Have you protected your family’s financial future?

83% of Australians say they have insurance for their car.

Only 31% choose to insure their ability to earn an income.

Which is more important?  What choice are you making?

What would be the financial impact on your family if you were injured and needed to take an extended period off work?  Income protection insurance, also known as salary continuance, is one way to financially support you in managing your expenses if you are unable to work for a certain period of time.

Each income protection policy has its own definition of disability and range of benefits. Income protection can generally offer cover for up to 75% of your gross wages up to the age of 65.

When opting for income protection, consider what other types of personal insurance you may need as well, such as life cover and total and permanent disability cover to secure your family’s financial future.

Smart tips

  1. Income protection premiums are generally tax deductible.
  2. Take into account your leave balances (e.g. annual, sick and long service leave) and access to emergency cash when choosing your time period.

Case study: Bob cuts his premium

Bob wanted additional income protection insurance so he paid more money through his super fund to get the maximum cover. After realising he had 10 weeks of annual and sick leave up his sleeve, he opted for a 3-month waiting period to reduce his premium. If he ever needs to make a claim, he can cover the first 3 months with his saved leave payments.

If you would like to find out more about how to protect your income, please contact Tiffany on (03) 9740 7388 to arrange a meeting.

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Transition to a life without work

Did you know a transition to retirement strategy could help you minimise your income tax after you turn 55? 

Did you know you can ease into retirement by reducing your working hours without reducing your income?

Did you know we can help you reduce your tax without increasing your risk?

In the years leading up to retirement, you are probably looking forward to having more time to do the things you love, but you are concerned that you will not have saved enough money to fund your lifestyle.  The process of retirement is changing and so are the government guidelines, a transition to retirement strategy could be the key to unlocking your financial future.

What is Transition to Retirement?

If you’re over 55 or nearing that age and have super already, the “transition to retirement” rules could help boost your super savings without cutting back on your lifestyle.  Whatever your dreams of retirement are you can start planning today for that retirement you’ve always wanted.

How does a Transition to Retirement Strategy work?

The Transition to Retirement Strategy allows people who are over 55 to access their super whilst still working.  You can reduce the number of hours you work and supplement your income payment from your pre-retirement pension.

Alternatively, you could continue working full time but take advantage of the potential tax concessions on offer to boost your super in the years before you enter full retirement.

 

If you would like to find out how transition to retirement can work for you please contact Lynda or Kristie at McMahon Osborne Group on (03) 9744 7144 or visit or website www.mcmahonosborne.com.au

Reduce Frustration, Increase Awareness

Do you ever get frustrated with your team, your managers, your suppliers or your customers, the list goes on.  For most people the answer will be YES.  Often this frustration will result from a decision they have made or an action that was taken. In business we have two options – just wear it or address it.

There are a number of techniques to deal with these frustrations and no single one will be the golden ticket to end all frustration.  It’s surprising how often the other party won’t even be aware of the frustration that their action has caused and in these situations it’s up to you as the frustrated party to take control of the situation.

So, a simple suggestion to alleviate many frustrations is to just raise awareness.  If we agree with the premise that at least all people are good, then it follows that these same people will not go out of their way to case frustration and angst.

Try this: a customer continually pays you 14 days after the invoice is due.  Within your finance area this causes great angst as every month this means you have to hang out 3 suppliers for longer than their trading terms.  This results in the office receiving a dirty call every month from 2 of those suppliers.  The admin team dread these calls every month and have to keep making up excuses for late payment, they can’t stand the client.  The sales team say they are a great client, always buying new services a great to deal with.  After months and months of constant bickering between admin and sales the boss decides enough is enough and tell the client they can’t continue to do business as they don’t pay on time and the business cash flow can’t continue to support them as a customer.

This is a horrible outcome for everyone – sales lost a customer, admin lost an income source to pay the overheads, the boss lost a profit centre, the client needs to find a new supplier and didn’t even get a chance to review the issue.

So, how does the boss change the result – RAISE AWARENESS.  Explain to the customer that we really value their business; “The sales team feel you’re in our top 5% of clients however the delay in payments is causing some concern and stress within the business”.  Then ask the client “Do you get great value from our service/product?”  From there follow the conversation to a point of mutual agreement.  The result will most likely be an improvement for both supplier and customer simply because you have a greater AWARENESS of each others needs and requirements.

At the end you may still let the client go, but at least after the conversation you can be confident that you took responsibility for the concern, raised the client’s awareness and actively looked for a solution.  Regardless of the outcome you will walk away secure in the knowledge that you took ownership of the issue.

Try it, what’s the worst that can happen?  How can the outcome be worse than putting your head in the sand.

To find out how you can further achieve your business goals talk to the professionals at McMahon Osborne Group on (03) 9744 7144 or visit our website www.mcmahonosborne.com.au

Be aware of some fundamental changes to Superannuation

Super Guarantee Increases

On 1 July 2013, the first of the proposed incremental increases to superannuation will come into effect.  The change will lift the superannuation guarantee rate to 9.25% for the 2013/14 financial year.  So, for an individual on a base salary of $60,000, the change will represent $150 extra compulsorily contributed to superannuation.  The super guarantee rate is then proposed to increase every year until reaching 12% on 1 July 2019.

High Income earners to pay higher tax rate on super

While not yet law, the controversial increase to the tax rate of super contributions for high income earners is due to come into effect on 1 July, 2013.  This will mean that if you earn over $300,000, you will pay 30% instead of 15% on superannuation contributions (only on the portion above $300,000).

If you would like to talk about how this change can affect you please contact McMahon Osborne Group on (03) 9744 7144 or visit our website- www.mcmahonosborne.com.au