financial

 Self-managed superannuation

This weeks End of Financial Year tip.

Changes to Superannuation Concessional Caps: The key message that needs to be communicated to clients is that as of 1 July 2012, the concessional contributions cap will be $25,000 p.a. for all individuals – regardless of their age or their superannuation account balance. This means that an immediate review is required for clients aged 50 and over where those clients are making or receiving concessional contributions that are likely to exceed this $25,000 limit.

TIP 2: Concessional contribution cap review

Despite the frequent legislative changes made to superannuation, it remains the retirement savings vehicle of choice for the majority of Australians, with a number of effective strategies that advisers can recommend to clients who are seeking to maximise their retirement savings. However, advisers need to be aware of the ongoing viability and appropriateness of these superannuation strategies and also question whether other avenues of investment for retirement savings would be more suitable for their clients’ individual circumstances and financial objectives. 

From Financial Standard:

Mortgage Insurance or Lenders' Mortgage Insurance (also referred to as LMI) is the insurance that a lender takes out in case you, the borrower,  default and they have to sell your property used as a collateral.  

Mortgage insurance is based on a projected shortfall between the debt amount and what lenders think they could get for your property. Mortgage insurance can also be capitalised into the loan. Mortgage brokers usually cannot apply for mortgage insurance contracts.