Personal Choices

Education Savings Plans | Share Investing Made Easy | Divorce Settlements | Property Investments and Loans

Education Savings Plans

kidsandmumProviding a quality education for children is a necessity in today’s global employment market. These days, our graduates are competing for careers in medicine and IT against International students with double degrees. Who knows what level of qualifications will be the norm in another 20 years, but you need to be ready for it.

High mortgage payments and school fees can put an enormous strain on the household budget and personal relationships. Making provision for these future expenses
is simply common sense.

Contact us to discuss some innovative solutions for this common household issue.

Share Investing Made Easy

  • Let the Accord Financial Strategies team help take the mystery out of the share market.Investing in a Managed Share Fund can offer a cost effective way to gain experience in the Share Market – Australia’s barometer for our economy and lifestyle.

    Your regular contribution is pooled with other investors’ funds and managed by a professional share investment firm. Regular payments also help smooth out investment returns that are caused by both good and bad news from individual companies listed on the stock exchange.

Hints and Tips:

  • Share tips discussed around a BBQ are best forgotten.
  • Not even the most experienced professional investors get the highs and lows right all the time.
  • Shares which perform well last year will not automatically do well this year.
  • Business profits work in cycles, and their share price is a reflection of where that company sits in the business cycle.
  • Managed funds spread their money across a number of companies, which means they have a lower risk profile than investing in a single company.

Contact us for an obligation free interview about establishing a share investment program

Further Information about share investing can be found at the Australian Stock Exchange www.asx.com.au.

Divorce Settlements

Divorce is not something that most couples have planned for, and it affects almost all families directly and indirectly at some stage. There is rarely a more important time to seek a review of your financial situation than before a divorce settlement has occurred.

These hypothetical examples highlight some sticky situations that occur.

  • Bob and Julie had amicably agreed to a settlement of assets after being separated for 6 months. The settlement involved the sale of an investment property in Bob’s name. No provision was made for the payment of capital gains tax in the settlement. This caused a dispute, lawyers were employed and three years later they were forced to sell the marital home to pay taxes and legal fees.
  • Sally and her non-working spouse, John, have a family home and a share portfolio subject to a divorce split. The house and a portion of the share portfolio were allocated to John and the remainder of the share portfolio to Sally – however, when it came to selling, Sally found that there was a considerable amount of capital gains tax to be paid at her marginal tax rate, whereas when John sold the house and shares, minimal capital gains were realised and paid at his minimum tax rate.
  • The owner of a small business employed his spouse in the business primarily for tax purposes. The owner disputed in court his wife’s claim to half the value of the business as part of their divorce settlement as “she has never had any involvement in the business”. He was forced to sell the business to payout her claim, taxes, penalties and interest from the subsequent income tax audit.

 

Property Investments & Property Loans

Accord Financial Strategies with their partner firms offer an excellent range of options to build your property investment portfolio:

Property Syndicates can assist you to minimise the effect of income tax, capital gains tax and stamp duty. Our team represent syndicates effectively and deal with banks and other lending institutions.

We also take the hassle out of dealing with the ongoing financial management of properties, tax return and compliance issues.

Property Financing – interest rates, fees and charges for property loans can vary significantly between financiers. Accord Financial Strategies, with their partner firms, are highly experienced in sourcing the best property investment loan best suited to you, including:

  • Existing commercial or industrial properties (for own occupation or investment)
  • Construction and development loans
  • Rural property financing, including lifestyle properties.
  • Principal and interest or interest only loans with terms up to 25 years with negotiated repayments. Combinations of Fixed and Variable Interest rate options available.

Accord Financial Strategies loan sourcing service is free. Contact Us now.

Find the Right Loan for you | Income Protection

Lowest mortgage interest rates, fees, and charges are just part of the picture if you really want to save thousands on your mortgage repayments. Relying on the repayment schedule set by your bank will only do one thing – help increase your banks profits. See our case study below for an example of ways to speed up repayments and make your mortgage tax effective.

Accord Financial Strategies’s free service assists you to source the most competitive home loan from our panel of lenders to meet your circumstances.These may include:

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  • Discounted variable rate loans
  • Fixed rate loans
  • Interest only loans
  • Principal and Interest loans
  • Line of Credit loans
  • Investment or Owner Occupier loans Or combinations of any of the above.

The loan with the cheapest interest rate may not be the best loan for you. You may be faced with large penalties if you wish to repay early, or you might not be able to make additional payments, redraw, or have a loan offset account. There are many options to choose from, so let us help you ensure that you will not only save money but also have the right loan for your lifestyle and future requirements.

Once we put the home loan in place, the next goal is to get rid of it as soon as we can!

Case Study

How can we ever get ahead?

Matthew and Kerry are married with two children. They own their own home with a mortgage of $100,000. Matthew earns $60,000 p.a. as a teacher and Kerry works part-time earning $22,000 p.a.

They have been paying off their mortgage now for 10 years, and consider their property to be an excellent investment as it has increased in value to $400,000 since they bought it.

Matthew & Kerry feel they are getting nowhere with their mortgage. What are their options?

Some Possible solutions to explore:

  • Utilise a Line of Credit strategy and direct all earned income to this account- this can eliminate ‘income slippage’ and helps clients focus on debt reduction.
  • Tap into the equity in their property to diversify their investment base with a geared equity portfolio, using additional income and realised capital gains to accelerate the capital repayments on their home loan.
  • Redirecting the tax benefits from a geared property portfolio into extra capital payments on their home loan.
  • Building a portfolio of investments where the capital expenses are tax deductible and using the tax refunds to accelerate capital payments on their home loan.

Plus many other possibilities!

Contact us to talk about the best home loan arrangements for you.

Income protection to safeguard your assets

We all make sure our cars, our houses and even our holidays are insured, but insuring our most important asset – our income – is often overlooked.

Case Study

Income Protection Insurance

Geoff and Janine are married with three children. They own their own home with a mortgage of $230,000. Geoff earns $70,000 p.a. as a builder and Janine works as a sales assistant earning $35,000 p.a.

Their children go to private schools and all of Janine’s income is allocated to covering school expenses.

Unfortunately Geoff had a major vehicle accident on the way home from a Saturday golf game and he is likely to need three months off work to fully recover. There is a possibility he may also permanently loose the use of his right arm, which will affect his ability to continue working as a builder. He has two weeks sick leave entitlement through his employer and limited cash reserves to pay medical and living expenses.

Some options and issues to consider

  • Salary continuance through superannuation would have covered 75% of Geoff’s salary for up to two years, allowing the children to continue on at private schools.
  • An Income protection policy (the premium is tax deductible) could have covered Geoff for up to 75% of his own occupation for periods up to age 65, ensuring a reasonable quality of life if he is unable to carry on working as a builder.
  • Without this cover, not only is the quality of their children’s education put at risk, but also their lifestyle right through until retirement and beyond.
  • The family’s current lifestyle could be insured for an after tax cost roughly the equivalent of their house insurance policy.

Contact us now to investigate options best for your – there’s no obligation to proceed.