Our Financial Planning Services
Are you getting the right advice tailored for you? Are all your goals and dreams being achieved? Then ask us about our 3 steps to success.
We offer a Comprehensive Financial Planning Service covering:
All with quality advice you can trust. Financial Planning will be provided by Josman Financial Group, a Corporate Authorised Representative of Charter Financial Planning Limited.
Click here to contact the team for your obligation free consultation.
Wealth Creation
Make the most of your finances.
Maximise your money. Josman Financial Group aims to help our clients create wealth, based on their individual circumstances. We don't believe there are just one or two strategies that suit every client.
To do this, we meet with you to establish certain facts, including:
- Your definition of wealth
- Your spending habits
- Your tolerance to risk (low, medium, high)
Once you have met with a Josman Financial Group - affiliated financial planner, a suitable strategy may be put in place to help your growth existing wealth, or to accumulate wealth into the future.
Josman Financial Group also offers you numerous free financial tools to help you on this path.
Wealth Creation.
We are able to discuss your future goals and tailor a plan to help you reach them. Our aim is to provide tax-effective solutions that are matched to your tolerance to risk.
Wealth building options may include:
- paying off your mortgage early to save on repayment interest
- investing in a diversified investment portfolio with portions in Australian and international shares, fixed interest and listed property trusts which may provide you with healthy returns
- investing in superannuation, which is generally the most tax-effective investment strategy for retirement savings, with a maximum of 15% tax on superannuation earnings
- gearing, which involves borrowing money to invest in growth assets such as shares and property
Click here to contact the team for your obligation free consultation.
Gearing
Gearing into Wealth via Margin Lending
Most people are comfortable with the idea of borrowing in order to purchase a personal place of residence yet balk at the idea of borrowing money to start an investment gearing program via margin lending. The truth is, margin lending is a great way to create long-term wealth if an individual has the right attitude and psychology to implement this aggressive strategy. Margin lending will increase and multiply profits because:
there is more money invested than otherwise would be; and
it is possible to benefit from tax concessions associated with margin lending
But of course, if gains can be multiplied via margin lending then obviously losses can be too. This is why it is essential that anyone embarking on a margin lending strategy has a long term outlook and the ability and means to stomach short term losses, which are a reality.
For the margin lending program to be successful over the long term, the investment portfolio created with the margin loan (or equity in the family home) must generate a total return (including both income and growth) that exceeds the after-tax cost of borrowing those funds (including interest).
Negative Gearing
Negative gearing is the process where a person borrows money to invest and the costs of the investment are greater than the income received. Effectively, at least on paper, the investment makes a loss for a period of time.
Frequently the investor may need to contribute money to the investment as the income received from the investment may not be adequate to cover the costs.
The most common investments that are negatively geared are real estate, shares and unit trusts.
By gearing into an investment the return is magnified if the total return including capital growth is greater than the interest and other ownership costs. Equally, losses are magnified if the total return is less than interest and ownership costs.
It is important that investors have adequate income to meet their loan commitments in the event there is a shortfall in income from the geared investment.
To maximise the benefits of gearing investors should have a high taxable income so they may write off their losses. Negatively geared investments are more suitable for investors on a high marginal income tax rate with surplus disposable income.
Features:
- An effective means of wealth accumulation
- Purchase larger investments than would be possible if using own funds only
- Reduce income tax liability
- Potential to achieve investment returns greater than returns that could be achieved without gearing
Click here to contact the team for your obligation free consultation.
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Superannuation
What is Superannuation?
Superannuation is a tax advantaged place to save and invest for your retirement. Apart from tax deductions available on contributions, earnings are taxed in the fund at a reduced rate of 15 per cent instead of at your marginal tax rate plus the Medicare levy which could be up to 48.5 per cent. Most capital gains in super are also taxed at an effective reduced rate of 10 per cent. Your retirement benefit will also be subject to concessional rates of tax when you retire.
We are not owned by a bank, fund manager or life insurance company. Josman Financial Group are authorised representatives of Charter Financial Planning Limited who hold their own Australian Financial Services License (234665). This ensures that our advice and recommendations are in your best interest only.
Retirement and Superannuation
The goal of superannuation is to help you save and invest during your working life, so that you will have money to live on in retirement.
Super opportunities in 2007
The government's big changes to simplify super offer great opportunities for a range of people - from super savers to current retirees.
If you're eligible and over 55 you might find our case study - opportunities for over 55's particularly enlightening.
Super unlimited!
The government has scrapped the ‘reasonable benefits limit' that previously put a cap on how much you could save in super before it stopped being taxed concessionally.
You can now have as much money as you want in super with the only ‘limits' being the annual caps for contributions - see Limits on undeducted contributions.
Tax free benefits
If you're over 60, any money you withdraw from a taxed super fund is tax free!
If you're under 60 when you withdraw money from super, tax will still apply at different rates. How much tax you pay will depend on whether you've withdrawn the money as a lump sum or a pension.
New rules for super pensions
For pensions there is now one simple set of rules, requiring a minimum annual payment but no maximum.
And if you're over 60, the pension payments will be tax free to you as well!
No more compulsory cashing
Prior to 10 May 2006, unless you met certain work requirements, you had to withdraw your super savings at age 65 - or 75 at the very latest. This compulsory withdrawal of superannuation requirement has been removed.
This means your super savings can remain in the system indefinitely, attracting the concessional tax treatment and allowing you access whenever you like after you turn 65.
Limits on undeducted contributions
From 1 July 2007, an annual limit of $150,000 on undeducted contributions has been introduced. However, if you are under 65, you can bring forward two year's worth of contributions and get up to $450,000 into your super in one year. Of course this limits how much you can put in over those next two years.
You need to be careful how much you are putting in because if you exceed the cap the excess amount is taxed at 46.5%.
Simpler deductible contribution rules
The maximum deduction that can be claimed for a contribution to super is $50,000 per person per year - until you reach 75.
The limit applies across all employer, personal and salary sacrificed contributions. If you go over the limit you'll lose 46.5% of the excess amount in tax.
If you're turning 50 between 1 July 2007 and 30 June 2012, a transitional period will apply, allowing you to make annual contributions of up to $100,000, until the end of that period (2011/12).
Super improvements for self-employed
If you receive more than 10% of your income from employment sources and you earn less than $58,980 per year, you currently qualify for a government co-contribution to your super if you make a personal after-tax contribution.
This co-contribution now also applies to you if you're self-employed.
And self-employed people can now also claim a tax deduction for 100% of all pre-tax contributions up to age 75.
Super and death benefits
Any lump sum payments to your tax dependants - your spouse, children under 18 and others financially dependant on you - are now tax free.
These dependants can also receive benefits in the form of a pension, with the tax treatment dependent upon their age.
Non-dependants, such as children over 18 and your estate, can only receive your death benefit in the form of a lump sum. They may be taxed on this payment.
Unlocking your super while you're working
Previous changes to the super rules, effective from 1 July 2005, allow you to access your super at age 55 without retiring. This is done via a pre-retirement pension. You can receive income from the pension while salary sacrificing to super until you decide to fully retire.
Since 1 July 2007, if you're 60 or over, this strategy may be even more beneficial to you as your pension payments are now tax free - and you're still able to salary sacrifice. There are, however, limitations on how much you can sacrifice.
Take a look at our case study - opportunities for over 55's.
Getting started
Like to know how you how to best take advantage of these opportunities?
Click here to contact the team for your obligation free consultation.
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Investments
We will determine an appropriate asset allocation for clients based on risk preferences, performance objectives, investment time horizon, and many other factors. The resultant portfolio is designed to provide the maximum returns for a desired level of risk based on historical averages. Our planners are also able to offer direct equities advice for their clients.
How well do you understand your investment strategy?
Are you confident that your investment strategy is working for you? Investment strategy decisions are not to be made lightly. If you get it wrong you can easily lose your capital. Be confident in your financial future with Josman Financial Group's expert investment strategy advice.The best investment strategy is one that works. That seems like a fairly obvious statement, but the fact is, not every investment strategy succeeds. How can you develop a successful investment strategy? By using expert advisors to help you make informed decisions. How to make informed decisions, the investment strategy choices you make now will help set you up for later life. Your Josman Financial Group investment advisor helps you to fully understand your options, make informed decisions and develop a successful investment strategy. You receive:
- Robust investment strategy options tailored to your needs
- Professional service with a high level of insight and empathy
- Extensive maturity and experience
- Awareness of investment opportunities
- Details of hidden costs and taxes
- Monthly reports on your investments
- A high level of funds-related discretion.
Your investment strategy confidence!
You can experience the security and peace of mind that comes from knowing that Josman Financial Group will make your money work for you.
Many people do not speak to a financial planner about investments as they do not believe they have enough to invest. However, a financial planner should be viewed as not just someone to invest your savings: but more as your financial "coach" to assist you in maximising your opportunities.
One of the keys to successful long-term wealth accumulation is to develop and maintain a realistic savings plan. Developing a budget and incorporating a savings component is a powerful way of keeping you on track. Directing some of these savings to an investment plan can put you on the path to achieving your goals, and enable you to accumulate funds in the most tax-effective manner.
Most people find it difficult to set and maintain a budget, as well as set and maintain financial objectives: President's advice can assist in these areas. We can help you determine an appropriate budget as well as your optimum level of savings. We then can provide suitable recommendations on how best to utilise your savings, including recommending appropriate products.
Our main objective is to ensure you are in control of your finances and have clear and flexible goals.
Your Tolerance Toward Risk
You will need to understand the risks associated with your investment. Risk is normally measured in terms of the likelihood or probability of your investment achieving an expected return over a given period of time. Returns from lower risk investments tend to be more certain and higher risk investments less certain. Risk is also considered in terms of volatility of return or the expected range of returns that might be expected from your investment over time. With higher return comes higher risk. Your tolerance toward risk can help determine particular investments that may be inappropriate for you. Of course, lower risk investments will likely provide a lower return so there may be a trade-off as to the likelihood of achieving your financial goals.
The Advantages of Index Fund Investing
There are four main advantages that index fund investing has over traditional managed fund investing. These are:
- Long-term competitive performance
- Low Cost
- Diversification
- Manager Risk
Why you need to plan for retirement
Australians are living longer - Better nutrition and medical advances mean that we are living longer healthier lives. We expect to do a lot in our retirement which could last 25 years or more.
The age pension - The age pension may not be adequate to fund our lifestyle expectations in retirement. Instead we will need to fund our own retirement by saving more during our working years and using these savings to draw an income after we stop working.
Inflation raises prices - Things will cost more in the future. Over time, the cost of goods and services rises due to inflation. This means that your money won't go as far tomorrow as it does today.
The Government encourages us to save for retirement through superannuation by offering tax concessions that are not available through other methods of saving.
How long are you planning to live?
Is your current retirement planning able to pay for those years of life?
Retirement planning is not simply about putting aside money for your future. Your retirement planning needs to take into consideration:
- Your current (or expected) standard of living
- Handling your assets
- Keeping up with inflation
- A generous timeframe
- The need for flexibility
We can take the stress out of your retirement planning with realistic, thorough and effective financial advice.
Click here to contact the team for your obligation free consultation.
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Retirement
Solutions for Retirement Planning
The most important thing to consider in retirement planning is having a stable income.
'The earlier the better' is certainly true of retirement planning. By understanding the time value of your investments, you can make your money work harder for you, for longer.
Our expert advisors will guide and assist you with:
- Income: Setting up an indexed income.
- Capital: Planning your capital growth to meet your ongoing needs.
- Centrelink: Your eligibility and organisation of benefits.
- Investments: Advice on suitable investment structures and an appropriate investment strategy.
- Assets: Structuring your assets to minimise the deposits required, and helping you guard against inappropriate gifting of assets.
- Aged Care: Negotiation of prices, conditions and prior arrangement of your affairs.
- Powers of Attorney: Education about the implications and requirements of your powers of attorney.
Our advisors will also help you look at other retirement planning options, such as self managed superannuation and estate planning and funeral planning.
Plan now for a financially secure retirement, and feel confident that your financial future is assured.
Time and time again we're told to plan for our futures and make sure our finances are in order. It's never too early to begin thinking about retirement, so where do you start?
15 to 20 years from retirement
It's essential to consider your finances. Involve a professional financial planner and write down a detailed financial plan, based on your current goals and aspirations.
You should also:
- prepare a will;
- arrange an Enduring Power of Attorney - a formal agreement where you appoint someone to make decisions of your behalf in the event that you are unable to manage your own affairs;
- arrange an Advance Health Directive - a document detailing instructions regarding your future health care, in case a time comes when you cannot make these decisions for yourself.
5 to 10 years from retirement
- Revise your financial plans. Some considerations are:
- how much money you will need in retirement;
- how much money you anticipate having available;
- determine a suitable retirement age where money available will cover the money you require;
- retirement investments;
- superannuation;
- possible government pensions; and
- tax issues.
- For many people, boredom is a major issue in retirement. Plan your activities now; update any skills you may have or begin to learn something new. Can you use these skills to bring in extra income after retirement?
1 to 2 years from retirement
- This is the time to review and revise your financial plan.
- Are you on track to retire when you originally anticipated?
- Try to plan a retirement budget and practice using it.
- Have you cut down your hours at work? If so, you need to keep a close eye on your superannuation. Speak to your fund about any negative financial consequences of your decision.
- Are you keeping active? How about joining clubs and making new friends? Do you want to travel? Begin your plans now and determine where and when you will go.
- Where are you going to live in retirement? Now is the time to change your home or car, if necessary, to accommodate your changing lifestyle.
6 months from retirement
- Make any final adjustments to your financial plan and budget.
- Are you still on schedule?
- Check your will. Is it still effective?
- Are your Enduring Power of Attorney and Advance Health Directive still valid?
- Obtain statements from your superannuation fund(s).
- Review any life insurance policies you may have.
- Keep up with those activities and friendships you've been cultivating and remember to look after your health. If necessary, get a medical check done and review your health insurance.
3 months from retirement
- Using the checklist for the 6 months from retirement above, make sure your finances are in order.
- Are you eligible for the aged pension? You can apply for this up to three months in advance so speak to your local Centrelink office.
- And, finally, don't forget to look forward to it. Retirement is your time, when you finally have the opportunity to do what you want to do.
Click here to contact the team for your obligation free consultation.
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For more information:
Contact the Team for you obligation and consultation free first appointment.
Call: 07 5554 4000 today!
Links to related topics from FPA and ASIC:
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Smarter Super - make the most of your retirement
A booklet which introduces the basics of super, types of funds, outlines technical aspects and provides useful tips.
Download
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Good advice for peace of mind
A booklet which includes case studies to show the value of professional advice. It is designed to assist in finding a financial planner, preparing you for the first meeting and getting the most out of it.
Download
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Getting advice
A booklet which includes sections on essential facts about financial advice, choosing an adviser, working with an adviser, assessing whether advice meets your needs, and how advice is carried out. An ASIC publication prepared with the FPA.
Download
Other ideas include:
- Retirement calculators
- Investment Calculators
- Personal Finance Calculator
- Savings Calculators
- Insurance Calculator
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