Business succession planning – do you have one?
Most business owners have a long term objective for their business, but few have a succession plan. Some view their business as a major component of their retirement savings, while others wish to pass on their business to the next generation. But what would happen in the event of premature death or disability? Business owners should try and answer the following questions: If you or any of your partners were to sell your share of your business tomorrow, how much would you want and under what terms? Who will look after the business in the...
read moreKeyperson insurance – something every business owner should consider
When business owners are asked what the most important assets of the business are, the answer typically refers to the fixed assets or plant and equipment of the business. While these are certainly valuable, there is one asset that isn’t as easy to replace in the event of loss or destruction…that being the firm’s key person. Business owners should try to answer the following questions: How will the business perform tomorrow if one of the key persons suffered either death or permanent disability? If the business will be adversely...
read moreSMSF borrowing – why smart investors are using their super to buy property
On 24 September 2007, legislation came into effect that allowed self managed superannuation funds to borrow money to acquire certain assets permitted under Superannuation legislation through a properly structured limited recourse arrangement. For the first time, investors now have the ability to enjoy the advantages of borrowing to purchase property inside superannuation, such as: The ability to use your current superannuation balance as a deposit; The ability to use your superannuation contributions to service the loan. This not only...
read moreDo you have enough in retirement? What you need to do to make sure you do
Will you have enough for a comfortable lifestyle in retirement? An October 2010 study by the Association of Superannuation Funds of Australia Limited (ASFA) found that a couple looking to achieve a comfortable retirement needed to spend $53,456 per year, while those seeking a modest lifestyle in retirement needed to spend $30,382 per year. At present, the full age pension, including pension supplement amounts, is $29,354[1] per annum which is slightly less than what is required to fund a modest retirement lifestyle. In December 2008, ASFA...
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