In This Issue
Dear Friends
Your personal (financial) trainer
About four months ago, my friend and client Shane* metaphorically swapped sides of the table with me to recommend I consult him for some health and fitness training. I must admit, I wish I had done this a decade ago!
It also occurred to me at the time that there were professional parallels.
Personal (fitness) trainers and financial advisers both provide a ‘keeping on track’ service. And whilst much of the hard work is done in the first part of the client relationship, the distractions of daily life mean that it remains all too easy to lose focus on the importance of maintaining the benefits of that initial hard work – even when it is for our own good. In other words, keeping fit (both physically and financially) often requires some help to play the long game.
A classic case in point, from a financial fitness perspective, is the importance of estate planning. We all know we need a Will, yet around half of us die intestate. Thus, when it comes to dissolution of an estate, this situation can lead to considerable (avoidable) legal expense – not to mention the unintended consequences. Some other examples of maintaining financial fitness include maximising your super contributions, using the Downsizer provisions to bolster retirement savings – or, at the pointy end of the wealth scale (when you’ve reached the super and pension limits) considering investing in Insurance Bonds to reduce tax liability.
Keeping financially fit is important because life changes, usually when it is least expected. A partner dies, someone becomes ill, a business fails, an inheritance is received; if your financial plans are robust, you can roll with the punches that life throws at you.
Just as with my personal journey with Shane, so many of our clients express the wish they had started their financial fitness programme a decade ago. From personal experience, today is the first day of the rest of my life, so today is the day to act, and forget the regrets.
On the subject of my own personal (physical) fitness, I can report that I’m thoroughly enjoying getting my body moving again – as well as trying hard to shed a bit of weight. I’m certainly not in training for the Olympics, just in training to be more active in my 60s, 70s and 80s!
And one more thing:
If you are one of the lucky few with more than the limit of $3m in your super balance, we will be contacting you (at the appropriate time) to discuss strategies to limit your potential liability when the proposed laws come into effect.
But for now, don’t panic. For the rest of us, if we are in super accumulation phase, keep aiming for a significant Transfer Balance Cap for both you and your partner – at present, the ceiling is $1.9m each. I can show you how to get there.
A reminder to be alert to the scammers
Keep an eye on https://www.cyber.gov.au/protect-yourself to be mindful of the ways your cyber security can be compromised, and the steps you can take to protect yourself online. One of my clients in Victoria recently had $7,500 in fraudulent activity on their credit card. In the same week a ‘friend’ on Facebook urgently needed cash for medical expenses – and – they received a scam text pretending to be from one of their children who had a new phone number!
Please be vigilant. The crooks are everywhere.
As always, if I or any of the team can be of assistance, please do not hesitate to contact us on (08) 8130 5130 or via email at admin@marinisgroup.com.au
*Shane agreed to provide his full name and contact details, should you wish to take up his excellent services. - Shane White, at Northgate Personal Training http://www.northgatept.com.au
Yours sincerely
Theo Marinis CFP®, B.A., B.Ec., CPA., MCIFAA
Financial Strategist
Authorised Representative