Federal budget summary

Last Tuesday we heard the news that the Reserve Bank of Australia decided to reduce our cash rate by 0.5%. This Tuesday we heard the news of how our current government would like to manage the federal budget. Find out how the budget announcements will affect you

http://www.asgard.com.au/webcasts/2012/2012-budget-video-securitor-client.htm

Family Trust structures do not have to be complicated

I meet with a new client who thought his business structures were very complicated and had trouble understanding what his accountant had set up for him. 

 The first question I asked before even looking at the structures set up was: What are your goals?  What do you wish to achieve?

As a small business owner, they work hard so the main dream was to build up a direct investment portfolio that can one day provide for their children.

Owning several small businesses, the accountant had set up the structure as two separate family trusts each with a company as the corporate trustee for these trusts as well as another separate company operating a third business.

Working with the accountant, I fully understood the tax efficiency and asset protection reasons for the business structure.  With the help of the white board, I was able to step the client through the structure so that they fully understood the importance of the asset protection and the ease of tax efficiency.

We then devised the strategy for this client to direct the net profit funds to the correct entities to ensure that they can build their direct investment property portfolio.

The role of the accountant is to set up the business structure however their role is not to delve deeper into what the overall picture is that you wish to achieve.  In this example, the accountant never knew that these clients wanted to build up this direct investment property portfolio so was not aware of the best solution to suit the client’s needs.

My role as the financial adviser is to ensure that you utilise the structure to the best advantage for your goals and dreams.  Only your financial adviser looks forward towards the “big picture”.

How do you stay motivated?

Being a small business owner it is hard to continually lead and motivate yourself.  Again I was privileged to work with new clients last week to devise a new strategy for them to achieve their goals.  

The work that I do can change lives. Seeing this happen is such a motivating and moving feeling and reconnects me to doing what I love - working side by side with my clients to guide then along the path of financial success. 

How we are saving a retirement couple $8100 in taxes.

This last week I experienced the enjoyment of my role in helping others achieve their goal.  I meet with clients who own a commercial property in their personal names.  They are retired and are living off the rent received from the commercial property.

The rent of $60,000 per annum is being taxed as per their individual tax brackets so total tax of $8,100.  This meant that instead of receiving the full $60,000, they had to forgo some activities in their retirement.

I have worked with their accountant to recommend a strategy to restructure the ownership of the commercial shed into a self managed super fund.  Now that the rental income is being received inside super, the clients are able to draw their full $60,000 in income without any tax. 

To advise these clients that they can now earn $60,000 tax free in retirement has bought this couple such joy as they can now travel more often to see their grandkids.

It is times like this when I see the smiles on faces that I know I can make a difference and help achieve dreams.

Market Update for Quarter 4 2011 and what this means for us in 2012.

Click to view the video below, hosted by Elliot Bullock, our Investments Specialist. In this easy-to-understand video, Elliot explores:

- the outlook for global growth
- the latest from the United States, Europe and China and what this means for Australia
- the outlook for interest rates.