‘Black tea & 1 teaspoon of sugar.’
Now we can’t have tea without milk & 40 years ago we gave up the sugar.
As we all know weight is incremental.
There is often a 10Kg increase in weight over those 10 years.
Yes there are other factors at play including sitting at the desk or driving as we all do.
That makes a huge difference in the premiums as weight as we all know means increased health challenges at some time in the future.
We observed a similar story last evening as another, who definitely was on the obese side, was carrying an empty Pepsi bottle.
Surely he is aware of the health consequences.
Whose responsibility is it to care for your health?
Isn’t it as simple as a little self discipline?
Who pays for the consequences?
What are the consequences?
Steven* did admit that after all his driving today that he will reward himself with a Scotch.
That is fair enough & a past colleague KJS has told us that ‘it was the coke’ that gave him the stomach troubles when he was in Vietnam.
Steven* cares for all his clients & talked about his family & by calling in here is also working very hard.
Just maybe care for yourself a little more so that you are independent of the system as much as possible.
Your family & clients care that you do.
Now we are off to ‘hand mow the front lawn’ before we allow ourselves one mid strength beer.
John McAuliffe
Just meet with Linda* & John who are off to London , a bus trip around the UK & of course the European river cruise.
They almost have a free trip as one of their pension funds a year ago was 383,814.85 & now it is 384,137.65
However John & Linda* have also withdrawn as a pension 19,561.66 this year as well as a withdrawal of 3,000.
That 22,561.66 from one of their pensions pays for the trip.
How good is that!.
However the bad news is that Mum aged 90 is not so good but it has been agreed by all that the trip happens as then all are happy.
The bad news is that Centrelink on January 1st reduced their pension by ‘half’.
Hence the next step on their return via Singapore is to plan & do the next trip which according to John as we asked will be around the Med. I.e. Italy & Monte Carlo.
Reducing their asset means Centrelink may pay them more.
Of course they can’t keep doing that but it is the rules for today & may change next Tuesday.
We also had George* discuss his own funds today.
George* has completely different circumstances as he has needed his past saved super to keep bread on his table.
So some years ago we unlocked his super as he was then over 55 which he had squirreled away during better times.
His pension pays him the maximum 10% that he is allowed to withdraw.
So his additional lifestyle has also been almost free overtime as it shows
Deposits Withdrawals Growth
$97,663.11 $60,399.27 $43,203.00
Two happy clients today keep us enthused
We believe that we can generate financial certainty for you
& suggest that you completing our 5 minute financial checkup may help you help yourself.
As others do call us on 07 3848 1088 or email us or visit our websites
John McAuliffe
Yes we did our car service last week as when Greg the mechanic says to bring it in every 5000Km then we do.
Yes we are very aware that there is a cost & as always there is something found that we prefer not to hear.
However when it comes to safety or call the RACQ then which is smarter & ultimately cheaper to do.
Yes prevention makes sense.
Erik our dentist is no different.
Every 6 months we are invited to visit him for the basics.
It is well know in themedical literature that good dental health means better overall health especially cardiac health.
You & us could make similer analogies for other trades & professionals.
We call them because they are better & are trained & educated in their profession.
Maybe they have a different mindset which is why we ask for their help.
We had a call from Norman* a client of ours for 25 years.
He basically has his mortgage debt zero but needs to progress further as his income has not risen as fast as inflation & he has family medical challenges.
Hence we have had a forensic look through his finances & tweaked it where possible so that he is better off in the remaining 15 years in the workforce.
We are doing another tweak for Paul* who would like to micro manage his super & we have an alternative super facility or platform for him to do so.
But just as Greg finds every car is different & Erik finds every patient is different then we also find that every family has different financial goals & is in shall we say a unique financial position.
This year there has been major pension changes from 1January & there will be more super changes from the 1st July.
and from Bob
John
Apparently the boys are spending the weekend at the Rugby 10's so we won't get them tomorrow. I will arrange a time for next week.
We watched & certainly didn't understand why play the Brisbane rugby 10s played recently.
The temperature was probably 40C in the stadium.
The boys very wise to have several if not many drinks.
Yes new rules for an traditional game.
The rules change & we need to adapt or as Economics 101 explains we fall behind as others are moving on.
We believe that we can generate financial certainity for you & suggest that you completing our 5 minute financial checkup may help you help your self.
As others do call us on 07 3848 1088 or This email address is being protected from spambots. You need JavaScript enabled to view it.or visit our websites
A Jigsaw.
A 1000 piece jigsaw from Dymocks as our friend does them.
And some wine.
Not what we had in mind but as you know we are flexible.
Hence we do, as it is too easy to do, researched & ordered.
Which jigsaw?
Another decision so we rolled the die.
Yes it arrived in 3 days & we could track the postage.
So all gift wrapped as ordered, with the thoughts inscribed, we gave the present.
In due course it was started usually later in the evening.
Wine was sampled
Evenings were spent.
Ah there aren’t enough pieces.
There must be as there always are & appearances are deceptive.
Sure enough there are pieces missing.
About 50.
We better ask for a refund.
We sent a picture of all but jigsaw.
They respond can you send us back the original jigsaw and we refund the money.
Now that doesn’t make sense to us as what do they do with it then.
How about just another jigsaw.
Ok so we choose another 1000 piece one which is different as no more of the original in stock.
It is started.
Another few sample of wine & it is completed
Yes all the pieces are there.
Now what?
Yes we did thank Dymocks & well wrapped customer service.
Does it lie on the coffee table or back in the box or passed onto others.
Let’s frame it.
So let’s watch a video to learn as it is 1000 pieces.
Plenty of those on YouTube.
So we learn about gluing onto the top & the reverse with special glue.
And framing.
We are shopping for frames today but what happens when we can’t find a frame when the jigsaw has say 2000 pieces or more are on Utube.
And Framing is another analogy & sequence which suggests that not everything is easy & retail.
As financial certainty for you is a jigsaw & everyone is very individual then as others do let’s chat around the coffee table but no wine.
There are no 2nd chances with your money so you want & need every piece in the financial puzzle exactly right. There are no YouTube videos for your financial certainty.
As others do call us now on 07 3848 1088 or This email address is being protected from spambots. You need JavaScript enabled to view it. on or contact us via our websites.
John McAuliffe
We don’t normally because the facts are available elsewhere dive into the technical stuff.
However as Albert once commented ‘when the facts change the answers change’.
Without printing them all off we enclose one summary that arrived as
Last month the Senate passed a series of the broad ranging superannuation reforms originally proposed in the 2016-17 Federal Budget
Sweeping Super Reform a Reality Read more
We had Paul* here yesterday & yes at the age of 59 he decided that he is too old to move again & hence takes out a 535K mortgage.
Fair enuff when there are two good incomes coming in.
Fair enuff when as the spouse works in the hospital as she can salary package the mortgage.
How come we can’t??
Ah!. We don’t work for hospitals or charities!
i.e. rules for special cases.
As we had also yesterday William* in surgery for heart challenges then we mentioned that William* who has had a crisis cover plan for 18 years may well have a claim on it to assist in his recovery & pay the medical expenses gap.
It could also be used to pay off or at least seriously reduce William*’s mortgage.
William* as other have done will recover faster when there are fewer worries over debts.
Paul* is unenthused but with other clients having medical treatment such as prostate cancer this year then a small premium beats the alternatives.
Paul* also is very unhappy that he has lazy super not doing much.
Can we do something about that?
Yes we can & accessing part of that is possible.
However he needs to be very aware that withdrawing his super is easier than depositing into it,
that currently his income from it will be taxx free after age 60 & he can’t live on the lifestyle he has had so far on the pension even if he qualifies for some.
He also needs to be healthy enough to earn the income to pay off this debt.
The bank has given him a 30 year mortgage so he needs to bat during the innings.
Hence we again suggested our no 1* rated prevention story but he has greater faith in the medical system than we do.
When our tree arborist had & does Morris* chronic fatigue syndrome we suggested this from a Dr Gerald Lewis, a cardiologist.
Income protection usually doesn’t pay for the first 30 days or more & how do you survive those 30 days.??
Well don’t get fatigued is a solution we are comfortable with after 18 years.
So those sweeping super reforms are again read more
As others do call us on 07 3848 1088 orThis email address is being protected from spambots. You need JavaScript enabled to view it.s or our website.
We believe that we can generate significant financial certainty for you.
Let's start with a financial checkup for you now.
John McAuliffe
Whoops, it, a seminar put on by a fund manager, was called ‘riding the raft of super changes= contributions’ that we attended last week.
Our conclusion was that
· Who wants to run their own SMSF?
· Who wants to invest via Super?
· Who else but District 1 or the Insiders could make this up?
· Who else would define taxx deductible as ‘concessional’ & your own money as ‘non-concessional’
How condescending!
We commented to the MC that it was all ‘cheese in the trap’
And we note today from the same fund manager’s technical team
The complex and ongoing changes to superannuation will drive individuals to seek advice,
the government's superannuation reforms and described them as "fair and sustainable", but also said it will be incredibly difficult for members to manage on their own.
some of the amendments which will take effect on 1 July:
- The removal of fund-capped contribution limits;
- The establishment of a new accumulation interest for retail super funds when paying a super lump sum as a result of a commutation authority issued under the transfer balance cap system, and without the need of an application form at the time of commutation;
- Commutations from income streams not counting towards a pension's minimum drawdown requirement, and similarly it will not be possible to elect a pension payment to be taxed as a lump sum withdrawal; and
- Certain defined benefit funds can elect out of offering personal deductible contributions to their members.
One item that did not pass into law, was the proposed relief to retain actuarial certificates for SMSFs and Small APRA Funds (SAFs) using the proportionate method to calculate their Exempt Current Pension Income if the fund was only paying account-based pensions or term allocated pensions.
Note. We don’t like direct property either as the costs are too high & there are better returns in the long run elsewhere
There must be a better way and let us suggest , maybe condescendingly , that you want an outsider looking in.
We believe that we can generate financial certainity for you & suggest that you completing our 5 minute financial checkup may help you help your self.
As others do call us on 07 3848 1088 or This email address is being protected from spambots. You need JavaScript enabled to view it.or visit our websites
John McAuliffe
All about you
It is that time of the year when it is all about you as for the past year you have looked after all the others in your life.
As we read in the last school letter
Holiday time is the perfect opportunity to lose track of thoughts, or daydream; a skill which requires practice, and one which—according to Belton (2016)—too many kids never get enough time to practise.
When we think we’re doing nothing, we are actually doing more inside The brain (Fernyhough, 2016) and just letting the mind wander from time to time is important, for everybody’s mental well-being and functioning.
And
Boredom can cultivate self-awareness and independence. Time away from The bombardment of the outside word and time to ponder on one’s own thoughts allows for the discovery of personal interests and gifts
And
The overscheduled child, or the child who never disconnects, or the child who demands constant engagement with peers, can unwittingly block their own sense of self-discovery and can miss the wonders of spontaneous discovery that arise naturally
And
Holiday time offers another, different opportunity to reflect and to be thoughtful
And creatively curious. Switching off, doing nothing and letting the mind wander
Can bestow the gift of boredom and a healthy dose of boredom, is an opportunity for us all to embrace.
This is not what we parents are inclined to do i.e. watch the family do nothing.
It is also very hard for ourselves to do & in fact we find long weekends sometimes a challenge.
Reading this reminds us that now it is all about you so that you in fact escape the detail of life & just maybe focus or at least wander into the pastures of ‘the big picture’.
We have seen two very good films of late which provides an opportunity to escape into others lives & hence either
forget our struggles or as The Monk has said remember we have ‘won the lottery of life’.
We enjoyed The Founder which is all about MacDonald’s & which now feeds 1% of the world’s population. A rating.
So what % supply MacDonalds.?
And this week we saw ‘I, Daniel Blake’. which if you ever believe or hope or trust the Deep State to look after you then you need to see it.
We spoke to Morris* who is from Newcastle & we reminded him that even though today ‘his glass is half full’ if he had remained there it would be close to empty.
It would remind us all that we need to look after ourselves & those we care about because if it is to be it is up to you.
All those pensioners & ‘Citizens’ who expected the Deep State to look after them because they have paid their full dues will be very aware of the drop in pensions they have on 1st January 2017.
Yep you don’t get off ‘Scott free’ as the 65% +15% + 15% on earnings taxx on the backpackers super proves.
Please help us to understand why the Wasters need to spend 175 million on advertising.
We read this week how successful the State has been with its education system.
i.e. internationally falling behind to about 17th.
but doing very with the full employment of those who participate with 250,000 ‘working ‘for QLD Government.
After the recent USA renovation then this new map of Australia states suggests a similar uprising here.
After you have reflected, enjoyed boredom & the mind has wondered & wandered as suggested today until Australia Day then
as others do call us on 07 3848 1088 or This email address is being protected from spambots. You need JavaScript enabled to view it. or our website.
We believe that we can generate significant financial certainty for you.
Let’s start with a financial checkup for you now.
John McAuliffe
Yes we called around this week at the request of family members to see Fred* who was moving into a new aged care facility on Wednesday. Liz*, Fred*’s wife had already moved to the same facility but yes, Fred* will not be in the same room.
The family had asked us for what we did describe as a ‘comfort meeting’.
I.e. very general answers to these questions.
How do we pay for the Refundable accommodation deposit RAD?
Anyway a comfort meeting to explain that as it says the RAD is fully refundable and in fact guaranteed by the Government.
What are the general ongoing costs to be?
[One answer that a daughter could define was the Extra Service Fee ESF would be $20 per day. This covers the extra options that Fred* might wish such as haircuts, a beer, dental work, TV *& the Like.]
The other costs are the Basic Daily fee which is set at 85% of the current pension rates & generally goes straight through to the facility. I.e. this quarter it is 49.07p.d.
The other fee is the Means tested Fee MTF & this combines income & assets to define what the extra service fee will be. It will be the same for Fred & Liz* but otherwise varies for each person and the facility.
This is where the calculations come in & where a strategy may be useful.
Do we drop the Medibank medical insurance?
Fred was concerned about his will as it hadn’t been made recently. His son was able to explain that it doesn’t matter when it was made & his daughter said she had found it in the linen cupboard. Fred* Liz did have the other necessary Enduring Powers of Attorney EPOA which is their two daughters.
Anyway a comfort meeting to explain the generalities as usually there will be only 5 general questions that Fred* or the family may want to ask.
More than that means individual advice SOA which provides the family the comfort that they have taken the right course of action.
We believe that we can generate financial certainty for you& suggest that you
completing our 5 minute financial checkup may help you help yourself.
As others do call us on 07 3848 1088 or email us or visit our websites
John McAuliffe
Benefit payment
We confirm that the claim has been approved and we've deposited $163,364.38 into your nominated bank account.
Support when you need it most
We trust we have provided you with valuable financial support when it was needed most.
We're here to help
If you have any questions, call me on.............. Monday to Friday between 8.30am and
5.00pm (AEST/AEDT) or email ............
Alternatively, you can contact your financial adviser, John Mcauliffe at Integrity Insurance Investment on (07) 3848 1088, or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..
We've also provided a copy of this letter to John Mcauliffe.
Yours sincerely
Yes this is the result of a claim we initiated on behalf of a client who has been diagnosed by 2 doctors has not expecting to bat through the next 12 months
it is called & from the Product Disclosure Statement PDS is
Terminal Illness Benefit Early payment of the Benefit Amount if the Life Insured is diagnosed as Terminally Ill.
Terminally Ill and Terminal Illness means an illness or condition where, after having regard to the current treatment or such treatment as the Life Insured may reasonably be expected to receive, the Life Insured has a life expectancy of less than 12 months.
When Life Insurance is structured through superannuation, the Life Insured must also satisfy the SIS definition of Terminal Medical Condition.
Yes we did have two clients who we could name ring us as they imagined it might be them when we did a similar letter to our insurance clients.
Nope but a reminder to all that claims are paid & there is more in the plan than what you recall. it is worthwhile reading the document when you have a spare moment of doubt.
Our client & his plan we have managed over the last 15+ years as premiums generally increase with age.
So reducing the premium on occasions meant there was 163, 364.38 paid out when it is needed. The cover was NOT dropped at a moment of cashflow struggle.
hence
- there is now money Taxx free as not in super to use as...
- tick off the bucket list.
- spoil the grandchildren but not get caught out by the wasters under the gifting rules.
- maybe survive the health system which we have no confidence in.
- travel
- ......
We believe that we can generate significant financial certainty for you
As others do then call us on 07 3848 1088 or This email address is being protected from spambots. You need JavaScript enabled to view it. or our website
John McAuliffe
We have this week with Lawrence* his super balance which as turning 60 next month is no where good enough.
Yes he went to WA to earn good money & today it is 190K.
However Lawrence* was at pains to point out that
· They had spent 60k on rent.
· They had an investment property which as most are was negatively geared.
· We noted that without taking some taxx deductions into account his taxx was 66K.
And we spoke today to Jason* who has equally valid excuses
· Two teenage girls who are big into sport & at private school.
· They did build an outdoor pool which the girls will just about be grown out of.
· They spent 40K on a USA trip 2 years ago.
· The funds haven’t gone up…
However none of these are valid or remembered when we review our retirement balance.
So what do you do today?
At best today depending on your age you can from the ATO site
| What you can do before 30 June 2017 |
|
| Situation |
Action |
| If you want to make extra concessional contributions |
|
Now that won’t help much but you have started today.
· Your age cap is 35K today before 30/1/17 if you are over 50
· And 30K if younger than 50
Note: concessional CC is the State’s way of saying we will provide a concession of lower tax than your marginal rate depending what that is but…
I.e. in layman’s term a taxx deduction before the taxx take of 15% flat.
However if you are on low wages this is marginal & in fact it was very counterproductive taxx wise.
What do you do after 1st July 2017
Again from our rulers.
| What you can do from 1 July 2017 |
||
| Situation |
Action |
|
| If you want to make extra concessional contributions |
Make sure that when you add up your employer contributions and your salary-sacrificed amounts, you do not exceed $25,000 in concessional contributions during the year. |
|
what you can do from 1 July 2018 |
||
| Situation |
Action |
|
| If you have a total super balance of less than $500,000 at the end of 30 June of the previous year |
|
|
Note there is no opportunity to carry forward any unused concessional contributions CC until 1/7/2019
It’s called Budget repair but it doesn’t help your budget.
Then of course what else can you do?
That depends on what other capital you might have and that can be used in various solutions depending on the biggest risk which is legislative risk.
Add a now more restricted amount into super called non concessional contributions NCC .
Or retain the funds outside super as when you retire your marginal rate is probably lower.
And you may want to use these funds which otherwise maybe ‘preserved. [’ don’t you like the term]
Concessional contributions before June 30 this year is NOT DYI or Destroy it yourself.
Yep and they both have a mortgage which has different solutions depending on age.
Jason now must refresh his PCMS* cashflow strategy which progressively over time converts his mortgage to a taxx deduction & certainly not negatively geared property.
As HW for Jason* some years ago we had him read Rich Dad Poor Dad which explains & you know that your house doesn’t provide you with an income.
Can you pass this Book onto ScoMo as apparently he being a Treasurer is considering tapping your super for a house deposit? ScoMo is attempting to survive!
What will the age pension bill be then down the track?
As HW for Jason* some years ago we had him read Rich Dad Poor Dad which explains & you know that your house doesn’t provide you with an income.
Can you pass this Book onto ScoMo as apparently he being a Treasurer is considering tapping your super for a house deposit? ScoMo is attempting to survive!
What will the age pension bill be then down the track?
As HW for Jason* some years ago we had him read Rich Dad Poor Dad which explains & you know that your house doesn’t provide you with an income.
Can you pass this Book onto ScoMo as apparently he being a Treasurer is considering tapping your super for a house deposit? ScoMo is attempting to survive!
What will the age pension bill be then down the track?
As HW for Jason* some years ago we had him read Rich Dad Poor Dad which explains & you know that your house doesn’t provide you with an income.
Can you pass this Book onto ScoMo as apparently he being a Treasurer is considering tapping your super for a house deposit? ScoMo is attempting to survive!
What will the age pension bill be then down the track?
We believe that we can generate financial certainty for you
& suggest that you completing our 5 minute financial checkup may help you help yourself.
As others do call us on 07 3848 1088 or email us or visit our websites
John McAuliffe
Hi John
Thank you for sending through ****’s bank details.
The claim has been admitted and paid. The benefit should be in the nominated bank account within the next 24-48 hours.
Please do not hesitate to contact me if the benefit is not received by Friday morning.
Kind Regards,
Case Manager – Retail Claims
Yep claims are paid & this is actually for terminal illness
However he could spend it on his bucket list or his 5 great grand children or pay down a debt & in his case his late wife's funeral bill from 2 years ago
as others do call us on 07 3948 1088 or email us
John McAuliffe
