Dear Friends
How good would it be if Mike was still here?
I found myself asking this question as I celebrated Sturt’s win in the SANFL grand final. As passionate Sturt supporters, from the late 1980s my good friend Mike and I suffered together, enduring 26 straight losses during the dark decade for the club. Sadly, my old mate has gone to God.
Anyone who reads this reflection will also know this feeling of loss, which is part of the wheel of life. As much as we would wish, there is nothing we can do to bring that person back – but there is much which can be done while we are still on this earth, to make our departure easier for our loved ones.
The starting point is to recognise our mortality, take stock of what we do (or don’t) have in place and act to fill the gaps.
For those of us who are working and have financial commitments, a life insurance policy is of utmost importance. Do not make the mistake of thinking that the cover within your super takes care of that, “so I’m OK”. The default cover in superannuation is often insufficient when compared to the cost of replacing a working income. Your cover should protect your loved ones by paying off the mortgage and any other loans, as well as providing buffer space for costs such as school fees, ongoing living expenses and possibly medical care.
A Will is also essential. Depending on your personal situation, this can be very simple, or it can become quite complex. A professional should always be called in to draft this most important document.
Consideration should also be given to removing the potential 17% Death Benefits Tax on any unused superannuation that doesn’t transfer to a dependent (spouse or child generally under the age of 18). Most Australians don’t realise that almost a fifth of their super can be clawed back by Canberra, but a cash-out and recontribution strategy can remove this liability, potentially saving up to three hundred and forty thousand dollars if the Transfer Balance Cap of $2m is in play.
Of course, in the majority of cases we don’t know when we will die, so we need to act now to get these protections in place while we are fit and healthy – this applies to protections for life partners and spouses, not just the main breadwinner.
We can’t bring our loved ones back, but there will be eternal gratitude for being able to grieve and give thanks for having loved them, with minimum financial stress.
Update on Shield Master Fund
According to Nine Media, Macquarie has agreed to compensate victims of the Shield Master Fund collapse after $321 million of people’s super savings was put into the allegedly rogue investment scheme.
This will cover about 3,000 of the around 5,800 people who invested via the Macquarie platform in the $500 million fund between 2022 and 2023.
Marinis Financial Group has never recommended Shield.
We wait expectantly to see the other providers who allowed their clients’ money to be at risk to also stand up and make amends.
And One More Thing - Are you entitled to a super ‘free kick’?
Australians are entitled to put up to $30,000 each year into our super, but many of us don’t. When we get some ‘extra’ cash, for example, from the sale of an investment or receipt of an inheritance, there is a ‘free kick’ opportunity to top up our concessional contributions from the last five years, saving us potentially hundreds of thousands of dollars. Please see the article written by Marinis team member Dylan Holliday here.
Cyber safety
Follow the Federal Government’s scam watch: http://www.cyber.gov.au/protect-yourself. If something, or someone, seems too good to be true, it probably is. We are constantly seeing via our news media, honest, hardworking, people who have been scammed, so please keep your guard up. If you are not sure, ask a family member or trusted friend – but don’t be rushed by anyone.
My view is firming; we should never trust social media. There are too many fakes and scams. Do not ever invest via Facebook – you will just be handing your money to a thief.
One of the layers of security of which I am very proud, is that our clients all have a personal relationship with their adviser and our team. We recognise voices, we know everyone, we are business ‘friends.’ So, do contact us about any super or investment related matter.
As always, if I or any of our team can be of assistance, please don’t hesitate to get in touch by either calling (08) 8130 5130 or email admin@marinisgroup.com.au
Yours sincerely
Theo Marinis CFP®, B.A., B.Ec., CPA., MCIFAA
Financial Strategist
Authorised Representative
