Dear Friends,
What’s in it for you?
One of my clients, Sam (not his real name) recently recounted overhearing his brothers chatting at Christmas, with both agreeing that he was mad having a financial planner – why would you pay someone to do what your super fund will do, virtually for nothing?
The answer is of course, simple – if you pay nothing, that is usually what you will get.
For example, I’ve yet to hear of super fund which will consider the best strategies for partners, particularly when one is older than the other or one has stopped working. This includes dealing with Centrelink strategies to maximise available benefits.
During the accumulation phase, a super fund will never have the commitment or the resources to recommend an increase (or decrease) in life insurance or Income Protection cover. And by its nature, a recommendation concerning trauma insurance cover is certainly beyond their remit.
And, when it comes to estate planning, will someone from your super fund sit with you, your lawyer and accountant while the best 360-degree strategy is developed to ensure the correct assets go to the right recipients to maximise the benefits received, and ameliorate the tax paid? Will they help the surviving partner to re-establish their financial affairs as a single?
I’m also yet to hear of a super fund which offers to establish two Account Based Pensions, one with a ‘tax-free’ component and one with a ‘taxable’ component, effectively saving hundreds of thousands of dollars in Death Benefits tax liability when the owner passes away and leaves it to their non dependant beneficiaries.
Is your super fund prepared/informed to recommend a ‘cash-out and recontribution’ strategy to implement a ‘two ABP’ strategy so that over time you can remove that 17% Death Benefits tax liability from your estate? And – will they prepare all the paperwork (including the legally required Statement of Advice) to explain it, and then make it happen?
For more on the cash-out and recontribution strategy, please refer to my Media Release No 13 April 2008 ‘Death and Taxes are Alive and Well’ here. I will be happy to discuss this with you at any time.
If your financial adviser cannot clearly demonstrate in real dollar terms how much better off you are by following their strategy, then you should disengage the relationship. I would always pay $1,000 to someone who can make me $5,000 better off.
I will leave the last word to my client, Sam: “I sleep at night because I don’t have to worry that I’ve missed an opportunity. I am well informed, but I don’t know what I don’t know. That’s why I have a financial planner.”
Thanks Sam, it is an honour and a privilege to be able to advise you and all of our clients.
Scamwatch
I am pleased to see that the amount of money lost to scammers slightly reduced in 2025. People are becoming ‘savvier’.
Something which did make me rather sad however, was the receipt of an email in early February from one of the big banks, reminding us that it is embarrassment which often prevents victims from speaking up about being scammed.
Please do not be embarrassed when talking with your Marinis team – we are here for you (and you will not be the first client we have helped in this situation). As always, your discussions with us will remain confidential.
Please visit www.scamwatch.gov.au. It should be one of your most regularly visited websites.
Yours sincerely
Theo Marinis CFP®, B.A., B.Ec., CPA., MCIFAA
Financial Strategist
Authorised Representative
