Welcome to CA’s Quarterly Newsletter
In this quarter’s newsletter we focus on important changes to deeming rules that may affect retirees eligibility to claim social security benefits. While this change applies to a specific demographic, we feel it’s important to communicate widely as we have found that many of our clients have parents or friends who are affected and could benefit from some guidance in preparing for the changes.
For those who aren’t quite at retirement stage and are still working hard to pay off the mortgage, we talk interest rates and share a case study of a recent client we helped with a comprehensive debt strategy.
We also introduce you to the three new members of the CA team.
Change to Government Deeming Rules – Act Now
The Government has made changes to the deeming rules that may affect retirees ability to claim social security entitlements. These changes will take effect from 1st January 2015, and will only impact those who;
- Are aged over 65 years of age as at 31st December 2014;
- Still have superannuation money in their accumulation account; and
- Qualify for Centrelink entitlements.
Therefore, taking that into account please be aware that;
- If you are already fully retired these changes DO NOT affect you.
- There appear to be many people who will be affected, but are unaware and do not have an Adviser. We know this because we have had many clients refer their friends to us, and we are more than happy to assist.
- We had also had clients introduce us to their parents, who are seeking reassurance that they will not be financially impacted. Again, we are happy to assist.
If you would like to discuss this with us, please contact us as soon as you can, as time is running out. For more detail, please refer to the our summary document, D-Day for Pensioners is Approaching. A recent publication by AMP, New Centrelink Rules for Income Support Payments, also provides a useful summary.
The Talk of the Town – Interest rates
Will interest rates go up before the end of the year? This is the million dollar question and along with the existence (or not) of a housing bubble, it makes for great dinner party conversation. Interestingly a recent article in The Australian newspaper highlighted the disparity amongst leading economists in their views on the timing of an interest rate increase. What they do seem to agree on, is that another cut is unlikely.
“Four of the economists surveyed by AAP said the RBA’s first rate hike in four years would occur in late 2014, and nine said there would be one or more increases in the first half of 2015.
Only two of the 13 economists surveyed say there will be another cut in the cash rate. The median forecast for the cash rate at the end of 2015 is 3.25 per cent.”
Source: Economists tip rates to rise to 3.25pc in 2015. The Australian Newspaper, March 31, 2014
At CA, we don’t have access to a crystal ball (wouldn’t it be nice just to know when rates will move!) but what we do have is many ways in which our mortgage broking division can assist you. With over 30 years combined experience, our team can help with:
- accessing the best loan rate and features for your home or investment loan
- reviewing your current loan to ensure it is the best loan for your needs
- structuring between variable and fixed rates to achieve the best outcome
- implementing debt strategies to help pay off your home sooner and consolidate debt
Due to our leading practice status and size, we are pleased to announce that CA has been given access to some great preferential mortgage rates. We are currently able to offer clients a very competitive variable rate of 4.70% as well as a 2 year fixed rate of 4.61% (with an Offset Facility) and a 5 year rate at 4.99%*.
As always, the lowest rate is not necessarily the best for you and our team will always take into account your holistic situation and long-term objectives before providing a debt strategy recommendation.
*These interest rates are subject to change, so please contact CA to confirm they are applicable. Fees and charges may apply. Eligibility criteria applies.
CA News – CA is Growing – New Team Members
We are delighted to welcome three new members to the growing CA team.
Nigel has joined CA as a General Manager to allow our Advisers more time to focus on our growing client base. Nigel has over 30 years of experience in the financial services industry and is well positioned to drive the CA business into the future.
Carole joins Ken Batten in our expanding mortgage broking division. Carole has extensive experience in mortgage and debt advice and has operated her own mortgage business for a number of years. This area of CA’s business is growing rapidly and we are very fortunate to have Carole’s expertise and passion for helping clients.
(News hot off the press – CA have also just appointed as a debt assistant in the mortgage team, Gary Polglase who has extensive experience in the mortgage industry. We look forward to introducing Gary to you in our next quarterly newsletter)
Reyna has too much experience to document here but suffice to say she knows her stuff! Reyna joins the CA team as an Account Manager working primarily with Adviser, Mark Rapley.
Subscribe to CAFSG News
- 2019 EOFY Tax Deductions Checklist
- Five good reasons for seeking financial advice
- Rentvesting – Millennials can still enter the property market without sacrificing their your current lifestyle
- Eight steps to improve your cash flow… and lifestyle in 2018!
- Why you shouldn’t lodge your tax return before July 31st