Envision Financial is a Canberra based financial planning firm. Envision is headed by Luke Smith, who appears on the popular 2CC Talking Canberra Money program every Friday afternoon. You can also catch up on the podcast 'The Strategy Stacker - Luke Talks Money' on Apple Podcasts or Spotify Podcasts.
Luke is also the author of the book 'Smart Money Strategy' which reveals the financial planning strategies that financial planners use with their clients.
This channel will feature investment, superannuation, retirement, wealth protection through insurance and estate planning content. Through RU-vid, Envision Financial shares some key money concepts to help you understand and consider your own options. These videos are general information only and do not consider your personal situation, goals or needs.
Envision Financial Services Pty Ltd ABN 73 584 502 833 is a Corporate Authorised Representative (No. 1239375) of Alliance Wealth Pty Ltd AFSL 449221 ABN 93 161 647 007.
My partner made a concessional contribution into Super last financial year. A large tax return has just been processed. Do we now put the amount the Super fund took out in tax back in concessionally, or non concessionally?
@@silversun119 it’s really hard to say because the purpose of the contribution would’ve been to lower your tax. What you do with the refund is up to you. If you want to maximise the capital value of your superfund you would have the option of making a non-concessional contribution because the concessional contribution you have claimed maybe at the annual limit or your maximum allowable deduction so it really depends on your objective as to the use of the funds
So, if there are multiple children in a testamentary trust, and they want to sell the assets I.e. property, can they do that? And if the beneficiaries never actually own the assets, what happens if/when they die? Also, is there any info you can give about the process of accessing those assets? Does it differ between trusts? E.g. how does a mechanism like a testamentary trust allow beneficiaries to withdraw money/assets and also protect against financial abuse/control by the trustee?
@@lilgnomey they can sell anything they want at any time. The trust simply holds the asset for their benefit. It would also pass on their death per their estate planning documentation that would allow for the assets in the trust. Professional advice is essential with this regard.
This question is never really answered. 300,000 superannuation pension account plus government pension equals approximately how much per year for 20 years ?
@@haddahgutful1876 ???? Everyone’s answer will be different. It really Depends - full age pension is about 43k for a couple and 4-5% from 300k is 15k that’s total income of 58k - maybe it’s enough maybe you need to draw 7% from your 300k at 21k a year. Capital would last the rest of your life at a return of 7% with a 70% growth allocation.
Hi Luke. Great podcast. Can you do a concessional super catch up using inherited money or from family savings? 60 year old self employed, semi retired, income less than $40k, low super balance being self employed.
I retire at 66yrs and 8mths in July 2025. Can I use the concessional contributions before I turn 67yrs in Nov 2025 to claim a tax deduction even though I will be over 67yrs when I do my tax return in July 2026.
Hi Luke. Great podcast. I am confused by what you're saying and what my accountant is telling me. My mother recently passed and left an investment unit to my brother and I in a testamentary trust. I was looking to distribute part income and the CGT liability to my children (under 18) when the investment unit is sold. My accountant says that the children (minors) are taxed at top marginal rate and they don't get the tax free threshold although I understood if the income/profit is from a Trust, they do get this benefit. Are we better to keep the property in my mother's Estate and the Estate pays the tax or do we transfer the property into the Trusts for both my brother and I? Love to hear from you.
Tell those pensioners who find out after they privately invest their money that they have under "SCAM" concerning their pension. Where they find they have lose up to 40% of pension. At the same time they will still receive the full pension if they money is handled by their family. Both ways( investing) have the same meanings, except one will find themselves every fortnight with less pension while they're receive a full pension. Maybe a Queen Bannister should review this system while your neighbour receive full pension and you only less.
In my opinion, it is foolish for the government to be crying about the national housing shortage and rental crisis, the skilled labor shortage! and no quick solution! …They should think deeply about providing a fairer system for the hard working retirees! After all, they have spent their whole lives to build this country, and they only have 20-30 years to live a decent final journey of life. The government and this country are eternally grateful to them, and the way you treat today's retirees is how you will be treated in the future. Respecting them today is respecting yourself. 1). The government should make the system very simple and easy for retirees, so that retirees will not have to heavily rely on professional financial advisors to take care of their life savings due to facing a very complex and difficult to understand retirement system, which has led to many retirees being scamed! 2). The government should adopt a universal pension system, and the maximum limit of government pension payments will remain unchanged, but the upper limit should be $100,000 per year, which is also based on the government's suggestion that hard working retirees should live a comfortable standard of living. In this way, the government will not lose any money, but will benefit the government, the country and retirees. If the government's upper limit is $100,000, by useing a couple as a example, for a couple, the government's current maximum age pension is $42,000 per couple. To get $100,000, that is, a gap of $58,000, these couples can return their rich assets to the economy in various forms, instead of spending them all (many retirees actully spent theie money on foreign economies, such as traveling there is little help to local Economy), or giving their assets to their children without flowing into the economy. Retirees can actually do the following if the government gives them a more relaxed age pension policy a) Reinvest assets into the economy instead of spending or giving them away. If they buy a house, they can immediately solve the current housing shortage problem. If they invest in a business, they can immediately help the country's employment... These actions do not require waiting for a long time for government red tape funding approval as they do now. b). If those older and most skilled retirees choose to return to work and earn extra income, they can return their skilled skills to the labor market and alleviate the current labor shortage that needs to be solved by a large number of immigrants.
We can try and talk about the broader strategy. I don’t like referring to individual products because it creates an unconscious bias but more than happy to talk about the philosophy of that type of investment program.
Great messages👍, couple of comments. The host of the show is really switched on in respect of personal finance. Our last purchase was the first time we used a mortgage broker. Agree 100% that it is the way to go. You learn. Cash flow and liquidity. Liqidity and cash flow. Interest only and Offset. Offset and interest only. The above may not be perfect for everyone but not a bad place to start and refine from there to our own circumstances. Treat the Offset balance as an emergency fund, liquidity, sleep at night fund, etc. It is gold.....don't be a maniac with it😂 Great show
Th asset test is a TAX on any pensioners who invest independently. What it does it is estimate money you invest and then they reduce your pension , so low that you are going to use your savings,it is similar as the ROBODEBTS. The pensioners benefits with a full pension are the ones that, with the family make out that don't have any money because they transfer money to the family. The money became FAMILY TRUST FUND, this started for the well heel but over time other decided to do same
Shouldn't the age pension be for people who have nothing, not for the rich, If you have 450 thousand or a million in assets or in your bank account you are rich.
Thank you Luke. There is so much information out there on superannuation, but it's all about accumulation super funds. It's difficult to find information or to ask questions about defined benefit schemes / PSS. Contacting PSS or using their I-estimater isn't always helpful. Your information is simple, direct, easy to understand and invaluable. Keep up the great work. 👍⭐
Thank you Luke. There is so much information out there on superannuation, but it's all about accumulation super funds. It's difficult to find information or to ask questions about defined benefit schemes / PSS. Contacting PSS or using their I-estimater isn't always helpful. Your information is simple, direct, easy to understand and invaluable. Keep up the great work. 👍⭐
Moving from a cumilative phase to pension phase is the remaining money still invested in the super fund. E.g you take 5% of $100000 = $5000 per annum and the remaining $95000 is still invested getting an average 8% growth.
@@jameshind6644 moving to pension in the majority of situations has no impact on the underlying assets. It’s change from accum to pension and you select your percentage. Always check with your specific fund as some funds move to cash start a pension and then need a new allocation.
If a couple has an SMSF with a property being the biggest asset, how can the adult children be shielded from taxation on the death of both parents? Would it be better to divest the property when both are retired, take the lump sum, and then re-contribute into accumulation? Or would the testamentary trust help avoid tax for adult children?
@@RennieCacciola tax status moves with the cash. You could sell and re cont or sell and take out prior to passing. Or start multiple account based pensions with cash in the fund if your pension age and hold the property at the same time.
I must say you’re my favourite financial RU-vid advisor. Do you have clients in Melbourne. Doing pretty good but one day I think I’ll like to get professional advice for retirement and estate planning.
Content is gold👍 You are getting the message out, it is so important in many ways. It is not a topic that attracts the attention as '$1m is yours in 22 seconds' but you are doing your bit in sharing wisdom. 'If you want to protect your kids'. A most powerful message to any parent. That is our job.👍👍
One note: Superannuation trustee company is a SPECIAL purpose company. I.E. it can only be the corporate trustee ONLY. Cost is greatly reduced as it's a special purpose company, not a normal private company. Annual fee's are also charged at a greatly reduced rates 😅. One to four directors may be appointed.😮 Nb 2: Having watched part 4, Luke covered all what I said and much much more excellently. I only have experience with special purpose company trustee 😂.
Great information as always Question : by us using the downsizer rule depositing 300k into your super ,could that lock you out of putting extra money in you super,say applying the bring forward rule ,if you are getting close to you transfer balance cap.
@@jonwenning5288 the downsizer rules do not impact your ability to make non concessional contributions provided your total super balance allows for a contribution of that type.
Consistently high quality content and messages. Offset accounts, concessional super contributions & index funds outside of super are all worth consideration. Stick to these key areas and there is not much else, in my view, to be too concerned about. Thanks for your great content👍
Thanks guys. Your the reason I actually put in extra contributions this year. Of all the people talking about super on RU-vid you guys sound like sound advisers and not salesmen. Logical and well explained.
@@neolion8150 great to hear you have taken action and lowered your taxable income. My goal is to make sure people are informed of strategies not products.
I rang AUS Super and they told me that the NOI can be done before lodging the 2024 return- even next year as long as the money has been deposited. I am still waiting for my tax agent to give me the calculation on concessional and non-concessional. Since Aus Super has got the worst customer service, I was actually wary if I was given the correct information, so thank you so much for your clarification.
@@relaxfun4447 you can lodge an NOI after the end of the year but your accountant will want to know what you are claiming. I wouldn’t leave it too late just in case.
Glad I stumbled across this channel. So many good videos to watch back. I have a question about the Notice of Intent form. If you are wanting to utilise unused contributions from multiple years, do you need to submit multiple forms, or will the one form cover it and the ATO will work out what you have left and where to take it from? I am wanting to make a contribution and have a large amount of unused concessional cap available once I go back 5 years. My contribution will encompass the remainders from the 23/24 cap and the 18/19 year. Do I need to send in two forms?
Make your contribution lodge a single form after the money goes in and the ato match up your space to the amount you add. They use up oldest space first.
Hi Luke love the content mate. I’ve started squirrelling away money each week for my 8 year old daughter, would you recommend the etf vdhg for a investment? I would like to help her with a house deposit when she is older . Thanks for the info mate.
High growth vanguard. Lots of international and Aussie. Limited property so maybe pair it with VAP for diversification but long term it will grow for sure.
A few options - cover the tax for your kids if you hold assets in their names. Hold the assets within a trust if you have one and disperse to them as adults or hold the asset in your own name and give it to them later. The main point is do something and be consistent
Questions 1. After converting from accumulation to pension, in full or part, do retirees still have to pay the Medicare Levy from earnings? 2. If a couple has a mortgage on their residence transitioning from accumulation to pension phase, it better to pay the mortgage off in full or retain the mortgage with a low balance to allow redraw for home restoration?
It depends why you need the mortgage access. You can keep it open but your payments may continue to the bank causing a cashflow issue. You could also get an IO loan and have it available if you need it. Pensions are tax free should have a Medicare levy issue over 60
Unfortunately my investment properties are in VIC - only got 2- and with the VIC govt just going mad I am looking at selling those properties and invest in ETFs under an industry super as I am already nearing 60 years of age.. How many years in between should it be timed to sell two investment properties? I am not certain if now is a good time to sell as a lot of invesors in VIC have been selling in droves. Which industry super allows to buy in US shares particularly AI shares? Australian Super and Vanguard do not allow it. Thanks very much. More power to your Vlog. You are helping a lot of people.
the timing of your sales would be impacted by your CGT and overall income position. The choice to sell has many components as noted in the show, its not saying go and do it blindly. I don't think there is an industry fund that allows US direct investment as it may not be on the APL of those types of funds. For the same reason, a mini car will not pull a horse float.
which super fund is the best and has the lowest fees that gets you to trade in EFTs? Is Vanguard Super the best for this since Vanguard Australia has the lowest fees on personal investor? thanks
i dont know off the top of my head as it would be a fund by fund issue. Most industry funds have a direct option, Vanguard is also another good offering given the quality of their products. Some times price is less important that approved product options as vanguard only offer vanguard and you may want something else. If you have a large capital sum an SMSF would be cheaper than an industry fund by comparision. You may just need to shop around and see what works cost and options wise.
10:40 - Don't most Super funds have the forms online when you log in to your own super account? So even though you can download and complete the forms from the ATO's website and then lodge with your super fund, in most cases, you can probably do everything from within your own super account once you have logged in.
Yes for sure every fund is different, some take an NOI others will do it for you online or within an app. You just have to do what works for your particular fund. i guess the the important thing is not to assume you can or can't do something
If you have 50 k in space and you put in 30k, will that go to your 2019 space and work up or will it go into last year and miss out on the 2019 amount for next year? Thank you..
