The financial year is about to close, and while you don’t need to have your tax return prepared right at the end of the tax year, the earlier you have it ready means less stress in the end.

Speaking of stress, do you know the real damage when it’s not kept under control? Some stress is inevitable — even good for you — but not when it’s continual. Check out our article “Invest in you … after all, you are your future”, to see why you need to be “fit for business”.

Whether you’re a business owner or not, you should also have death cover. In this issue we explore different policies (is an accidental death policy enough? why do I need trauma insurance?), along with looking at some ‘backdoor taxes’ after death — you can avoid neither, so it’s best to set yourself up properly. Early.

Aged care is another issue that must be planned well before it’s needed, whether it’s you or ageing parents. It’s too late to undo any financial decisions after someone has entered aged care, and they may not be the best solution financially for your family.

Something you do not want to set yourself up for is bankruptcy. We look at the disturbing rising number of middle-class bankrupts, along with some simple golden rules that should not be forgotten. Even if you’re not financially stretched, they’re worth reading.

Feeling confused by the market? You’re not alone. Several clients have asked us about this, so we’ve included an article in this issue that looks at what’s happening now, why and the outlook.

In mid-August, Summerhill will be moving into new offices, in Queen Street, Melbourne. We’ll update you with the details and the new address closer to the move, but bear with us in August as we transition into the new office which may play havoc with email and telephone access for a couple of days.

As always, we appreciate and welcome your comments and questions on both the newsletter and the services we provide to you.

Enjoy the read,

Caroline and Andrew

This newsletter is a combined publication for both Summerhill Financial Services and Summerhill Financial Management.

Market update: why the long face?

Share market volatility in the past few weeks has renewed uncertainty — even gloom — and diminished investors’ taste for risk. There’s European public debt and Chinese economic tightening worries, along with regulatory action against US and European banks. Concerns around Australia’s planned ‘resource super profits tax’ haven’t helped the impact on our shares and dollar either. While none of this sounds very good, here’s why it’s probably not a bear market — and certainly not time to throw in the investing towel.

>> read full article

New Tax Year – New Tax Rates

With the new tax year commencing on 1 July 2010, new income tax rate scales will apply, slightly reducing the income tax rates for the 2011 tax year.

>> read full article

Thinking about aged care now can make all the difference – financially and emotionally

Whether it’s 5 years or 15 years away, for you or your parents, planning now for how you and your family will approach aged care will have a lot to do with how legislation affects you, the impact on your finances and the type of care you can afford. There are several strategies you need to consider, and it’s important to understand that after someone has entered aged care, it may be too late to undo any financial decisions they — or someone on their behalf — made before they went in.

>> read full article

Stealthy slide for middle-class wealth

Tempted to use the equity in your home to consolidate your debt or maybe take a holiday or buy a big screen TV? What about buying the best home you can afford? Think again: the past decade has seen bankruptcy become a middle-class “phenomenon”. Even if you aren’t stretched financially, here’s a few things to consider.

>> read full article

Trusts – ATO Attempting to Reduce Their Effectiveness

Trusts, and more specifically family or discretionary trusts are a key strategy for many Australian taxpayers wanting to legitimately minimize their tax positions, and also to protect their wealth against attack. However, they are under the microscope again of the Tax Office again as they try to reduce their effectiveness.

>> read full article

Why trauma insurance in business can’t ‘come later’

‘Too expensive’, ‘too unlikely’, too many ‘what-ifs’ and ‘how will it work?’ are just some reasons SME owners avoid trauma insurance. But think about this: for 4 male partners, aged 35, 45, 50 and 55, there’s only a 52.4% chance that all will remain healthy in the next 10 years. What impact will that have on their business? It’s time to rethink the need for trauma insurance.

>> read full article

Invest in you…after all, you are your future

In the words of Mark Twain, everyone should take an interest in their future — since they have to live with it for the rest of their life. If someone was to ask you “are you fit for business?”, you may take it they’re interested in your qualifications or management experience.

>> read full article

Death, taxes and inheritance – what you really should know

To adequately protect your wealth for your family after you die, it’s worthwhile spending time on careful planning to counter Australia’s ‘backdoor death taxes’. SMSFs and testamentary trusts have a very useful role to play. But, you can only gift what’s yours.

>> read full article

Accidental death policies — a good saving?

Next time you open a credit card statement and a brochure advertising ‘accidental death policies’ falls out, is it worth picking up? Or continuing its journey to the (recycle) bin?

>> read full article

25/12/09 -
‘Double dip’ – what is it? And what’s the risk?
25/12/09 -
Reminder – Deadline on Investment Allowance for Businesses
25/12/09 -
Chris Caton – looking ahead
25/12/09 -
Deductible Education Costs – Youth Allowance
25/12/09 -
From Cacophony to Symphony
25/12/09 -
Binding Financial Agreements – do you, or your children need one?
25/12/09 -
It’s not just minors who need a guardian
25/12/09 -
Change to your Emerging Markets Trust Investment Strategy

This entry was posted on Tuesday, July 6th, 2010 at 9:38 pm and is filed under Newsletters. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.