You can afford Life Insurance!

YouCanAffordSuperIn 2010, a study by Lifewise found that 95% of families didn’t have adequate levels of insurance. The typical Australian family will need to cope on half or less of their income as a result of underinsurance.

Understanding their finances are one of the main reasons Australians fail to protect themselves and their families. Here is how you can afford the premiums:



Did you know that you can pay your insurance premiums through your super? This may assist you with paying insurance premiums when you have a low disposable income.


You can make contributions to your super fund and gain tax benefits:

•             If you’re eligible to salary sacrifice to super, you can have premiums paid from pre-tax dollars. And because your super fund may be able to claim a tax deduction for the premiums, you may not need to pay tax on the contributions.

•             If you’re self-employed, making a personal contribution to super from after-tax income to cover premiums lets you claim a personal tax deduction.


•             Take advantage of tax offsets of up to $540 by making a super contribution to your low-income spouse.

•             Make personal contributions to super, and if eligible, qualify for a Government co-contribution of up to $500.


•             A benefit payment under superannuation is paid to the fund trustee.

The trustee will only pay benefits to you or your beneficiaries if you meet a superannuation condition of release.

•             Tax on death benefits is determined by who receives the benefits. You may need to ensure a binding death nomination is in place so that benefits are paid to those intended.

• Paying premiums from superannuation may erode your retirement funds so think about topping up your superannuation fund when you are able.


To take the first step to getting the right cover for you- call Fil today


Source IAIA

Shift to Shares

ShiftToSharesOver the last couple of years, a lot of Australians have been wary of risk when investing and have invested in cash or term deposits. But the latest figures show that shares have outperformed cash and property, so is it time to think about different investment options?


The Reserve Bank of Australia has reduced the official interest rate several times and it is now as low as it was in 2008 at the height of the GFC when businesses such as Lehman Brothers were collapsing. Mortgage holders have been rejoicing, hoping that the banks will pass on some of the interest rate cuts.

Meanwhile, investors with significant cash or term deposit holdings have been experiencing lower returns.


With the interest rates so low, six month term deposit rate are now sitting at less than 4 per cent. This has fallen significantly from the high of 2008 when they were around 9 per cent. This means that people who are relying on cash or term deposits to provide income or returns have not had as much discretionary income as they would have liked. The predictions are that interest rates will continue to fall, and if this happens, returns from cash and term deposits are going to continue to fall as well.


Over the last couple of decades, property was a significant way to generate great returns, but after the GFC confidence fell and there were a lot of forced sales. Over the last 10 years, property has only returned 5.5 per cent*. One of the major deterrents right now is that with the taxes and levies on purchasing a property, the cost of buying is around 6 per cent of the purchase price*. Some experts are predicting property growth to slow even more going forward, saying that the late 90s boom was a once in a lifetime high.


Over the last five years the share market has been pretty low, it is down a third from their highs in 2007, but when you look at the ten year return rate of shares it has returned 8.7 per cent, which looks pretty good.*


The key is to look at diversifying across cash, shares and property. You need to understand the historical information, your appetite for risk and where you are in the investment cycle. By balancing long and short term investments with your objectives you will be on the path to success.

We would love to talk to you about the different options to find one that suits your needs.

Source : IOOF