What is a Mortgage Broker?

A mortgage broker acts as a matchmaker between lenders and property buyers. A mortgage broker helps lenders get customers and help borrowers get home loans. Therefore, a mortgage broker must understand the needs and goals of the borrower before recommending a loan for them. 

What Does a Mortgage Broker Do? 

A mortgage broker helps borrowers to get a loan to purchase their home. 

They, therefore, offer advice and guide the borrower throughout the entire process. A good mortgage broker knows what the borrower can afford. 

The broker will try to understand the goals of the borrower and help them achieve their goals. Your broker can, therefore, help you choose a loan that suits your circumstances. 

What are the Benefits of Using a Mortgage Broker? 

Professional Advice 

It can be difficult to negotiate with agents and sellers. Mortgage brokers regularly deal with sellers and agents; they also have knowledge of the property market. Your mortgage broker can negotiate with sellers or agents on your behalf, meaning you can get better prices than you otherwise would.

Research the Suburb 

Once you decide to buy a home, you may have to consider various suburbs. It takes time and effort to research all these suburbs. Your mortgage broker can help you research the suburbs. They can use their resources to help you make better decisions. Your broker can even research demand, prices and market trends. 

Inspection Reports 

It is best to hire a building inspector to inspect the property. Your broker can help you get the inspection report. You can go through the report with your broker. Inspecting the property can save you money. You will avoid some properties since they need major repairs and renovations. 

Hire Specialists 

Mortgage brokers work with building inspectors, valuers, and solicitors. Therefore, choosing a good mortgage broker gives you access to these specialists. You will need the services of these specialists before you purchase a property. Your broker can, therefore, recommend a trustworthy and skilled specialist. 

Build a Good Relationship 

Building a good relationship with your mortgage broker can save you money in the long run. If the interest rates fall, your broker can help you adjust your loan. In addition, if your financial situation changes in the future, your broker can help review your loan.

Why Choose a Precept Mortgage Broker? 

A Precept Mortgage Broker provides mortgage broking services to help you achieve your financial goals. We can help you create a plan for your financial future to give you confidence, freedom and power. They can reduce your burden and help you see a clearer future. Contact Precept Financial Services for your mortgage broking needs.

End of Financial Year 2022 Newsletter

With the end of financial year approaching soon, it is a good time for you to think about the contribution options that may be available for you to take advantage of before 30 June 2022.

In the latest version of our newsletter, we provide details about some of these super contributions options available leading up to end of financial year. Which include: tax-deductible super contributions, government co-contributions, spouse contributions, salary sacrifice contributions.

In our newsletter we also discuss the transition to retirement pension and how it can be beneficial in planning for retirement planning as well as changes to super commencing 1 July 2022.

To read more about these click here to read our newsletter.

If you have any queries about anything in the newsletter and would like to discuss your financial options with an adviser.

5 Financial Tips for FIFO Workers

financial conference working table

Once you land your dream FIFO gig, you then need to create a financial plan for your FIFO money. A financial plan provides clarity and reduces uncertainty around your finances. It can even give you direction and purpose in your life. 

If you do not have a financial plan for your FIFO money, you can end up in a worse financial position. Do not spend your money carelessly thinking your FIFO gig will last forever. It might not!

Also read: Why Is Financial Planning Important?

Here are 5 top financial tips for FIFO workers: 

1. Debts

  • It is almost impossible to avoid some debt. However, there are bad debts and good debts. Generally, bad debt is not tax-deductible; while good debt, on the other hand, is tax-deductible. 
  • Do not fall into the trap of borrowing too much for purchasing lifestyle assets. They mostly depreciate in value. In addition, the interest is not tax-deductible. 

2. Superannuation

  • If you have commenced FIFO work it is likely that your salary will have increased and in turn your superannuation contributions.  It is therefore vital that you are making the most of these contributions and they are going to an appropriate fund.
  • If your super is invested wisely, it is in the best position to grow. It is, therefore, essential to talk to a financial adviser to ensure you have invested appropriately. 
  • A financial adviser can help you understand the superannuation fund and how you can make it work for you. 

3. Investing surplus income  

  • There are a number of options of what to do with your surplus income, including paying down debt, superannuation contributions, or investing outside super.  A Financial Planner can help you compare these different options and work out what is best for you.  
  • You can establish a regular savings plan and accumulate an investment over time and have something to show for the extra income you have been earning.   
  • It is much better to choose an investment you are comfortable investing in. A Financial Planner will help you invest in a portfolio that you are comfortable with.  

4. Insurance cover 

  • It is very important to ensure that you have appropriate insurance cover to protect your most important asset, which is your ability to earn an income.  
  • Precept Financial Services specialize in finding comprehensive income protection policies for FIFO workers.
  • These policies can be paid personally in which case they may be tax deductible or can be paid from superannuation if preferred.    

5. Talk to a Financial Adviser

  • A lot of people do not know their financial health. If you have just started working FIFO, you can now evaluate your financial health. It is essential to talk to a financial adviser. 
  • A financial adviser can help you know your financial health and set financial goals. Once you set your financial goals, your financial adviser can help you develop a plan for achieving your financial goals and can help you monitor your progress in achieving those goals.
  • Precept are specialists in this area and have many years of experience helping fly in fly out workers in the mining and oil and gas industries. 

FIFO workers earn good money. However, a lot of FIFO workers do not know how to plan their finances and end up just spending the extra money that they earn. A financial adviser can help you manage your finances and set achievable financial goals. 

If you are a fly in fly out (FIFO) worker looking for a financial adviser, then contact Precept Financial Services to plan your financial future. We have advisers available in Perth, Kalgoorlie and Busselton or can work remotely with you.


Here are some related blogs about financial tips you might like:

Spring 2021 Newsletter

Spring 2021 Newsletter

The latest edition of our quarterly newsletter, Your Money Your Future, is now available.

Read it here

In this edition we discuss: the superannuation guarantee (SG), types of retirement pensions and how dividends work.

Our articles cover a range of topics which we hope you will find interesting. We aim to
keep you informed of changes as they happen, but we also want to provide ideas to help
you live the life you want – now and in the future. If you would like to keep up to date with our latest videos and information, please consider following our Facebook or LinkedIn pages.
If you would like to discuss any of the issues raised in this newsletter, please don’t hesitate to contact us or call our office number (08) 9204 2222.

What You Need to Know About Carry-Forward Unused Concessional Contributions

paper with retirement plan written on it

If you want to boost your retirement savings, you may be eligible to make a carry-forward super contribution. However, many people overlook this opportunity since they do not know about it and miss out on the opportunity.  

If you want to build your retirement savings, talk to a financial planner in Perth from Precept Financial Services. A financial planner can help you manage your finances and achieve financial freedom and security.

Also read: How to Choose A Financial Planner For Retirement?

Here is what you need to know about carry-forward unused concessional contributions: 

What Are Carry-Forward Unused Concessional Contributions?

Carry-forward contributions allow super fund members to boost their concessional contributions with extra contributions above the usual annual limits. Therefore, the super fund members can make concessional contributions higher than the concessional contributions cap. And they do not even have to pay more money in taxes. You can “carry forward” up to 5 financial years’ worth of unused contributions.  

Who Is Eligible?

You must meet two conditions to be eligible: 

Firstly, at the end of the previous financial year, which is 30th June, your Total Super Balance must be under $500,000. 

Secondly, you need to have made the concessional contributions during the financial year. And the concessional contributions you made need to exceed your concessional contributions cap. 

Want to know if you are eligible? It is helpful to talk to your tax accountant or financial planner. They can help you know if you are eligible. 

What Are the Benefits/Advantages?

Boost Your Retirement Savings 

The purpose of the carry-forward contributions is to help people boost their retirement savings by contributing above the usual limits. 

Reduce Your Tax Bill  

If you have a larger income in a financial year or a capital gain from the sale of investments or property then you may be able to make use of the unused concessional contributions cap to reduce your taxable income and resulting tax.   

Where to get started?

You can use carry-forward unused concessional contributions to boost your retirement savings. However, it is difficult for most people to understand if they are eligible. Therefore, you will need to seek professional advice. 

If you are in Perth, Western Australia and you are looking for a financial planner to help you to determine if you are eligible, do not hesitate to contact Precept Financial Services. They can help you secure your finances and boost your retirement savings.

Source – https://www.ato.gov.au/individuals/super/in-detail/growing-your-super/super-contributions—too-much-can-mean-extra-tax/?page=6    

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

Please see our Financial Services Guide for more information.

Precept Financial Services Pty Ltd (ACN 140 538 147) as trustee for SF Unit Trust trading as Precept Financial Services is an authorised representative and credit representative of Charter Financial Planning, Australian Financial Services Licensee and Australian Credit Licensee No. 234665

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Income Protection Policy Changes: What’s In It For You?

couple planning discussing about income protection policy

Ageing brings several financial challenges, especially amid a pandemic. Whether you have been saving up for your retirement or already living your golden years, you need to get your finances in order. So if you’re unsure of how to begin, a financial advisor can come in handy,

And with October 1, 2021, a few calendar ticks away, it’s essential to find out what changes to expect in your Income Protection Insurance.

Income Protection Policy Changes

Because significant changes are about to be made to the policies, it is advisable to approach your financial planner as soon as possible before those take effect.

If you are an existing policyholder, you have nothing to worry about because your insurance continues until its contract ends.

But if you are not, here are the significant changes that you should know:

Limitation on Income period to be assessed

The period to be assessed to determine your insurance will only cover your income for the last 12 months instead of potentially up to three years previously. This has a major effect, especially for self-employed and business owners whose incomes fluctuate, especially during the Covid-19 pandemic.

Limitation on Income Replacement Ratio

The income replacement will now be limited to 90% maximum during the first six months and only 70% afterward which is potentially much lower than current policies allow.

Shortened Contract Terms

Insurers can cease the guaranteed renewable policies for life, offering a maximum contract duration of up to five years.

No more ‘agreed value’ income protection cover

The concept of ‘agreed value’ income protection has been removed. Pursuant to Australian Prudential Regulation Authority (APRA) requirements, insurers can no longer offer ‘agreed value’ income protection products. Instead, benefits will be computed based on the claimant’s income at the time they claim them.

Consult Experts at Precept Financial Services

Before these income protection policy changes take effect, get yourself covered. Don’t hesitate to reach out to our panel of financial advisers. We at Precept Financial Services can guide you so you can approach the future confidently.

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please see our Financial Services Guide for more information.

Information sourced from https://www.ldb.com.au/wealth-management/changes-to-insurance-premiums-and-income-protection-policies-explained/

Aged Care Financial Advice in Western Australia

Young couple discussing with financial adviser about their aged parents finances.

Life can be unpredictable. That is why every person, especially the elderly, needs financial advisers to ensure they’re ready for whatever lies ahead. Dealing with complex financial issues for the elderly, at a time when their main concern is their wellbeing can be daunting. This does not even include the difficulties of handling confusing and time-consuming details. 

With the help of a financial adviser, your loved ones may concentrate on their health and well-being while knowing that their financial concerns are in good hands. A financial planner in Perth can help you manage your money and guarantee financial security. In this way, they make it easier for the elderly to achieve their financial goals.

How Can Aged Care Financial Advisers Help You?

First and foremost, financial advisers will take into account all of your available financial assets. As a result, they will assess your business investments, family home, cash flow, and investment strategies.

Furthermore, they will examine your accommodation payments and care fees to place you in the best financial position now and in the future. With all of this in mind, financial advisers can help with:

Financial planners also give advice on managed funds, and financial products, and can help organize your finances. They help you negotiate with your creditors if you have debts. Note that it is vital to choose the right financial adviser for your situation. 

Precept Financial Services can provide advisers tailored just for you, depending on your needs. Our financial advisers can help you focus on the information and issues that are important to you and your specific financial situation. As professionals in finance, we understand the rules and how to make them work for you and your unique situation.

Also read: How to Choose A Financial Planner For Retirement?

Things An Aged Care Financial Adviser Can Assist With

Of course, everyone’s situation is unique, but there are a few key areas to consider when seeking financial advice for elderly care. These are some of them:

  • How to maximise government pensions
  • How to minimise your nursing home fees
  • Funding accommodation payments
  • Negotiating with aged care facilities
  • Financial strategies for multiple care options
  • Selling your home against the impact of the age pension and care fees
  • Reviewing and planning for any tax implications

Speak To One Of Our Accredited Aged Care Specialists

Do you want to manage your finances better? Is your loved one having difficulties navigating their aged care costs against their finances? Worry not! Precept advisers are qualified, certified, experienced and budget-conscious. 

Please contact us today and ask to speak to one of our aged care specialists Ryan Sullivan or AC Bosch for a complimentary meeting to help you make informed decisions about investments and financial issues for your current and future needs. 

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

Please see our Financial Services Guide for more information.

Precept Financial Services Pty Ltd (ACN 140 538 147) as trustee for SF Unit Trust trading as Precept Financial Services is an authorised representative and credit representative of Charter Financial Planning, Australian Financial Services Licensee and Australian Credit Licensee No. 234665

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The Best Investment Strategy For Retirement
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Winter 2021 Newsletter – Your Money Your Future

Winter 2021 Newsletter

The latest edition of our quarterly newsletter is out now. This edition talks about: how insurance can help protect your loved ones, what capital gains tax is and the increased super contribution caps that started 1 July 2021.

Read newsletter now

Our newsletter articles cover a range of interesting information. If you would like to keep up to date with our latest videos and information, please consider following our Facebook or LinkedIn pages.
If you would like to discuss any of the issues raised in this newsletter, please don’t hesitate to contact us or call our office number (08) 9204 2222.

Understanding the Downsizer Super Contribution: Eligibility and Benefits

financially free couple enjoying life

The downsizer superannuation contribution allows qualified older Australians to sell their property and use the proceeds to make a superannuation contribution. This way, they have more money as savings when they retire. Moreover, the contributions made to this scheme are tax-free, making it a perfect investment for senior citizens. Notably, the government allows savings of up to 300,000 dollars for citizens aged 65 and above.

Related read: Tips for Increasing Your Superannuation

Eligibility

Unfortunately, not every Australian qualifies to contribute to this scheme. Those who qualify must have the following characteristics:

  • Must be 65 years old or more.
  • The home being sold must have been the contributor’s (or their spouse’s) primary residence at some point in the past, and they must have owned it for at least 10 years.
  • Caravans, mobile houses, and houseboats are not permitted for the scheme. Additionally, the said house must be in Australia.
  • Within 90 days of receiving the sale profits, a downsizer contribution must be provided.
  • Before or at the time of the contribution, the contributor must give their super fund a downsizer contribution form.
  • Contributors shouldn’t have made a downsizer contribution to super before.
  • Even if the contributor bought the property before September 20, 1985 (when CGT was discontinued), it must have been their primary residence at some point throughout their ownership.

Related read: How to Maximise Your Age Pension: Tips From a Financial Advisor

Benefits

Contribution will not count towards superannuation caps

Downsizer contributions do not count towards your superannuation contribution caps, whether they are concessional or non-concessional. Regardless of your total super balance, you can still make a downsizer contribution. Your downsizer contribution amount will, however, be included in your overall super balance when it is recalculated at the end of the financial year.

Work test isn’t required

This contribution does not require a work test or a work test exemption, making it perfect for persons between the ages of 67 and 74. It’s even more enticing if you’re 75 or older because you won’t be able to make voluntary donations until you participate in this programme.

Reduces Tax Liability

Because the downsizer contribution is made after taxes, no tax is paid on the way in. It is also tax-free when people withdraw money in the future because they are over 65.

There are No obligations to Purchase a New Home.

Contributors are not obligated to buy a new house with money they might make on the property sale. This is if they sell their primary residence and make a downsizer contribution to their super.

Contact Precept Financial Services to Help You with Downsizer Super Contribution.

Financial security is important, especially in old age. This is because after retiring, seniors do not have many sources of income. That said, it is very wise to have a financial advisor like us to walk with you. Call us today and let’s get you started on a downsizer super contribution

Autumn 2021 Newsletter – Your Money Your Future

The latest edition of our quarterly newsletter is now out. Read it here.
In this edition we discuss: planning for retirement, the transfer balance cap and reviewing your personal insurance.

Our articles cover a range of topics which we hope you will find interesting. We aim to
keep you informed of changes as they happen, but we also want to provide ideas to help
you live the life you want – now and in the future. If you would like to keep up to date with our latest videos and information, please consider following our Facebook or LinkedIn pages.
If you would like to discuss any of the issues raised in this newsletter, please don’t hesitate to contact us or call our office number (08) 9204 2222.