ANZ in an attempt to break away from the media’s expectation that they “always match the RBA decision” have decided to review their rates
Read More2012 Summer Newsletter
Hello 2012 – Let’s be friends
After the investment challenges of the past few years, our New Year’s wish is to be a friend with 2012.
Naturally, as our friend, 2012 will provide us with greater predictability, lower investment volatility, double digit (positive!) investment returns, no global disasters, clear recovery in world economies and excellent personal health. Surely that is not asking too much? (For Best Friend status, we’d need World Peace and an improved Environment thrown in).
What we can report with certainty is the success Muirfield has achieved for our clients through our recent project to recover tax and find lost super. Since July’ 11, well over $80,000 has been returned to you.
We wish you a wonderful 2012 and remind you to take time to enjoy family, friends and holidays. Life is short and is to be lived!
Click here to read the 2012 Summer Newsletter
Read MoreInterest versus Dividends
A common goal for many of our retired clients is to achieve a steady, reliable income. While fixed interest and cash based investments are traditional instruments for achieving consistent income the reduction in interest rates has raised some concerns.
Interest rates on bank deposits have now been falling for more than a year – to the point where a rate of 5% pa is the norm. This is a drop in earnings from interest of more than 20% from 2010.
On the other hand, share dividends from Blue Chip shares such as CBA, NAB, Wespac, ANZ and Telstra are paying gross dividends of approx 10% pa .
Whilst the current market conditions make cash a somewhat comforting investment, Blue Chip shares should not be overlooked. Our use of the SMA Blue Chip Top 20 and diversified Australian Share Funds have been favourable in providing consistent income for our clients.
Read on for a comparison between cash interest and Woolworths dividends as well as the forecast on Blue Chip dividend yields….
Read MoreRating agency reaffirms AAA rating for Australia
International rating agency, Moody’s, have reaffirmed Australia’s top level AAA credit rating.
Treasurer and acting Prime Minister Wayne Swan said this was yet another resounding endorsement of Australia’s sturdy public finances and strong economic fundamentals.
“At a time when other developed economies have had their ratings cut, or put on review for potential downgrade, Australia stands tall in the world with its gold-plated AAA status safe and secure,” he said in a statement.
Read MoreCentrelink & Anti-Detriment Value of Financial Advice
Betty, 58, and retired, came to our office following the passing of her Husband, John. John’s superannuation was via an Industry superannuation fund with a balance of $372,000. The Industry Super Fund had sent Betty a number of forms to finalise her late husband’s super account. One of the forms received was regarding the commencement of a reversionary pension.
This would provide Betty regular income via the superannuation account to assist with her living expenses of $1,000 per fortnight. Betty is currently receiving Bereavement Allowance of $716 per fortnight (soon to end) and has adequate savings to supplement the remaining $284 each fortnight.
Read MoreFed sees expansion in US economy
The US Federal Reserve said consumer spending rose slightly last month and the economy maintained its expansion, even as companies reported more doubt about the strength of the recovery.
“Overall economic activity continued to expand in September, although many districts described the pace of growth as ‘modest’ or ‘slight,’” the Fed said in its Beige Book survey released today in Washington. “Contacts generally noted weaker or less certain outlooks for business conditions.”
Read More2011 Spring Newsletter
In the spirit of bringing you good news we are delighted to inform you that our advisers Melinda Planken and Carl Creasey have been awarded the highest financial planning designation of CERTIFIED FINANCIAL PLANNER® (CFP).
After finishing their degrees they have gone on to complete further years of study to gain this status.
We congratulate both and know you will continue to benefit from the highest level of qualification held by any financial planning group in Geelong.
The Financial Planning Association of Australia has just created a new practice designation of ‘FPA Professional Practice’. We are pleased to announce that Muirfield Financial Services has been one of the first Australian firms to have been granted this status.
Click here to read the 2011 Spring eNews
Read MoreFPA – Approved Financial Planners Awareness
The Financial Planning Association of Australia (FPA) are embarking on a campaign to increase consumer awareness of the importance of seeking the right financial advice.
You will soon see the TV advertising campaign on local TV stations aimed at raising the standing of the Financial Planning profession.
In these interesting times of volatile investment markets it is becoming more and more important to get the right financial advice from a trusted professional. The FPA campaign aims to encourage consumers to be mindful of a financial planners qualifications (or lack of) when seeking advice.
Read MoreChanges For First Home Buyers
The Victorian State Budget 2011-12 implements several initiatives to support first home buyers, pensioners and concession cardholders.
What does this mean for you as a first home buyer?
1. Land transfer (stamp duty) cuts for first home buyers from 1 July 2011. This provides a 20% reduction to the applicable stamp duty for first home buyers.
2. Extending the First Home Bonus for newly constructed homes until 30 June 2012.
3. Broadening the pensioner and concession cardholder land transfer duty concession.
Read More