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  1. Hi everyone ~ Happy Friday! So many of us have investments both here and in the UK: shares, rental income, pensions ~ here's a white paper we wrote with this specifically in mind: https://www.moneycorp.com/en-gb/news-hub/managing-investments-and-income-overseas/
  2. Andrew from Vista Financial

    Investment Portfolios - Education Guide

    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.
  3. It will be 3 years this Christmas since we moved over, what a ride its been so far! I thought of sharing some experiences when it came to investment options and how it went for us. It will be great to hear from others too so I too can learn and improve I used to invest a lot in Investment Trusts back home but out here there are only a very few available. I looked into Managed Funds, and there are a lot of those around, but it isnt as smooth or linked up everywhere as the UK. Some of the well known ones are here too like Fidelity, First Colonial etc but most feel they are still stuck in the middle ages in terms of technology. Paper forms have to be filled for literally everything and online websites arent great either. There is a huge initial investment of $10k to $20k AUD and above, very rare to find lower initial deposits followed by systematic investment plans There doesnt exist a provider similar to Hargreaves & Lansdowne or others back home where you can invest in Managed funds, Investment Trusts, Shares etc under on umbrella, and that really made things more difficult for me The common choice here are standard trading houses and well known ones with good Apps tend to be CommBank (CBA), IG Trading and even AG Bell. Most trading platforms only come with Australian trading as standard, buying overseas shares is an additional feature with its own rules, delays and charges. Futures and commodities trading seems to be a big thing here A lot of the common person's money goes into their pension, which is called super out here, with 9.5% being the standard amount deducted, and we can add more if needed. The choice of Super providers is mind boggling but very interesting to read up as there is a lot of material. You have a few flashy, expensive ones with phone apps and good online systems and then the simple no nonsense ones that lets you chose from a small set of investment choices. Supers mainly invest into funds which are not available to retail. And once your Super balance goes above a certain threshold, you can switch to a Self Managed Super Fund which lets you invest directly into shares, funds and properties as well. Oh, and many people tend to buy life and permanent disability insurance from their super itself. We have done that too and its at a really good rate compared to going to a normal provider outside of your super Some of the trading platforms have tied up with Managed Funds to provide an mFund settlement service. This allows you to buy a fund through the trader rather than contacting the fund house and doing the paper work. But once you dig deeper you find out that they only let you buy so its under the one trading account. Any changes you need to make have to be discussed directly with the Fund house! So you still end up with the same amount of paper work in the long run So, what did we end up doing? We started a monthly investment plan into Spaceship, an online only fund investing in technology companies across the globe. Its going great and their app is brilliant, so also are their weekly articles - returns of 13% to date Another online one is Stockspot but they literally have a mix of few options (balanced, growth, equity etc) thats made up of ETFs. I can do it directly through a share trading site but decided to use them. Very impressed with their app and experience too - returns of 10% to date There is InvestSmart but they need a minimum of $10k to get started so I've held back but will jump in soon We opened a trading account with IG Trading and have a very small amount in few American stocks Property investment is way easier to get into here compared to back home. We have just started to dabble into that and purchased our first investment property. When I say purchased, its an empty block of land in the sticks yet to title/register in our names followed by actual construction of the house to rent out. So its a while away but good to get our basics in place We still have our pensions and SIPP invested with H&L back home, and wont be touching that for a long long time :-) How have others fared with their investment plans out here? Disclaimer, I am not an expert in trading or the markets, and have mainly been a systematic investor in funds and ITs to grow our wealth gradually over the years Cheers KnK
  4. Anita Melbourne

    UK or AUS investments?

    Hello, I currently hold UK funds and stocks via Hargreaves. I also have been working and saving in Australia and have opened a NAB Trade account. I am new to AUS investments but have noticed that shares here are not as expansive as it is in the UK. I am wondering, because I am not so familiar with ASX, to transfer all my AUD savings to my UK account and invest in LON? Or are there better reasons to keep it AUD and invest in the ASX instead? If so, where can I get reliable investment news and advice which are similar to what Hargreaves offer? I am mostly a long-term investor, looking for something steady and stable over a year or longer which is why i have mostly funds. Thanks in advance.
  5. Andrew from Vista Financial

    What Vista Financial Services can do for you

    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
  6. Andrew from Vista Financial

    What Vista Financial Services can do for you

    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
  7. Hi I'm British and currently living in the UK with my Australian girlfriend. We may look to move out to Australia at the end of 2019, depending on a few things. To make the decision easier I would appreciate any help to the following questions. 1) As I understand it the exchange rate on the date at which you become a resident for Australian tax purposes, will be used as a base for working out overseas capital gains in the future. If I move to Australia on a tourist visa and then apply for a de facto 820 visa in Australia, is the date i become resident for tax purposes the date I arrived in the country, the date I lodged my application for the de facto visa, or a later date when I have got my TFN and can officially work? 2) I have some money outside of investments and not gaining any interest in the UK - in various sports betting accounts and a sports betting syndicate specifically and I may choose to keep that money to bet with in the UK. If I did so and then transferred money across 2 years later for example at 1.9 dollars to the pound instead of 1.7 dollars to the pound, would i have to pay a capital gain on the increase in AUD worth, even though the funds are not actually invested in anything, so nothing is being sold and there isn't an actual real capital gain on the money? 3) Do you have to declare every single pound of investments and funds you have overseas when you become an Australian resident for tax purposes, or is this not the case? 4) Furthermore sports gambling is at the moment tax free in the UK and Aus. If I happen to make money after my date of Australian residence for tax purposes and then transferred across in a few years time at 1 pound to 2 dollars for example. Would I still be liable for a capital gain based on the initial 1.7 dollars to the pound rating, when I arrived, even though I made the money well after I became an Australian tax resident? Instead if i had lost for example £50k in sports gambling in the 2 years after I left in the UK, but the exchange rate had gone up to 2 dollars and I decide to send money over, would I still have to pay capital gains on the increase in AUD, despite me actually having lost money in the UK. 5) I also own a small flat in the UK, which we have lived in for the last year. If we were to move to Australia, and become a resident for tax purposes, but only rent in Australia, would I have to pay capital gains on my house in the UK (at 28%) if I was to sell it 3 years later, or would it still be classified as my home and therefore immune from capital gains tax, as I didn't yet own one in Australia? Obviously I may win or lose sports gambling going forward and i understand losses can't be used as a capital loss for tax purposes. I know this a niche area, but any help or advice to let me understand the situation better, is much appreciated. Thanks Mack
  8. Guest

    Tax free investments

    Are there any tax free savings schemes in Oz? In the UK we have ISA's (individual savings accounts) which let us save up to a limit each year the interest/income is then paid tax free. Looking at the ATO website I can't see anything similar but maybe I just don't know where to look.
  9. Guest

    Investments For The Future

    As we know the country is at this time going through a recession, some have noticed it more than others, but there is no doubt that the country at the present time is struggling to a degree and the old cuts are coming. So with this in mind what would you invest in today for TOMORROW. I only ask as one of my ex bosses has SEVEN E Type Jags in a lock up, and he has sold one just recently to bolster his income, another friend of mine has Neil Armstrong's signature kept under lock and key in their bank, he paid a LOT of money for it, but when poor Neil finally goes to heaven the signature will shoot up in price and act as a pension for my mate. So funny, serious, and the like, what would you invest in now (if you could afford it) to see you through to your old age? Cheers Tony.:wink:
  10. Guest

    Investments in Oz

    Hi In the UK there are numerous methods of investing, such as unit trusts, investment trusts, etc, whether inside or outside a tax-free ISA wrapper. I understand that there is no Oz equivalent of an ISA, but are equivalents of unit trusts readily available in Oz? If not, what are the usual methods of investing in Oz? Thanks Neil
  11. MACDONALDO67

    Money Investments in Oz

    Any PIO's know what investments are available in Oz please ? For example, Premium Bonds in Britain with numerous monthly cash prizes and a chance to win a million and £100,000, 50,000 etc every month. Max investment is £30,000. Is there anything like this in Australia ? Also, if you have a certain amount of cash to bring with you do you get extra points for this ? Thanks guys and dolls. x x x
  12. Hi Is there anyone who has any knowledge on the best way to 'avoid' huge Tax Biils? We have sent over a sum of money that we were going t invest in Property to Rent out. We can still do this as the Rental Market looks good at the moment, but we were only looking at a short term investment (3-4 years). Ideally, we wanted to them sell the properties and buy our own house to live in - out right. The problem I can see is that the rental market is very good because people are finding it difficult to geton the property ladder there - who will buy the houses/apartments?? We do not want to keep the money in the Bank as we will be paying approx 47% on the interest earned in Tax. We have already been 'stung' with a hefty Tax witholding fee from our Aussie Bank Account. We have reclaimed some of that back by being non residents, but I know as soon as we get there, this will change. If the money is invested in Property, then that's a loop hole that we can avoid so much to be paid. I'm sort of starting to confuse myself now with this - is there anyone who has any knowledge on this - simplified of course! lol We rented property here and I knew the laws and regs inside out - very simple! Unfortunately, things are very different in Australia and I think it's more a fear of the unknown. Any advice would be appreciated Angie
  13. Guest

    Investments

    I wonder if anyone can help us with a query we have about endowments & pensions. We were going to keep them going in UK, but we have heard that we may have to pay tax to the Australian Goverment on them when they mature. Just wondering how true this is?? Also, has anyone got any advice if its best to cash them in here and start them up again in Oz, and has Oz got anything like ISA's??? Any advice regards to this would be fab. Thanks. Amanda
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