My first article on superannuation and SMSF highlighted the fact that two significant changes have occurred.
Firstly, since July 2016 legislation now dictates that advice on super/SMSF must be formalised and this involves a process that requires your attention. Secondly, significant changes to super rules have also been implemented, particularly in regard to contributions caps.
In this article, I highlight the important connection between these two matters, and why it all comes down to timing. Here’s what I mean …
A number of the changes to super contributions rules come into effect on July 1 2017. These include reductions in contribution caps. You have until 30 June 2017 to make the most of the existing ‘higher’ caps, and you will likely need advice on how to do so.
For example, you may need advice to:
- take full advantage of current contribution caps before June 30 2017;
- review your super strategy to ensure that you do not exceed the new limits before and after, 1 July 2017;
- identify alternative strategies for future retirement savings that may have previously been contributed to your super;
- consider the impacts other super changes may have on your circumstances eg. pensions; and
- review your super strategy in light of the changes to ensure that you are still on course for achieving your retirement goals, and if you’re not, to take the necessary action.
However, we can’t give you advice without fulfilling the government requirements. It is against the law.
I urge you to contact us now to find out what you need to do, and when. Then you can rest assured that when you need super or SMSF advice, it will be readily available for you.
The formal documentation process involves the following:
- We provide you with our Financial Services Guide (FSG);
- Together we have a ‘Fact Find’ interview to identify the advice you need;
- We document our recommendations, as a result of the Fact Find interview, into a Statement of Advice (SOA);
- You consider the SOA before signing approval to proceed with our recommendations;
- We implement our recommendations for you.
The information contained in this article is general and is not intended to serve as advice. No warranty is given in relation to the accuracy or reliability of any information. Users should not act or fail to act on the basis of information contained herein. Users are encouraged to contact q4 financial professional advisers for advice concerning specific matters before making any decision.
A CPA and Director of q4 financial, Grant Titman brings leadership and the disciplined energy of an endurance runner to deliver ‘big picture’ outcomes for his firm and his clients.
Grant’s expertise includes and extends well beyond achieving profitability and growth for his clients’ businesses. His focus is squarely on helping his clients to achieve three key goals: extract wealth from their business; set and achieve long-term wealth objectives; and ultimately, enjoy financial freedom.