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Wealth Creation
Investment Planning
Figuring out which investments can best help you deliver your comfortable retirement requires an understanding of:
What your investment options are;
How different types of investments tend to perform over long periods of time; and
Your financial goals, so you can pick an investment mix suited to your specific retirement investment objectives and risk tolerance.
Your primary investment choices can be broken into four general asset categories: Shares, Property, Fixed Interest/Bonds and Cash.
Though each may play a role in your long-term strategy, investing directly in shares, property, fixed interest and cash is not always easy for the individual investor.
Creating the ideal investment mix involves identifying your personal objectives and risk tolerance and diversifying your investments accordingly. That is, choosing what's appropriate for you and acquiring the appropriate investments.
Monitoring and modifying your investment mix over a long period of time can also be a daunting task. Keeping track of market trends, interest rates, emerging opportunities and other unforeseeable variables requires an expert eye and large amounts of time and attention.
Your Hillross adviser will determine your profile via a confidential client data collection form and advise you of your options to achieve your goals.
Superannuation
Superannuation is a means of saving for your retirement with the added bonus of tax concessions. It is not an asset class like shares or property but rather a vehicle offering tax breaks when you invest in these assets. If you organise your superannuation properly, you should be able to enjoy life after you stop working.
In times gone by, people could expect to live only a handful of years after they retired and their bank savings supplemented by the pension were probably sufficient to see them through. But with people now living 20 or 30 years in retirement, there is a greater need to ensure sufficient funds are available to last for the long haul. Statistics show that if you take a couple aged 65, one of them has a one-in-three chance of reaching 100. That's a lot of years to provide for.
Self Managed Superannuation Funds
Self Managed Superannuation Funds (“SMSF's”) are a very popular superannuation structure being utilised by approximately 300,000 individuals, families and small businesses. They currently account for over 20% of all assets held in the Australian superannuation system. These small superannuation funds are referred to by a variety of different names including “DIY” funds (do it yourself), “Family” funds, “Mum and Dad” funds and of course “SMSF's”.
SMSF's perform the same role as other funds, by investing contributions and making them available to members on retirement. The main difference is that the members of a SMSF are also the trustees of the fund. They control the investment of their contributions and the payment of their benefits.
As individuals' superannuation assets have grown, many people have sought to gain greater control over the day-to-day management of their superannuation. Hence, the rise in popularity of the SMSF. A SMSF is a superannuation fund that has a number of unique characteristics. Some of these include:
A SMSF can have no more than 4 members – hence their popularity with families;
No member of the fund is an employee of another member of the fund, unless they are related,
Each member of the fund must be a trustee of the fund, and each trustee must be a member. Where a company is appointed to act as the trustee of a SMSF, each member of the fund must be a director of the trustee company, and each director must be a member;
No trustee of the fund receives any remuneration for their services as trustee,
SMSF's are regulated by the Australian Taxation Office (ATO) whereas other types of superannuation funds are regulated by the Australian Prudential Regulatory Authority.
Whilst the trustees of a SMSF must act in accordance with the general laws governing all superannuation funds, a number of concessions apply including the ability of a SMSF to acquire certain assets (particularly listed securities and business real property) directly from members of the fund.
SMSF's offer some very real benefits to members but, at the same time, carry responsibilities and obligations.
General Advice Disclaimer
This article has been prepared on a general advice basis only. The information has not been prepared to take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individual needs and you should seek advice from your financial advisor before making any investment decisions. Lee Virgin and Richard Lovell are an Authorised Representative of Hillross Financial Services Limited, ABN 77 003 323 055, AFS Licence No 232705.
Investment Planning
Figuring out which investments can best help you deliver your comfortable retirement requires an understanding of:
What your investment options are;
How different types of investments tend to perform over long periods of time; and
Your financial goals, so you can pick an investment mix suited to your specific retirement investment objectives and risk tolerance.
Your primary investment choices can be broken into four general asset categories: Shares, Property, Fixed Interest/Bonds and Cash.
Though each may play a role in your long-term strategy, investing directly in shares, property, fixed interest and cash is not always easy for the individual investor.
Creating the ideal investment mix involves identifying your personal objectives and risk tolerance and diversifying your investments accordingly. That is, choosing what's appropriate for you and acquiring the appropriate investments.
Monitoring and modifying your investment mix over a long period of time can also be a daunting task. Keeping track of market trends, interest rates, emerging opportunities and other unforeseeable variables requires an expert eye and large amounts of time and attention.
Your Hillross adviser will determine your profile via a confidential client data collection form and advise you of your options to achieve your goals.
Superannuation
Superannuation is a means of saving for your retirement with the added bonus of tax concessions. It is not an asset class like shares or property but rather a vehicle offering tax breaks when you invest in these assets. If you organise your superannuation properly, you should be able to enjoy life after you stop working.
In times gone by, people could expect to live only a handful of years after they retired and their bank savings supplemented by the pension were probably sufficient to see them through. But with people now living 20 or 30 years in retirement, there is a greater need to ensure sufficient funds are available to last for the long haul. Statistics show that if you take a couple aged 65, one of them has a one-in-three chance of reaching 100. That's a lot of years to provide for.
Self Managed Superannuation Funds
Self Managed Superannuation Funds (“SMSF's”) are a very popular superannuation structure being utilised by approximately 300,000 individuals, families and small businesses. They currently account for over 20% of all assets held in the Australian superannuation system. These small superannuation funds are referred to by a variety of different names including “DIY” funds (do it yourself), “Family” funds, “Mum and Dad” funds and of course “SMSF's”.
SMSF's perform the same role as other funds, by investing contributions and making them available to members on retirement. The main difference is that the members of a SMSF are also the trustees of the fund. They control the investment of their contributions and the payment of their benefits.
As individuals' superannuation assets have grown, many people have sought to gain greater control over the day-to-day management of their superannuation. Hence, the rise in popularity of the SMSF. A SMSF is a superannuation fund that has a number of unique characteristics. Some of these include:
A SMSF can have no more than 4 members – hence their popularity with families;
No member of the fund is an employee of another member of the fund, unless they are related,
Each member of the fund must be a trustee of the fund, and each trustee must be a member. Where a company is appointed to act as the trustee of a SMSF, each member of the fund must be a director of the trustee company, and each director must be a member;
No trustee of the fund receives any remuneration for their services as trustee,
SMSF's are regulated by the Australian Taxation Office (ATO) whereas other types of superannuation funds are regulated by the Australian Prudential Regulatory Authority.
Whilst the trustees of a SMSF must act in accordance with the general laws governing all superannuation funds, a number of concessions apply including the ability of a SMSF to acquire certain assets (particularly listed securities and business real property) directly from members of the fund.
SMSF's offer some very real benefits to members but, at the same time, carry responsibilities and obligations.
General Advice Disclaimer
This article has been prepared on a general advice basis only. The information has not been prepared to take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individual needs and you should seek advice from your financial advisor before making any investment decisions. Lee Virgin and Richard Lovell are an Authorised Representative of Hillross Financial Services Limited, ABN 77 003 323 055, AFS Licence No 232705.
