Technical Basis – July 2009

Matthew Esler, General Manager of Strategy & Technical Services
Bill Faraj, Technical Services Manager
Reda Daher, Technical Analyst
Justin Labruna, Technical Analyst

Welcome to Technical Basis, Midwinter’s financial planning strategy and technical newsletter provided to subscribers of Midwinter’s Reasonable Basis, back2basis & Transition Manager financial advice systems.

Financial advisers and accountants may still be panting after another hectic end to a financial year, however, for the benefit of your clients it is important to regroup fast. As I have said to financial advisers in the past – the best financial planning or technical strategy is implemented at the beginning of the financial year – not at 30 June.

What types of strategy should be implemented at the beginning of the financial year?

• Contribution Optimisation – contributions for this FY should be organized now, particularly given that salary sacrifice contributions can only be made prospectively (i.e. not retrospective salary).
• TTR Pension Refresh – Advisers with TTR clients should be looking at the impact of Midwinter’s Pension Refresh strategy to take full advantage this FY – this consists of rolling your client’s existing pension and super fund into a new transition to retirement pension.
• Age Pension – Optimise eligibility by altering ABP drawdown – this strategy is extremely important given the falls in assets and income over the past 18 months. You also should be looking at the impact pre and post 20 September 2009 (when Federal Budget Age Pension changes kick in).
• SMSFs and Companies – SMSF trusts, companies, discretionary trusts, unit trusts, and pension funds are best established at the beginning of the financial year.
• For assistance in implementing any strategy using Midwinter’s Reasonable Basis, please call our Help Desk on 1300 882 938.

With the global markets having taken a battering, this month’s Technical Article – Enhancing your practice in a market downturn will provide advisers with some practical strategies on how financial advice software such as Midwinter’s Reasonable Basis should be a revenue driver as opposed to a cost centre.

We get told constantly by advisers how their monolithic financial planning software creates inefficiency in their financial planning practices. Our second feature article Technology shifting sands of financial planning recruitment highlights the ineffective recruitment within financial planning practices that has been largely driven by the complex and cumbersome planning tools they use.

Midwinter’s recent launches of the new Risk Insurance Comparator and Pension Switching modules (Super -> Pension & Pension -> Pension) have certainly attracted the spotlight of the media. To see what all the fuss is about regarding our new Risk Insurance Comparator click here and here for our new pension switching strategies.

The Status of Law reform section includes What’s Law & What’s Pending – two very handy summary documents keeping you abreast of the latest legislation and regulatory developments affecting all forms of financial planning and advice.

This month’s Tax News contains important information relating to general ATO information, tax determinations and rulings that are of relevance to financial advisers.

If you would like Midwinter’s Technical team to provide clarity on a particular subject please email your requests directly to myself at mesler@midwinter.com.au.

To arrange a free trial of Midwinter’s Reasonable Basis please click here and contact our friendly staff on 1300 882 938 for your access codes.