Helping successful people make smart financial decisions Planning

Helping successful people make smart financial decisions Planning for Retirement…. Capital Preservation once you get there Presented by: Stephen Welsh* *Representatives of TYNAN MACKENZIE PTY LTD ABN 94 066 074 744 AUSTRALIAN FINANCIAL SERVICES LICENCE 230764

RETIREMENT PLANNING BRISBANE n Pre-retirement strategies n Retirement Strategies n Investing in Uncertain Financial Times SYDNEY WOLLONGONG TOOWOOMBA n Value of Advice MELBOURNE ADELAIDE Presented by: Stephen Welsh* *Representative of TYNAN MACKENZIE PTY LTD ABN 94 066 074 744 AUSTRALIAN FINANCIAL SERVICES LICENCE 230764 TOWNSVILLE

Who is Tynan Mackenzie? Independent financial advice for 17 years $3 bn under advice

IMPORTANT NOTICE The information provided in this presentation includes by its very nature, general information about complex areas such as taxation, superannuation and investing in securities. The information is current as at 1 October 2012. In compiling the information Tynan Mackenzie has not taken into consideration the investment objectives, financial situation or specific needs of any particular person. We caution you that before making any decisions based on this information you will need to consider, with or without the assistance of an appropriately qualified and authorised adviser, whether the information is appropriate with regards to your particular needs, investment objectives and financial situation. We would be delighted to offer you this assistance. TYNAN MACKENZIE PTY LTD ABN 94 066 074 744 AUSTRALIAN FINANCIAL SERVICES LICENCE 230764 LEVEL 13, 240 QUEEN STREET BRISBANE QLD 4000 GPO BOX 3108 BRISBANE QLD 4001 TELEPHONE (07) 3223 9300 FACSIMILE (07) 3223 9302 www. tynanmackenzie. com. au

Pre-retirement strategies

Salary Sacrifice – Effective threshold 15% FY 2012 FY 2013 46. 5% $180, 000 46. 5% 38. 5% $180, 000 $80, 000 31. 5% $37, 000 16. 5% $6, 000 Tax free $80, 000 34% 20. 5% $37, 000 $18, 200 Tax free

Super – Excessive Contributions 46. 5%

Super – Contribution Limits “Concessional” (Tax Deductible) $25, 000 $50, 000 limit remains for individuals 50+ with less than $500, 000 in Super (DEFERRED TO 1 JULY 2014)

Super Contribution – Understanding your Limits Salary: $100, 000 Standard Contribution: Salary Sacrificed (7. 05%) Assessable Contribution: 1. 2 x 14% x $100, 000 = $16, 800 2011 - 2012 Contributions Cap Assessable contributions Possible Voluntary Cont. 1 July 2012 $50, 000 $25, 000 ($16, 800) $33, 200 $8, 200

Super Contribution – Understanding your Limits BCC Salary: $100, 000 Standard Contribution: Salary Sacrificed (7. 05%) Assessable Contribution: 1. 2 x 13% x $100, 000 = $15, 600 2011 - 2012 Contributions Cap Assessable contributions Possible Voluntary Cont. 1 July 2012 $50, 000 $25, 000 ($15, 600) $34, 400 $9, 400

Excessive Contributions Relief • $10, 000 one off opportunity • Contribution refunded • Added back to taxable income

Superannuation Splitting • Employer contributions • Salary sacrifice contributions Superannuation Member • 85% of concessional contributions Superannuation Spouse Age 55 OR Age 55 – 65 Still working

Super – Contribution Limits “Non-Concessional” (Non-tax deductible) $ 150, 000 OR $450, 000 over 3 year period

Retirement Strategies

Superannuation Pensions 15% tax on earnings $1, 000 superannuation 0% tax on earnings 0% tax $1, 000 Account Based pension minimum* $40, 000 lump sum taxes no maximum Over 60 – 0% tax Under 60 - 15% tax rebate

Superannuation Pension - Nil tax at 60 Age 55 Pension income $ 40, 000 Taxable income Income tax Medicare Tax rebate (15%) Net income Age 60 Pension income $ 40, 000 (5, 147) (600) 6, 000 Taxable income Income tax Nil 39, 400 Net income Lump sum withdrawals tax free after age 60 40, 000

When do I Retire ? 2 Simple Questions 1. Have I got enough ? 2. Have I had enough ?

Investing in Uncertain Financial Times

Path Dependency

Strategic Asset Allocation

Accumulator v Retiree Accumulator • Short term volatility is irrelevant • End point is the key • Maximize returns $1, 000 = 1, 000 units $1. 00 $0. 90 $1, 000 = 1, 111 units Wealth creation $2. 00 111 X $2 = $222

Accumulator v Retiree • End point is not as important • Minimizing Short term volatility is the key $2. 00 - $1, 000 = - 1, 000 units $1. 00 $0. 90 - $1, 000 = - 1, 111 units Permanent destruction of capital - loss of 111 units

Pension Investments Traditional Strategy Pension Balanced Fund Monthly Pension $1. 00 $4, 000 $0. 80 - 4, 000 units - 5, 000 units

Pension Investments Capital Preservation Strategy Pension Monthly Pension $4, 000 Cash $1. 00 - 4, 000 units Balanced $1. 00 - 4, 000 units High Growth

Value of advice in difficult times

Value of Good Advice Avoid permanent destruction of capital Adhere to long term strategy

Pre-Retirement Tracking Service Initial Advice Complimentary Service No fees charged Annual Review Retirement Plan Fee for service charged Tynan Mackenzie Private Client Service

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