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This thread is just to give a bit of an overview of the services provided by us here at Vista Financial Service and how we might be able to assist you in these areas. UK Pension Transfers You can currently only transfer your UK Pensions directly to Australia if you are aged 55 years or over. It this is the case and you engage Vista in relation to a Pension Transfer we will see the whole process through from start to finish including: Obtaining relevant UK Pension information and overseas transfer paperwork; Providing a comprehensive Statement of Advice in relation to: whether a transfer is in your interests; recommending an appropriate Super Fund in Australia to receive your UK Monies; detailing rules and legislation around UK Pension Transfers and what you can and cannot do going forward; the advantages and disadvantages of a UK Pension Transfer; Completion of the necessary new QROPS Super Fund Application and Pension Transfer documents; Administering the transfer including follow up calls with your UK Pension Transfer Company to chase payments and/or other required documents; Placement of the monies into the appropriate recommended investments; Dealing with the calculation of any relevant tax payable on the transfer of the Fund and the options available in relation to this tax. We of course also take care of any other issues that arise throughout the whole Pension Transfer process and the above is the simplified version of the process as it happens but be rest assured we take care of the whole transfer. Superannuation Advice We consider client Super Funds and what clients want from a Super Fund and determine whether the Super Fund they currently have is appropriate for their needs at that particular time; We also consider consolidation of Super Funds if clients have more than one Super Fund (but this is a case by case basis as it may in some cases be appropriate for clients to have more than one Super Fund for example if one of the Funds contains Insurance); We look at how the monies are invested within the Super Funds and whether they are invested in accordance with a client’s Risk Profile. For example most people are in the default Balanced Options in their Super Funds but this wouldn’t be appropriate for say a Conservative or Defensive Investor as there would be too much risk to their monies (in the markets). In actual fact the word Balanced is rarely what it would seem to be as most of the time around 80% of monies in the default Balanced Fund are invested in the markets and as much as 90% in some cases. We assess a client’s attitude to the risk they want to take with their monies and then recommend investments that align to that Risk Profile; We consider the beneficiaries nominated on a client’s Super Fund. Some clients have no-one nominated, others have non-binding nominations, others binding nominations. We check what is currently in place and ensure it continues to remain in line with the client’s wishes in the event of their passing; Life (Risk) Insurance We consider four types of Insurances being Life Insurance, Total and Permanent Disability Insurance, Trauma Insurance and Income Protection. We carry out what is called a Needs Analysis for a client to determine how much of each insurance they require (for example cover to clear the mortgage, cover for children’s education costs etc) and then we make recommendations in relation to how to structure this insurance and indeed the Insurance Provider; Risk Insurance has evolved greatly over recent years and you can now have Life, TPD and Income Protection Cover with a retail provider (comprehensive insurance) with the premiums funded from a nominated Super Fund. This can assist with cash-flow and also make it tax efficient to fund the premiums. You can also hold all of these insurances outside of Super and fund the premiums yourself or a combination of the above. We look at what a client needs, the costs involved and then tailor an Insurance Package to best suit the client’s needs and budgets; We assist our clients with insurance claims as the last thing someone wants/needs to contend with is dealing with an insurance company to try and get money paid while they are sick or grieving. Pension Advice When a person reaches a certain age/retires they are able to transfer their Super monies into a Pension. We advise on this transition which can often result in a client receiving a tax free income generally or at the very least a tax free eligibility on earnings within the Pension (that are taxed in Super) which in turn increases a client’s retirement monies and in turn retirement income; We also as with Super advise on the Investment Portfolio within the Fund (namely the appropriate investment of the monies in accordance with a client’s Risk Profile); Again we also consider a client’s beneficiary details and in Pension you can also have what is known as a Reversionary Pension Arrangement whereby in the event of the passing of one Spouse the other will continue to receive the income without the need to close the Fund; There is a requirement by law to take a certain percentage of income from a pension each year and we advise clients in relation to how much income should be taken in conjunction with the Retirement Planning Projections we carry out (more details below). Retirement Planning We consider a client’s Retirement Goals and Objectives namely how much income does a client want annually in retirement. We then consider whether a client is on track to receive that level of income taking into account all the income they will be eligible to receive such as monies from their Super Funds, UK Private Pensions (if applicable), Australian Aged Pension Income, UK State Pension Income (if applicable), Rental Income and any other sources of income a client might have. If the client is on track to achieve their Retirement Income Goal that is great and we then may start to consider whether early retirement is an option. However if they fall short we look at ways we may be able to make up the shortfall and get the client where they need to be using various strategies (detailed below) or alternatively discuss with them the reality and what the negotiables may be for example working longer or taking less income and the like. We provide detailed Projections which show the income likely to be achieved in retirement and indeed at what age this income is likely to run out and when a client would be solely reliant on the State for income (which is of course not ideal in the very least early retirement). Investments If a person has money to invest we consider a client’s goals for this money including their investment time horizon as well as their attitude to Risk (namely how much risk they want to take with their monies) and then make recommendations in relation to appropriate investments such as: Direct Shares (including ETFs, LICs); Managed Funds; Managed Accounts; Short and Long Term Annuities; Cash and Term Deposits; Property (through Funds or directly). When you invest money the appropriate ownership structure of that investment is important for a number of reasons and so we will also consider that structure for you which will include structures such as: Direct Ownership (Solely or Jointly); Through a Trust Structure (Family Trust for example); Investment Bond; Education Bond; Superannuation Estate Planning We consider whether a client has a Will, Powers Of Attorney as well as Guardianship for their dependents, if not then we make a firm recommendation to seek Professional Advice in relation to these areas (in SA we refer them to a Solicitor who specialises in this area). We will then work with the Professional to ensure that the client’s Estate Planning is in good health. Strategies We look at client’s disposable income (if they have any) and where this money could be best directed. Again in conjunction with the Retirement Planning sometimes we recommend surplus income is directed to Super by way of a Salary Sacrifice Arrangement or Tax Deductible Contributions (subject to monetary limits), sometimes we recommend in addition that money is contributed to Super as voluntary payments or to an investment vehicle outside of Super if more appropriate (for example access is required before Super is available. We might direct surplus income to a client’s mortgage, loan, credit card or other outstanding debt but we will assess the client’s situation as a whole and determine the most appropriate and tax effective way of increasing a client’s wealth and/or reducing debt. We also consider whether client’s are eligible for any other contribution incentives such as the Government Co-Contribution whereby someone earning below a certain threshold will be able to have the Government match (or at least contribute) an amount to their Super Fund in accordance with an amount they also contribute so effectively you contribute and so does the Government (again increasing retirement wealth); There are also other strategies like Spouse Splitting (whereby one Spouse transfers money to the other Spouse’s Super) which may be beneficial in certain circumstances, Spouse Contributions whereby a Spouse contributes to the other Spouse’s Super and they receive a Tax Offset and again in some circumstances this can be beneficial; All of the above and more are assessed for our clients to assist (if applicable) to create wealth and save tax and each client is assessed accordingly and the relevant strategies recommended. Ongoing Service In most cases when we have advised a client in respect of an issue they become ongoing clients (this is optional) and this service consists of the following: At least an annual review of all of the above including an advice document and any additional recommendations and implementation of those recommendations; We are on call as their Advisers throughout the year to assist if and when needed in relation to any Financial Matter (in existence or new); We are pro-active if something arises throughout the year that could impact our clients such as for example the reduction in the Concessional Contribution limit that came into effect on 1 July 2017. This impacted a lot of our clients and we had to advise them to reduce their then Salary Sacrifice amounts to ensure they did not breach the new limit in place (this required an additional review and advice document for each client impacted). We assist clients administratively throughout the year as and when paperwork is required to be completed for particular matters (such as beneficiary updates, Centrelink assistance). Mortgages We offer a Mortgage Broking service which includes arranging mortgages/home loans for: Residential Purchases; First Time Home Owners; Investment Property Purchases; Re-Finances; Equity Release (may be to invest in shares/managed funds). We have had a freeze on Mortgage business for about a year however we are currently recruiting a new Mortgage Broker so should be offering these services again shortly. Summary We really take a holistic approach to a client’s whole Financial Planning Needs as it is really about getting to retirement and having the income that they require at and during retirement. We look at utilising all the available strategies at their disposal while in the meantime protecting their wealth and income through risk protection strategies (via insurances) and ensuring that in the event of their passing their assets are distributed in accordance with their wishes. Along the way we are ensuring their monies are invested appropriately for their Risk Profiles and that their Super Funds and the investments are performing as they should and if not then considering alternative options. In addition to the extensive approach taken in relation to a client’s Financial Plan we as detailed above cater for an ongoing client’s changing needs as there will of course be road bumps along the way due to life changes such as redundancy, illness, separation, having children and the like so these changes will have to be navigated as indeed will the regulatory changes that occur (which have been extensive over recent years) such as state pension age changes, reductions in contribution caps to super and the like. We are a Financial Advice Firm that you can TRUST and I know that trust is one of the reasons that a lot of people do not take financial advice particularly at the moment with the bad press around Bank Financial Planners and their advice. This is a real shame as a good Planner can add so much value. Vista has been working with forum members for almost 10 years now and we continue to evolve and expand to cater for our client base as we need too. We put the interests of our clients first and foremost and will (and have) at times put a freeze on accepting new business so that we can maintain our commitment to our existing clients and service levels. If you wish to discuss any of the above further then feel free to call us on 08 8381 7177 or send an email to info@vistafs.com.au Kind regards Andy This post has been promoted to an article

I would encourage anyone with a private UK Defined Benefit Pension Scheme (sometimes referred to as a final salary pension) to obtain a transfer value. Values have been increasing steadily over the years and it is believed that they have now perhaps peaked. We are seeing values on average standing around 25x the current annual pension benefits. This means that if you have a UK pension and the current benefit gives you a yearly pension of £10,000 the transfer value could be £250,000. So if you are a deferred member of a Defined Benefit (final salary) UK Pension Scheme and live in Australia we strongly believe that you should be proactive in this area and we (Vista Financial Services) can request the relevant transfer values and information for you. We can then if required provide advice around whether these benefits are best placed where they are OR whether they are going to work better for you in retirement elsewhere we can then if appropriate carry out a transfer for you. Our solutions include being able to transfer to an Australian Super Fund (QROPS) where applicable which is a solution only open to people above age 55 currently (due to HMRC legislation). We are also able to provide advice on transferring into an International SIPP (perhaps as an interim measure if under age 55 until it can be transferred to an Australia Super Fund) where the money can be appropriately invested as advised by us into UK and Australian currency dominated investments (I will expand more on this solution in another post). Please note that government pensions such a NHS and Police Pension cannot be transferred neither can the UK State Pension.

You (like many others) may be feeling unsure about how your retirement is looking financially and how far your superannuation/investments will extend throughout retirement. You might be wondering what to do with your superannuation when you get to retirement……do you take it all out and put in the bank or do you move it to an Account Based Pension? What about a Lifetime Annuity, you may have heard these mentioned before but how do they work? You may be uncertain about your entitlements (if any) in relation to the Australian Age Pension and how the Assets and Income Test works and whether anything you receive is taxable? If you are a UK Expat you might also be wondering what happens to any private UK Pensions you might have and what options are available and when you can access them. Also have you considered the UK State Pension? Are you eligible to receive anything, what about buying extra years as you may have heard this is possible but is it worth it and will it affect your Australian Age Pension entitlements? What about in the time leading up to retirement? Is there anything you can or should be doing to prepare? Should you make extra contributions to Super and if so, how much and how should these be contributed? What about salary sacrifice? What are the limits? Can I use previous years allowances? If these are questions that you have and you wish to speak to someone that can help you answer them you should think about contacting us. We can provide answers to these questions and build you a solid Retirement Plan so you have a clear path mapped out for the lead up to retirement and ensure you are maximising strategies that may be available to you. Vista Financial Services are highly trusted, professional, experienced and transparent Financial Advice Practice who specialise in Superannuation and Retirement Planning. You may never have taken financial advice or no longer have an Adviser available to you or indeed have had advice but did not feel you received value. You can be rest assured that we only provide advice to clients where we firmly believe we can add value and be of benefit and we are able to advise on all of the major Industry Superannuation Funds as well as all of the major Retail Superannuation Funds. We do this by offering an initial consultation with no charge which helps both us and you understand if we can assist you and whether there is merit in working together to plan your future. You can reach here on PomsinOZ (simply drop us a message) or: Phone: 08 8381 7177 Email: info@vistafs.com.au

Financial planning is about protecting your wealth as well as building your wealth. It is easy to think that you won’t get sick or hurt and ignore the need to protect the very thing that generates your wealth - your own health and your ability to work. But if accident or serious illness does occur the impacts can be devastating. It’s worth remembering that no matter how much expert advice you receive or how well you manage your finances there is always a risk that you could suffer an early death or serious illness or injury. Where that leaves you and your loved ones in the future depends on the wealth protection strategy you have in place. Risks you could face in the future may include: · Emotional, physical or mental trauma · Death or serious illness · Loss of income due to temporary or permanent incapacity · Damage to your house or other personal assets · Theft of, and/or damage to business assets · Public liability and/or professional indemnity risks Your financial plan should include a strategy to minimise risks that could jeopardise both your present and future plans. In simple terms, if you cannot afford to lose something then you should try to protect your exposure. Insurance can provide a cost-effective protection mechanism. This may take a combination of personal, general and health insurance policies. There are many different aspects to insurance and it is best to tailor a package that suits your needs as well as your budget. How the Strategy Works Personal risk insurance protects your wealth accumulation strategy by providing money if you are no longer able to earn an income due to disability, trauma or death. The money received can help with medical bills, loan repayments and living expenses. Many people often underestimate the importance of personal insurance which has led to a problem with underinsurance in Australia. It is important that you consider having enough cover to replace your income and cover expenses so that the personal tragedy does not create financial tragedy. You can apply for insurance to cover you in the event of death, temporary or permanent disability, or trauma (critical illness). Outlined below is a brief outline of types of personal risk insurance. Life Insurance The most common type of cover is life insurance (term life insurance). Life insurance will pay a lump sum to your estate or specific beneficiaries in the event of death or in some cases, on diagnosis of a terminal illness. The advantage of life insurance is peace of mind that your death will minimise any financial hardship for your loved ones. Life insurance can be used to pay off debts, provide an income for dependents, cover funeral expenses and generally assist in maintaining your family’s lifestyle in the event of your death. With this type of cover, your family would not be burdened by debt and may be protected from selling assets to pay debts or cover living expenses. Total and Permanent Disability Insurance Total and Permanent Disablement (TPD) can prevent you from working and require expensive medical treatment and ongoing care. TPD insurance aims to provide a lump sum if you suffer an illness or injury and you: · Are permanently unable to work again or · Are unable to care for yourself independently, or · Suffer significant and permanent cognitive impairment. TPD insurance pays a lump sum which can be used to pay for medical expenses, ongoing care costs and to meet living expenses for you and your family. The definition of TPD can vary and may include options for a range of occupations, including homemakers. Options that you can choose from include: · Any Occupation TPD: The benefit will be paid if you are unlikely to be gainfully employed in any business, profession or occupation for which you are reasonable suited by your education, training or experience. This definition is generally less expensive than an Own Occupation definition but for some people, it may be harder to meet. · Own Occupation TPD: The benefit will be paid if you are unlikely to ever be gainfully employed in your own occupation. Own Occupation TPD provides a generous definition as it is specific to your occupation and is particularly suitable for specialist occupations. The premiums for this type of definition are more expensive than Any Occupation TPD. You should discuss your circumstances with your financial planner. Trauma Insurance A serious illness or injury can prevent you from working for a period of time and may require expensive medical treatment. Trauma insurance (also known as critical illness, crisis or recovery insurance) aims to provide a lump sum upon the diagnosis of a specified illness or injury such as life-threatening cancer, stroke or heart attack. Trauma insurance pays a lump sum that can be used to pay medical expenses and reduce any financial pressure while you focus on recovery. This payment is made regardless of whether you are able to return to work, and is designed to relieve financial pressure at a time when you are under great stress. Child Trauma insurance can be added to your policy to cover a seriously ill or injured child. This provides a lump sum to help you cover medical treatment and eases financial worry for parents who may need to take time off work to provide care. Income Protection Insurance Income Protection insurance aims to minimise the financial impact of sickness or injury by replacing income lost during a prolonged absence from work. A monthly benefit will assist you to meet living expenses and debt repayments. Income Protection policies will usually pay a benefit up to 75% of your gross income (some policies may pay higher) after a waiting period. Payments continue for a set term or until you return to work, whichever occurs first. Waiting period: This is the time period that you must be off work before an income benefit is payable. Waiting periods range from 14 days to two years. Generally, the longer the waiting period, the lower the cost of the income protection insurance. Benefit period: Starting at the end of the waiting period, the benefit period is the maximum time the benefit is paid. Options range from two years, five years or until a specified age such as age 65. Types of contracts include: Agreed value: The monthly benefit is agreed at the time of application and will not reduce even if your income decreases after your policy commenced. This option provides certainty and peace of mind on how much income you will receive. If details of your income are provided at the time of application the benefit can be guaranteed so that no further financial assessment is required at the time of claim. Agreed value contracts are not available to new policy holders from 31 March 2020, however existing policy holders with an agreed value policy will still be able to increase their benefit amount. Indemnity value: The monthly benefit paid depends on your earnings at the time of a claim. If your income at the time of claim is lower than it was when the policy started, the monthly benefit may be reduced accordingly. Details and proof of income will be required at the time of claim. You can generally claim a tax deduction for the premiums paid on an income protection policy (other that any portion of the premium that is attributable to benefits of a capital nature such as physical injury or critical illness) However, income payments received are considered taxable income. Business Expense Insurance Business expense insurance can help to keep your business running if you are unable to work due to temporary illness or injury. This may be particularly appropriate for a sole trader. This type of insurance will usually cover up to 100% of your eligible business expenses, for example rent/lease payments, interest costs, accountant’s fees, telephone, electricity, etc. However, not all expenses are covered so you should check the policy wording before taking out a policy. Alternatively, if you run a larger business you may need to consider life, trauma, TPD or income protection insurance to cover ‘key’ employees or your business partners in case they die or become disabled and are unable to work. This type of insurance protects your business in the event of the loss of a person who makes a significant contribution towards the profitability or stability of the business. As an example, ‘key person’ insurance may provide the business with a lump sum that could be used to either hire a temporary replacement, cover costs of training a new staff member or just compensate the business for any reduction to profit. The premiums may be deductible as a business expense depending on the insurance purpose and the proceeds may also be considered taxable income. Premiums Premiums for all types of personal insurance will vary with age, gender and smoking status. Occupation and medical history may also affect the cost of premiums. Premium options include: Level premiums: The premium rate is fixed when you start the policy and does not change as you get older except in line with CPI indexation. Level premiums are initially higher (than stepped premiums) but will be more stable over time. This can help with affordability and reduce the risk that premiums will become unaffordable as you get older. Stepped premiums: The premium rate increases each year according to you age. Stepped premiums are initially more affordable than level premiums but over time may become more expensive. However, this option can provide you with flexibility as your needs change over time. Your financial adviser can assist in determining which premium option is most appropriate for you. Ownership Life, TPD and income protection policies can be owned personally or through a superannuation fund. Trauma insurance can be owned personally. When held within a superannuation fund, the policy is owned by the trustees of the superannuation fund, for the benefit of the member. When making a choice of how to own the policy you need to consider the advantages and disadvantages of each option. Inside Superannuation In Personal Name Advantages · Premiums are paid using contributions into the fund (e.g. employer contributions) or your superannuation savings – this can help to ease a drain on your cash flow. · Tax concessions on contributions may reduce the effective cost of the premiums (e.g. salary sacrifice to cover the cost of premiums) · In some funds you may be eligible for automatic acceptance (for some cover) which means you will not have to provide evidence of health or income · The claim proceeds are usually tax-free · Claim proceeds will be paid directly to you, your estate or nominated beneficiary as appropriate. This ensures the money is available when you and your family need it · A wider range of benefits and features may be available · Income protection premiums are generally tax deductible Disadvantages · The policies may have less benefits and features than those offered outside superannuation due to legislation restrictions · Tax may be payable on claim proceeds, depending on circumstances and rules at the time · Your disposable income will be reduced as you need to pay premiums from your after-tax income · Premiums need to be paid from after-tax money and so may be a higher cost to you than premiums inside superannuation Taxation How insurance premiums and claim proceeds are taxed will depend on the type of insurance policy and beneficiary, but will also depend on whether you choose to hold the policy inside or outside of superannuation. You should seek specialist taxation advice to check the taxation applicable to your circumstances. Inside Superannuation In Personal Name Premiums · Premiums are deductible to the fund · Not deductible except for income protection policies Claim Proceeds · Life policy – the proceeds are taxable unless paid to tax dependents · TPD – if you are under age 60 when you take this money out of superannuation, tax may be payable · Income protection – the benefits are assessable income to you and are taxed at your marginal tax rate. · The proceeds from a life, TPD or trauma policy are generally tax-free. However, the benefits from an income protection policy are assessable income and taxed at your marginal tax rate Application and Underwriting When applying for insurance you will need to complete an application form providing both personal and medical information so that the underwriter can assess the application. Some applicants may also need to undergo a medical examination and/or blood tests or a report may be requested from their usual doctor to determine whether to accept or decline the cover. Depending on your circumstances and health you may be asked to pay an additional premium, known as a loading, if you have an unfavourable medical history or display higher risk factors for developing chronic illness such as being overweight or high blood pressure. In some cases, the life insurance company may apply an exclusion to your policy. For example, a decision may be made to not cover your for high risk activities and sports or a pre-existing injury/illness. This means that if an event occurs that is excluded, the benefit under the policy will not be paid. Many policies are guaranteed renewable. This means that as long as you pay the premium you will continue to receive cover regardless of any changes in your circumstances or health. If you do not pay your premiums, your insurance will lapse. Some life companies may provide a short window of opportunity to pay your overdue premiums to maintain the cover if you have missed the due date. If your policy lapses and your health or circumstances have changed it may impact on your ability to get the same cover at the same premium. It is important to understand the benefits included in your policy, and optional extras. Benefits included are at no extra cost however optional extras may increase your premium. Your financial adviser can discuss the features of the recommended policy with you.

Hi All, I work in a community advocacy role and lately I've had a few people pop up with some issues around QROPS / UK-Aus Pension Transfer issues. I know a little bit about it but I'm trying to find out more - particularly peoples' real-life experiences. What has been your experience in this space? Positive, negative, companies to avoid, positive companies, live issues, old issues... anything will help!

Building a Portfolio There are a number of steps to follow to build a portfolio that suits your financial goals and preferences. An explanation of these key steps is provided below. Understand the Key Asset classes It is important to understand the main asset classes and how they can affect the returns and risk of your portfolio. The types of asset classes include: · Shares · Property · Bonds (or fixed interest as they are often called) · Cash There may be asset types within each asset class. For example, within shares, there is a choice of Australian and international shares and within international shares, there is choice of specific regions or countries like China or emerging market shares. Generally ‘growth’ assets like shares and property provide the prospect of higher returns over the long term compared to ‘safer’ assets like bonds and cash. However growth assets have a higher level of risk including the risk of capital loss and more ups and downs in returns particularly over the short term. ‘Growth’ assets are only appropriate if you have an investment time horizon of at least five years due to their higher level of inherent risk. Shares: Shares represent part ownership in a company and usually provide income payments through dividends and can produce growth if the share price increases. For Australian companies, these dividends can be franked, which means that you receive a tax credit for the tax already paid by the company so that you are not taxed twice (once at the company tax rate and again at your marginal tax rate). If your tax rate is less than the company tax rate (currently 30%) you will receive a refund for the extra tax paid by the company. If your tax rate is higher you may need to pay some extra tax. Property: An investment in property provides you with ownership in a property or a number of properties through a managed structure. Property investments allow you to benefit from the rent received by the properties as well as the change in the valuation of the property over time. The returns of these properties will depend on the quality of the tenant and the rent paid as well as the location and type of property such as residential, industrial or commercial. Bonds (fixed interest): A bond is a tradeable debt security, usually issued by a government, semi-government or corporate body to raise money. Investors in the bond have effectively lent money, for which they receive a fixed rate of interest over a set period of time. The bond is repaid with interest on the predetermined maturity date. For example, if you invest in a 5 year bond paying 3% coupon you will pay $1,000 to invest in the bond. In return, you will receive $30 (3% of $1,000) each year. At year 5, you receive the coupon of $30 plus the original $1,000 outlay. It is possible to experience capital losses from a bond investment if it is cashed before maturity and interest rates have risen or capital gains if the reverse occurs. They are not as safe as cash. Cash: Cash is one of the safest investments. Cash compared to other assets tends to provide lower variability in returns, high level of security on the capital invested and acts as a more defensive investment. This reduces investment risk so the money is available when you need it, with a minimal potential for capital loss. Income and Growth The returns from the various asset classes are provided in the form of income and/or growth resulting from a change in the price of the investment. Some investments like cash will only provide income returns while the return from other investments may include a mix of income and capital growth. Income returns can include interest from cash and bonds, rental income from property and dividends from shares. Managed fund may also pay realised capital gains as part of the income return. This income is included in your tax return and is taxed at your marginal tax rate. If franking credits have been derived these will be passed onto you and can help to reduce tax payable. If an investment is sold, this may create a capital gain or loss depending on whether the price of the security or unit price of managed funds has changed since investment. If a capital gain has been realised on units held for more than 12 months a 50% capital gains tax discount will apply unless the units were owned by a company. Diversification You can invest in a mix of asset classes or securities as a means of ‘diversifying’ your portfolio. Diversification is a key investment principle used to manage the risks of a portfolio and involves investing in a variety of assets and investments that perform differently to each other over time. It is often described by the proverb “Don’t put all your eggs in one basket”. It also allows you to have an exposure to a spread of assets and securities including both ‘growth’ and ‘defensive’ assets. It means that you avoid taking big bets in one or a few asset class and/or investments that may adversely affect your returns if it underperforms. Diversification can reduce the risk in your portfolio but it will not eliminate the risks. Your portfolio is likely to experience ups and downs in returns over time but by a lower level of variability. Direct versus Managed Funds You can access assets and/or securities by buying the investment directly or via a managed trust. Direct investments involve buying the security such as a specific share or property such that you are a part or full owner of the security. As an example, you can become an owner in a specific company by buying its shares on the Stock Exchange which entitles you to receive dividends and vote at General Meetings (depending on your share structure). An alternative means of gaining exposure to assets is via a managed fund. A managed fund is a professionally managed investment portfolio that pools the money of multiple investors. A fund manager is appointed to manage the fund including selection of the underlying investments and maintaining client records. By pooling money with other investors you may gain access to investments not normally available if you invested directly or enable you to achieve a greater level of diversification. If you invest money into a managed fund you will receive a number of ‘units’ in that fund. The number of units you receive is calculated as the amount of money you invest divided by the unit price on that day. This is why managed funds are also often called “unit trusts”. The unit price may increase or decrease in line with the value of the underlying investments. Each investment approach has its advantages and disadvantages that you should consider. These will include the implications for fees and investment control. Investing directly in securities may require you to actively review and manage the investments in your portfolio on a regular basis. You may be required to make decisions and changes to account for corporate action events in the case of buying shares directly such as takeovers, rights issues and share purchase plans. This can require you to have the time and inclination to manage your direct investments portfolio. On the flip side, the advantage provided by a managed fund is that you do not need to devote the time to be actively involved in the investment decisions. Risk Profiling There are a number of factors that you need to consider to determine the most appropriate investment for your personal preferences and financial goals. A key driver of this decision is your risk profile which measures your attitude towards risk. Your risk profile will depend on how you feel about a range of different issues such as: · Your comfort and knowledge of investment markets. The higher your knowledge, the more comfortable you may be investing in riskier assets like shares and property · Your preference for capital growth (compared to capital preservation and/or income). The higher your preference for growth may be better suited to investing in riskier assets that offer a higher potential for capital growth. · Your level of concern when markets suffer a loss. If you are likely to sell and feel stressed from this loss, then a lower exposure to risky assets may be suitable · How important it is to you for your investments to keep pace with inflation. If this is important to you, then shares and property are more likely to meet this need · Your investment time horizon. If you are investing for the long term (at least 5-7 years), then you may consider investing in shares and property. Generally, risky assets are not suitable if you are investing for shorter periods of time and a higher level of investment in cash and bonds may be more suitable Structures for Holding Investments There are various ways of owning investments and these can include in your own name, in your spouse or kids’ names, via a family trust, superannuation or private company. There are a number of issues to consider when determining the most appropriate structure to hold the investments and these include the following: · Tax · Fees and costs · Liabilities and responsibilities · Flexibility and complexity · Estate planning Investment Strategies Once you have decided on your portfolio, there are various approaches to investing and withdrawing your money. If you are concerned about the ups and downs in financial markets and are unsure about whether it is a good time to invest in risky assets, you can consider investing using a ‘dollar cost averaging’ approach. This involves investing a set amount regularly over a period of time rather than investing the full amount at a single point in time. In this way, you can avoid trying to time your entry into financial markets. By making regular investments over time you may be able to minimise the risk of investing all your money during a market peak. This can help to minimise investment risk and average the purchase price of your investments by buying more assets when prices are low and fewer assets when prices are high. If you are withdrawing funds from your portfolio, you can use a regular drawdown strategy that has similar benefits to dollar cost averaging (but in reverse). That is, you can withdraw funds over time rather than withdrawing the full amount at a point in time. In this way, you can minimise the risk of withdrawing all your funds from financial markets at the bottom of the market. Your portfolio can benefit from ‘compounding interest’ particularly if you reinvest your income returns. If the interest you receive is added to your initial investment, you can receive interest on the total amount and effectively receive interest on the interest reinvested. This is called ‘compound interest’ and has the effect of increasing your overall returns. The more frequently that interest is calculated, the higher will be the compounded returns.

This thread is just to give a bit of an overview of the services provided by us here at Vista Financial Service and how we might be able to assist you in these areas. UK Pension Transfers You can currently only transfer your UK Pensions directly to Australia if you are aged 55 years or over. It this is the case and you engage Vista in relation to a Pension Transfer we will see the whole process through from start to finish including: Obtaining relevant UK Pension information and overseas transfer paperwork; Providing a comprehensive Statement of Advice in relation to: whether a transfer is in your interests; recommending an appropriate Super Fund in Australia to receive your UK Monies; detailing rules and legislation around UK Pension Transfers and what you can and cannot do going forward; the advantages and disadvantages of a UK Pension Transfer; Completion of the necessary new QROPS Super Fund Application and Pension Transfer documents; Administering the transfer including follow up calls with your UK Pension Transfer Company to chase payments and/or other required documents; Placement of the monies into the appropriate recommended investments; Dealing with the calculation of any relevant tax payable on the transfer of the Fund and the options available in relation to this tax. We of course also take care of any other issues that arise throughout the whole Pension Transfer process and the above is the simplified version of the process as it happens but be rest assured we take care of the whole transfer. Superannuation Advice We consider client Super Funds and what clients want from a Super Fund and determine whether the Super Fund they currently have is appropriate for their needs at that particular time; We also consider consolidation of Super Funds if clients have more than one Super Fund (but this is a case by case basis as it may in some cases be appropriate for clients to have more than one Super Fund for example if one of the Funds contains Insurance); We look at how the monies are invested within the Super Funds and whether they are invested in accordance with a client’s Risk Profile. For example most people are in the default Balanced Options in their Super Funds but this wouldn’t be appropriate for say a Conservative or Defensive Investor as there would be too much risk to their monies (in the markets). In actual fact the word Balanced is rarely what it would seem to be as most of the time around 80% of monies in the default Balanced Fund are invested in the markets and as much as 90% in some cases. We assess a client’s attitude to the risk they want to take with their monies and then recommend investments that align to that Risk Profile; We consider the beneficiaries nominated on a client’s Super Fund. Some clients have no-one nominated, others have non-binding nominations, others binding nominations. We check what is currently in place and ensure it continues to remain in line with the client’s wishes in the event of their passing; Life (Risk) Insurance We consider four types of Insurances being Life Insurance, Total and Permanent Disability Insurance, Trauma Insurance and Income Protection. We carry out what is called a Needs Analysis for a client to determine how much of each insurance they require (for example cover to clear the mortgage, cover for children’s education costs etc) and then we make recommendations in relation to how to structure this insurance and indeed the Insurance Provider; Risk Insurance has evolved greatly over recent years and you can now have Life, TPD and Income Protection Cover with a retail provider (comprehensive insurance) with the premiums funded from a nominated Super Fund. This can assist with cash-flow and also make it tax efficient to fund the premiums. You can also hold all of these insurances outside of Super and fund the premiums yourself or a combination of the above. We look at what a client needs, the costs involved and then tailor an Insurance Package to best suit the client’s needs and budgets; We assist our clients with insurance claims as the last thing someone wants/needs to contend with is dealing with an insurance company to try and get money paid while they are sick or grieving. Pension Advice When a person reaches a certain age/retires they are able to transfer their Super monies into a Pension. We advise on this transition which can often result in a client receiving a tax free income generally or at the very least a tax free eligibility on earnings within the Pension (that are taxed in Super) which in turn increases a client’s retirement monies and in turn retirement income; We also as with Super advise on the Investment Portfolio within the Fund (namely the appropriate investment of the monies in accordance with a client’s Risk Profile); Again we also consider a client’s beneficiary details and in Pension you can also have what is known as a Reversionary Pension Arrangement whereby in the event of the passing of one Spouse the other will continue to receive the income without the need to close the Fund; There is a requirement by law to take a certain percentage of income from a pension each year and we advise clients in relation to how much income should be taken in conjunction with the Retirement Planning Projections we carry out (more details below). Retirement Planning We consider a client’s Retirement Goals and Objectives namely how much income does a client want annually in retirement. We then consider whether a client is on track to receive that level of income taking into account all the income they will be eligible to receive such as monies from their Super Funds, UK Private Pensions (if applicable), Australian Aged Pension Income, UK State Pension Income (if applicable), Rental Income and any other sources of income a client might have. If the client is on track to achieve their Retirement Income Goal that is great and we then may start to consider whether early retirement is an option. However if they fall short we look at ways we may be able to make up the shortfall and get the client where they need to be using various strategies (detailed below) or alternatively discuss with them the reality and what the negotiables may be for example working longer or taking less income and the like. We provide detailed Projections which show the income likely to be achieved in retirement and indeed at what age this income is likely to run out and when a client would be solely reliant on the State for income (which is of course not ideal in the very least early retirement). Investments If a person has money to invest we consider a client’s goals for this money including their investment time horizon as well as their attitude to Risk (namely how much risk they want to take with their monies) and then make recommendations in relation to appropriate investments such as: Direct Shares (including ETFs, LICs); Managed Funds; Managed Accounts; Short and Long Term Annuities; Cash and Term Deposits; Property (through Funds or directly). When you invest money the appropriate ownership structure of that investment is important for a number of reasons and so we will also consider that structure for you which will include structures such as: Direct Ownership (Solely or Jointly); Through a Trust Structure (Family Trust for example); Investment Bond; Education Bond; Superannuation Estate Planning We consider whether a client has a Will, Powers Of Attorney as well as Guardianship for their dependents, if not then we make a firm recommendation to seek Professional Advice in relation to these areas (in SA we refer them to a Solicitor who specialises in this area). We will then work with the Professional to ensure that the client’s Estate Planning is in good health. Strategies We look at client’s disposable income (if they have any) and where this money could be best directed. Again in conjunction with the Retirement Planning sometimes we recommend surplus income is directed to Super by way of a Salary Sacrifice Arrangement or Tax Deductible Contributions (subject to monetary limits), sometimes we recommend in addition that money is contributed to Super as voluntary payments or to an investment vehicle outside of Super if more appropriate (for example access is required before Super is available. We might direct surplus income to a client’s mortgage, loan, credit card or other outstanding debt but we will assess the client’s situation as a whole and determine the most appropriate and tax effective way of increasing a client’s wealth and/or reducing debt. We also consider whether client’s are eligible for any other contribution incentives such as the Government Co-Contribution whereby someone earning below a certain threshold will be able to have the Government match (or at least contribute) an amount to their Super Fund in accordance with an amount they also contribute so effectively you contribute and so does the Government (again increasing retirement wealth); There are also other strategies like Spouse Splitting (whereby one Spouse transfers money to the other Spouse’s Super) which may be beneficial in certain circumstances, Spouse Contributions whereby a Spouse contributes to the other Spouse’s Super and they receive a Tax Offset and again in some circumstances this can be beneficial; All of the above and more are assessed for our clients to assist (if applicable) to create wealth and save tax and each client is assessed accordingly and the relevant strategies recommended. Ongoing Service In most cases when we have advised a client in respect of an issue they become ongoing clients (this is optional) and this service consists of the following: At least an annual review of all of the above including an advice document and any additional recommendations and implementation of those recommendations; We are on call as their Advisers throughout the year to assist if and when needed in relation to any Financial Matter (in existence or new); We are pro-active if something arises throughout the year that could impact our clients such as for example the reduction in the Concessional Contribution limit that came into effect on 1 July 2017. This impacted a lot of our clients and we had to advise them to reduce their then Salary Sacrifice amounts to ensure they did not breach the new limit in place (this required an additional review and advice document for each client impacted). We assist clients administratively throughout the year as and when paperwork is required to be completed for particular matters (such as beneficiary updates, Centrelink assistance). Mortgages We offer a Mortgage Broking service which includes arranging mortgages/home loans for: Residential Purchases; First Time Home Owners; Investment Property Purchases; Re-Finances; Equity Release (may be to invest in shares/managed funds). We have had a freeze on Mortgage business for about a year however we are currently recruiting a new Mortgage Broker so should be offering these services again shortly. Summary We really take a holistic approach to a client’s whole Financial Planning Needs as it is really about getting to retirement and having the income that they require at and during retirement. We look at utilising all the available strategies at their disposal while in the meantime protecting their wealth and income through risk protection strategies (via insurances) and ensuring that in the event of their passing their assets are distributed in accordance with their wishes. Along the way we are ensuring their monies are invested appropriately for their Risk Profiles and that their Super Funds and the investments are performing as they should and if not then considering alternative options. In addition to the extensive approach taken in relation to a client’s Financial Plan we as detailed above cater for an ongoing client’s changing needs as there will of course be road bumps along the way due to life changes such as redundancy, illness, separation, having children and the like so these changes will have to be navigated as indeed will the regulatory changes that occur (which have been extensive over recent years) such as state pension age changes, reductions in contribution caps to super and the like. We are a Financial Advice Firm that you can TRUST and I know that trust is one of the reasons that a lot of people do not take financial advice particularly at the moment with the bad press around Bank Financial Planners and their advice. This is a real shame as a good Planner can add so much value. Vista has been working with forum members for almost 10 years now and we continue to evolve and expand to cater for our client base as we need too. We put the interests of our clients first and foremost and will (and have) at times put a freeze on accepting new business so that we can maintain our commitment to our existing clients and service levels. If you wish to discuss any of the above further then feel free to call us on 08 8381 7177 or send an email to info@vistafs.com.au Kind regards Andy

I thought I'd have a bit of a rant, and then divert into a question. I've engaged accountants a couple of times regarding our moves to and from Australia and the UK. We generally engage on the basis of helping us with our tax return, although I've also asked for tax advice and planning as well. What I've found, is that those I've engaged have been very happy to offer bookkeeping and filing, but less forthcoming on advice or tax efficiency. A great example is my current predicament, where I engaged a medium-sized reputable AU-UK-NZ accountant for advice on liability on moving back to the UK, and then for helping with the CGT liability of selling our long-held family house in the UK once we moved back into it. This accountancy helped me work through a few scenarios of what our tax liability would be in Australia on whether we sold up in the UK, or moved back on a sabbatical, or moved back permanently. We made a decision to move back for a few years, informed by that advice. Now that we're back, we asked them to help calculate the CGT due on the sale of our primary home; a home I didn't sell while we were away, as I didn't want to get into the complications of multiple home ownership and all the CGT issues that it would entail. They did so, and told us we would have a UK tax liability of around 2.5% of the house value, based on all the various PRR calculations, time in vs away, shared ownership, etc. I asked them whether changing the ownership balance to equal with my wife (who's not working) might reduce the CGT liability, and they went away and calculated that it would save around 0.3% - which is still a good few nice meals out! It was something we had intended doing anyway (so not purely for tax reasons), so we did that before selling. I then did a bit more reading, and came back to ask them whether we might be exempt from CGT entirely, since we had moved to AU for work, and come back after I was made redundant from that job. They replied quoting TCGA92/S223, and said that yes, probably, it seems like I could be exempt. So why didn't they bloody tell me? When I came to them for advice whilst still in Australia, why didn't they inform me that if I took the scenario of moving back to the UK into my primary family home, I might be able to negate the issue of CGT in both AU and the UK? And then when I engaged them again when back in the UK, why didn't they even think to ask whether I met the conditions that might qualify for full relief - or, of course, suggest that, since they had all that information from the previous engagement? Of course, I'm not asking here for help on this specific issue, but there is a more general question behind it. How do I engage an accountant to represent my interests, rather than as a simple bookkeeper? I have a friend from the US who has the even more tricky situation of being taxed at home on his worldwide gains, and when I asked how he managed it, he said he had a 'good accountant' who helped him mitigate the liability. That's what I'm looking for, but how do I find it? Is it a question of asking for "tax planning" rather than expecting it as part of the tax return, and paying for that service. Is it that it's only high-net-worth individuals and small businesses who can get that kind of service? Or is it just a question of finding "the right accountant"? I'm planning to come back next year and am currently planning for that, so I'd appreciate any inputs as to how everyone else manages it! Thanks, D

Plan ahead by moving overseas with the experts! Moving to Australia is not without its ups and downs. To make sure you stay ahead of the game, it pays to be well informed. Everyone wants to start their new life down under with as much money as possible and there are a number of things you can do to ensure you make the most of your funds. Key topics always discussed on the forum include moving your possessions, shipping your car, shipping your pets, transferring your money into your new Australian bank account and getting a mortgage. Poms in Oz is hosting our first Live Chat session for 2012 with leading experts in banking, currency exchange, financial advice, international removals and pet transportation. The chat event will take place on Wednesday 08th February 2012 from 7:30pm-9:30pm (UK Time). National Australia Bank, Moneycorp, PSS International Removals, PetAirUK and Vista Financial Services will be on hand to answer any questions you may have about your move. To participate, click on the 'chat' menu option at the top of the page. Clicking on chat will launch the chat software. There will different 'rooms' for each of the different companies. Unregistered guests can participate by following this link - Chat with Industry Experts, then, once the chat software has loaded, tick the 'Guest' option at the top of the chat window, then choose a username and click 'Login' and enter the 'Moneycorp, NAB, PSS, PetAirUK or Vista Financial Services' chat rooms. National Australia Bank [img2=right]http://www.pomsinoz.com/images/chat-nab.png[/img2] Royce Hort will talk about the Australian Banking system providing you with some insights as to what is different between the UK and Australia. She will also talk about how straight forward it is to open an Australian Bank account before you leave home and some of the services you should consider. Moneycorp [img2=right]http://www.pomsinoz.com/images/newmc.gif[/img2] Whether you are moving to Australia, or living there already, John Kinghorn will bring you the latest updates on the Aussie dollar and provide insight into the key factors influencing market movements. Exchange rates are constantly fluctuating and transferring your funds at the right time, via the right channel, can make a big difference to the amount of money you actually end up with. PSS International Removals [img2=right]http://www.pomsinoz.com/images/chat-pss.png[/img2] One of the key ingredients when you are moving overseas is the planning of your removal. Liam Witham will be on hand to offer advice and answer any questions you may have regarding the packing and shipping of your household effects, including what items you can ship to Australia, Australian Customs procedures and AQIS. PetAir UK [img2=right]http://www.pomsinoz.com/images/petair.png[/img2] Bob Ghandour, Veterinary Consultant and Director of PetAir UK will be on hand to discuss any aspects of shipping your pets to Australia. PetAir UK is a unique pet travel service run by specialised vets for ultimate peace of mind. We will transport your pets safely and comfortably - worldwide. No matter what the journey, we will remove the stress of complicated pet travel arrangements and ensure the best possible service to our clients and their much-loved companions is one of our highest priorities. We operate a 'one of the family' policy, where all animals are treated with the same respect and care as our own pets. We know how much it means to you that your beloved pet arrives safely and by using PetAir UK you can assure yourself you are providing the very best care for your pet. We offer truly comprehensive packages which provide absolute continuity from start to finish. Every client is allocated one of our personal veterinary consultants who will oversee every step of the process. From complex documentation and import permit applications through to last minute flight changes, nothing is a problem for our competent and dedicated team. Vista Financial Services [img2=right]http://www.pomsinoz.com/images/vista-financial.png[/img2] Andrew Williams is both a UK qualified and Australian practicing Financial Adviser and Mortgage Consultant specialising in advising UK expats in Australia on the transition and development of their financial affairs. From assisting clients with securing their first Australian mortgage through to working with them to understand whether transferring their UK Pensions is in their interests, Andrew is able to help answer your questions and concerns on a wide range of financial planning matters.

Plan ahead by moving overseas with the experts! Moving to Australia is not without its ups and downs. To make sure you stay ahead of the game, it pays to be well informed. Everyone wants to start their new life down under with as much money as possible and there are a number of things you can do to ensure you make the most of your funds. Key topics always discussed on the forum include moving your possessions, shipping your car, transferring your money into your new Australian bank account and getting a mortgage. Poms in Oz is hosting Live Chat sessions with leading experts in banking, currency exchange, international removals, financial advice & vehicle importation and these sessions will take place on 04th July 2011 from 8pm-10pm (UK Time). National Australia Bank, Moneycorp, PSS International Removals, Vista Financial Services and Iron Chef Imports will be on hand to answer any questions you may have about your move. To participate, click on the 'chat' menu option at the top of the page. Clicking on chat will launch the chat software. There will different 'rooms' for each of the different companies. Unregistered guests can participate by following this link - Chat with Industry Experts, then, once the chat software has loaded, tick the 'Guest' option at the top of the chat window, then choose a username and click 'Login' and enter the 'Moneycorp, NAB, PSS, Vista Financial Services or Ironchef' chat rooms. National Australia Bank [img2=right]http://www.pomsinoz.com/images/chat-nab.png[/img2] Rebecca Joils will talk about the Australian Banking system providing you with some insights as to what is different between the UK and Australia. She will also talk about how straight forward it is to open an Australian Bank account before you leave home and some of the services you should consider. Moneycorp [img2=right]http://www.pomsinoz.com/images/chat-moneycorp.png[/img2] Whether you are moving to Australia, or living there already, Jonathan Griffith will bring you the latest updates on the Aussie dollar and provide insight into the key factors influencing market movements. Exchange rates are constantly fluctuating and transferring your funds at the right time, via the right channel, can make a big difference to the amount of money you actually end up with. PSS International Removals [img2=right]http://www.pomsinoz.com/images/chat-pss.png[/img2] One of the key ingredients when you are moving overseas is the planning of your removal. Liam Witham will be on hand to offer advice and answer any questions you may have regarding the packing and shipping of your household effects, including what items you can ship to Australia, Australian Customs procedures and AQIS. Whether you are importing household effects or just a vehicle, it is never too early to start researching or to start the process. Vista Financial Services [img2=right]http://www.pomsinoz.com/images/vista-financial.png[/img2] Andrew Williams is both a UK qualified and Australian practicing Financial Adviser and Mortgage Consultant specialising in advising UK expats in Australia on the transition and development of their financial affairs. From assisting clients with securing their first Australian mortgage through to working with them to understand whether transferring their UK Pensions is in their interests, Andrew is able to help answer your questions and concerns on a wide range of financial planning matters. Iron Chef Imports [img2=right]http://www.pomsinoz.com/images/ironchef.gif[/img2] Iron Chef Imports is a small, Australian-based business that specialises in arranging transportation of vehicles from anywhere in the world to any port in Australia. For a fixed brokerage fee, we can help arrange your vehicle's import approval paperwork, shipping, customs clearance and registration in Australia. Aside from our fee, all other costs are invoiced to you directly - no hidden markups! We're also happy to advise you if it's worth bringing your car over before you start (that part's free!). PetAir UK [img2=right]http://www.pomsinoz.com/images/petair.png[/img2] PetAir UK is a unique pet travel service run by specialised vets for ultimate peace of mind. We will transport your pets safely and comfortably - worldwide. No matter what the journey, we will remove the stress of complicated pet travel arrangements and ensure the best possible service to our clients and their much-loved companions is one of our highest priorities. We operate a 'one of the family' policy, where all animals are treated with the same respect and care as our own pets. We know how much it means to you that your beloved pet arrives safely and by using PetAir UK you can assure yourself you are providing the very best care for your pet. We offer truly comprehensive packages which provide absolute continuity from start to finish. Every client is allocated one of our personal veterinary consultants who will oversee every step of the process. From complex documentation and import permit applications through to last minute flight changes, nothing is a problem for our competent and dedicated team.