Jan132016
NewsSuperannuation Fund Understanding Superannuation in Australia

Understanding Superannuation

News, Superannuation Fund

One of the many financial services we offer at Approved Financial Planners is help with your superannuation fund. Whether you choose self managed superannuation or any of the super funds available to you, we can provide sound financial advice.

How Superannuation Works

Money is placed into your superannuation account, also known as a “super account” or “super,” by you, your employer or both. The money in your super fund is then invested with the intent of it growing in time, even though it will occasionally return a negative result for the year. *

As a super grows, the money that was earned is reinvested and also earns a return; this helps your balance grow even more. On member contributions for which you claimed a tax deduction or on contributions from your employer, your tax is only 15% of any contribution up to $30,000 per year. The $30,000 limit is known as “concessional contributions cap.” *

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Jan122016
NewsSuperannuation Fund Lost Superannuation Account

Do You Have a Lost Superannuation Account?

News, Superannuation Fund

According to the Australian Taxation Office (ATO), approximately six million superannuation accounts or “supers” were “lost” in 2014. The accounts were valued at more than $16 billion. (1)

These accounts, however, can be “found.” The proper account holder merely needs to claim the account. There is a chance that you have a lost super that you don’t know about. (2)

There are a lot of Australians who own more than one superannuation account. Each of these funds has its own charges and fees. According to our parent company, AMP Capital, you may have money scattered across multiple supers, both active and lost. This could cost you thousands of dollars over the part of your lifetime you spend working. The good news: you can save thousands of dollars by finding a lost super or supers and consolidating them into one account. (

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Jan112016
Financial PlannersNews Resilient Equity Portfolio With Financial Planning

Financial Planning in Perth: Do You Have a Resilient Equity Portfolio?

Financial Planners, News

We offer a wide range of financial planning services in Perth. Recently, our parent company, AMP Capital, published its monthly “Insight Paper” on the AMP Capital company blog. The blog post featured three AMP Capital executives discussing how to develop a resilient equity portfolio. *

The discussion was based on research being conducted at AMP Capital with “building resilience in your equity portfolio” as a theme. AMP Capital shared the results on their blog to demonstrate what they are currently doing to “strengthen clients’ portfolios to make them fit for the future.” According to the article, technology is “disrupting” the practices of many businesses and the market is “becoming more competitive.” This makes it necessary for investment managers to “differentiate (themselves) through research.” *

According to Dr Ian Woods, who is the Head of Environmental, Social and Governance Research” for AMP Capital, investors need to be aware of the impact that policy and regulatory options implemented by governments have on their portfolios. Dr Woods elaborated, using climate change risk as an example. *

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Jan72016
Investment PlanningNews Global Listed Infrastructure Investment Planning

Investment Planning: the Ins and Outs of Global Listed Infrastructure

Investment Planning, News

The investment planning advisers in our Perth office would like to present you with information from our parent company, AMP Capital. We handle a variety of investments and we are proud to have the resources of AMP Capital to help us help you with your finances. While we can’t provide individual financial advice in a blog, we would like to pass on some recommendations from Tim Humphreys, AMP Capital Head of Global Listed Infrastructure.

Due to a low correlation between the equities market as a whole and the segment of global listed infrastructure, allocating assets into global listed infrastructure can help diversify one’s investment portfolio. (2)

According to Bloomberg, global listed infrastructure has provided returns of 11.7% per annum over ten years and 14.9% over five years. (1)

Mr Humphreys feels that globally listed infrastructure, which has only been an asset class for approximately ten years, offers what he calls a “significant opportunity for investors” due to what he sees as “relative inefficiency.” (2)

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Dec142015
Estate PlanningNewsSuperannuation Fund Estate Planning For SMSF

Where Does Your SMSF Go When You Die?

Estate Planning, News, Superannuation Fund

Estate planning is not one of the more pleasant things to think about, but it can be comforting to know where your Self-Managed Superannuation Fund (SMSF) is going to go when you die. It can also be comforting to know that taxes won’t consume a large portion of their inheritance. Here are some of the fundamentals of where an SMSF goes when you die and how taxes are paid.

According to the Australian Securities and Investments Commission (ASIC), it is recommended to fill out the form which determines where your money is supposed to be distributed in case of your death. This can keep your family’s money from being “tied up” in their time of grief. (1)

If You Die, Who Gets Your Super?

In the case of your death, the trustee of your super pays the money, known as your “death benefit,” to your dependent, dependents or estate. Your dependents include your spouse or same sex de facto partner and your children. It can also include anyone with whom you were financially interdependent or anyone who was dependent upon you financially. (1)

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Dec112015
Financial PlannersNews Pitfalls of DIY Financial Planning

The Pitfalls of DIY Financial Planning

Financial Planners, News

Do you want to do your own financial planning? We don’t provide individual advice online or on this blog, but we can provide you with some questions to ask yourself if you are thinking about doing your own financial planning.

Do You Understand Finance?

At Approved Financial Planners, we are licensed through AMP Financial Planning Pty Limited. Not only do we have 40 years’ combined experience in financial planning, we had to learn a lot about finance to obtain licences. We live and breathe finance.

Do You Have the Resources of a Financial Planner?

We have the full resources of AMP behind us. We have near-immediate access to research that those who aren’t “in the business” may not be able to find. From the financial planner you talk to in our Perth office to the AMP Chief Economist, Dr Shane Oliver, we have access to information and insight that is difficult for those who don’t work with finances every day to access and assimilate.

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Dec92015
Insurance ProtectionNews Total and Permanent Disability Insurance

Total and Permanent Disability Insurance: Business vs Personal

Insurance Protection, News

Total and permanent disability insurance is designed to help protect individuals and businesses from the severe consequences of a permanent disability that makes someone unable to ever return to work. While most people are aware of its personal use and coverage, many are unaware that TPD can also be used to protect their business in the case of a permanent disablement to a key member of the staff.

Covering Your Business

Total and permanent disability insurance can be used by business owners to cover their losses or expenses if an important team member becomes totally disabled and is unlikely to ever work again. The consequences of a permanent disability to a key person can include the loss of income and productivity. It can also cost a lot to replace them and train that replacement.

Coverage levels can be difficult to work out because there are so many factors involved. Skill level, training time, loss of productivity and loss of market leverage are all important considerations. Your insurance provider has access to formulas that are accepted across the industry to help you determine what coverage is appropriate.

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Dec72015
Insurance ProtectionNews Denied Life Insurance

Have You Been Denied Life Insurance?

Insurance Protection, News

Most people who apply for life insurance in our Perth office are approved, but sometimes an insurance company will reject or deny life insurance. There are many reasons that people are denied, but it doesn’t always mean you are out of options. Here are some strategies that you can adopt if you are denied life insurance.

Collect Information

It can be helpful to ask the insurance company for information as to why you were denied. For example, you may have taken a medical examination that found a previously undisclosed illness.

Confirm the Veracity of the Results

Mistakes happen in every facet of business. Sometimes they happen while applying for insurance. It can be helpful to double check and make sure all information that you and other sources provided was accurate.

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Dec42015
Business InsuranceNews Business Insurance - Key Person Insurance

Does Your Company Have Key Person Insurance?

Business Insurance, News

Do you know about key person insurance? It is a form of business insurance that protects your business if you lose a person who is essential to your operation. Here are some situations in which you may strongly consider key person insurance.

Employee Who is Difficult to Replace

If a restaurant loses a dishwasher, it is easy to find another one almost immediately. But what if you are a dental clinic and you lose your most popular dentist to a heart attack?

Young Employees

Often, succession plans are in place for older employees who are nearing retirement age. But what about younger employees who are projected to be there for years to come? If a young employee dies, it can “blindside” an organisation.

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Dec32015
Investment PlanningNews Education Plan For Kids With Financial Planners

Planning an Education for Your Children

Investment Planning, News

One of the many services our financial planners provide to our clientele in the Perth area is planning an education for their children. We know that everyone wants to provide for their children and an education is at the top of the list for a lot of parents. According to the Financial Planning Association of Australia (FPA), though, some families may be better off not trying to put the money aside because it could make them become a burden to their children later in life.*

The FPA strongly suggests getting your own finances and lifestyle in order before deciding whether or not to put money away for your children’s education. If you can, though, here are some options suggested by the FPA that can help you save for your children’s education.*

Pay Down Your Mortgage Faster

The FPA suggests that you would be well-served to focus on paying down your mortgage as soon as you possibly can. One strategy includes finding the lowest rates and using a redraw facility to pay for college expenses.*

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