As we enter the new financial year in Australia, it’s important to review your personal situation and ensure that your onshore finances are in order. This includes your superannuation, estate planning and insurances.
We’ve put together our End of Financial Year Checklist for Australian expats below covering each of the key areas.
- Death Benefit Nominations: Is your nomination up to date? Most super funds allow binding death benefit nominations to last for 3 years, so it’s important to check if yours is up to date.
- Investment Strategy: Is your superannuation invested in line with your risk profile? Did you know that the average retail Australian super fund has a larger equities (shares) allocation than any other country’s pension system in the world? Your ‘balanced’ fund may not actually be quite as balanced as you assume. Check your strategy and ensure that you’re comfortable with the level of risk you’re taking on and expected returns.
- Contributions: Should you be making contributions into your superannuation fund? As an expat, in most circumstances you can make concessional and non-concessional contributions into an Australian compliant super fund. Find out more about super for Australian expats here: http://australianexpatriategroup.com/2016/02/23/top-superannuation-tips-for-australian-expats-abroad/
- Will: Is your Will up to date? Do you have a Will? Should you have multiple Wills if your assets are across multiple jurisdictions? These are all important questions that you should address to ensure that your wishes are carried out in the event of your death.
- Enduring Power of Attorney: It’s important to consider putting place an Enduring Power of Attorney to nominate a trusted individual to make decisions on your behalf in the event that you’re unable to do so.
- Family Trusts: Do you have a family trust? Should you consider establishing a trust to achieve your financial goals? There are many pro’s and con’s to discretionary trusts that should be carefully considered before implementation.
- Insurance within Super: Are you currently holding insurance through your super fund? If so, it’s important to check whether you are in fact covered at all now that you’re living abroad. You could be paying thousands of dollars every year for cover that would not pay out when you needed it most.
- Coverage Amounts: Do you have the right amount of cover in place? As we go through the various stages of our lives, our insurance cover needs also change. If you’ve recently purchased a property, gotten married or had children, review how much cover you should have in place now. You can access our online insurance calculators here: http://australianexpatriategroup.com/resources/financial-calculators/insurance-calculators/
- Types of Cover: Do you have the necessary types of insurance in place? There are 5 key types of personal insurance, with each playing a different role in protecting you and your family. These include Life, Total & Permanent Disability, Critical Illness, Income Protection and Health Insurance.
- Employer Cover: Many expats receive some cover provided by their employer, which in most circumstances is inadequate based on the level of cover needed. It’s also important to recognise that in most cases, if you are to leave your job, your cover would also disappear and to apply for personal cover would likely be more expensive given you would be older. Explore your options here and ensure you have the right level of overall cover.
Ensure that this new financial year is a successful one and that you and your loved ones are protected in the event of unforeseen circumstances.
To Your Financial Success!
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner with Australian Expatriate Group, division of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore.
Australian Expatriate Group is licensed by Global Financial Consultants in Singapore, with a team of Australian-trained, experienced and qualified, allowing us to provide specialist advice to Australians living abroad.
To learn more about how we may be able to help you, please contact us:
✆ +65 8282 5702
To discuss how these changes affect you, click here to book a complimentary consultation: http://bit.ly/Book-Your-Consultation
General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.