If you’ve been watching the news lately, you might have heard that the change in franking credit rules is going to break open the earth and swallow our retirees whole.
Or if you’re listening to the other side of politics, it won’t. So who’s right? Who’s wrong? What’s a franking credit? Let’s start with that. A franking credit is used by the Government to avoid you paying tax twice on dividends from shares. Say you invest in a company like Google. Hang on, this article is about paying tax :). Say you invest in a company like John’s Global Meat Pies. John’s Global Meat Pies pays you $700 in dividends after paying $300 in tax on that amount ($1000 in total).
The recent banking royal commission has highlighted some appalling behaviour on the part of the big banks.
Unfortunately, the recommendations don’t tackle some of the key structural issues that lead to their poor behaviour in the first place. For instance, a lack of separation between their banking and ‘financial product sales’ businesses, which turned ordinary banking customer service clerks into salespeople. Many bank boards also don’t have a mandatory employee representative who can raise issues of malpractice and do something about it from the top down. As a result, the banks have always chased profit at the expense of many individual costumers and as the heat dies down from the royal commission, that same tendency will re-emerge. We’ve had a serious enquiry into banking every 10 to 15 years within the sector since the deregulation of the 1980s because we never fully resolve these issues.
With Christmas around the corner, now’s a good time to put some plans in place so you can have a more profitable, less stressful 2019.
Be sure to set goals and plans that are both financial (your budget, loan balances, number of new clients you’d like to attract and personal (holidays, education, credit card balance). The old adage with goals is that they should be SMART – specific, measurable, achievable, realistic and time based. Also, make sure someone knows about your goals and can hold you accountable to achieving them. There’s nothing like a bit of constructive pressure to kick your performance up a gear. With my clients, we break down their next 12 months into 3-month segments and track how they’re doing along the way, making adjustments as we need to.
Once you’re clear on how to set goals, these are some of the areas you might like to focus on in your business over the next 12 months to help take it to new heights.
What are some goals you could develop within each?
What to expect of your Accountant
We all know, from working with tradespeople to real estate agents, there are big differences in performance between the best and worst in any profession.
So, what should you expect from a good accountant?
Here are 5 qualities to look out for. In fact, you should demand them.
Welcome to Sciacca’s News – July 2015
Happy New Financial Year! Have you got big plans for this new year? More importantly, do you have a plan for how you are going to make it happen?
Remember we’re here to help. If you need advice or someone to run things by, to make sure you’re on the right track, give us a call. This month we’re talking about :
- Why you need a financial advisor
Superannuation, insurance, investments, budgeting… is your mind already wandering and eyes glazing over?
We understand that knowing where and how to invest your money, can be confusing and overwhelming……….
- Retirement – the most important career move you’ll ever make
Heading into retirement and contemplating ending paid work, means you need to rethink the risks in your portfolio.
Are you fearful of retirement? Most of us are very anxious for what retirement means for our lives. The allure of time to spend with your family and freedom from the demanding schedule of work is matched with a new set of responsibilities – that of financial survival as a ‘sole business owner’ to your household.Retirement is a change of career, not an end of a career…………
- July checklist for employers
As an employer you need to:
- provide payment summaries to your employees by 14 July
- lodge your PAYG withholding payment summary annual report
- check you’re using tax tables applying from 1 July 2015…….
Here at Sciacca’s Accountants + Advisers we’re proud to be a part of our local community. We’ve currently got an ad featured in the Jett’s McDowall newsletter that we thought we’d share with you. Let us know what you think and as always, if you want to organise to have a chat with John or the team about your finances, get in touch.
Here at Sciacca’s Accountants + Advisers we are committed to working with clients to help them navigate through financial issues.
It was really lovely to receive this testimonial from one of our valued clients and we wanted to share it with you.
If you would like to see what we can do for you, please get in touch.
“If you’ve yet to experience applying for a Commonwealth Senior Health Card, or for a pension, be prepared for a mountain of form filling and financial enquiry. An exercise not for the faint hearted or those of us with less than perfect financial expertise. Worse is to come if you happen to be a self funded retiree, or own your own business. That’s another pile of paper, and more interaction with Centrelink.
We turned to our accountants, Sciacca’s, who were not only able to navigate us through the paper minefield, but were also in an informed position to inject the right numbers in the right boxes, so simplifying and smoothing the process.
Sciacca’s have also taken on the role of our financial planners, preparing us for income support during our retirement. It makes good sense to have your business, or personal, accountancy firm also working to maximise your retirement benefits, including the balancing act required to ensure you receive all the Commonwealth benefits you are entitled to with other, supporting, income streams.
There is no organisation better qualified in understanding your financial position and lifestyle requirements than your own accountant. To us, it was a no-brainer to combine the expertise of our accountant with our need for sustainable retirement planning.”
Ian and Kate McLean, Directors, McLean Advertising Pty Ltd
As your accountant, we want to help you ensure your financial future is a strong one by providing you with access to services we know will be of benefit to you. We are pleased to announce that we have expanded our services to include financial planning, and have become an Authorised Representative of Count Financial Limited.
It is important to determine what you want for your financial future; a secure retirement or other things you look forward to – is it travelling overseas each year? Is it having a holiday home in addition to your family home?
The right advice and a tailored plan are important steps in working toward your financial goals.
What you’ll gain
The additional services include most areas of wealth management (for example, superannuation, investments, personal insurance and estate planning). We will work closely with you to create a holistic financial strategy tailored to your specific needs.
Why Financial Planning?
After many, many months of intensive study, John has officially completed his Financial Planning qualifications, graduating with flying colours. As a firm, we wanted to be able to offer our clients a complimentary suite of services to help you achieve your financial goals. As a final exam, we grilled John and asked him a few questions.
Why did you decide to study Financial Planning?
As I met and spoke with clients, I saw there was a real need for help with their retirement plans and also protecting their assets and income. I wanted to be able to provide them with a more complete financial advisory service.
What was the best thing you learn’t whilst studying it?
In theory, time can be your friend. There is great benefit in starting retirement planning early and this way, you don’t need to save large sums every year. But the reality is, time can also be your enemy. After paying your mortgage off and paying for your kids education, it doesn’t leave you with much time to save for your retirement. This is the main reason I became a financial adviser.
How does it fit with what the firm is already doing?
With my experience in helping clients with their fianncial affairs, it was just a natural fit – to also be able to advise clients about their insurance and investment needs.
What are the benefits for clients?
You get peace of mind. By setting your financial goals and monitoring them on an ongoing basis, you are more likely to achieve your desired result. We give you direction and a plan, which is clear, sensible and realistic. It’s all about financial empowerment – having the independence and freedom to live the life you want.
What are your top 5 tips for planning for a healthy financial future?
- You need to know how long your savings would last if you were sick. To protect your salary, you should review or take out income protection insurance.
- It’s important to have a plan to protect your assets following your death. Life Insurance will ensure that your family will have the funds to repay the home mortgage and other debts.
- It sounds simple, but it’s true – pay cash using a debit card instead of a credit card.
- If you want a risk-free return of around 10%? Pay off your mortgage.
- Salary sacrifice your pay rise into superannuation.
For more information or to book a complimentary consultation with John, call us on 3357 5553 today.