Wealth Creation with Property or Shares – October 2016







Hear from our expert speakers on – Property investing, share market investments
and borrowing to invest.

Understand the risks and how to manage them.


The Line Up………

Brent Kelly and Brent Cerutti,  Financial Planners, Kelly Wealth Services
-are you keen to invest in shares but not sure where or when to start?
-we will explore the benefits of investing in shares and managed funds
-discuss managing the risks

Lainie Poon, Lending Advisor, Kelly Wealth Lending Services
-how do you prepare your finances before making the leap into property investment
-we will explore the different loan options suited to property investors, keeping you in control
-who do you need on your team

Craig Whaley, CEO of NPA Property Group
-learn from one of Australia’s most successful Property Advisors
-do you want to start your property investment journey or have you already started?
-we will hear some expert tips on building wealth using property and the opportunities available

Our aim is to share knowledge and information
and be available to provide advice when you need.



DATE:   Wednesday, 19th October 2016

TIME: 5:45pm for commencement at 6:00pm Sharp – 7:30pm

WHERE: Novotel Cairns Oasis Resort, Lake Street, Cairns

RSVP: Seating is limited – Booking is essential



Should I have a corporate trustee for my SMSF

The million dollar question

One of the many decisions with establishing your SMSF initially is to decide on the appropriate trustee structure.  Two choices are, using a corporate trustee or using individual trustees.  Both of which have unique benefits and attributes associated that should be considered carefully for the initial establishment and in the future as your fund evolves.


The differences

Selecting individual trustees for an SMSF is very quick, it removes a lot of the complexity behind the structure of your overall SMSF framework and there are also no costs associated with creating a corporate trustee (a Proprietary Limited company with directors).  This is very useful in the case of a husband and wife that require the added control and flexibility to their superannuation but do not require added costs or complexity.

On the other hand there is the use of a corporate trustee which may be the more suited choice. A corporate trustee can aid in administration by having a single trustee that can add or remove members of the fund if needed.  A corporate trustee can hold investments in the company trustee name as opposed to the names of the individual trustees, making transfers and deceased estates less of a burden.


Rhyme, reason and requirement

As with many aspects of an SMSF there are limitations and requirements involved for trustee fork in the road decision.  For instance, if you it will be a single member of the fund or you will want the SMSF to be able to borrow funds in the future. You will need and corporate trustee.

A simple reason to nominate to have a corporate trustee is it offers future flexibility and protection in case something goes wrong, for example a premature death and divorce are common complexities that make having a corporate trustee a better choice.


What to do?

With so many options, and every option has a future impact, getting the decision right is important. You will need a guide! By that I mean a financial planner guide you.  Allowing for clean and clear vision for what structure you would need and benefit from.  All that’s needed is for you to take the first step and book an appointment with an advisor.

The IFA Women in Finance Award

Kelly Wealth Lending Services and Lainie Poon are finalists for a National Award. The IFA Women in Finance Awards. Well done Lainie Poon.

Women in Finance 2017 Awards – Finalist Announcement

Kelly Wealth Services and Lainie Poon have been shortlisted for the prestigious Women in Finance Awards, partnered by National Australia Bank in the category of ‘Women’s Community Program of the Year’ for their ‘Creating Wealthy Women’ seminars.

Founded in 2007, Kelly Wealth Services and Kelly Wealth Lending Services offer full financial planning and mortgage broking services to clients in Cairns, the Tablelands and the wider FNQ community. They specialises in assisting with wealth creation, retirement planning, investment strategies and lending services.

In its inaugural year, the Women in Finance Awards, which covers 28 categories, recognises the outstanding work of women within financial services.

“This awards event is an Australian-first program that truly pulls together all areas of financial services under one umbrella to celebrate success and excellence,” said Momentum Media’s head of events, Jim Hall.

“We are set for a superb awards presentation. The judges have a tough job on their hands this year and there will no doubt be much excitement to hear their verdicts.

“The winners will not only represent inspirational high achievers from the financial sector, but also recognise the rising stars of tomorrow,” he added.

Lainie Poon, Lending Advisor at Kelly Wealth Services, said she was humbled by the nomination and it was fantastic to see Cairns represented on this national stage.

“Kelly Wealth Services’s recognition for its excellent contribution to the FNQ community reinforces the strength of the brand in connecting with the community and engaging with its customers,” she said.

The winners will be announced at a black-tie awards dinner on Thursday, 21 September at The Star, Sydney.


Connective Excellence Awards 2017 – Best Customer Service

We’re very excited to announce that Lainie Poon, Kelly Wealth Lending Services has been nominated for Best Customer Service in the Connective Excellence Awards 2017, an awards program just for mortgage brokers.

But we need your help to win it!

We need you, our wonderful clients and colleagues, to vote for us. We’d like to ask you to please vote online by August 31 to help us win this award. It doesn’t matter if a client has proceeded with us or not  – this award is in recognition of the great customer service they have received along the way. And to say thanks for voting, you go in the running to win four Gold Class movie tickets.


Thank you – your vote is greatly appreciated!

How to  choose the right super fund if you’re Self-Employed  or a Business Owner?

How to  choose the right super fund if you’re Self-Employed  or a Business Owner?

Do I update my SMSF trust deed?

By Kelly Wealth Services

It’s been a while

Your SMSF is going well.  Investments are producing great returns and members of the fund are happy with the results.  The structure is right and the administration has been taken care of.

All is good right?  Hmmm…But how long ago was your fund established? Ten years ago you say!!!  My word, how old is your SMSF trust deed then?

The big question

The big question to ask is, should I or shouldn’t I update my SMSF trust deed?  Superannuation rules in the past ten to twenty years have changed considerably and if the trust deed hasn’t been updated frequently or at all, you may face certain risks, some of them potentially high. You may not know you’re in breach of your deed until you’re audited. In other words, the change you perform in your SMSF may be an allowable superannuation rule in line with current legislation, but if your trust deed may not allow for it.  Sadly to say, if your trust deed does not allow for it then it’s not an allowable rule for you or your fund.

What do you do?

Lucky their are alternatives.  The first alternative is a deed of variation.  The purpose of a deed of variation is to replace the terms of an existing trust deed but without actually removing the existing trust deed, providing a similar behaviour to replacing a trust deed.  Yes I know, confusing but acceptable by all means.

The second alternative is that you actually do update your entire SMSF trust deed, perhaps on a regular basis.  An update may not be for everybody but this may not be as scary as above for some.  In fact many funds can benefit from updating the trust deed with a new one and not be so much affected by this action.

Yes or No?

In conclusion to the big universal question, do I update my SMSF trust deed?  That I would advise you consult with your three wise men, the accountant, the administrator and as always your trusted financial planner.  These valuable discussions will surely reveal a more definitive answer to the big universal question and provide insight into the right decision for you and your fund.

Is Superannuation biased against Women?

Is superannuation biased against women?

Brent Kelly discusses this and gives his perspective, along with what can be done.

Should I own Insurance through my Superannuation Fund?

by Brent Cerutti, Kelly Wealth Services

It is now impossible to distinguish superannuation advice and personal insurance advice. Many years ago these were two quite separate issues in both advice and product. Now almost everybody receives some level of insurance within their superannuation fund when it is started.

In order to ascertain whether your existing cover is adequate I would consider asking yourself the following questions:

  • What type of policies do I need? Is it life insurance, total permanent disablement, income protection or trauma?
  • How much insurance cover do I need in dollar terms?
  • Is it for personal or business purposes?
  • What existing cover do I have in my superannuation account?

Once you have worked out what you need you can then check that off against what you already have. The next part of the analysis that we look at as advisers, is to work out the quality of the insurance that you may already have.  This is often where it can get more complicated. The quality of insurance within superannuation varies widely. There are many very good quality insurance options available to superannuation funds as well as many very poor quality insurers.

 No one knows what the future will bring. That’s why it helps to plan ahead.

Like all insurances, the devil is in the detail, or in these cases, the product disclosure statement.

It is important to understand what exactly you are covered for, and just as importantly if there are any exclusions on the insurance policies.

As an advisor in Cairns & FNQ, our clients are only too aware of how the policy wording can affect your ability to claim in general insurance cases (think cyclones and floods).

The same principle applies to your life insurance, income protection or trauma.

Although cost is a big consideration, quality is paramount. After all, these policies need to be able to pay you and your family in a timely manner in your greatest time of need.

Do something today that your future self will thank you for.

Once you have worked out what your needs are, you should also ask yourself whether the policies should even be owned within a superannuation fund. There are different tax treatments of benefits paid and premiums paid depending on the ownership structure you choose.

As a general rule, life insurance can be held within superannuation and is paid tax-free to a “superannuation dependent.”  There is potentially tax payable if the beneficiary is not a “super dependent.”  A Total and permanent disablement payment may be taxed depending on the manner and timing of the withdrawal.

Income protection can be owned by a superannuation fund, but there are some limitations to the quality of the product available. Income protection is also a tax deductible expense if you own yourself outside a super fund.  You are unable to own a trauma insurance policy inside super.

Lastly, one often overlooked consideration of whether you should own personal insurance policies through your super fund is that the premiums are paid from you retirement savings. Given that most people will struggle to save enough for their retirement having the added burden of insurance premiums paid from your super fund will only reduce your ability to save adequately for retirement.



When to see a Financial Planner

Today on 4CA  Brent discusses with Steve Ahmet, why people often avoid seeing a Financial Planner and  when they actually need to see one.

Should I own an SMSF?

By Kelly Wealth Services

Should I own an SMSF?  This is a good question and it’s also a relevant one.  Starting an SMSF can have many advantages but can also hold many disadvantages, depending on the reason for starting one.

Like many people, you have probably read or heard from someone that a Self-Managed Super Fund would give you the control you want and to even buy and own an investment property that you have been dreaming of however, this could spell trouble.

Sometimes questions are more important than answers.

Consider the following:

  • How much money will your SMSF hold and will these funds produce investment returns that cover ongoing administration accountancy and audit fees?
  • If you invest in that dream investment property, will this cause liquidity issues if you desire to draw an income stream from your SMSF?
  • Is your intention to live in the purchased investment property?
  • Are you prepared and do you have the available spare time to perform ongoing administration tasks for your SMSF?
  • Do you desire the high investment flexibility that comes with an SMSF and what will you invest in? Such as selecting your own investments?
  • Will there be more than one member? If so than how will these assets be separated or pooled together?
  • What kind of trustee structure will you use, corporate or individual?
  • Do you have a complex family structure or estate planning needs?
  • Are you self-employed? do you wish to buy your own business premises or have future CGT issues?

Questions such as these are extremely important and could spell the difference between a fruitful SMSF and a bad experience.

  In the book of life, the answers aren’t in the back – Charlie brown

 The Answer

The answer to the overall question, should I own and SMSF, is a difficult one, but one that can be answered by a financial planner.

That said, if you find yourself asking it, I would urge you to make the time, do your due diligence and book a consultation with a qualified financial planner to discuss if it’s appropriate for you and your needs.  It could save you thousands upon thousands of your superannuation balance.


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