https://www.mckfs.com.au/ mckfs.com.au Blog en 19/09/2012 10:47:00 AM https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-their-first-home-loan-deposit https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-their-first-home-loan-deposit One of the biggest hurdles for first home buyers is being able to save the deposit BUT also being able to afford the mortgage insurance. Now the government has provided a solution for that problem. From 1 January 2020 the federal government is introducing their First Home Loan Deposit Scheme to help first home buyers purchase their first home. Effectively the government will guarantee to the mortgage provider up to 15% of the property purchase price. Previously this guarantee would have been provided in the form of Lenders Mortgage Insurance (which was paid by the borrower, but protecte... Sat, 16 Nov 2019 13:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-meet-ato-audit-costs https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-meet-ato-audit-costs Increasingly, the ATO is actively enforcing their compliance program - which is "ATO-speak" for saying that they are increasing the number of audits being completed. The concern about an ATO audit is not necessarily that you have done something wrong and owe the ATO tax (and possibly penalties, fines and interest), it is that you have to prove that you have not done anything wrong. The cost of obtaining proof could be significant - possibly thousands of dollars in accountant or tax agent fees and costs. Some accountants and tax agents are offering their clients Audit Insuran... Sat, 02 Nov 2019 11:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-keep-insurance-premiums-affordable https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-keep-insurance-premiums-affordable As we grow older, the risk of premature death and disability increases and unfortunately so do our life insurance premiums! However, there may be a way to keep your life insurance premiums affordable in the long-term - Level Premiums. Most life insurance policies have two premium structures Stepped and Level. Here is the basic difference between them: Stepped Premiums | Increase the premium each year as you grow older to account for the increased risk Level Premiums | Averages the premium over the lifetime of the policy, so you pay more initially but less in the long-term ... Sat, 28 Sep 2019 11:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-maximise-super-contributions-from-1-july-2020 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-maximise-super-contributions-from-1-july-2020 If you are aged 65 to 67 you may be able to contribute an additional $200,000 to your super from 1 July 2020. The federal government is currently in the process of making changes to super contribution laws and from 1 July 2020 the "Work Test" requirements for super contributions are likely to be amended. Effectively this will mean from 1 July 2020 if you are aged between 65 and 66 you will be able to make voluntary contributions to your super (concessional and non-concessional) up to $200,000 without having to meet the "Work Test" (which at present is only availabl... Sat, 14 Sep 2019 11:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-when-guaranteeing-a-loan https://www.mckfs.com.au/blog/-everyoneneedsaplan-when-guaranteeing-a-loan Trying to help out a family member or a dear friend by providing your personal guarantee (or offering your property as security) could be very costly at some point in the future, so before putting pen to paper and signing your life away make sure you consider the following: What is the difference between a guarantor and a co-borrower? Will the guarantee affect your own borrowing? Are you providing personal guarantee or your own property as security for the loan? Make sure you get independent financial and legal advice about the guarantee BEFORE you commit. I recently read th... Sat, 07 Sep 2019 13:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-hecs-help-minimum-repayment-threshold https://www.mckfs.com.au/blog/-everyoneneedsaplan-hecs-help-minimum-repayment-threshold HECS/HELP Minimum Repayment Threshold Increased I have just read in a recent article from the ATO Small Business Newsroom newsletter received Wednesday 28 August 2019 that the Minimum Repayment Threshold for HECS/HELP loans is increasing from 1 July 2019. The new Minimum Repayment Threshold is $45,881. Employers may need to increase the PAYG tax withholding for any employees that have HECS/HELP loans to ensure they meet the new minimum repayment threshold requirements.... Sat, 31 Aug 2019 10:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-taking-leave https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-taking-leave Family & Domestic Violence Leave Entitlements Recently the modern awards were changed to provide employees with access to 5 days of unpaid family and domestic violence leave each year. The leave can be taken by employees who need to deal with the impact of family and domestic violence, including (but not limited to): making arrangements for their safety or that of a family member; attending court hearings; accessing police services. The entitlement applies to all employees who are covered by an industry or occupation based award (including casuals). ... Wed, 29 Aug 2018 15:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-budget-for-christmas https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-budget-for-christmas CHRISTMAS IN JULY? Maybe, but it is time to start planning for the Festive Season without breaking the bank. We have some tips on how to avoid the budget going into the 'red' and still enjoy your Christmas and New Year Festivities: Make a Plan - the key to a successful Christmas is to make sure you plan your expenditure. Separate Your Cash and Credit Cards - you should separate your cash and credit card expense budgets. Always using a credit card or cash card may mean you are not keeping track of your expenditure and could receive a nasty shock when the stat... Wed, 18 Jul 2018 09:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-a-website https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-a-website Do you have a Website? It maybe time to get a Website or upgrade your existing Website.  Do you know what you can claim as a deductible business expense for your website costs? The expense of a Website falls into 2 categories (according to the ATO Taxation Ruling TR2016/3): 1.  Revenue expenses - generally can deduct the total amount in the year the expense is incurred, these include: licence or subscription fees; monthly hosting fees; social media maintenance fees 2.  Capital expenses - can be deductible over a number of years ... Wed, 20 Jun 2018 10:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-the-wage-increase https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-the-wage-increase Base rates of pay to increase by 3.5% The Fair Work Commission has announced an increase to minimum wages after their 2018 Annual Wage Review.  The increase applies to base rates of pay and will start on 1 July 2018. The new national minimum wage will increase to $719.20 per week (or $18.93 per hour). What to do next: Make sure your employee's details are current; Make sure your employee's are classified in their correct level of exeperience, according to the relevant award; Review employee's current pay rate; On 1 July 2018 chec... Wed, 13 Jun 2018 09:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-the-new-federal-budget https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-the-new-federal-budget 2018 Federal Budget Want to know how it affects you?  Here are the highlights: Up to $530 tax savings (per peron) for low and middle income earners  $20,000 instant business asset write off has been extended to 30 June 2019 1 year exemption from work test for recent retirees (with less than $300,000 in superannuation savings) Superannuation fund exit fees have been banned Home care services and residential aged care funding has increased Medicare levy is to remain at 2% For further details watch this Budget Wrap from MLC while you... Wed, 16 May 2018 11:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-tax-time https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-tax-time HOW TO GET READY FOR TAX TIME Here are some tips to make tax time a smoother process: Get your evidence organised: Bank statements Tax deductible expense receipts Income Protection Insurance Credit card statements Rental income statements Investment property expenses (rates, water, agent fees; repairs) Dividend Statements Medical Insurance Categorise your evidence Sorting your statements and receipts etc. into categories can make it a little easier, you can start with: Expenses (work related - travel, computer, t... Wed, 09 May 2018 10:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-a-successful-budget https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-a-successful-budget Is Your Budget Accurate? In order for your budget to be a successful tool in developing your financial plan, it needs to be accurate. Here are some tips to help make your budget more accurate: Before you start, obtain some source documents from which to obtain actual expenditure (e.g. credit card statements; bank account statements; bill notices; rental statements). Separate your expenses into categories (e.g. household; vehicles; education; debts [credit card; home loan; personal loan]). Include provision for frequency of the ex... Sat, 28 Apr 2018 13:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-budget-for-a-newborn-baby https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-budget-for-a-newborn-baby How to Budget When You're Having a Baby Budgeting for a newborn baby is key to reducing stress on the family. The family's income may be lower due to mum not working leading up to, during and after pregnancy Detailed cash flow planning is a must to ensure sufficient monies are available to meet the family expenses You should revise your expenditure budget to include costs of newborn baby (you can use our budget template) You should include hospital costs It is important to review life insurances (life, trauma, TPD, income protection). ... Sat, 14 Apr 2018 10:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-budgeting https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-budgeting Budgeting:  How to make it simple In order to have an effective budgeting system, you need to make it easy to follow and implement.  We recommend not having too many bank accounts - it over complicates the budgeting system.  You only need 3 bank accounts: A day-to-day bank account; A bills account; and A special purpose account (i.e. holidays). All income should be received into the day-to-day bank account and then distributed to the bills and speical purpose bank accounts. Note:  For any budget to be effective you should firs... Sat, 14 Apr 2018 09:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan---even-if-you-have-had-skin-cancer https://www.mckfs.com.au/blog/-everyoneneedsaplan---even-if-you-have-had-skin-cancer Can you still obtain trauma insurance if you have had skin cancer? This depends on the type of skin cancer, the insurer and the trauma insurance policy wording. Some insurers will still offer full trauma insurance cover if you have had skin cancer; It depends on the severity of the skin cancer; Early stage melanoma (melanoma in-situ) that has been successfully excised may qualify you for trauma insurance (without exclusion or loading). Please contact us for more information and/or clarification.  Your first appointment is free! ... Wed, 04 Apr 2018 09:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-know-how-much-trauma-insurance-you-need https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-know-how-much-trauma-insurance-you-need HOW DO YOU KNOW HOW MUCH TRAUMA INSURANCE YOU NEED? It really depends on your individual circumstances.  You should consider how you are going to meet your expenses if you suffer a trauma, these may include: Net medical expenses (after Medicare and Private Health insurance rebates) Bills and existing debts (home loan/rent) Rehabilitiation expenses (so you can choose your own rehabilitation plan) Extended convalescence (one years salary) Employing domestic help (housekeeper/nanny/nurse) Home alterations (wheelchair access) Medical con... Wed, 28 Mar 2018 09:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-trauma-insurance-reinstatement-benefit https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-trauma-insurance-reinstatement-benefit What is a trauma insurance reinstatement benefit? What happens if you have more than one major medical trauma (unfortunately this happens quite a lot). Let's say you have $100,000 trauma insurance benefit and you are diagnosed with cancer and your $100,000 trauma insurance claim is paid.  What happens next? you would reinstate your trauma insurance policy after the claim is paid. your premium remains the same and there are no medical underwriting requirements (although your cover for cancer is limited). THEN you suffer a serious coronary (heart) medic... Wed, 21 Mar 2018 10:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-child-trauma-insurance https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-child-trauma-insurance Are you covered if your child suffers a major medical trauma? What happens if your child is diagnosed with a disease or medical condition?  You can't continue to work!  How do you pay your bills when you are taking care of your child?  Child trauma insurance can be included as an optional benefit to a life insurance policy (but you cannot purchase child trauma insurance on its own). The initial maximum insured benefit is $200,000 (and indexed each year to keep pace with inflation). The cost of child trauma insurance is approximately $200 per yea... Wed, 21 Mar 2018 09:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-take-advantage-of-the--20-000-instant-write-off https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-take-advantage-of-the--20-000-instant-write-off $20,000 instant asset write off extended to 30 June 2018 Assets purchased for business use can be immediately written off (if they cost less than $20,000 [per item]) up to 30 June 2018.  From 1 July 2018 the threshhold will reduce to $1,000. You are eligible to claim the immediate business expense deduction if: Your business turnover is less than $10 million; and The asset was first used or installed ready for use in the income year you are claiming it in. Follow this link for further information. ... Wed, 14 Feb 2018 09:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-understand-their-rights-and-responsibilities https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-understand-their-rights-and-responsibilities Are you a small business or sole trader?  Do you know your rights and responsibilities? The Australian Competition & Consumer Commission (ACCC) on 11 January 2018 published a new guide for small businesses. If you engage in buying or selling goods or services you must comply with the Competition and Consumer Act 2010 (CCA). The guide is designed to help small businesses understand their key rights and responsibilities under the CCA and the Australian Consumer Law (ACL). If you fail to comply with your obligations under the CCA or ACL you are breaking the ... Wed, 31 Jan 2018 09:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-when-navigating-through-mortgage-lenders https://www.mckfs.com.au/blog/-everyoneneedsaplan-when-navigating-through-mortgage-lenders Why is it getting more difficult to get a home loan? It is becomming increasingly more difficult to obtain a home loan - why is this: The Federal Government is worried that the Australian property market is in a bubble, because home loan interest rates are low and credit is easy to obtain; The Government uses its banking regulatory body APRA to force banks to make it harder to get property loans in an attempt to cool the housing market. This article in The Australian Business Review points to recent APRA requirements for lenders to obtain actual living expenses fr... Wed, 17 Jan 2018 12:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-trauma-insurance https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-trauma-insurance Do you know what trauma insurance is? Recently we've been asking friends if they know what trauma insurance is.  The feedback is that they are really not sure what it covers you for. We all know someone who has been touched by cancer or a heart attack or MS - well if that person had trauma insurance then they could receive a lump sum payment.   This lump sum payment could be put towards: your medical expenses (not covered by private health or Medicare); home loan repayments; general living expenses; school fees; an overseas h... Fri, 29 Dec 2017 14:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-when-speculating-with-bitcoin https://www.mckfs.com.au/blog/-everyoneneedsaplan-when-speculating-with-bitcoin What do you know about bitcoin? Dean has a few tips to help you understand: Bitcoin is similar to a currency (cash) and is used to pay for goods and services, usually Internet purchases; The difference is bitcoin is not regulated by any government and therefore governments don't control the supply; There is massive speculation that bitcoin will replace cash for purchases (specifically on the Internet) and this is fuelling the price; Bitcoin is difficult to exchange for actual cash; Bitcoin is difficult to value as an investment becau... Wed, 20 Dec 2017 10:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-when-accounting-for-the-work-christmas-party- https://www.mckfs.com.au/blog/-everyoneneedsaplan-when-accounting-for-the-work-christmas-party- The End of Year Christmas Party - do you know if FBT is applicable and how to account for it? You may need to allow for Fringe Benefit Tax (FBT) when throwing that end of year Christmas Party and not just treat the cost as a business expense. Points to consider to determine if FBT is applicable:     Who is attending the Christmas party (e.g. clients; employees; suppliers; employee's partners);     Where is the party being held (e.g. at your work premises; in a function room/bar/restaurant);     When is the party being h... Wed, 13 Dec 2017 15:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-insure-household-workers https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-insure-household-workers Household Worker Insurance Do you employ workers in your home?  Most people are unaware that they have to insure casual workers, that complete work at their home, and that it costs very little to insure them.  A household worker could be: a Cleaner a Babysitter a Nanny a Gardener a Labourer or Tradeperson. This article provides some good examples of how a WorkCover Queensland insurance policy could save you thousands of dollars if the worker makes a claim against you. ... Wed, 06 Dec 2017 15:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-the-holiday-season-without-the-financial-stress https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-the-holiday-season-without-the-financial-stress Christmas is just around the corner, along with a hectic round of parties, etc.  To start 2018 fit and refreshed, rather than financially flattened, here's a 7-step plan to consider for managing your upcoming expenses: 1.  Create a budget Use a spreadsheet to work out how much you can afford to spend on gifts, holiday, food and drink and STICK TO IT. 2.  Be sensible with your gifts Talk to family and friends about setting a dollar limit on gifts. Consider a secret Santa system. Pitch in as a group to buy higher p... Wed, 29 Nov 2017 18:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-business-finance https://www.mckfs.com.au/blog/-everyoneneedsaplan-for-business-finance After a business loan - MCKFS are finance and mortgage brokers As an accredited member of Plan Australia MCKFS has access to many lenders. One of our lenders currently has the following on offer for their small business loans (available until 9 December 2017): Business Essentials Variable Rate of 4.45% pa (residential or commercial security) One flat establishment fee of $800 Loan valuation fee waived 100% loan offset account For new bank loans up to $1m Contact MCKFS on 1300 261 373 to discuss your needs. ... Thu, 16 Nov 2017 18:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-if-the-ato-contacts-you- https://www.mckfs.com.au/blog/-everyoneneedsaplan-if-the-ato-contacts-you- AUSTRALIAN TAXATION OFFICE SCAM ALERTS Everyone needs to be wary of anybody calling from the Australian Taxation Office (ATO) requesting payment of any outstanding tax debt or requesting their bank account details for crediting a tax return refund. MCKFS Total Service Clients (TSC) should request the person's contact details, and then immediately phone our office (1300 261 373), so that we can assess whether or not the phone call is legitimate. All MCKFS TSC tax is co-ordinated with our preferred accountants (Zentveld & Lewis) and the ATO should be contacti... Wed, 15 Nov 2017 09:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-understand-the-new-age-pension-assets-test https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-understand-the-new-age-pension-assets-test Changes to the Age Pension Assets Test commenced 1 January 2017, and may reduce your Age Pension payment. Following is a summary of the main points of the changes: Only the Assets Tests has been changed - there are no changes to the Income Test. Be aware that your Age Pension payment is determined by completing the Assets Test and the Income Test for your particular financial circumstances, and which ever Test provides the lowest payment will be applied. For example: if you were entitled to $400 per fortnight under th... Thu, 19 Jan 2017 11:00:00 +1000 https://www.mckfs.com.au/blog/trauma-insurance--what-is-it---and-why-do-i-need-it- https://www.mckfs.com.au/blog/trauma-insurance--what-is-it---and-why-do-i-need-it- Introduction Unfortunately, the vast majority of people do not understand what Trauma insurance covers, and why they should have it. This article attempts to explain what Trauma insurance covers, and why most of us should have at least some Trauma cover, by detailing one of my client's recent Trauma insurance claim experience. For privacy purposes, I have changed the client's personal details, however, the facts about the insurance cover and claims process have not been altered. Background I was originally approached by my client (I will refer to her as Jane i... Sun, 31 Jan 2016 14:00:00 +1000 https://www.mckfs.com.au/blog/5-ways-to-avoid-a-christmas-budget-blowout https://www.mckfs.com.au/blog/5-ways-to-avoid-a-christmas-budget-blowout   It is that time of year again when we are faced with the usual dilemma - How to enjoy the Festive Season without breaking the bank?   You don't want to enjoy the Festive Season and then receive a nasty bank balance shock in January, however, with planning (because #everyoneneedsaplan), here are 5 ways to avoid the budget going into the 'red' and still enjoy your Christmas and New Year Festivities.   5 Ways to Avoid A Christmas Budget Blowout 1. Make a Plan #everyoneneedsaplan and the key to a successful Christmas is to make sur... Sat, 12 Dec 2015 14:00:00 +1000 https://www.mckfs.com.au/blog/what-you-need-to-know-about-income-insurance-claim-payments-to-avoid-a-tax-bill https://www.mckfs.com.au/blog/what-you-need-to-know-about-income-insurance-claim-payments-to-avoid-a-tax-bill   Do you know if your Income Insurance Claim Payments are Taxable? The answer is 'Yes, they are' so don't get caught at tax time with an unexpected tax bill!   Life insurance companies are very quick to tell you that your Income Insurance premiums are fully tax-deductible whether you pay the premium, or your employer pays the premium on your behalf. Unfortunately, most people are not aware that any Income Insurance claim payments received are taxable, and therefore the recipient of the payment will be liable for any tax payable. If you ... Tue, 27 Oct 2015 11:00:00 +1000 https://www.mckfs.com.au/blog/income-insurance-is-tax-deductible https://www.mckfs.com.au/blog/income-insurance-is-tax-deductible Do you know what your tax savings could be if you have Income Insurance? Most people understand that Income Insurance premiums are tax deductible, but are unsure exactly what the savings might be for their particular circumstances. The actual dollar-cost saving will depend on your Income Insurance premium and your Marginal Tax Rate ("MTR"), which is dependent upon your Taxable Income you can click here to check what your particular MTR might be. In order to illustrate the possible tax implications of Income Insurance premiums and subsequent potential dollar-co... Mon, 19 Oct 2015 11:00:00 +1000 https://www.mckfs.com.au/blog/the-top-5-tips-for-choosing-your-financial-planner https://www.mckfs.com.au/blog/the-top-5-tips-for-choosing-your-financial-planner Choosing a Financial Planner or Financial Advisor can be a difficult process, particularly if you have never had any dealings or experience with financial issues in the past, so here are my TOP 5 TIPS for helping you choose the right financial planner for your particular needs.   1. Firstly, you need to determine if you require a Financial Planner, or a Financial Adviser. A Financial Planner generally differs from a Financial Adviser in that a Planner provides you with a Financial Plan to help you achieve your goals and objectives whereas a Financial Adviser generally on... Wed, 14 Oct 2015 08:00:00 +1000 https://www.mckfs.com.au/blog/top-5-tips-for-financial-planning-in-your-50s https://www.mckfs.com.au/blog/top-5-tips-for-financial-planning-in-your-50s Uh-oh, the fun-time 40s are over, and the financial-planning 50s have begun! It's actually not that bad. Your 50s are the time  which you can use to fine tune your financial plan that will likely mean you don't have to work any longer. Financial independence is so close you can just about smell the coconut palm trees! So that's got to be good has it not?! In your 50s, it's time to stop thinking "someday I would like to be financially independent" and start to make plans to actually become financially independent. Being financially ... Wed, 07 Oct 2015 10:00:00 +1000 https://www.mckfs.com.au/blog/top-4-tips-for-financial-planning-in-your-40s https://www.mckfs.com.au/blog/top-4-tips-for-financial-planning-in-your-40s You are in your 40s now you have officially become the parents of your youth! Your 40s is when the serious financial planning becomes a priority and not just something you will eventually get around to starting one day. Whilst "retirement" was the ultimate end goal for your parents' generation, "financial independence" is now the bulls eye for which you will likely be aiming when you are in your 40s.   Gone are the days of the "week-days: strict diet and train hard - then party all weekend" it's more like "permanent paleo, ... Fri, 25 Sep 2015 12:00:00 +1000 https://www.mckfs.com.au/blog/top-3-tips-for-financial-planning-in-your-30s https://www.mckfs.com.au/blog/top-3-tips-for-financial-planning-in-your-30s The wild and crazy party days of your 20s are done! #everyoneneedsaplan - You are in your 30s now, and it's time to get serious about your financial plan to secure your financial future. Of course everyone is different, some people want to start a family, others want to continue to build their career, but either way when you are in your 30s. You need to start thinking about how you are going to build your financial assets for that time in the future when you will not have income from employment to meet your lifestyle expenses. There are two distinct phases in a fina... Thu, 17 Sep 2015 16:00:00 +1000 https://www.mckfs.com.au/blog/5-top-reasons-why-women-should-review-their-super https://www.mckfs.com.au/blog/5-top-reasons-why-women-should-review-their-super   #everyoneneedsaplan to ensure their superannuation is working for them. Whether single or in a relationship; working full-time or part-time, now more than ever it is important that women review their superannuation requirements regularly.  Women need to take control of their superannuation to ensure they are making their investments work for them as effectively as possible to ensure a financially comfortable retirement.  Here are 5 reasons Why Women Need to Review Their Superannuation 1. Consolidate your Superannuation The primary reason why women need t... Wed, 16 Sep 2015 06:00:00 +1000 https://www.mckfs.com.au/blog/6-top-things-you-need-to-know-when-planning-your-retirement https://www.mckfs.com.au/blog/6-top-things-you-need-to-know-when-planning-your-retirement #everyoneneedsaplan when thinking about retirement.  However, most of us don't start thinking about it until we are almost ready to retire and think that our Superannuation will be enough.  In reality, most people are underprepared for retirement and the comfortable lifestyle they have worked for may not be so comfortable. Planning for Retirement should not just involve financial plans, you also need to plan your lifestyle when you no longer work.  A sound financial plan will cover all aspects of your finances and take into account what type of lifestyle you will w... Wed, 09 Sep 2015 08:00:00 +1000 https://www.mckfs.com.au/blog/top-5-financial-planning-tips-to-spring-clean-your-finances https://www.mckfs.com.au/blog/top-5-financial-planning-tips-to-spring-clean-your-finances #Everyoneneedsaplan to review their financial situation regularly.  Now that the end of the financial year has been completed, it's a great time to get all your finances in order, to make plans for the next 12 months. Most people will agree that it is important to get their finances in order - 'I've paid a lot of people, but I don't actually know the reason why'.  Sound familiar?  We all know we need to save and make sure we look after our finances, however a lot of the time we forget the reason why we do these things. Here are the Top Fiv... Mon, 31 Aug 2015 17:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-when-preparing-to-complete-their-2015-tax-return https://www.mckfs.com.au/blog/-everyoneneedsaplan-when-preparing-to-complete-their-2015-tax-return Do you have a basic PAYG Tax Return? Do you have a Tax Return that is more complicated? Do you prepare your own Tax Return? Do you have a Tax Accountant or Tax Agent prepare your Tax Return?   If you answered YES to any of the above, then a Personal Tax Return Checklist can assist you in gathering all the necessary documentation required to complete your Tax Return correctly.  You need to make sure you have all the relevant information when preparing your tax return or visiting your Accountant/Tax Agent to have the ... Thu, 23 Jul 2015 15:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-make-the-right-offer-when-purchasing-a-property https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-make-the-right-offer-when-purchasing-a-property Are you looking to buy a Property? Have you done your Research? Know the actual value of the Property? Do you know what a Comprehensive Property Research Report Is? Do you need one? And you thought buying a property was easy......   Property prices are increasing and therefore it is more important than ever to ensure the right offer is made when purchasing a property otherwise you may be paying a lot more for the property than it's actually worth.  You can easily get caught-up in the media hype of property prices increasing and think "bette... Sat, 18 Jul 2015 18:00:00 +1000 https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-be-prepared-at-tax-time https://www.mckfs.com.au/blog/-everyoneneedsaplan-to-be-prepared-at-tax-time #Everyoneneedsaplan to be informed when completing their Tax Return. June 30 marked the end of the financial year and that means it is Tax Return Time.  If you are an employee, you should have received your PAYG Payment Summary from you employer. The ATO has a list of important lodgement dates on their website https://www.ato.gov.au/business/yearly-reports-and-returns/due-dates-for-the-current-financial-year/dates-by-topic/income-tax/ Will you make the most of your tax deductions? Do you know what you can claim? Do you know the deadline for lodging your return?   ... Mon, 06 Jul 2015 09:00:00 +1000 https://www.mckfs.com.au/blog/-everyone-needs-a-plan-to-pay-for-their-child-s-education https://www.mckfs.com.au/blog/-everyone-needs-a-plan-to-pay-for-their-child-s-education   Most people would like to put some savings aside for their child, whether it be for paying for their education, buying them their first car, or helping them with the deposit for their first home.  However, depending on how you save those monies, the tax man could be taking more than their fair share! Here are 3 things you need to know when saving for your child's education 1. The primary issue for saving for children is the "minors income tax rates" levied on a child's unearned income. The ATO deems unearned income to a child (i.e. Not... Wed, 27 May 2015 10:00:00 +1000 https://www.mckfs.com.au/blog/4-top-tips-for-calculating-home-contents-value-for-insurance https://www.mckfs.com.au/blog/4-top-tips-for-calculating-home-contents-value-for-insurance Do you have adequate Home Contents Insurance? When it comes to insuring home contents most people do not know how to calculate the value they should place on their possessions.  It is not until you have experienced loss of contents, especially total loss, that you realise the importance of having your home contents insured adequately.  Total loss is an extremely stressful time, however having your home contents insured for the correct value can provide peace of mind. For Home contents insurance, the amount insured should be based on replacement value of the contents and... Tue, 19 May 2015 12:15:00 +1000 https://www.mckfs.com.au/blog/-everyone-needs-a-plan-to-ensure-they-are-getting-the-best-home-loan-deal- https://www.mckfs.com.au/blog/-everyone-needs-a-plan-to-ensure-they-are-getting-the-best-home-loan-deal- Do you know how the recent RBA reduction in interest rates may affect your mortgage repayments? Most online mortgage repayment calculators only provide details of your loan repayments based on your loan amount and the term of the loan, and not necessarily how much you will save on your mortgage repayment each month. The following table provides a brief overview of the monthly savings based on the 0.25% cash rate reduction from Tuesday, 5 May 2015.   LOAN AMOUNT MONTHLY REPAYMENTS BEFORE RATE DECREASE  AFTER... Tue, 12 May 2015 09:25:00 +1000 https://www.mckfs.com.au/blog/the-three-top-things-a-professional-financial-planner-can-do-for-you https://www.mckfs.com.au/blog/the-three-top-things-a-professional-financial-planner-can-do-for-you   Do You Know What A Financial Planner Does? Most people don't know what a financial planner actually does.   HERE ARE THE TOP THREE THINGS A PROFESSIONAL FINANCIAL PLANNER CAN DO FOR YOU:   1. Help you determine your particular financial goals One of the hardest things for someone who has never prepared a financial plan is to know what they want. For example: When do you want to retire? Do you want to retire or do you just want to ensure you are financially independent, and possibly work part-time? How much money wil... Thu, 07 May 2015 16:00:00 +1000 https://www.mckfs.com.au/blog/tips-for--finding-the-right-property- https://www.mckfs.com.au/blog/tips-for--finding-the-right-property- As interest rates continue to tumble in Australia, the property market is likely to start to heat-up, so if you're considering buying a new property (to live in, or for investment), I have prepared some tips which may help you find the right property, and negotiate the right price. If you haven't already, make sure you have arranged your mortgage loan pre-approval (if you are a MCKFS Total Service Client, we would have already obtained your pre-approval, but if you're not yet a MCKFS Total Service Client, and you need assistance, don't hesitate to Contact Us ... Tue, 17 Feb 2015 10:00:00 +1000 https://www.mckfs.com.au/blog/basic-steps-to-prepare-for-making-a-will https://www.mckfs.com.au/blog/basic-steps-to-prepare-for-making-a-will The cost of preparing a Will may be significant, depending on how long it will take a legal advisor to understand your particular requirements, in order to prepare a legal document that reflects your requirements. But you can help reduce the costs, by preparing the basic information your legal advisor will require, before you meet with them (as you may know, most solicitors charge by six minute increments!). To help you get started, I have put together a basic list of information you should prepare, and forward to your solicitor, before scheduling an appointment with them: ... Tue, 10 Feb 2015 10:00:00 +1000 https://www.mckfs.com.au/blog/vehicle-finance-rates-drop--4-45--with-no-ongoing-fees https://www.mckfs.com.au/blog/vehicle-finance-rates-drop--4-45--with-no-ongoing-fees We have just received an updated Rate Bulletin from one of financiers that has reduced their vehicle finance rates to as low as 4.45% - basic conditions summarised below: New and used vehicles up to 3 years old receive the same rate Business-use borrowers only (if you're unsure if your vehicle will meet the business-use criteria, contact us for a free assessment) No ongoing fees (a lot of the 'low rate' offers often include a monthly fee, which adds to the overall cost of the finance) Financier Document Fees waived for some applications (usually abou... Wed, 04 Feb 2015 13:00:00 +1000 https://www.mckfs.com.au/blog/basic-steps-to-completing-a-financial-plan https://www.mckfs.com.au/blog/basic-steps-to-completing-a-financial-plan One of the main reasons most people do not achieve their financial or personal goals is because they have'nt made a Plan. That's why the team at MCKFS firmly believe 'everyone needs a plan'! So if you are thinking of developing a financial plan for yourself, here's a summary of the basic steps you will need to follow to make your Financial Plan a reality: Write down a list all of your objectives (financial and personal; the cost; and the date due) Write down details of your financial circumtances (what you own; what you owe; what ... Wed, 28 Jan 2015 13:00:00 +1000 https://www.mckfs.com.au/blog/buying-a-property--here-s-a-list-of-documents-needed-for-your-mortgage-application https://www.mckfs.com.au/blog/buying-a-property--here-s-a-list-of-documents-needed-for-your-mortgage-application It's a common question - 'what do we need to complete our mortgage application?'. Usually, time is critical, as the finance clause on the purchase contract is only two weeks. Of course every borrower's circumstances are different, and different mortgage lenders require different information (I just realised that's a lot of 'different'), but here's a list that will give you a good start: Copy of the Property Purchase Contract (the signed copy) Copy of your identification (Driver's Licence, Passport, Medicare Card should do - and s... Wed, 21 Jan 2015 13:00:00 +1000 https://www.mckfs.com.au/blog/mckfs-office-closed-for-australian-day-public-holiday https://www.mckfs.com.au/blog/mckfs-office-closed-for-australian-day-public-holiday The team at McKinnon Financial Services hope you and your family enjoy your Australia Day holiday next Monday, the 26 January 2015. Our office will be closed for the public holiday, but it will be business as ususal from Tuesday, 27 January 2015. If you need anything urgently on the day, you can still call our office and leave message. Your message will then be forwarded to Dean and Vicky's mobile phones, for immediate action. Mon, 19 Jan 2015 13:00:00 +1000 https://www.mckfs.com.au/blog/trauma-insurance-is-a-waste-of-money----until-you-need-it- https://www.mckfs.com.au/blog/trauma-insurance-is-a-waste-of-money----until-you-need-it- There a lot of people that would consider spending thousands of dollars paying for a Trauma Insurance policy is a waste of money...until, that is, they (or someone they know) is diagnosed with cancer, or suffers a heart attack. Just before Christmas this year, one of our clients was diagnosed with cancer, and as we go through the process of managing the claims process for them, some very real reasons for having a quality Trauma Insurance policy from a reputable life insurance company have become apparent. Based on our actual experience (and not just a scenario), here's a brief su... Wed, 14 Jan 2015 14:00:00 +1000 https://www.mckfs.com.au/blog/first-priority-for-2015-financial-planning---your-holidays- https://www.mckfs.com.au/blog/first-priority-for-2015-financial-planning---your-holidays- Vic and I sat down earlier this week, to commence our planning for the 2015 calendar year, and the first item on our agenda? When are we going on holidays?! Now, you might think that planning for your holidays would be the lowest priority, after having just completed a two-week Christmas/New Year holiday break, but in fact, planning for your holidays should be your first 2015 planning priority. Here's why: In order to plan for your 2015 financial objectives, you need to know a) how much you'll be spending on your holidays in 2015; b) if your holiday pay will cover... Fri, 09 Jan 2015 13:00:00 +1000 https://www.mckfs.com.au/blog/mcquiz-coming-in-2015---regular-prizes-to-be-won- https://www.mckfs.com.au/blog/mcquiz-coming-in-2015---regular-prizes-to-be-won- We're in the final stages of development for MCQUIZ - McKinnon Financial Service's new financial-concept based quiz, which we intend to run regularly in 2015, and will include prizes for the winners! Following is the basic outline for MCQUIZ: 3 to 5 questions to be answered Answers will be found in our regular Blog Posts and Articles Each winner will receive a prize (including Gift Vouchers) First response to include all correct answers will be the winner We're hoping to have MCQUIZ finalised before the end of January 2015, so make sure you... Wed, 07 Jan 2015 13:00:00 +1000 https://www.mckfs.com.au/blog/home-loan-4-68--variable-rate-offer-extended-to-30-january-2015 https://www.mckfs.com.au/blog/home-loan-4-68--variable-rate-offer-extended-to-30-january-2015 I recently arranged a mortgage loan for a client to purchase their own home, with a variable annual interest rate of 4.68%, linked Mortgage 100% Offset Account, and NIL Application Fee. The lender has now confirmed this special rate offer will be extended to Friday 30 January 2015. This loan rate is not an introductory rate, and is based on a margin discount to the standard variable rate, which means the interest rate will be lower than the standard rate during the entire loan term - as opposed to an Introductory Rate Offer, which reverts back to the Standard Variable Rate after the ... Mon, 05 Jan 2015 14:00:00 +1000 https://www.mckfs.com.au/blog/2014-property-values-increase-7-9- https://www.mckfs.com.au/blog/2014-property-values-increase-7-9- A recent property report from CoreLogic RP Data has confirmed property values in capital cities has increased on average 7.9% during the 2014 calendar year. The report also indicated the average was trending downwards, citing the 2013 calendar year average was 9.8%. Brisbane's average was 4.8% for the 2014 calendar year. Mon, 05 Jan 2015 13:00:00 +1000 https://www.mckfs.com.au/blog/mckfs-christmas-and-new-year-office-closure-times https://www.mckfs.com.au/blog/mckfs-christmas-and-new-year-office-closure-times Our office will be closed from Saturday 20 December 2014, and re-opening on Monday 5 January 2015. If your matter is urgent, please call our office on 1300 261 373, leave a message. Your message will be instantly emailed to Dean and Vicky's mobile phone, and we will contact you as soon as possible. The McKinnon Financial Services' team would like to also wish you and your family a very merry Christmas, and a prosperous 2015! Wed, 10 Dec 2014 12:00:00 +1000 https://www.mckfs.com.au/blog/solution-for-obtaining-home-loans-using-family-gift-as-deposit https://www.mckfs.com.au/blog/solution-for-obtaining-home-loans-using-family-gift-as-deposit I have had several recent enquiries from clients requiring home loans, but have not been able to obtain a mortgage loan as part, or all, of their deposit had been 'gifted' to them by their family. Some lenders won't accept the family 'gift', so below is a summary of a solution I recently developed for one of my clients. ??Scenario The client wanted to buy their first home, with a purchase price of $316,000 The client demonstrated their ability to meet the proposed loan repayments The client had been renting their existing home for about 18 mont... Tue, 30 Sep 2014 13:00:00 +1000 https://www.mckfs.com.au/blog/----1-000-cash-back-for-finance-settled-in-september-2014 https://www.mckfs.com.au/blog/----1-000-cash-back-for-finance-settled-in-september-2014 We have a new cash-back offer for all finance deals settled by 30 September 2014 - details follows: $500 Cash-Back for Amount Financed $50,000 to $75,000 $1,000 Cash-Back for Amounts Financed $75,000+ Offer is subject to approved applicants only, and the finance must settle by 30 September 2014. Wed, 10 Sep 2014 12:00:00 +1000 https://www.mckfs.com.au/blog/highest-capital-gain-in-residential-property-since-gfc https://www.mckfs.com.au/blog/highest-capital-gain-in-residential-property-since-gfc A recent RP Data report has confirmed some of the highest residential property gains since 2007 (the year before the GFC). Following are some interesting highlights of the report: Brisbane city property increased 1.30% during the quarter - 5.40% for the year Brisbane city has an average house price of $445,000 Brisbane city's rental income return 4.50% for houses, and 5.40% for units Best performing capital city was Melbourne with +6.40% (but it's way too wet and cold to live there!) Weakest performing capital city was Hobart with -0... Thu, 04 Sep 2014 11:00:00 +1000 https://www.mckfs.com.au/blog/negotiating-property-purchase-for-client https://www.mckfs.com.au/blog/negotiating-property-purchase-for-client Today, I started the process of acting for a client for the proposed purchase of a commercial property. Following is a list of reasons why appointing an independent representative to act on your behalf, when negotiating the purchase of a property, may help you make the whole process a lot less stressful: The independent representative usually does not have an emotional or financial stake in the transaction, which may increase your chances of achieving your budgeted purchase price Depending on your relationship with the representative, they are likely to take into ... Tue, 12 Aug 2014 09:00:00 +1000 https://www.mckfs.com.au/blog/how-to-achieve-50--return-on-your-investment--government-guaranteed- https://www.mckfs.com.au/blog/how-to-achieve-50--return-on-your-investment--government-guaranteed- Usually I don't like these types of 'too good to be true' statements, but this one is actually legitimate. The federal government's Superannuation Co-Contribution Scheme is still available, but with some limitations: Your assessable income for the 2014 Financial Year has to be no more than $33,516 You have to make a non-deductible contribution to your super, before 30 June 2014 The federal government will co-contribute 50% of your contribution, up to a maximum of $500 So if you make a non-deductible contribution to your super of $1,000, befor... Wed, 11 Jun 2014 11:00:00 +1000 https://www.mckfs.com.au/blog/negative-interest-rates--how-exciting--yawn- https://www.mckfs.com.au/blog/negative-interest-rates--how-exciting--yawn- The European Central Bank (ECB) recently annouced it was offering negarive interest rates - what does that mean, and why should you care? Here's a simple explanation for you (try not to fall asleep): Banks generally have to deposit some of their money with a central bank (to make sure they have enough cash if their own depositers want their money back) Banks may also deposit money with a central bank, as it's considered a 'safe' investment When economic times are shakey (like they've been since the GFC in 2008), banks don't like to gam... Sat, 07 Jun 2014 10:00:00 +1000 https://www.mckfs.com.au/blog/increasing-super-contributions-with-salary-packaging https://www.mckfs.com.au/blog/increasing-super-contributions-with-salary-packaging I recently developed a strategy for a client which, in effect, will increase their compulsory employer superannuation contributions. Employers often 'package' their employee's remuneration package, possibly including a car allowance. However, some employers only calculate their compulsory super contributions based on the gross base salary (which doesn't include the car allowance component) If the car allowance component is say $17,000, the employee may miss out on $1,572.50 in compulsory super contributions (even higher as of July 2014) My recommendati... Thu, 05 Jun 2014 10:00:00 +1000 https://www.mckfs.com.au/blog/special-finance-rate-offer https://www.mckfs.com.au/blog/special-finance-rate-offer We've received notice from one of our Financiers confirming some special finance rate offers for vehicles and equipment (new and used). Term Interest Rate 3 Years 5.05% 4 Years 5.29% 5 Years 5.52%         The offer is only for the next two weeks, and some conditions apply, so if you're in the market for a new car, or need to update some equipment, contact us now. ... Tue, 18 Feb 2014 10:00:00 +1000 https://www.mckfs.com.au/blog/special-finance-rates https://www.mckfs.com.au/blog/special-finance-rates One of our lenders has posted a series of Special Finance Rates: 5.20% for 3 year term 5.45% for 4 year term 5.65% for 5 year term There Special Rates are for a limited time only, and conditions apply, so if you're thinking about buying a vehicle or equirpment (new or used) Contact Us for further details. Tue, 28 Jan 2014 09:00:00 +1000 https://www.mckfs.com.au/blog/smsf--a-couple-of-key-differences https://www.mckfs.com.au/blog/smsf--a-couple-of-key-differences A Self-Managed Super Fund (SMSF) is very similar to public super funds, but they have some key advantages for investors, which are not available in public super funds. The Investor Selects the Investment Public super funds pool monies from all of their members and then the fund's manager decides which investments to buy, sell or keep. A SMSF is effectively restricted to a maximum of four members, and are usally family members (e.g. husband, wife, and children). As they are the only members, they decide what assets to buy. A SMSF Can Buy Direct Property When a publ... Thu, 05 Dec 2013 10:00:00 +1000 https://www.mckfs.com.au/blog/vicky-places-3rd-in-tour-de-tamborine-trail-race- https://www.mckfs.com.au/blog/vicky-places-3rd-in-tour-de-tamborine-trail-race- Congratulations to Vicky, for completing her very first trail race last Saturday! Here are Vicky's statistics for the race: 3rd in age group (females - a lady doesn't disclose her age!) 7th for females (out of a total of 108 female competitors) 40th overall (out of a total of 213 total male and female competitors) Distance 15 klm Total time 1hr 54 mins Not bad for her very first race! Mon, 02 Dec 2013 12:00:00 +1000 https://www.mckfs.com.au/blog/family-help-to-buy-a-home https://www.mckfs.com.au/blog/family-help-to-buy-a-home With such high rents and property prices, it may difficult to purchase a property, but in some cases your family may be able to help, without having to actually give you any money. Mortgage Insurance Most mortgage lenders will offer mortgage-insured products, but usually a minimum deposit of 5% of the property purchase price is required. An median-price house may cost between $400-$500,000, which means you would need to have saved at least $20-$25,000, plus the mortgage insurance premium and property purchase costs (e.g. stamp duty, legal fees, etc.). It is likely, just t... Wed, 27 Nov 2013 09:00:00 +1000 https://www.mckfs.com.au/blog/why-consider-optional-benefits-for-life-insurance-policies- https://www.mckfs.com.au/blog/why-consider-optional-benefits-for-life-insurance-policies- Most Life Insurance policies offer Optional Benefits, but how do you choose which ones are likely to benefit you the most, and fit within your budget? Cost/Benefit Analysis Usually, Optional Benefits increase the cost of the policy premium, so you need to ensure the options you choose are likely to benefit you. For example, why would you need Needlestick Injury cover, if you weren't a medical practitioner? But if you were an active person and enjoyed a lot of physical activity, increased rehabilitation and home bed care Optional Benefits may allow you to recover from a... Tue, 26 Nov 2013 09:00:00 +1000 https://www.mckfs.com.au/blog/use-gst-to-reduce-finance-repayments https://www.mckfs.com.au/blog/use-gst-to-reduce-finance-repayments It may be possible for your to reduce your Finance Repayments by using the GST you've paid on the vehicle or equipment purchase. Consider this scenario: You purchase a new vehicle for $50,000 + GST ($5,000) You Finance the entire $55,0000 (purchase price, including GST) You estimate you will receive $5,000 GST refund in the next BAS (the GST you just paid on the vehicle) You structure the Finance to include a $5,000 payment after the BAS refund is due The $5,000 one-off payments is similar to a deposit, except it is paid after you purchase the vehi... Mon, 25 Nov 2013 09:00:00 +1000 https://www.mckfs.com.au/blog/how-do-you-find-lost-super- https://www.mckfs.com.au/blog/how-do-you-find-lost-super- In some cases, you can obtain details about your lost superannuation policies, and contributions made on your behalf, from the Federal Government. The federal government, via the ATO,  has set-up a website specifically to help you keep an eye on your superannuation investements, including helping you to find your lost super: Click Here to go to the SuperSeeker Website The SuperSeeker website will help you to: Check what contributions have been made to your current super accounts (a good way to check and make sure your employer is making contributions to your supe... Thu, 21 Nov 2013 09:00:00 +1000 https://www.mckfs.com.au/blog/what-is-a-lo-doc-mortgage-loan- https://www.mckfs.com.au/blog/what-is-a-lo-doc-mortgage-loan- It's a finance-industry term referring to the income evidence required by a lender (mortgage or finance) to prove your ability to repay the loan. Do You Need to be Earning Income? Yes. Th common misconception about Lo-Doc loans is that you don't need to be earning income. You need to be earning income, but you may not necessarily have to prove your income. A standard loan application will ask you to provide proof of your income (e.g. Tax Returns, Company Profit and Loss and Balance Sheet Statements, etc.), but most Lo-Doc loan applications only require you to sign a d... Wed, 20 Nov 2013 11:00:00 +1000 https://www.mckfs.com.au/blog/are-income-insurance-claim-payments-taxable- https://www.mckfs.com.au/blog/are-income-insurance-claim-payments-taxable- When calculating how much Income Insurance you need, it's easy to overlook the fact that tax is payable on the Claim Payment received. How Much Tax is Payble? That depends on your taxable income. Income Insurance Claim Payments are effectively treated as taxable income, which is added to any other taxable income you receive, such as rental property income, etc. Will It Be Enough? That depends on your expenditure. Consider this comparison of Employment Wages and Income Insurance Claim Payment: Employment Wages $70,000 ... Tue, 19 Nov 2013 12:00:00 +1000 https://www.mckfs.com.au/blog/what-is-the-ppsr- https://www.mckfs.com.au/blog/what-is-the-ppsr- PPSR stands for Personal Property Security Register. The PPSR commenced 30 January 2012, and replaced the Motor Vehicle Security Register (MVSR). What Does It Do? Here's the best summary I've seen: The PPS Register is a notice board which allows individuals and organisations to search and register security interests in personal property. Effectively, the PPSR is used to record all interests on personal property (e.g. Finance), so you can check the property you are buying is not under finance, or being used as a security for any other purpose (e.g. personal loan). ... Mon, 18 Nov 2013 09:00:00 +1000 https://www.mckfs.com.au/blog/free-coffee-at-mckfs- https://www.mckfs.com.au/blog/free-coffee-at-mckfs- Congratulations to Steve - the first of our many clients to enjoy a free brew on his way to work! Fri, 15 Nov 2013 10:00:00 +1000 https://www.mckfs.com.au/blog/what-client-service-options-do-mckfp-offer- https://www.mckfs.com.au/blog/what-client-service-options-do-mckfp-offer- McKinnon Financial Planning has three Client Service Options available: Total Service Client Essentially, we take care of all of your financial needs for you, so you don't have to worry about anything - including: Developing and reviewing a Comprehensive Financial Plan Consolidating and maintaining Superannuation (including Self-Managed Super Funds) Arranging and maintaining salary-packaging Arranging and maintaining Life Insurances Arranging Finance (Vehicle and Equipment) Arranging Mortgage Home Loans Arranging Business Loans ... Fri, 15 Nov 2013 09:00:00 +1000 https://www.mckfs.com.au/blog/what-are-the-changes-to-super-tax-deductions- https://www.mckfs.com.au/blog/what-are-the-changes-to-super-tax-deductions- There were some changes to the taxation of superannuation contributions, as of the 1st July, 2013. Here's a quick summary of the changes to tax-deductible superannuation contributions: Tax-Deductible Super Contributions In their wisdom, some years ago now, the government thought it would be a great idea to change the reference term for tax-deductible super contributions from the easy-to-remember 'Tax Deductible Contributions', to the what-the 'Concessional Contributions'. Isn't so much easier to remember 'Concessional', rather than 'Tax-Deducti... Thu, 14 Nov 2013 09:00:00 +1000 https://www.mckfs.com.au/blog/should-you-fix-your-mortgage-interest-rate- https://www.mckfs.com.au/blog/should-you-fix-your-mortgage-interest-rate- With interest rates at historical lows, it may be worth considering whether or not you should fix it. At least one of our lenders is offering a 5.49% fixed rate for 5 years - that's low. Following are some guidelines, which may help you decide: Are You on a Tight Budget? If you're on a tight budget, fixing your interest rate will at least give you peace of mind, knowing your repayments won't change during the fixed rate period. Do You Expect Any Changes in Your Circumstances? Generally fixed rate mortgage products have a penalty, if you pay out your mortga... Wed, 13 Nov 2013 09:00:00 +1000 https://www.mckfs.com.au/blog/how-the-economy-works-in-30-minutes https://www.mckfs.com.au/blog/how-the-economy-works-in-30-minutes How the economy actually works is not an exact science, because an economy is made up of people....and people can be unpredictable and emotional creatures, at times, so we can do things that don't make sense. But if you want a broad-brush view of how the economy is supposed to work, go to to this YouTube site of Ray Dalio's, and spend 30 minutes. Ray has provided one of the best explanations of how an economy basically works, so it's worth the time. Here's the link: http://www.youtube.com/watch?v=PHe0bXAIuk0 ... Tue, 12 Nov 2013 14:00:00 +1000 https://www.mckfs.com.au/blog/does-your-income-insurance-replace-your-income- https://www.mckfs.com.au/blog/does-your-income-insurance-replace-your-income- I recently finalised a data audit for a client's Life Insurance Review. As part of my detailed audit process, I discovered the client was only covered for half of their insurable income, and they had to prove their income at the time of claim! What Does Income Insurance Cover? It's a good question. Unfortunately there is no simple answer (of course there isn't). As with most insurance contracts, what your income insurance actually covers depends on the insurer and the terms of the contract. A GDM Life Rule applies here: you get what you pay for. There are two ... Tue, 12 Nov 2013 09:00:00 +1000 https://www.mckfs.com.au/blog/mckfs-office-has-a-new-coffee-machine- https://www.mckfs.com.au/blog/mckfs-office-has-a-new-coffee-machine- After many threats and promises, we finally had our new coffee machine installed at our new East Brisbane office today! We'll now be able to make our clients cafe-style coffee (just like a bought one), with our own supply of fresh Genovese coffee beans (supplied by the lovely Kylie - Genovese Coffee rep. for QLD), ground with our own grinder (also supplied by the lovely Kylie), and freshly brewed using our coffee-shop strength machine (nothing is too good for our clients!). Here's the lovely Vicky demonstrating our new wiz-bang machine: We look forward to seein... Thu, 19 Sep 2013 16:00:00 +1000 https://www.mckfs.com.au/blog/gdm-fast-finance https://www.mckfs.com.au/blog/gdm-fast-finance We received two Finance requests today, one of which needs to be settled by this Friday (and the client doesn't live in Brisbane!). No problem with speedy-Vicky-service, though. Both requests were completed by this afternoon. One of the main reasons we were able to sort out these Finance deals so quickly was because we had all of the clients' current information - yet another benefit of our Total Service Client option. Tue, 17 Sep 2013 16:00:00 +1000 https://www.mckfs.com.au/blog/gdm-assists-client-to-research-business-premises https://www.mckfs.com.au/blog/gdm-assists-client-to-research-business-premises One of my Total Service Clients is assessing commercial premises to purchase, which they will use for their own business. This will be their first commercial property, so they have requested I assist them with their research. I have been co-ordinating with the client and several real estate agents, including obtaining detailed property research reports for various properties (free of charge, as they are a Total Service Client), to assist the client assess if the property is suitable for them. Today I completed a detailed analysis of a property for them, which indicated, from a ba... Mon, 16 Sep 2013 17:00:00 +1000 https://www.mckfs.com.au/blog/this-week--gdm---new-accountant https://www.mckfs.com.au/blog/this-week--gdm---new-accountant One of my long-term clients (who is also now a Total Service Client) was having some major issues (services and increasing costs) with their existing accountant, and they needed to make a change. As they are a Total Service Client, I had all of their relecant information, and I was able to introduce them to a new accountant, who acts for a number of our other clients. Today I met with the client and their new accountant and we presented a summary of all of the client (numerous) entities and legal structures, which I was able to prepare for the client, before the meeting. By provi... Mon, 12 Aug 2013 17:00:00 +1000 https://www.mckfs.com.au/blog/i-m-back-blogging- https://www.mckfs.com.au/blog/i-m-back-blogging- We've been moving into our new EAST BRISBANE office, so I haven't had time to BLOG, but we're basically settled-in now, so you'll be able to enjoy my BLOG posts, once again! Mon, 12 Aug 2013 17:00:00 +1000 https://www.mckfs.com.au/blog/this-week--gdm---age-pension-application https://www.mckfs.com.au/blog/this-week--gdm---age-pension-application I helped a new client finalise their Age Pension Application forms today. The forms and processes Centrelink require you to complete these days is just out of control, so the client wanted to make sure they had everything right, before they submitted the forms for processing. As I was in the process of completing the new client's Financial Plan, I had all of the information necessary, so I was able to assist the client to put the finishing touches on their Application. Of course, for our Total Service Clients, I help them to complete their Age Pension Application any time the... Mon, 12 Aug 2013 17:00:00 +1000 https://www.mckfs.com.au/blog/this-week--gdm---purchase-your-own-business-premises https://www.mckfs.com.au/blog/this-week--gdm---purchase-your-own-business-premises I had a client contact me earlier this week, to discuss options for purchasing their current business premises, which they are leasing, but have been given the opportunity of purchasing. I have only ever arranged Vehicle Finance for this client, and they are not a Total Service Client, but that doesn't mean I may not be able to help in some way. I had a general idea of the client's circumstances, given my past dealing with them, so I was able to discuss the general issues relevant to the property purchase, and possible mortgage strategies - including Self-Managed Super Fu... Mon, 12 Aug 2013 15:00:00 +1000 https://www.mckfs.com.au/blog/this-week--gdm---friday-28-june-2013 https://www.mckfs.com.au/blog/this-week--gdm---friday-28-june-2013 It is difficult to convey the actual value of dealing with a Financial Planner or Adviser. I consider myself a Comprehensive Financial Planner, which means that I act as an advocate for my clients in all of their financial dealings. Even that explanation may be difficult for a new client to understand what value I can be to them, so I decided to complete a weekly BLOG of some of the tasks I undertake for my clients on a weekly basis. If you are considering using me as your Financial Planner or Adviser, I hope my BLOG will help you understand what I can do for you, and if you're an e... Fri, 28 Jun 2013 11:00:00 +1000 https://www.mckfs.com.au/blog/this-week--gdm---friday-7-june-2013 https://www.mckfs.com.au/blog/this-week--gdm---friday-7-june-2013 It is difficult to convey the actual value of dealing with a Financial Planner or Adviser. I consider myself a Comprehensive Financial Planner, which means that I act as an advocate for my clients in all of their financial dealings. Even that explanation may be difficult for a new client to understand what value I can be to them, so I decided to complete a weekly BLOG of some of the tasks I undertake for my clients on a weekly basis. If you are considering using me as your Financial Planner or Adviser, I hope my BLOG will help you understand what I can do for you, and if you're a... Fri, 07 Jun 2013 11:00:00 +1000 https://www.mckfs.com.au/blog/this-week--gdm---friday-31-may-2013 https://www.mckfs.com.au/blog/this-week--gdm---friday-31-may-2013 It is difficult to convey the actual value of dealing with a Financial Planner or Adviser. I consider myself a Comprehensive Financial Planner, which means that I act as an advocate for my clients in all of their financial dealings. Even that explanation may be difficult for a new client to understand what value I can be to them, so I decided to complete a weekly BLOG of some of the tasks I undertake for my clients on a weekly basis. If you are considering using me as your Financial Planner or Adviser, I hope my BLOG will help you understand what I can do for you, and if you're a... Fri, 31 May 2013 09:00:00 +1000 https://www.mckfs.com.au/blog/the-terms--financial-planner---financial-adviser--enshrined-in-law https://www.mckfs.com.au/blog/the-terms--financial-planner---financial-adviser--enshrined-in-law The terms 'Financial Planner' and 'Financial Adviser' are about to be enshrined in law. Effectively, this means that it will be a legal offence to call yourself a Financial Planner or Financial Adviser, unless you are licenced, and therefore suitably qualified. This is important for clients when seeking professional advice about their financial requirements, because they will now have the confidence of knowing they are actually dealing with a qualified and licenced Financial Adviser. Up until this legislation was introduced, anybody could call themselves a Fin... Wed, 29 May 2013 15:00:00 +1000 https://www.mckfs.com.au/blog/share-market-18-81--1-year-return https://www.mckfs.com.au/blog/share-market-18-81--1-year-return The Aussie Share Market is well and truly gaining momentum, which has been building throughout 2012. The ASX All Ordinaries Accumulation Index posted a one year return of 18.81%, as at December 2012, which doesn't include January's stellar performance. It's about time! Fri, 15 Feb 2013 15:27:00 +1000 https://www.mckfs.com.au/blog/the-value-of-a-life-insurance-broker https://www.mckfs.com.au/blog/the-value-of-a-life-insurance-broker It's getting harder and harder to deal with large corporations such as Life Insurance companies. They sprout-on about what good service they provide, how it's so easy to deal with them, and are quick to tell you if they won an award for their customer service, but quite often they're just too big to provide a personal service. A client of mine recently discovered that thier Life Insurance premium was deducted twice from thier Credit Card. Fortunately, as I am their Life Insurance Broker, they didn't have to deal directly with the Life Insurance company - they only had... Mon, 11 Feb 2013 15:57:00 +1000 https://www.mckfs.com.au/blog/borrow-to-pay-for-your-life-insurance-and-save-money https://www.mckfs.com.au/blog/borrow-to-pay-for-your-life-insurance-and-save-money I completed a Life Insurance Assessment for a client today and, in effect, I recommended that they borrow to pay for their Life Insurance premiums. I calculated that the overall cost to borrow the Annual Premiums, including the Interest, was lower than paying the premiums monthly. Premium Frequency Loadings: Life Insurance companies usually add a 'premium frequency loading' if you elect to pay the premiums on a Monthly, Quarterly or Half-Yearly basis. Home Loan or Mortgage Offset Account: If you Redraw the Annual Premium from your Home Loan, or withdraw the ... Wed, 17 Oct 2012 15:42:00 +1000 https://www.mckfs.com.au/blog/qsuper-insurance-won-t-cover-pre-existing-medical-conditions https://www.mckfs.com.au/blog/qsuper-insurance-won-t-cover-pre-existing-medical-conditions One of the advantages of having Life Insurances included in your Qsuper Superannuation fund was that you are automatically accepted (up to a certain amount). If you couldn't obtain cover direct with a Life Insurer, at least you still had some Life Insurance in your Super. I've just researched Qsuper's latest Life Insurance Benefit Guides (for a comprehensive Financial Plan I am preparing for a client), which confirms that whilst Qsuper automatically provides Death cover, they won't pay the full Death Benefit 'if, in the QSuper Board's opinion, your death i... Thu, 27 Sep 2012 10:17:00 +1000 https://www.mckfs.com.au/blog/age-pension-increases-on-20-sept-2012 https://www.mckfs.com.au/blog/age-pension-increases-on-20-sept-2012 The Age Pension Payment is set to increase tomorrow, Thursday, 20 September 2012. Following are the highlights: Age Pension Increases | 20 September 2012   Fortnightly Payment Current Amount The New Amount Total Increase Single Base Fortnight 695.30 712.00 16.70 Supplement 60.20 60.60 0.40 Total Payment 755.50 772.60 17.10 Partnered (Total) ... Wed, 19 Sep 2012 10:47:00 +1000