How we helped manage a lump sum after the sale of a business

How we helped manage a lump sum after the sale of a business

Background:

Our client is 60+, a semi-retired professional living in Mosman, Sydney who is married and has adult children. Following the sale of a significant business asset our client had substantial investments in Super.  Having initially invested with a managed fund, he was looking for help from an advisor who could assist him in finding a better way to manage his lump sum.

Services:

PrimeAdvisory Assisted with:

  • Ensuring all concessional and non-concessional caps were utilised to maximise the dollar amount in super.
  • Strategic decisions around correct structures, including super, trust and personal names to ensure the best long term tax outcomes
  • Assistance with retirement plans and modelling

What the client says

“I started working with PrimeAdvisory as I was looking for someone to look after my super investment.  I was with a managed fund and I was unhappy that the fees were very high.  A colleague of mine suggested I speak to PrimeAdvisory to take over the management of my Super.

Because I was referred I was less sceptical than if I hadn’t known them.  I would have found it difficult to put my life savings into the hands of a stranger.  I felt more comfortable because he was trusted by someone else I knew and his personality was also a key factor.

When I met their advisor, he came across as a sincere person and when I walked into the PrimeAdvisory office it was obvious that they were very professional. In the office they display their values clearly, and they live those values, they’ve proven to me that they do that. For example, they say they will always get back to people with in the same day, and they do, even if it’s at 6pm at night.

I feel confident that investments are handled well and that they have a good understanding of the market conditions and my individual needs and situation.

I would recommend them to anyone looking for strategic financial advice and wealth management.”

 

 

 

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Key Considerations For Grandparents Funding Private School Fees

Key Considerations For Grandparents Funding Private School Fees

As we roll into a new school year, it’s not uncommon for grandparents to contribute to their grandchildren’s private school education.

If you are supporting your family by helping fund a grandchild’s private education, before the first term’s school fees are due it’s important to receive professional advice on the best way to contribute towards private school fees. At PrimeWealth your advisor can offer specific guidance based on your unique circumstances, however here’s a quick checklist of the key considerations:

Do the maths

Make sure that you have accounted for all your living expenses allowing you to live comfortably without the need to draw on any retirement savings in a way that is unsustainable.

Plan ahead

This will avoid selling investments at a time that may not be optimal, it’s important to ensure that ample funds are accessible when you need them, including a buffer.

Understand the impact on Asset testing

If you are maintaining control of the funds set aside for fees, these will be considered as an asset by Centrelink and could impact any Age pension entitlements.

Understand the gifting rule

If you are transferring funds to one of your children or grandchildren, be aware that the Department of Human Services gifting rule currently allows for a gift up to $10,000 in one financial year and a maximum of $30,000 over five financial years without your pension entitlements being affected.

Taxation

Get advice on the best structure for investing any funds set aside for school fees. “Education Savings” products can be internally taxed at a corporate tax rate which could be more than holding an investment directly.

Estate Planning

If you are no longer around to manage any funds for education purposes, ensure that you have considered this in your estate planning.

Control

Ensuring you maintain control of funds until they are required means you keep the funds in any circumstance that you may not have prepared for such as a child not attending private school or university.

 

Please contact PrimeWealth for further support and advice, taking into account your unique circumstances and financial goals.

 

 

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20 Financial Questions You Should Answer This New Year

20 Financial Questions You Should Answer This New Year

As we kick off another New Year, many of us are thinking about how this year might look different from the last and how we might ensure we are healthier and happier overall.

It’s also a time where we often reflect on what matters to us and whether we can prioritise those things in life.  Being able to do so is inevitably linked to our financial situation and how well our finances and financial management is structured to enable us to live life according to what we value purposely.

What we do know in our work dealing with hundreds of clients supporting them to achieve what they want out of life is what questions need to be answered to get you on track.

The Important Income Questions

–    Is your income and employment secure and does it meet your living costs?  Is it well-structured and tax efficient?

–    Are your education costs covered?

–    Is any surplus income invested efficiently for wealth creation?

 

The Important Investment Questions

–    Do you have clear goals for where you want to be wealth-wise in the next five years?

–    Do you have a tax-efficient investment structure?

–    Do you know if your current investments are achieving your goals?

 

The Important Debt Questions

–    Are your overall debt levels appropriate for where you are at in life?

–    Do you have the right mix of personal and investment debt?

–    Do you have a plan to eliminate personal debt in the shortest possible time?

 

The Important Risk Questions

–    Does insurance cover you for any possible circumstances?

–    Are you getting the best possible rate for insurances?

–    Are you covered appropriately?

–    Would your family be able to live comfortably if you were no longer able to provide for them?

 

The Important Retirement Questions

–    Are you clear on what you want your retirement to look like?

–    Do you know how much you need to live on to have the retirement you want?

–    Do you know if you are on track to have the income you need when you retire?

–    Do you know if your tax is structured effectively for retirement?

 

The Important Estate Questions

–    Is your Will up to date and does it reflect your current wishes

–    Have you arranged for someone to make financial decisions on your behalf if you’re unable to do so?

–    Is any relevant documentation regarding your estate easy to find and is your family aware of any medical and lifestyle wishes?

 

Take the first step in getting an accurate understanding of your financial position and how well it supports what you want in life with our complimentary online financial health check

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