Follow my BlogJoin us on LinkedINLike us on FacebookFollow us on TwitterFollow us on Youtube

Future Financial Services Blog

by Alex McKenzie

Financial planning advice to guide you through your life stages. Financial advice for when you are looking to buy your first home, start a family or looking to retire. This blog aims to show the relevance of Superannuation, insurance and investment for everyday families.

13
November
2018

Superannuation & Insurance

Superannuation & Insurance

The most common method to hold life insurance is through superannuation. There are a number of benefits in doing it this way, most notably, the fact that the premiums do not come out of your everyday cash flow. There are also tax deductions on life insurance and total and permanent disability (TPD) insurance that are not available if you own the policies directly. However, holding your insurance in super also brings some complexities.

One issue revolves around the superannuation conditions of release being stricter than the benefit payments that insurance companies provide. This is called benefit entrapment. This is particularly relevant with TPD insurance with “own” occupation and many income protection benefits. The Superannuation Act only allows you to access your super if you are unable to work in “any” occupation.  If you have “own” occupation insurance it is possible you will receive a benefit under the terms of the insurance policy, but not be considered to be totally disabled by the Superannuation Trustee. Under these circumstances, your insurance proceeds will have to remain in super.

Written by: Alex McKenzie Categories: Future Financial Services Blog

13
November
2018

Myth

Million dollar Myth

Last week, I was reviewing a client who was overly worried that she would essentially be living on the poverty line in retirement.  Thankfully, this was not the case as she had accumulated enough assets to comfortably meet her income needs when she retires. This is not an uncommon concern as many people have little idea about how much money they will need in retirement, and some have greatly overestimated the amount they will require.

A potential reason for this is that, for years I’ve heard that you need 1 million dollars to retire (this excludes your residential property).  I’m not sure where this started, but it seems to have become a golden benchmark that many see as a necessity. Over the years, I’ve dealt with countless retirees and I’m able to confirm that very few reach the magic $1 million mark.

Written by: Alex McKenzie Categories: Author, Future Financial Services Blog

<<  1 2 3 4 [56 7 8 9  >>