We are getting asked more and more often to quote on longer wait periods when providing quote estimates for Income Protection insurance, the reasoning being that people believe that they have enough in savings to see themselves through the initial waiting period (the time during a claim that you are not eligible to be paid…
As we deal exclusively with medical professionals, we see a lot of clients that are referred to us have had a Self-Managed Superannuation Fund (SMSF) set up already, or are wanting to look to have one set up, after talking to colleagues about them. This is to be expected when dealing with people earning large incomes and wanting control over their investment decisions. SMSF’s certainly suit SOME people but definitely do not suit MOST people! Please allow me to expand on that statement;
Everyone with Income Protection (IP), Trauma or Total and Permanent Disability (TPD) insurances will, most likely, have noticed an increase in their premiums over the last year or two.
In 2017 the Federal Government once again reduced the contribution caps in Superannuation. From July 1 2017 the maximum amounts you can contribute to Super each year are now capped at $25,000 Concessional (before tax) and $100,000 Non-Concessional (after tax) per year, which will make it more challenging to generate long term wealth and minimise your tax inside Superannuation.
For most investors, building a large, well-diversified portfolio can take a significant amount of time. Spotting an investment opportunity is one thing, but having access to enough cash at the right time can also be a challenge. One of the ways investors can potentially grow their portfolio faster is by borrowing to invest.
We are getting some enquiries from clients about strategies involving the release of money from your super fund to utilize in investing in shares etc in their own name. The strategy involved making a tax deductible contribution into the persons super account, claiming the deduction against their income and then applying to the super fund to have $10,000 released to “assist” them during these tough times.