SYDNEY September 2013 – The new financial year is a signal for investors to check their transition to retirement strategies, a leading wealth manager says.
Crystal Wealth Partners executive director Tim Wedd says ‘it’s a new year, with new income payment limits, so it’s time to adjust required cash flows from 1 July’.
‘It’s also time to recheck a client’s-risk profile and investment settings.’
With the concessional caps changing for the ‘over 60s’, investors need to re-visit the mix of income and contributions for the year and assess the impact on the cash balance in their fund, Wedd says.
‘Minimum TTR pensions are increasing, from 3 per cent to 4 per cent of a fund member’s balance for anyone under age 65. Most people drawdown at the minimum rate, so it’s also a question of how much surplus income may be re-invested again.’
‘If you don’t meet the minimum payment requirements, you can lose your tax exemption for earnings within the pension account. This could have significant adverse tax consequences on any assessable income and capital gains for the year.’
‘This is a first-quarter of the financial year message, and you need to have a reminder in the fourth quarter as well to stay on track.’
Crystal Wealth Partners is a privately owned boutique financial advisory and investment management firm specialising in delivery of services to high net worth individuals and family offices.
contacts
Tim Wedd
executive director
Crystal Wealth Partners
0408 608 349
tim@crystalwealth.com.au
John McIlroy
director
Crystal Wealth Partners
0411 592 118
john@crystalwealth.com.au