Volume 27 Issue 9

October 2015 $15.00

Success: The Byrne-ing issue Jennifer Byrne on how her vision shaped her career path and future

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4 CEO message 36 Chapter Events 6 News 38 Centrelink 10 Opinion 39 Directory

12 Reconnecting with women regionally The 10thousandgirl program is improving the fi nancial literacy of women living in regional and remote communities. Catherine Chalker CFP® and Monica Maguire CFP® share their insights with JAYSON FORREST. 14 Success: The Byrne-ing issue Speaking at the FPA Professionals Congress Women in Financial Planning Breakfast, Jennifer Byrne talks to JAYSON FORREST about success and the ways in 14 which she has shaped her own career path and future. 22 Trust, ethics and education UniSuper’s Jack McCartney talks to JAYSON FORREST about what the FPA Professional Practice Program means to the $50 billion superannuation fund. 24 Managing portfolio drawdown risk STEVE ANAGNOS and CAMERON DUNCAN believe planners should reconsider debt and hybrid securities to diversify the downside risk of investment portfolios, and help preserve the capital value of these portfolios. 28 Re-contribution strategy 12 22 CPD MONTHLY: MANSI DESAI outlines the various issues to consider when assessing whether Financial Planning magazine is the offi cial publication of the a re-contribution strategy may be suitable. Financial Planning Association of Australia Limited (ABN 62 054 174 453) www.fpa.asn.au • [email protected] • Level 4, 75 Castlereagh Street, Sydney NSW 2000 Phone 02 9220 4500 • Fax 02 9220 4580 32 Insurance premium structures CPD MONTHLY: RACHEL LEONG explains the types Editor: Jayson Forrest Advertising: David Robertson Locked Bag 2999, Chatswood NSW 2067 T: 02 8484 0613 of insurance premium structures available and the T: 02 8484 0906 M: 0408 242 009 circumstances when they should be recommended. E: [email protected] E: [email protected]

Advertising: Suma Donnelly Advertising: Craig Pecar T: 02 8484 0796 T: 02 8484 0978 © Financial Planning Association of Australia Limited. All material published in Financial Planning is copyright. Reproduction in whole or part is prohibited without the written permission of the FPA Chief Executive Offi cer. M: 0416 815 429 M: 0411 955 368 Applications to use material should be made in writing and sent to the Chief Executive Offi cer at the above E: [email protected] E: [email protected] e-mail address. Material published in Financial Planning is of a general nature only and is not intended to be comprehensive nor does it constitute advice. The material should not be relied on without seeking independent professional advice and the Financial Planning Association of Australia Limited is not liable for any loss suffered in connection with the use of such material. Any views expressed in this publication are those of the individual author, except where they are specifi cally stated to be the views of the FPA. All advertising is sourced by Cirrus Media. The FPA does not endorse any products or services advertised in the magazine. References or web links to products or services do not constitute endorsement. Supplied images © 2014 Shutterstock. ISNN 1033-0046 Financial Planning is published by Cirrus Media on behalf of the Financial Planning Association of ABN 80 132 719 861 Average Net Distribution Australia Limited. Period ending Mar ’15 www.cirrusmedia.com.au ® ® 10,640 , CFP and CERTIFIED FINANCIAL PLANNER are certifi cation marks owned outside the U.S. by the Copyright Cirrus Media 2014 Financial Planning Standards Board Ltd. The Financial Planning Association of Australia Limited is the mark’s licensing authority for the CFP marks in Australia, through agreement with the FPSB. October 2015 | 3 CEO Message

Catalysts for change We often underestimate just how much we can make a difference. We are catalysts for change, and we have much to be proud of. In thinking about what’s been Project, taking place around A heartfelt thank happening at the FPA, it struck Australia over the next two me that the underlying theme years. The feedback has you to those is change. Whether it’s giving been great so far, and in this back to the community, getting edition, we interview two of our members who got involved in Financial Planning volunteers for more insights into involved in our 15th Week or this year’s FPA the program’s purpose. Professionals Congress, we are We also recently entered into annual Financial affecting change. a partnership with Money magazine, as part of our drive Planning Week. Changing to raise awareness with more perceptions consumers. Through the partnership, we will undertake A heartfelt thank you to those a wide range of activities, members who got involved including a ‘money makeover’ in our 15th annual Financial series that demonstrates real Planning Week. We had an life examples of how FPA extraordinary level of support members have helped clients, from Chapter Chairs who a consumer ‘super makeover’ took part in local radio and event, and ongoing editorial and insights into her life’s story and newspaper opportunities. advertising. This is an exciting also share her tips on navigating A total of 25 members also initiative which will enable us to a satisfying career path. You volunteered their time for Ask reach the readers of Australia’s can catch a sneak preview in an FPA Expert, which generated leading personal fi nance this edition. over 9,000 visitors during magazine. If you haven’t yet booked for Financial Planning Week. Many the Congress, make sure you more supported the campaign Shaping futures don’t miss out. This year, we’re through social media and local taking a revolutionary approach advertising. In this issue, you’ll also fi nd an interview with one of our to our keynote sessions. We In my mind, this campaign gets FPA Professionals Congress recently announced TED Style better and better every year and speakers. We are delighted to ‘Shaping Futures’ sessions and you can read more about the have journalist and broadcaster we’ll shortly be announcing the highlights in this edition. Jennifer Byrne speak at the speakers. Some of you are also Women in Financial Planning Stay tuned! dedicating time to participate breakfast, taking place on in the 10thousandgirl Regional Thursday morning of the Mark Rantall CFP® Women’s Financial Literacy Congress. Jennifer will provide Chief Executive Offi cer

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Financial Planning Week 2015 Life stage awareness The FPA recently conducted its 15th consecutive Financial Planning Week (24-30 August), with this year’s targeted life stage awareness campaign successfully engaging the appetite of different demographic groups for fi nancial advice. With the spotlight fi rmly engage with Australians by life won’t have enough money to Media blitz focused on the fi nancial stage, with blog content they retire on, giving us specifi c planning profession, the FPA could easily identify with. The blog insights into consumers’ The FPA rolled out an intensive used this year’s Financial provided targeted fi nancial content pain points and how fi nancial media campaign in the lead up Planning Week (24-30 August) for various demographic groups – planners might help alleviate that to, and during, Financial Planning to continue raising awareness spanning from young to mid-life, stress,” Rantall said. Week. The campaign targeted national, metropolitan and local about the benefi ts of seeking pre-retirement and retirement. “Often we assume that young good fi nancial advice from a media outlets, as well as selected The consumer blog recorded people aren’t actively looking social media platforms. professional fi nancial planner. 6,364 views. Two of the most to manage their fi nances, but A key difference to this year’s popular blogs included ‘How to Financial Planning Week has There were 55 pieces of media campaign was to educate and pay off your HECS debt’, which revealed that their appetite for coverage for Financial Planning was focused on those aged advice isn’t much different from Week, with 67 per cent of the between 20 and 35 years, and the retirement age group.” coverage achieved across ‘How to manage the confl icted consumer facing publications. The years’, aimed at those aged media coverage included print, between 35 and 50. Local Ambassador radio and online. This content was provided Program via Facebook, which Throughout Financial Planning Social media reached the news Week, FPA Chapter Chairs As part of this year’s Financial feed of 1.4 million participated in local media Planning Week, the FPA ramped Australians. The opportunities to raise awareness up its social media activity by rolling content also directed of the benefi ts of good fi nancial out a range of strategies to engage consumers to the ‘Ask advice. This included assisting different consumer segments in an FPA Expert’ forum, with newspaper articles and the campaign. Content from the which in turn also radio Q&A sessions with consumer blog was re-purposed for directed traffi c to the consumers. This initiative helped various social media channels, such Find a Planner directory. to create awareness and a buzz as Facebook. Commenting on the life around Financial Planning Week “This year’s Financial Planning stage awareness initiative at a local level nationwide. Week delivered the message that utilised this year, FPA chief the right advice from a professional executive offi cer, Mark Rantall Ask an FPA Expert fi nancial planner can have a positive said that while people aged Over 9,600 people visited the impact on the fi nancial future of 55 and over were the most ‘Ask an FPA Expert’ online Australians at every stage in their engaged with Financial Planning forum during Financial Planning lives,” Rantall said. Week, the campaign showed Week. The online forum that people as young as 16 enabled consumers to post were also asking questions their questions to an expert about their fi nances. panel of 25 FPA members, “This year’s Financial Planning who volunteered their time to Week made it clear that many respond to these questions. Australians are concerned they

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Super records heavy losses Summer Semester for CFP® Certifi cation Enrolments for the CFP® Certifi cation Program Summer School are now as stock markets fall open for ‘CFP1: FPA Professionalism’ and ‘CFP4: Investment Strategies’ The recent volatility in investment losses, returns on International only. Final enrolments close on 6 November 2015. markets, sparked by concern Shares remained in the red. CFP Certifi cation is the highest fi nancial planning qualifi cation worldwide, about China’s growth, have heavily “While Balanced funds experienced and for planners wanting to attain this prestigious designation, the FPA is impacted Australian super funds, losses in August, once again, the committed to supporting you at every step. with the median Balanced Option benefi ts of diversifi cation across The CFP Certifi cation Program is a world class course, designed by recording a 2.9 per cent fall in asset classes within these portfolios respected fi nancial planners and academics. The content is leading- August, the largest monthly loss was evident, with the declines well edge, continually updated and packed with strategies for modern day since February 2009. below those experienced across fi nancial planning. “On the back of concerns about most major growth asset classes,” Structured over fi ve units, the course is delivered by distance learning China’s growth prospects, falls Bresnahan said. and offers the freedom and fl exibility to study at your own pace, around across major stock markets have The 2015-16 fi nancial year has your work and family commitments. made August one of the toughest experienced a shaky start, with the There are many pathways to enter the CFP Certifi cation Program and months for super funds since the median Balanced Option return for the FPA will work one-on-one with each student, to fi nd the best solution GFC,” said SuperRatings founder, the two months to August sitting for your needs. Potential pathways include: Jeff Bresnahan. at -0.6 per cent. This is well below Australian markets were in free-fall, the median fi nancial year-to-date • An approved degree (exemptions may apply) with the ASX200 Accumulation return of 2.1 per cent observed this • A fi nancial degree with a Diploma of Financial Planning (or DFS(FP)) Index down 7.8 per cent in August. time last year and may continue to • A non-related degree with an Advanced Diploma of Financial Planning The Australian Listed Property worsen further, with returns on major (or ADFS(FP)) market also experienced a 4.0 per sharemarkets also negative during • An Advanced Diploma of Financial Planning (or ADFS(FP)) and working cent fall for the month. the fi rst two weeks in September. towards your degree • Eight subjects from an approved Masters (Graduate Diploma) Global markets were also highly “With further market volatility volatile in August, with the expected and ongoing concerns In addition, the FPA offers a full range of tools and resources to help benchmark MSCI World Ex- over global economic growth students complete the program and achieve the best possible results in Australia Net TR Index falling 6.5 in the coming year, the ability of their studies. per cent. While a 2.0 per cent fall in super funds to manage down-side To join the 5,500 CFP practitioners in Australia, and over 157,500 the Australian Dollar against the US risk will be crucial going forward,” professionals globally, go to www.fpa.asn.au or contact the FPA Education Dollar helped offset some of these Bresnahan said. team on 1300 337 301 or at [email protected]

The FPA congratulates the following members TED style keynotes for Congress who has been admitted as CERTIFIED This year’s FPA Professionals be anounced later this month: FINANCIAL PLANNER® practitioners. Congress will feature a fresh 1. A presenter who’s TED Talk ACT Matthew Anderson CFP® approach to the keynote is the most viewed outside of presentations with TED Talk style Premjit Uberoi CFP® Pinnacle Wealth Management the US. sessions designed to give you Westpac Banking Corporation VIC access to more speakers and 2. A creative thought-leader and TV personality. NSW Tao Qu CFP® more great minds. Andrew Rae CFP® NAB Financial Planning The two Shaping Futures 3. A four-time winner of Retailer of the Year. Elixir Private Wealth Benedict Bongiorno CFP® sessions will deliver a series of curated speakers who will 4. A performer who has graced Liwati FU CFP® Bongiorno & Partners FP inspire and ignite discussion, and the stages worldwide. St George Paul Yeo CFP® challenge your future thinking – 5. A world leader in life changing ® Westpac Banking Corporation personally and professionally. Mohammad Ali Hamzei CFP surgery. Price Financial Intelligence ® The line-up brings together Nicholas Thomas CFP 6. A recent winner of Young business leaders and respected QLD First Financial Entrepreneur of the Year. professionals, including fellow Leesa Graham CFP® ® Ryan Pickles CFP fi nancial planners who will take To read more about this year’s AccuVest Hamilton Morello the stage and share their passion Congress, including Jennifer SA and vision for the future. Byrne’s presentation at the Women in Financial Planning Benjamin Haynes CFP® Six game-changing speakers will Breakfast, go to p14-21. Haysman Financial Services

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automation of reporting and who works alongside the investment solutions, and the corporate actions. This frees consumer, and the investment pre-occupation with short up advisers to spend more time specialist who is at the other end and medium-term aspects focusing on core competencies, of the chain – selecting specifi c has detracted from long-term managing client relationships, investments. In between these performance. The industry may not and client acquisition and two key players are others that be broken but it is far from ideal. retention. add costs but minimal, if any, Suppliers are happy and Clients benefi t from ongoing value. FinTech solutions may consumers are told they should provide answers. Rebecca Fergusson CFP® monitoring and active be happy; but change is management of their portfolio Bill Gates said: “We always occurring and MDAs or other Principal and Private Client Adviser, Main Street Financial Solutions by investment specialists. They overestimate the change that FinTech solutions will play a role Licensee: Fitzpatricks Private Wealth also get the benefi t of direct will occur in the next two years in the new industry. ownership and with the help of and underestimate the change There is no doubt MDAs their adviser, can have greater that will occur in the next 10.” provide effi ciencies for control over their tax outcomes. Interestingly, changes do not both fi nancial advisers and Access to professional portfolio occur in a straight line and the investors, and there is an construction can also lead to rate of change may be faster for emerging trend towards MDAs lower risk and better linkage the next year or so. in the marketplace generally. between advice, product The investment and fi nancial Traditionally, with fully advised solutions and client outcomes. planning industry has been clients, there is the need to Managed accounts offer an attractive for product suppliers provide written advice for every opportunity to better the for many years because the Rob Coyte CFP® portfolio change. This process interests of investors, advisers sellers have held nearly all of the CEO and representative, costs advisers in terms of and business owners alike. knowledge and the buyers have Shartru Wealth Management resourcing and staffi ng, and had minimal knowledge and had Licensee: Shartru Wealth Management it can cost clients because minimal collective power. The of missed opportunities and buyers (consumers) have often I am excited about our potentially higher transaction relied on their advisers who MDA that has just been fees. An MDA can save the have been directly, or indirectly, implemented. adviser time and enable them to representatives of the supplier. This will provide advisers not provide high quality, personalised The advisers’ time is limited and only with the ability to tailor advice to their clients. covers structure and strategy the investment strategy for For advisers, an MDA allows matters, investment matters and the client but will also enable them to provide the type of direct product design knowledge. delivery of it effi ciently and Mark Hayden CFP® investment solution demanded by The over-complication of effectively. In the modern many clients, while enabling them Director, Hayden Financial Services products or services has world where fi nancial markets to achieve scale effi ciency gains Licensee: Hayden Financial Services benefi ted the supplier rather than move with exceptional speed within their practice. the consumer. Transparency will and ferocity, it is paramount Combined with a suitable MDAs, or an evolution help to simplify the steps of the that your investment strategy investment value proposition, a thereof, will be a signifi cant fi nancial planning process and changes can be implemented revenue stream can be created part of the future for fi nancial ensure better outcomes. just as fast for all your clients. and operational costs can planning because the industry My search for true long-term Coupled with the usual fall. This is achieved through needs better investment investment solutions has advantages of direct ownership reducing compliance risk and solutions. continually hit barriers but MDAs such as tax management and costs, managing more clients Currently, there are lots of will help lead to better solutions. transparency, this makes the with less people by reducing clips of the ticket between the There is a distinction between MDA the administration platform administration costs and investor and the end investment. professional and amateur of the future. time through systems, and Two key players are the adviser,

10 | Financial Planning www.fi nancialplanningmagazine.com.au Want to have your say? Join the debate on the FPA Members’ LinkedIn Forum.

My clients have been using MDAs accounts. The popularity of apply and the need to restrict for more than 20 years, so in terms SMSFs also means that direct the amounts of money in such a of the next ‘big thing’, could this share investments within the product should be considered. be a little like everything old is new vehicle is ideal. Setting expectations with clients again? There are some clients who is important. If the MDA manager MDAs have a role to play in client like the benefi ts of direct share turns over the portfolio vigorously portfolios should there be a need. ownership but not the chore of and generates a lot of capital gains However, MDAs aren’t the only managing the portfolio themselves. and fees, clients should be made way a client can achieve their An MDA would suit these clients. aware of this at the outset. With Daryl La’Brooy CFP® goals. The world has changed in My clients who have MDAs this type of information, they may Financial Adviser, the last 20 years and clients have certainly fi t this type of personal opt for a passive portfolio instead. Hillross Financial Services a lot more choice these days. profi le. The last thing you want as an Licensee: Hillross Financial Services Direct share portfolios are a lot Ultimately, as we all know, fi nancial adviser is to get onto the next ‘big We are in the advice profession, more common now, tailored to a planning allows us as advisers thing’ and fi nd out the client gets not in the area of product sales. client’s specifi c needs rather than to choose a number of different something they didn’t expect. Over Therefore, it’s all about ensuring the typical MDA offering which is a routes to get a client to their the last 30 years, fi nancial planning our clients are able to achieve model portfolio. preferred destination. MDAs are clients have experienced many their personal goal and helping With the rise of sophisticated just one option in our tool kit of of these unexpected surprises in them get there. It’s not about platforms, shares can be implemented advice. some of the products they have trying to sell them a product. invested in. purchased in superannuation The rules of diversifi cation still Would you like to join our panel of FPA members willing to give their opinion on topical issues? Email editor@fi nancialplanningmagazine.com.au to register your interest.

THERE are more WAYS TO CLIMB the MOUNTAIN THAN YOU THINK

® The CERTIFIED FINANCIAL PLANNER mark represents a global symbol of trust and a mark of excellence. To your clients, it provides reassurance that you work to the highest professional and ethical standards, always putting their interests fi rst. Talk to us today about your personalised pathway into the CFP® Certifi cation Program. Visit fpa.asn.au/cfp

CFP®, CERTIFIED FINANCIAL PLANNER® and are certifi cation marks owned outside the US by the Financial Planning Standards Board Ltd (FPSB). Financial Planning Association of Australia Limited is the marks licensing authority for the CFP marks in Australia, through agreement with FPSB.

October 2015 | 11 In the community

10thousandgirl: Reconnecting with women regionally

The FPA has partnered with 10thousandgirl to help improve the fi nancial literacy of Australian women living in regional and remote communities. Catherine Chalker CFP® and Monica Maguire CFP® share their insights and motivation for participating in the program. Like most good ideas, the story chief executive offi cer and workshops, 12 webinars and of 10thousandgirl began over a founder, Zoe Lamont, the a downloadable toolkit with Catherine Chalker couple of drinks by a group of 10thousandgirl campaign was resources for women living women in Sydney, back in 2009. aimed at inspiring and educating in regional communities. The It was over a few white wines 10,000 women across Australia, project covers many areas of that the ladies recognised the typically aged between 18 and personal fi nance, including importance and long-term 45, with a specifi c focus on understanding debt and credit, benefi ts of better understanding reaching remote and regional how to do an insurance audit, their fi nances and developing a communities. With the 10,000 minimising tax, understanding fi nancial plan to help make their target almost realised, the and maximising super, plans happen. campaign is increasing its target developing wills, and investing in to reach the inspirational target shares and property. One thing led to another, and of 100,000 women. in March 2011, 10thousandgirl A number of FPA practitioner – a not for profi t organisation – Back in June 2015, the FPA members have volunteered formally began with the express partnered with 10thousandgirl their time to the 10thousandgirl Monica Maguire purpose of educating women on its 2015-17 Regional campaign, including Monica ® to help improve their fi nancial Women’s Financial Literacy Maguire CFP from MDM wellbeing. Project. Financial Services based in Over this two year period, the Cowra (NSW) and Catherine According to 10thousandgirl ® project will deliver 16 regional Chalker CFP from ASB

12 | Financial Planning www.fi nancialplanningmagazine.com.au Financial Services in Wagga also hope that my knowledge Wagga (NSW). and understanding of women’s “I hope that I will be able to help Financial Planning spoke to particular fi nancial concerns women build their knowledge and both practitioners about their will be improved. I love being a reasons for participating in the fi nancial planner and working confi dence when managing fi nances.” 10thousandgirl campaign. towards goals for my clients, so I’m hoping that I will be able to – Catherine Chalker CFP® Q: What motivated you to share some of that enthusiasm sign up to the 10thousandgirl for fi nance matters with the program? participants. I would like to give Monica Maguire (MM): Being participants an appreciation of the importance of fi nancial a fi nancial planner in rural I also explain that this is really provide guidance or information, planning for their future and Australia, I see quite regularly an excellent opportunity for the if required. encourage anyone who requires the lack of knowledge that women to interview the fi nancial assistance with this to enlist me Q: What does becoming females have in relation to their planner to see if they get their fi nances. In particular, very few to help them. a 10thousandgirl Trusted business. Adviser mean to you? of my clients have clear fi nancial Q: Why is women’s fi nancial CC: My fi rst meeting with goals and have little knowledge education important to you? MM: It’s great to be able to of superannuation and personal women in the program is a pass some knowledge to other MM: I believe if women have insurances. My motivation was chance for me to discover how women who have committed the confi dence, knowledge and all about educating women who the program has assisted them, to the program by taking a day understanding of their fi nances, were willing to take a day out of and to help me to build on the out of their busy lives. We had this will enable them to take their lives to pass some of my knowledge they have gained. three new mums in Orange control of their fi nancial goals knowledge to them. The program will have helped who brought their babies and I in life. them identify some of their Catherine Chalker (CC): knew our time was well spent CC: Financial education can fi nancial goals and aspirations, when one of the attendees was I was drawn to signing up and my job is to give them because I appreciated that the help everyone. However, women asked about what she got out of face particular issues, such as guidance and a plan to help the day. She replied: “I thought program was running regional them succeed, as well as workshops. I have lived my lower wages, less time in the your industry was all crocodiles workforce (if they take time out helping them identify and risk- until coming today.” Programs whole life in and around the manage any pitfalls. Riverina region of NSW and for a family) and living longer like this are a great way to turn know that it can sometimes be than men. For these reasons, I Q: What is involved in being the image and perception of diffi cult to access resources that believe fi nancial education for a 10thousandgirl Trusted fi nancial planners around. women is of great importance. are readily accessible to those Adviser? CC: Becoming a Trusted Adviser By recognising the challenges in metropolitan areas. I believed MM: It involves a day of your means that I am helping to involved, it’s great to help that I had something to offer time and following up on some improve the fi nancial knowledge women understand their current because of my understanding questions that were asked of women. It provides me with fi nancial situation and plan for of issues that women face during the day. The day was an opportunity to meet women the future. in regional areas, things like really well run and the content who are trying to build their employment, education, Q: How do you approach your was relevant and explained in fi nancial skills and for us to work distance, family and business fi rst meeting/consultation layman terms. I would highly together towards their fi nancial responsibilities. with women in the program? recommend other FPA members goals. On a more personal level, Q: What do you hope to MM: The fi rst meeting/ to volunteer their time for it means that I am able to assist achieve by participating in consultation is really a chance the day. women become more fi nancially the program? to see if we can both fi nd a CC: It involves attending a ‘Better confi dent, which is really benefi t of working together in Money Management’ workshop, important to me as a mother MM: To explain to women that and Auntie of young women. having a greater understanding the future. I explain it involves where we assist participants of all things fi nancial will help a high level conversation of understand the principles of As part of their involvement with them reach their goals in life. their goals in life, a fi nancial investing, budgeting, insurance, the 10thousandgirl program, snapshot of where they are and estate planning, superannuation Monica was a panel speaker at CC: I hope that I will be able where they want to get to. I also and so on. As a Trusted Adviser, the ‘Better Money Management’ to help women build their recommend that the women see I also make myself available to workshop in Orange on 30 July, knowledge and confi dence two or three fi nancial planners those participants to discuss and Catherine was a panel when managing fi nances. I before deciding on a planner. their own personal situations and speaker in Young on 29 August.

October 2015 | 13 Congress

Success: The Byrne-ing issue Success doesn’t just happen. It requires great effort, self-belief and purpose. Jennifer Byrne talks to Jayson Forrest about how her vision helped shape her career path and future.

Margaret Thatcher had it. Madonna defi nitely has it, as does Serena Williams. It’s ‘attitude’, and attitude is a quality that Jennifer Byrne has in spades. As one of Australia’s most respected and admired journalists, Jennifer has built a highly successful career in the media that spans over four decades. She attributes this success to simply “backing herself”. It’s this commitment to excellence and “making the best of what you have” that Jennifer will share with FPA Professionals Congress deleegagatees at this year’s Women inin Finnancial Planning Breakfast onon Thursday 19 November. “I’ve led a very active life. I’ve been working since the age ofo 16 annd it’s this life jouru ney,y andd the lessons I’ve learnt along the way, that I’d Jennifer will drawa upon her Jenniferr’ss career has sps ananneed lil ke to shara e with delegates,” insights, incluuding sos mee print, radio and televissioon – itt’ss Jennifer says. memorablb e ppeople shee has been a ricch journey foor the award innterviewew d ovver the years, to winnini g journan list. Througu hout In keeping with the theme e of reveal how they havev alll combinen d her 454 -yeaar career, Jennifer hass this year’s Congress – ‘Shapa ing to help shape who shhe iss today. always champiooned the righhts Futures’ – Jennifer will share of women, but surprisingly, as sos me of tht e lessons she has one of Australa ia’s pioneers of learnt over her illustrious career Equality fef male investiigatit vee journalism,m and how these lessons have Having begun as a cadet journalistt wow rkpllacce prejudu ici e is something helpped shapee her own future with The Age newspaper in shshe haas noot experiienced. She ana d those around her. Melbourne at the age of 16, putss thhiis dod wnw to ‘respect’’.

14 | Financial Planning www.fi nancialplanningmagazine.com.au “There have been times when some men have behaved terribly “I took the view we were all towards me, but men behave terribly towards each other, too. equal, we would always be So, when you talk about gender prejudice, that’s something I’ve equal, and I simply wouldn’t really discouraged as a line of analysis in my career. If I’ve accept anything less.” ever hit something that was a problem, I’ve found a way to get around it – or mow down any obstacles in my way,” she laughs. Jennifer believes that in life, if you exxpep rir ence,” shhe says. “And look for probleme s, you will fi nd Mentor importanntly, a mentor is really them. Like anyy motivvatedd individual, listening too whaat you want. “I fi rst entered the newsroom as a Jennifer atttrir buutet s mmuch of her They’re noot trt yiying to turn you young pup of 16, and even though success ass an iinnddivividuala and into them, butu they’re using their we were paid the princely sum of as a carreer prp offesssiiono al to her experiennce to hhelp you become $40 a week as a fi rst year cadet, mentors. She reeccaalllss threee, who the best youo caan be. I know all fi ev of us – three men and two she believes had thhee bigggest that souundds soo obvious, but the women – were all paid the same. infl uence in shappingg heerr ownw world is fulu l ofo ‘qqueen bees’, I took the view we werere ala l eqqual, fuf tuuree. Thesese aarre Jeenniffere ’’ss whho reealllyy donn’’t want to help we would alwways bebe equal, and I fi rst editor at Thhe Agge, GGraham others. Theyy’re tthe ones you simply woulddn’t acceptt anythiing Perkin, Sam Chiishholm at the need to avoid.” less. I just never accepted that Channel Nine Network, and this was a legitimate ground for feminist, teacher, author and Inspiration discrimination.” academic, Wendy McCarthy. With a stellar 45-year media She believes strongly in the “Wendy was one of the early career to call upon, Jennifer premise of ‘making the best of feministsand the best friend of recalls many defi ning stories, what you’ve got’. the previous Governor-General, Quentin Bryce. So, when I first having been fortunate to However, Jennifer concedes hit the workplace back in the interview some of the most the structural obstacles around 1970s, women like Quentin succese sful annd interesting gender inequality are sadly still Bryce, Wendy McCarthy aannd pep opllee of our time. There’s present in the workplace and those other early feministts wew re thhe tit mem shehe spep nt digging home. She refers to the number of raging war on the patriiaarcchyy. ffor 18-mmillion-yyeae r-old fossils womemen appointed to boards, pay Wendy and I are still friendss, wiith Louiis Leakkey’s son and raattes,s promotion, time spent out we meet regularly and she still palaeontologist, Richard Leakey, ofo the offi ce raising a family, and gives me advice if I ask, and I and the time spent with former wowork/life balance. sometimes have the privilege of United States Secretary of “TThe figures on gender equality giving her advice back.” State, Madeline Albright, and her arre sts ill tet rrible,” she says. “As recent interview with Canadian Jennifer says what makes a womaman having come from astronaut, Chris Hadfi eld. “They those three individuals so thhe idi eaealil sstic 70’s, I’m genuinely were all amazing experiences,” valuable in helping to shape sus rprisesed we haven’t improved she says. who she is today, was them as mucu h aas we should have with taking the time to know her, But when asked about some of gegenddeer eqquality. But I do believe understanding where she was the inspirational women she has thhesese isssues are being slowly going and ultimately, helping interviewed, it’s not the rich and adddresesssed because society is her get there. famous she recalls but instead, momoree willing to talk about them. it’s the modest and humble. “You can’t be unclear as a ““AAnndd these days, women are mentor and you must have a Jennifer fondly recollects a momorer supportive of each other, genuine willingness to share story she fi l e d for 60 Minutes wwhhich is helping deal with these your time, expertise and issssuues..” Continued on p16

October 2015 | 15 Congress

and nothing would stop her. It’s “You can’t be unclear as a mentor women like these, who I admire.” and you must have a genuine Interestingly, Jennifer adds that during her time with willingness to share your time, these women, none of them ever spoke to her about their expertise and experience.” obstacles. “That didn’t mean they didn’t have them. Of back in 1989. It was about a the Franciscan Missionaries of course they did, but they took group of fi ve Carmelite nuns Mary in 1948, when she was it as read that they understood from Melbourne, who responded 21. In 1951, she left Australia it was a diffi cult climb they were to a call from the Cardinal of and travelled to Chennai, India, on, so they just got on with it.” Florence to rebuild a monastery where she founded Mithra, in Tuscany. Jennifer entered the a facility that educates and Sharing enclosed world of the Carmelites rehabilitates children with mental Jennifer’s presentation at to report on their struggle, and physical disabilities from Congress will be all about hard work and perseverance to the poorest families. It was a sharing – sharing what’s worked restore the chapel abandoned vocation that spanned the next and what hasn’t over her long two centuries ago, while also 60 years of Sister Mary’s life. career in the media. restoring the faith of the villagers. She also nominates primatologist “Over the years, I’ve developed “I absolutely loved these nuns,” Jane Goodall and her 55-year all these principles of living and she says. “They were so giving study of social and family what works. I’ve never read a and committed to the local interactions of wild chimpanzees self-help book and I don’t fi nd community under often very in Tanzania’s Gombe Stream them helpful. A 45-year career is diffi cult circumstances.” National Park, as another truly a long one, but I’m still energised inspirational woman. Surprisingly, it’s another nun that and enjoying it. So, I want to talk Jennifer also recalls as someone “Like those women of faith, about what I’ve learnt over that who inspired her. Jane Goodall had a path – a period in what is a very tough Sister Mary Theodore joined calling – and she just drove at it, sector. I want to share with other Your speaker Pre-select your workshops

Jennifer Byrne started her career in journalism as a cadet The 2015 FPA Professionals Congress will take place at the Brisbane journalist with The Age newspaper in Melbourne. At the Convention and Exhibition Centre (BCEC) on 18-20 November. age of 23, she was posted to San Francisco as The Before the Congress offi cially kicks-off on Thursday 19 November, Age’s West Coast correspondent. delegates are invited to attend a ‘Opening Night Reception’ on the In 1981, Jennifer moved to Sydney as founding reporter evening of Wednesday 18 November. Other social events at the Congress will include a ‘Women in Financial Planning Breakfast’ on with Channel Nine’s Sunday program and fi ve years later, Thursday 19 November with guest speaker Jennifer Byrne, along moved across to 60 Minutes. In 1993, she became the with the highly anticipated Future2 Gala Dinner on Thursday evening. morning presenter of ABC’s Radio 2BL and in 1995, was Three keynote sessions will bookend the Congress, which will also appointed publishing director of Reed Books. feature four workshop streams – Expand, Grow, Engage and Inspire In 1999, having spent a couple of years as stand-in presenter – that will run throughout the two days of the Congress. for both ABC-TV’s 7.30 Report and Lateline, Jennifer joined The Congress ticket entitles delegates to the following: Foreign Correspondent, and spent fi ve years as host and • the Opening Night Reception; reporter. She also continued to write features and book • all keynote sessions; • all workshops (delegates are encouraged to pre-select their reviews, and hosted Radio National’s Breakfast program. workshops); In 2003, Jennifer joined The Bulletin magazine as a senior • access to the exhibition hall; writer, where she won several national awards. In May • lunch; and 2006, she developed and launched a new book program, • light refreshments at breaks. The Book Club, which she still hosts, along with Jennifer There is an additional cost for the Women in Financial Planning Byrne Presents, a series of literary specials and interviews. Breakfast and the Future2 Gala Dinner. For more information on the Congress or to register, go to Jennifer continues to work in print. Her latest article is on a www.fpacongress.com.au recent safari in Zambia for Gourmet Traveller.

16 | Financial Planning www.fi nancialplanningmagazine.com.au women what worked and what fi nancial coach – a partnership didn’t for me, and why.” that lasted for the next 20 years. Workshop streams A topic Jennifer will traverse in her “By the time my planner retired, This year’s Congress will feature four workshop streams under the presentation, will be the key issues we were friends and more following headings: and trends affecting women today, importantly, she had helped me Inspire into a position of sound fi nancial and how they are being resolved. Hone and maintain your own personal development and security.” Jennifer will also share her own motivation goals in a series of sessions that will discuss and insights of working with a fi nancial Jennifer concedes that her demonstrate how to be fi t for the future, both mentally and planner. decision to use the Women’s physically. “I’m one of those people who Investment Network was primarily Grow its attitude it had towards women. has had an extremely good These sessions are designed for the practice management And with Jennifer’s attitude to experience. A lot of my fi nancial professional and will enhance the operational aspects of your life, it was a perfect fi t. “We both stability now is because of a fi nancial planning practice. You will learn best practice concepts believed that women deserved fi nancial planner, and that’s specifi c to fi nancial planning and identify key trends impacting how better. We decided to make that something I want to talk about,” you operate your practice. she says. happen by working harder and by better informing ourselves. You’ve Expand Jennifer’s fi rst real contact with a got to be focused on yourself and Led by industry experts, these sessions will enhance your fi nancial planner came when she where you want to be going, not technical capability and critical thinking in fi nancial planning was appointed to 60 Minutes in just where you are. That’s always specialty areas. This in-depth knowledge will help you create 1986. “All of a sudden, I got paid been my attitude to life.” better solutions for your clients. really, really well,” she says. “And Engage I realised, I needed help with my Attitude – it’s a quality Jennifer has in spades. These sessions will cover how best to engage, grow and develop fi nances.” your clients, your people and your business. Discover techniques Hear Jennifer’s presentation at Back then, Jennifer turned to the to innovate your business, build trust and authenticity, and refi ne the Women in Financial Planning Women’s Investment Network, your communication skills to foster better client and workplace Breakfast on Thursday 19 and worked with one of the relationships. planners who became Jennifer’s November at 7:30am.

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October 2015 | 17 Congress Congress Workshop Program Industry experts and leading CFP® practitioners fi ll a program of 24 workshops across four dedicated workshop streams – Expand, Grow, Engage and Inspire. Each session is accredited with 1 CPD hour. The following is a preview of the sessions.

Expand Led by industry experts, these sessions will enhance your technical capability and critical thinking in fi nancial planning specialty areas. This in-depth knowledge will help you create better solutions for your clients.

SMSF: One size does not fi t all Meet the regulators SPEAKER: David Busoli, National Education SPEAKERS: Dante De Gori Manager, AMP SMSF CFP®, FPA; Ian Taylor, TPB; TIME: 11:30am-12:30pm, Thursday 19 November Louise Macaulay, ASIC TIME: 10:30am-11:30am, Friday 20 November This session examines SMSFs, industry and retail fund choices, to help you better understand whether or not an This session will provide all the updates that fi nancial planners SMSF may be suitable for a client. The session will also cover need about legislative change. It includes an update from the Tax when to put insurance inside or outside of an SMSF. Practitioners Board on the latest tax reform and what advisers (Technical complexity: Medium) and AFSLs need to know, and from ASIC on the PJC inquiry. (Technical complexity: Low)

Is risk advice now risk-free? SPEAKERS: Dante De Gori CFP®, Ageing gracefully General Manager, Policy and Conduct, SPEAKER: Louise Biti CFP®, Director, FPA and Mark Everingham CFP®, Strategy Steps and Aged Care Steps Managing Director, Personal Risk Professionals TIME: 11:45am-12:45pm, Friday 20 November TIME: 1:45pm-2:45pm, Thursday 19 November We all grow old, but few are ready for the challenges. Discover Risk advice is going through reform. How will these changes align how aged care works, and learn about the assessment and with FoFA and your advice obligations? How can the new FPA life transition process for your clients. What are the latest changes insurance advice guide help you avoid potential minefi elds? to accommodation and home care packages? When can an (Technical complexity: Low) aged care specialist provide expert advice? (Technical complexity: High)

Taxing times SPEAKER: Ken Mansell, Tax trainer and writer, Tax Rambling Grow These sessions are designed for the practice management TIME: 3:05pm-4:05pm, Thursday 19 November professional and will enhance the operational aspects of your This session tackles tax issues, including the top three most fi nancial planning practice. You will learn best practice concepts commonly used tax strategies. It also explores the differing specifi c to fi nancial planning and identify key trends impacting tax treatment of non-residents and expats. Learn how foreign how you operate your practice. currency translation rules affect applicable fund earnings. (Technical complexity: High) Fighting words: Understanding disputes and resolving them SPEAKERS: Dr June Smith, Lead Death and taxes Ombudsman, Financial Ombudsman SPEAKER: Scott Hay-Bartlem, Partner, Service; Peter Richards CFP®, Director, Parallel Financial Cooper Grace Ward Lawyers TIME: 11:30am-12:30pm, Thursday 19 November TIME: 4:25pm-5:25pm, Thursday 19 November What are the common issues that can lead to disputes? How How can you reduce the tax sting when Baby Boomers transfer can tensions be resolved before they escalate too far? What is their wealth to their children? Explore the logistics of family trusts and the process of dispute resolution like, and what happens when testamentary trusts and how they can help achieve your clients’ goals. FOS is involved? This session tells all and provides practical (Technical complexity: High) tips for turning down the heat.

18 | Financial Planning www.fi nancialplanningmagazine.com.au How to buy, sell or start your own practice Engage SPEAKERS: Phillip Win CFP®, These sessions will cover how best to engage, grow and develop Director, Profi le Financial Services; your clients, your people and your business. Discover techniques Stephen Prendeville, Director, Forte to innovate your business, build trust and authenticity, and refi ne Asset Solutions; Catherine Robson CFP®, Chief your communication skills to foster better relationships. Executive Offi cer, Affi nity Private TIME: 1:45pm-2:45pm, Thursday 19 November

Want to start your own practice? Interested in buying or Extraordinary leadership: The fi ve practises selling the practice you work for? What are the key issues and that create great workplaces considerations? This session unpacks the processes of buying SPEAKER: Michael Bunting, Mindfulness and and selling a practice to give you the knowledge to do it better. Leadership Guru

Taking a risk: Profi ling do’s and don’ts TIME: 11:30am-12:30pm, Thursday 19 November SPEAKER: Dr Katherine Hunt, Lecturer, This session is based on the best-selling book of a similar Griffi th Business School title. It uses data collected from thousands of businesses in Australia and New Zealand. It explores fi ve key leadership TIME: 3:05pm-4:05pm, Thursday 19 November practises guaranteed to increase workplace engagement and profi tability. So many consequences, good and bad, fl ow from identifying clients’ risk profi les. Getting it right is key to meeting your best interest obligations; getting it wrong is a recipe for disaster. This session turns the spotlight on risk profi ling. The power of storytelling for business: Why it is the missing link in business SPEAKER: Yamini Naidu, Business The future of risk advice Communications Expert ® SPEAKER: Mark Everingham CFP , Managing TIME: 1:45pm-2:45pm, Thursday 19 November Director, Personal Risk Professionals TIME: 4:25pm-5:25pm, Thursday 19 November Discover how storytelling can dramatically increase your leadership presence and ability to infl uence. This session will The future of risk advice is changing. How can you build a provide powerful tips for immediate implementation in your sustainable practice that specialises in risk advice? How can professional life. you transition away from commissions? Explore an example of a pricing model and discover some opportunities to reduce the cost of delivering risk advice. Giving feedback: How to hold a ‘tough conversation’ Demographic change and your practice SPEAKER: Karen Gately, People Management Specialist SPEAKER: Mark McCrindle, Social Researcher TIME: 3:05pm-4:05pm, Thursday 19 November TIME: 10:30am-11:30am, Friday 20 November Learn how to deliver effective feedback and hold the diffi cult conversations that you have been avoiding. Participants will Are you riding the bell curve of baby boomers reaching retirement? discover the power of honesty, delivered with compassion and Or will this tsunami change everything in its wake? This session how it enables effective performance discussions. focuses on six areas of mega change and will help you understand what you need to know to embrace and manage these changes. The HR rule book: Understanding and Robo-Advice: Terminator or WALL-E? managing employment related risk SPEAKERS: Paul Derham, Partner, SPEAKER: Karen Gately, People Management Holley Nethercote; Grant Holley, Specialist Partner, Holley Nethercote TIME: 4:25pm-5:25pm, Thursday 19 November TIME: 11:45am-12:45pm, Friday 20 November Learn how to navigate tricky situations and avoid costly Disruptive technology is defi nitely affecting fi nancial planners. mistakes. This session addresses the risks relating to unfair The rise of robo-advice is taken as a threat by many planners, dismissal, workplace bullying and grievances. but could it present opportunities instead? Find out how you can adapt your practice to prosper in a time of technological change. Continued on p20

October 2015 | 19 Congress

Effective innovation: Why small steps forward Vocal intelligence are better than giant leaps SPEAKER: Dr Louise Mahler, Communication SPEAKER: Nigel Collin, Innovator and Problem Specialist Solver TIME: 3:05pm-4:05pm, Thursday 19 November TIME: 10:30am-11:30am, Friday 20 November This session will show you the untapped potential in using Is it better to innovate in small steps rather than aiming for the both voice and body language to improve communication and big leap forward? In this session, you will learn how to solve build trust. Positive results abound in lessons for leadership, problems, take action, test, measure and improve. Participants presentation, sales and customer service, as well as group will discover an achievable process for every day, small-scale activities for team building. but effective innovation.

The neuroscience of leadership: Use your brain to your advantage for peak performance Brand YOU 2.0: How to use social media to SPEAKER: Kirsten Hansen, Neuroscience build your personal brand Researcher and Leadership Expert SPEAKER: Kylie Bartlett, Social Media Coach TIME: 11:45am-12:45pm, Friday 20 November TIME: 4:25pm-5:25pm, Thursday 19 November This session will show you brain-based, evidence-rich strategies for improving the leadership of yourself and others. This session highlights why it’s important to grow your own personal brand in parallel with your business brand. The session will also help you understand what social media is and how to apply it. Inspire Hone and maintain your own personal development and motivation goals in a series of sessions that will discuss and demonstrate how to be fi t for the future, both mentally and physically. How to have better conversations SPEAKER: Anna McPherson, The School of Life Happy body, happy mind: How your body TIME: 10:30am-11:30am, Friday 20 November can change your brain to combat stress and depression Our lives are often fi lled with superfi cial talk. How can we have SPEAKER: Anna-Louise Bouvier, Expert in Mind conversations that inspire us to think in new ways, stimulate and Body Wellbeing our curiosity and prompt us to say things we’ve never said TIME: 11:30am-12:30pm, Thursday 19 November before? This session will provide ideas on how to improve the quality of your conversations. An interactive session that will show how stress affects our bodies and what to do about it. Why have we stopped moving, what is it doing to us and what can we do about it? This session will give tips and provide ways to relieve discomfort and highlight the improvements that can be expected. How to stay calm SPEAKER: Rob O’Donnell, The School of Life Integrated mindfulness: Two key practises to TIME: 11:45am-12:45pm, Friday 20 November transform your leadership and your life SPEAKER: Michael Bunting, Mindfulness and No one is calm all the time. Some amount of fear and Leadership Guru adrenaline can be critical to our survival. Many of us will at times experience anxiety. Is this part of our human condition TIME: 1:45pm-2:45pm, Thursday 19 November or a sign of personal dysfunction? Beset by a host of social This session highlights how mindfulness is the next revolution pressures, how can we retain our calm? in supporting best health, leadership and relationships. It will also guide you on how to develop self-awareness, and a * Program subject to minor changes deeper sense of happiness and effectiveness.

20 | Financial Planning www.fi nancialplanningmagazine.com.au FPA Professionals Congress Program: Shaping Futures Time Wednesday 18 November 1:00pm Registration open 2:30pm FPA Professional Practice Workshop 6:00pm Opening night reception 7:30pm Day concludes

Time Thursday 19 November 7:00am Registration open 7:30am Networking breakfast, Exhibition Hall Women in Financial Planning Breakfast with Jennifer Byrne 9:10am Move to Main Hall 9:20am Congress opening and keynote session: Shaping Futures - Inspiring stories 11:00am Morning tea, Exhibition Hall 11:30am SMSF: One size does not Understanding disputes Extraordinary leadership: Happy body, happy mind fi t all and resolving them The fi ve practises that create Anna-Louise Bouvier David Busoli Dr June Smith and great workplaces Peter Richards CFP® Michael Bunting 12:30pm Networking lunch, Exhibition Hall 1:45pm Is risk advice now How to buy, sell or start your The power of storytelling Integrated mindfulness risk-free? own practice for business: Why it is the Michael Bunting Dante De Gori CFP® and Phillip Win CFP®, Stephen missing link in business Mark Everingham CFP® Prendeville, Catherine Robson CFP® Yamini Naidu 2:45pm Transition between workshops 3:05pm Taxing times Taking a risk: Profi ling do’s Giving feedback: How to hold Vocal intelligence Ken Mansell and don’ts a ‘tough conversation’ Dr Louise Mahler Dr Katherine Hunt Karen Gately 4:05pm Transition between workshops 4:25pm Death and taxes The future of risk advice Understanding and managing Social media to build your Scott Hay-Bartlem Mark Everingham CFP® employment related risk personal brand Karen Gately Kylie Bartlett 5:25pm Free time 7:30pm Future2 Gala Dinner

Time Friday 20 November 7:00am Registration open 7:30am Networking breakfast, Exhibition Hall 8:45am Move to Main Hall 9:00am Keynote speaker: Roll up your sleeves with Chris Riddell 10:00am Morning tea, Exhibition Hall 10:30am Meet the regulators Demographic change and Why small steps forward are How to have better Dante De Gori CFP®, Ian your practice better than giant leaps conversations Taylor, Louise Macaulay Mark McCrindle Nigel Collin Anna McPherson 11:30am Transition between workshops 11:45am Ageing gracefully Robo-advice Neuroscience of leadership How to stay calm Louise Biti CFP® Paul Derham, Grant Holley Kristen Hansen Rob O’Donnell 12:45pm Networking lunch, Exhibition Hall 2:00pm Move to Main Hall 2:10pm Keynote session: Shaping Futures - Seize the day 3:45pm FPA Professionals Congress closes

* Program subject to minor changes Expand Grow Engage Inspire

October 2015 | 21 “Our members do appreciate knowing that UniSuper does have a high standard when it comes Trust, ethics to providing fi nancial planning advice.” Synergy and education McCartney attributes the synergy between UniSuper and the FPA UniSuper’s Jack McCartney talks to Jayson Forrest about as a key factor in signing up to the FPA Professional Practice brand. what the FPA Professional Practice Program means to the “The FPA is focused on improving $50 billion superannuation fund. the professionalism of the industry. Obviously, as part of this, ethics and raising education standards attributes to three key elements are both very important. These are – trust, ethics and education; the same standards that we have the foundations of the FPA been focusing on at UniSuper, Professional Practice brand. too,” McCartney says. “So, we thought it time that we came out “Dealing with our clients in a in support of the FPA’s objectives professional manner helps to and one way that we can show build trust and ultimately, trust this is by becoming an FPA is the highest measure of any Professional Practice.” professional relationship. We also want to demonstrate to According to McCartney, the our members that through our process of becoming an FPA actions, we maintain the highest Professional Practice was not ethical standards and we’ve got “overly onerous”. a high calibre advisory team they UniSuper worked closely with the can avail themselves off.” FPA to ensure it met the criteria By committing to the FPA of becoming an FPA Professional Professional Practice brand, Practice. UniSuper believes it is an With around 400,000 members, opportunity to clearly convey UniSuper has recently to the market, and its 400,000 strengthened its adviser presence members, that it operates a very over the past year, currently professional advice business with employing 32 advisers nationally a wide range of services. in six dedicated advice offi ces in “Not many people know that each capital city, which provides UniSuper provides quite broad a central location for members and challenging advice services,” to seek advice in person. Over For too long, campaigns like beginning by bridging the gap McCartney says. “We run 90 per cent of UniSuper’s ‘Compare the Pair’ have tarnished between retail and institutional model portfolios on super and Private Client Advisers are CFP the distinction between retail and advice. non-super, we do insurances professionals and over 65 per member advice, but times are It was a sign of things to come, outside of super, and we offer cent of all UniSuper advisers are changing – and for the better. with UniSuper – the $50 billion wrap accounts and separately CFP certifi ed – well above the Last year’s agreement between superannuation fund for the managed accounts. And whilst all benchmark set by the FPA to be the FPA and industry super higher education and research these services aren’t necessarily recognised as an FPA Professional fund Cbus, to enable CFP® sector – recently signing up to the main game for all our Practice. practitioners working in an FPA the FPA Professional Practice members, we do have members “I think the FPA identifi ed fairly Professional Practice to accept brand; the fi rst superannuation with higher balances who do quickly the opportunities of having referrals from Cbus members fund to do so. It was a decision want these range of services. So, UniSuper as an FPA Professional seeking fi nancial planning that UniSuper Executive Manager we’ve become a one-stop shop Practice. Once we started chatting services, heralded a new – Advice, Jack McCartney for them. about the criteria, we both knew

22 | Financial Planning www.fi nancialplanningmagazine.com.au ...... PROFESSIONAL PRACTICE FINANCIAL PLANNING ASSOCIATION of AUSTRALIA

we were very like-minded. The “We strongly believe in the process wasn’t overly onerous benefi ts that quality fi nancial for us because 65 per cent of advice can make in helping The planner perspective our planners and 90 per cent of members – at any stage of their UniSuper Senior Private Client Advisers our Private Client Advisers were life – achieve their fi nancial goals. ® already CFP® practitioners.” As FPA Professional Practices, Adam McCarthy CFP and Stephen our advice offi ces are a trusted Brereton CFP® share their thoughts Quality advice environment for our members to seek professional tailored advice on what the FPA Professional Practice McCartney attributes this high across a broad range of topics,” percentage of CFP practitioners to McCartney said. brand means to them. UniSuper’s vision of quality advice “Our membership base is unique,” What does the FPA Professional Practice brand mean to you, for all its members. But what does he says. “They are engaged, well- your practice and your clients? quality advice look like for him? educated and we have privileged Adam McCarthy (AM): The FPA Professional Practice accreditation Without wanting to sound access, which enables us to demonstrates the highest level of professional and ethical standards repetitive, McCartney says quality design products and solutions – through a commitment to the FPA Code of Professional Practice, advice will always be about such as our open Defi ned Benefi t with the majority of Private Client Advisers holding the CFP delivering advice that’s in the best Division – specifi cally for our designation. Such recognition provides confi dence to those members interests of the client. members. This makes access to seeking advice that their adviser’s recommendations are in their best “I know that’s easily said but quality, professional advice that interests, which ultimately creates better retirement outcomes for them. for us, we have a 100 per cent demonstrates understanding of Stephen Brereton (SB): To me, the FPA Professional Practice brand fee-for-service model in every our members’ needs, paramount. and accreditation is acknowledgment from the FPA that UniSuper instance,” he says. “UniSuper “As such, we’ve built our national operates to exacting standards of professionalism and ethics advisers don’t receive any advice footprint in response to demonstrated through commitment to the FPA Code of Professional commissions at all. We are able to increased demand from members Practice and Code of Conduct. Whilst UniSuper can communicate and recommend other superannuation for professional advice that covers demonstrate to our members that advice provided by our Private Client products, as well as non-super not just superannuation-related Advisers is in the members’ best interest, the FPA Professional Practice products. We’ve got about 30 topics but broader fi nancial issues, recognition reinforces that position. The outcome being enhanced other super products on our such as investment strategies, member confi dence and trust in the advice process. approved product list that advisers wealth accumulation, insurance, What do you hope to get out of, or achieve, from being an FPA are free to recommend.” retirement and estate planning.” Professional Practice? McCartney concedes that AM: Recognition that UniSuper operates at the highest level of although UniSuper does have a First of many professionalism and employs some of the most experienced, qualifi ed strong value proposition and a and respected fi nancial advisers in Australia. good product that is attractive As one of the fi rst superannuation to most UniSuper members, the funds to sign up to being an SB: The key outcome is acknowledgement and advocacy from premise of always acting in the FPA Professional Practice, members that UniSuper operates a high quality fi nancial advice client’s best interest remains the does McCartney think this will practice. Also, peer recognition of our quality advice processes assists underlying requirement in the encourage other member funds to in attracting high calibre employees. follow UniSuper’s lead? advice process. Will the FPA Professional Practice brand help elevate the “There are situations where there “Undoubtedly,” he says. “I believe fi nancial planning profession amongst consumers? might be a cheaper product or it’s very important for all parts of the industry to come together to AM: Absolutely. To become a CFP practitioner, you must now hold an an insurance arrangement where undergraduate degree in a related fi eld, meet relevant work experience we’re not quite as competitive on. support the growth of professional advice. requirements, and complete the CFP Certifi cation Program. These If that’s the case, then that’s the standards are now more aligned to other professional bodies and the advice we give. It’s all about the “We all know that Australians are greater expectations set by our community. A prospective client should client.” going to need to get quality advice be confi dent that the advice they receive from a CFP professional (who McCartney said the commitment at some point in their life. Where is employed by a FPA Professional Practice) is in their best interests. we can promote fi nancial planning to providing industry best practice SB: Without doubt. With the FPA promoting and articulating the key fi nancial advice was part of the as an ethical, well-qualifi ed professional industry, will help all components of what constitutes professionalism within the fi nancial fund’s mission to deliver members advice industry, the FPA Professional Practice brand, like the CFP greater retirement outcomes – stakeholders achieve their goals. Ultimately, that will help build trust, designation, is a further way to instil community confi dence in the through both the accumulation profession and help consumers make informed decisions when seeking and retirement phases of their life. which is the highest measure of any professional relationship.” out advice.

October 2015 | 23 Income portfolios Managing portfolio drawdown risk

With the constant hunt for yield, Steve Anagnos and Cameron Duncan believe many investors are failing to understand the dynamics and relative returns and risks of the complete capital structure. By considering debt and hybrid securities, as a means of diversifying the downside risk of investment portfolios, they believe this will help to preserve the capital value of portfolios.

Australian equities have been a classes and strategies to diversify transaction fees, as well as best fi ts the risk tolerances, goals signifi cant source of investment the risk in portfolios, there is an the growth in self-managed and objectives of investors. returns over the long-term for overall opportunity to further super funds, has changed the many investors. Fully-franked diversify downside or drawdown investment landscape, which An alternative dividends, together with the portfolio risk in order to continue has seen increased demand for capture of share price growth, to meet income requirements, a more holistic, objectives-based Debt and ‘Debt/Equity’ Hybrid have resulted in this asset class whilst preserving the capital value investment approach. strategies have perhaps been the most under-represented asset maintaining a large exposure of the portfolio. From this comes the inclusion class in Australia, particularly by in the portfolios of Australian The Future of Financial Advice of other asset classes, such as comparison to the asset allocation investors. (FoFA) reforms, which has debt securities, property and mix in many other developed Although some investors have accelerated the transition international equities, with the aim economies. actively searched for other asset to fee-for-advice away from of constructing a portfolio that The rationale for an increased

24 | Financial Planning www.fi nancialplanningmagazine.com.au weighting to this asset class able to be accessed by selling on the capital structure, meaning combination of the above. may be broadly summarised as the secondary market, such as they will only be returned their Alternatively, the issuer may follows. via an exchange or to a market capital after those securities arrange a third party to purchase Debt securities are geared maker, without the penalty of ranking ahead have been paid. the hybrid from the security to provide a more reliable break costs and reinvestment As a consequence of this holders. income stream through the risk, as in the case of a term subordination, the investor is deposit, for example. compensated with a higher return Hybrids can take the form of regular payment of coupons Converting Preference Shares, or distributions, and, in the In summary, holding excess for taking on greater credit risk for a given issuer. Step-up Securities, Convertible case of fl oating rate securities, cash across a portfolio limits Notes and Perpetual Income will shift up or down with the drawdown risk (capital loss), but Securities. Each has different prevailing level of interest rates, also minimises the investor’s rate Hybrid securities risk and reward characteristics, as distributions are reset at the of return. Hybrid securities, on the other and by blending security types, beginning of each new interest hand, have both debt and equity issuer quality, maturities, as period. Debt securities like features and characteristics. It well as securities trading at a Capital preservation is premium/discount to face value, By implementing a strategy that is important to note that they are emphasised, albeit with a a number of bespoke outcomes includes the debt securities asset neither true debt nor true equity variance depending on where the can be created to offset ordinary class, the objective is to increase securities. bond sits in the capital structure equity risk in a portfolio, whilst the expected return of the Hybrids are frequently issued by and the creditworthiness of the generating sustainable and portfolio ‘per unit of risk taken’, or banks, insurance companies and issuer. predictable returns. alternatively, reduce the potential large ASX listed companies. Finally, debt strategies will An examination of a bank’s drawdown risk for the same Hybrid securities generally typically display much lower capital structure (Chart 1) is targeted return. provide higher yields than debt volatility than equities, and as an a useful way to illustrate the The debt securities asset class to compensate for the higher asset class, normally displays different classes of securities and is comprised of sub categories investment risk. Hybrid securities a low or negative correlation to highlight how they differ in some that vary in risk and return. In pay a regular fi xed or fl oating rate equities. key respects. credit terms, government bonds of return or dividend (including Cash offers a higher degree of reside at the ‘risk free’ end of franking credits) until a certain Higher ranking senior secured capital stability and, of course, the spectrum, while unrated date. In this regard, holders and unsecured debt (bonds) lower volatility than debt corporate debt represents an are paid interest or a dividend tend to have a relatively simple securities, but signifi cantly lower exposure to increased risk – for holding the security for a structure, whereby an investor returns as a consequence. Where typically referred to as ‘high yield’ predetermined period. At maturity pays, for example, $100 for higher volatility (>2.00 per cent) is investments or ‘junk bonds’. or on a reset date, the issuer may a security, is paid a fi xed (or palatable to an investor, greater fl oating) rate return, and at Within a single issuer, there have the right to decide one of returns by virtue of credit and maturity, receives their original are often different classes of the following options: duration risk are achievable via invested amount plus accrued debt that have more equity like • convert the hybrid securities exposure to the debt asset class. interest for the fi nal period. features as you move down the into the underlying equity of As an alternative to cash, debt capital structure. In the event the issuer; However, as an investor moves securities can be an alternative of liquidation, the holder of this • redeem the hybrid securities, further out along the risk curve, and effi cient method of lower ranking debt is subordinate usually at face value; or the securities will take on more maintaining liquidity, with cash to those holding debt higher in • roll into another hybrid structure or even a Continued on p26

Table 11 Security Rank Recourse Interest payment Conversion into shares Term deferral Deposits First right of recourse over No No 1 month to fi ve years. assets. Senior secured debt First right of recourse over No No Usually up to 7 years. assets after depositors. Senior Unsecured Next in line. No No Usually 5 to 10 years. Subordinated Debt Behind senior debt. Mandatory subject No, except if bank deemed Usually 10 years, callable at 5 years. to solvency. non-viable by APRA. Hybrids Limited recourse but Yes, subject to Mandatory conversion and Perpetual subject to cash redemption above equity. director discretion capital trigger event. at option of bank and subject to APRA and APRA. approval, or mandatory conversion.

October 2015 | 25 Income portfolios

equity like characteristics. Table monies, then these securities paying dividends on common being long date in excess of 1 summarises the key differences must convert to equity capital, equity – unlike many of their 30 years. Up to the call date, under Basel 3, as you move out or be permanently written down. offshore peers. some rating agencies allow along the capital structure for a AT1 may also be triggered to The volatility differential between 50 per cent of the issue value bank. convert or be written down if asset classes is marked, to be considered equity for The ‘maturity’ becomes less CET1 falls to or below 5.125 per even when comparing deeply the purposes of viewing the defi ned and more akin to cent. subordinated securities such as company’s leverage, affording a perpetual equity as the investor Despite having these equity like AT1 bank hybrids, with common benefi t in the calculation of the moves lower down the scale. features, AT1 (bank hybrids) and equity. The CBA PERLS VII issuer’s senior credit rating by the Sub debt is typically 10 years Tier 2 securities (sub debt) are (CBAPD) has been one of the rating agency. At call date, this to maturity, but with a market still afforded signifi cant protection more volatile AT1 securities, being benefi cial treatment from ratings expectation that this will occur by CET1 (equity) before they issued as a longer dated security agencies may discontinue, at fi rst call date in approximately are required to absorb any loss. to fi rst call date (7.5 years) incentivising the issuer to redeem fi ve years. For Australian bank APRA announced on 20 July that at a point when the demand and/or roll the security, as it then securities, this has always been Australian banks would require a for yield and benign macro becomes expensive debt. They the case. Hybrid alternative higher proportion of capital to be environment saw a recent low may then look to issue equity Tier 1 securities are classed held against residential mortgage in credit spreads. Nevertheless, or issue a new hybrid to fi ll the as perpetual, as if they are not lending, sparking a round of since issue, the PERLS VII has breach. redeemed at the fi rst call date equity raisings by the banks, produced a 100 day volatility of However, if conditions and (which has been the outcome to aimed at moving their CET1 6.16 per cent. earnings (and presumably the date), they must mandatorily be ratios to greater than 10 per cent The effect of shorter call dates is cost of debt) has increased for exchanged into shares, subject to by 1 July 2016. evident. In comparison, the CBA the issuer, they may elect to keep certain conditions. This higher level of equity held PERLS III, which has 3.3 years the security on issue past the call The equity like features in the by the banks provides a further to fi rst call, displays a 100 day date. current crop of bank hybrids are buffer for investors in AT1 and volatility of 5.9 per cent. Even Chart 4 illustrates the behaviour designed by the Basel 3 Accord Tier 2 securities, placing the short dated at 0.6 years to call, and correlation between various to add greater resilience to the 5.125 per cent capital trigger the CBA PERLS III (which is an parts of the capital structure. banking system, by enhancing level for conversion into shares older style Basel II security with the loss absorbing capacity of a at a greater distance. While AT1 no loss absorbing features) has Blended portfolio banks’ capital. Capital is classed distributions are non-cumulative a 100 day volatility of 2.3 per as Common Equity Tier 1 (CET1), and at the bank’s discretion, cent. CBA equity has a 100 day When looking at building an Alternative Tier 1 (AT1) or Tier 2 note that if a bank’s CET1 falls volatility of 30 per cent. income portfolio designed to blend with ordinary equities and (Subordinated debt). below 8 per cent, there is a Chart 3 shows selected ANZ cash/term deposits, investors AT1 and Tier 2 are subject to Capital Conservation Buffer that Hybrids compared to the ANZ need to carefully allocate from the a non-viability clause, whereby starts restricting the maximum share price, which demonstrates securities that are fairly priced for if the Australian Prudential amount of earnings able to be the differing volatility. both their expected return and Regulatory Authority (APRA) distributed as dividends, as well as a restriction on any profi t share Similarly, in the non-bank risk. decides a bank is no longer a corporate debt universe, payments to employees. It should Also, they must determine viable going concern and/or equity-like characteristics occur requires a bail out using public be noted that throughout the appropriate weightings of these in GFC, no Australian banks ceased where there is a greater level of subordination. Senior and sub Chart 1: Bank Capital Structure debt is similar in nature to that Chart 2: Bank capital described above for banks, requirements2 without the bank specifi c APRA enforced non-viability clause. Offering greater yield, there are hybrid securities that have been issued where the issuer may defer distributions at their discretion, or if certain leverage and interest cover parameters are breached. These may or may not be cumulative. The fi rst call date allows redemption at the option of the issuer, with the maturity date

26 | Financial Planning www.fi nancialplanningmagazine.com.au their portfolio. This will be driven help them decide the value by the return and risk objectives Holding excess cash across and willingness to hold in their of the portfolio. portfolios. The key considerations are the a portfolio limits drawdown type of instrument and the issuer, Summary the mix of fl oating and fi xed risk (capital loss), but also Investors often focus on yield rate payable, and the expected maximisation as their main maturity profi le – which in the minimises the investor’s investment objective. As a result, case of hybrids, also means many investment portfolios hold the call date versus mandatory rate of return. a substantial allocation to high conversion date and whether dividend equities. Such a narrow they have a fi nal conversion date, focus without consideration of eg Perpetuals. encompassing the full universe Once investors consider the of available and suitable expected yield to redemption/call investments may potentially date/fi nal conversion, they can result in an unexpected and look at how the cash fl ows are permanent drawdown. By likely to fl ow and determine how The security pays a distribution If the security is not called at the understanding the dynamics and much short-term market risk they of 2.80 per cent above the 90 call date but rather converted two relative returns and risks of the can take in the shorter term. This day bank bill swap rate that is years later, then the margin to complete capital structure (debt is the risk of price falling rather reset four times per year. At the the conversion date rises to 4.85 and hybrids), and appropriately than not receiving face value at time of writing, it is trading on the per cent. To determine what the allocating to this sector, as well some future date. As equities ASX at $92.11. At this price, we actual yield to these dates would as individual securities, investors have no such maturity date, debt calculate the margin over swap be, we could simply assume that with clearly identifi able investment and hybrid securities can be used is now 4.35 per cent (rather than the bank bill swap rate (currently objectives are able to maximise to reduce some of the risk of the 2.80 per cent) above the 90 at 2.15 per cent) fl attens, rises or the likelihood of achieving these drawdown that an equity portfolio day bank bill swap rate. stays the same. objectives. contains. In other words, the price, which Alternatively, we could look to the Steve Anagnos and Cameron This can be illustrated with an has fallen to $92.11, implies that interest rate swap market that Duncan are Joint Heads of example. by purchasing here, with the gives us future expectations of Income Strategies at Shaw and accrued interest in the security interest rates. In this case, the Partners. They both have over Example and the term to the call date (7.6 swap rate for the 22 March 2024 25 years’ experience in senior years), will return a further 1.55 call date is 2.73, implying rising roles in fi nancial markets and Turning back to the CBA per cent than when it was issued. interest rates. This makes the investments, both in Australia PERLS VII (CBAPD), which was This also takes into consideration expected yield to maturity of the and overseas. issued in September 2014, this the fact that the security is trading CBAPD approximately 7.08 per security has a fi rst call date of 15 at a discount to the $100 that cent. As the price of the security Footnotes December 2022 and mandatory will be paid if called in 7.6 years. falls or rises throughout its life, conversion date of 15 December 1. Source: Shaw and Partners. This margin quoted includes the it is this margin and expected 2024. 2. ANZ Treasury. value of the franking credits paid. yield that investors look at to 3. ANZ Treasury.

Chart 3: Trading prices of selected ANZ Hybrids compared to Chart 4: Equities vs Bonds vs Hybrids an adjusted ANZ Ordinary Share Price3

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Re-contribution strategy – when is it worthwhile? MANSI DESAI Background component of the benefi t into tax dependants (usually the tax-free component. The fi nancially independent adult MLC TECHNICAL SERVICES The re-contribution strategy purpose is usually to: children) on the death benefi t involves cashing out a portion • generate a more tax-effective amount after the client THIS ARTICLE IS WORTH of the taxable component income stream by increasing passes away. 0.5 CPD HOURS of a superannuation benefi t the tax-free component of and putting the money back To be eligible to use this CRITICAL THINKING superannuation pension strategy, the client needs to into super by making a non- payments received under age Includes concessional contribution meet a condition of release 60; and/or and be eligible to make super • Pensions before age 60 (NCC). It essentially converts • reduce (or eliminate) the contributions. • Estate planning issues some (or all) of the taxable tax to be paid by non- • When a spouse is under Age Pension age Table 1: Anti-detriment facts • When a client is terminally ill What is an anti-detriment payment? An anti-detriment payment is an additional amount that is included in a lump sum death benefi t paid to eligible benefi ciaries (see below). The payment is broadly designed to restore the deceased’s death benefi t to what it would have been if ‘contributions tax’ (ie, 15 per cent) had not been paid on taxable contributions.

Who can receive an anti-detriment amount? An anti-detriment amount can only be paid to: • a spouse or former spouse of the deceased; • a child of any age; or • the estate, if the fund trustee is reasonably satisfi ed the ultimate benefi ciaries are one or more of the above.

When are they paid? Anti-detriment payments are: • only made on the taxable component of a lump sum super death benefi t, including when a death benefi t pension is commuted to a lump sum on the death of the pensioner (or reversionary pensioner) within the prescribed period; • calculated based on a formula provided in ATO ID 2010/5 (the formula method) or by identifying the actual tax paid (the audit method); and • tax-free if paid to tax dependants and taxed at 15 per cent (plus Medicare if applicable) when paid to non-tax dependants.

When are they not paid? Super funds are not legally required to make anti-detriment payments. Also, they are not paid: • on any insurance amount included in the death benefi t; • when a death benefi t is paid as a pension; • when a member takes a terminal illness benefi t; and • when a pension is commuted to a lump sum outside the prescribed period.

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While it has been a popular wanting to do the recontribution the pension, the client’s other if the client has tax dependants strategy, it may not always be and the client’s specifi c income sources and the tax who would receive the entire worthwhile. When considering circumstances. components making up the anti-detriment payment tax-free a re-contribution strategy for a Pensions before age 60 benefi t. anyway. client, it’s essential to assess the: If the aim is to make a Examples 1 and 2 take a closer Therefore, it is always worth doing • potential tax savings, which will superannuation pension more look at the fi rst two of these the numbers before making a re- depend on a range of factors tax-effective before age 60, it’s considerations. contribution recommendation, as and, in many cases, may be essential to consider whether Estate planning issues examples 3 and 4 illustrate. negligible; any tax would be payable on • possible anti-detriment Where the super death benefi t When deciding whether to re- the pension payments without benefi ciaries are non-tax contribute for estate planning implications as, by reducing re-contributing. the taxable component, the dependants, a re-contribution purposes, you need to consider re-contribution strategy can Between the age of 55 and strategy would enable them to who will receive the death potentially reduce the anti- 59, it is possible to receive receive the benefi t tax-free. benefi t, whether the fund makes detriment uplift that would taxable income payments from However, consideration needs anti-detriment payments and the otherwise be payable to a superannuation pension of up to be given to whether this magnitude of the anti-detriment eligible benefi ciaries (see Table to $49,753 without paying any would decrease or eliminate uplift. 1: Anti-detriment facts); and tax in 2015/16, when the 15 per the anti-detriment payment for cent pension tax offset and low • impact on eligibility for various eligible benefi ciaries, especially Continued on p30 income contingent Government income tax offset is taken into benefi ts and payments. account. This fi gure assumes the payments are made from a taxed Example 2: Smaller pension and considerable income from superannuation fund and no non-pension sources When is a re- other taxable income is received. Carson (aged 56) has a superannuation benefi t of $200,000, which comprises entirely of the taxable component. He uses the money to contribution When assessing whether a start a pension and elects to receive income payments of $20,000 re-contribution could help worthwhile? from the pension. He also receives taxable income of $60,000 per to manage tax on pension The answer to this question annum from other (non-pension) sources. depends on the reason for income, you should consider the amount to be invested in The table below compares the net tax payable in 2015/16 with and without re-contributing $195,000 (which is the low rate cap Example 1: Large pension and no other income that applies in this fi nancial year). As you can see, by using a re- Roger (aged 56) has a superannuation benefi t of $1.2 million contribution strategy, Carson could reduce his tax bill in the fi rst year consisting entirely of the taxable component. He uses the money to by $3,505. But it would also be important to assess the impact that start a pension and elects to receive the minimum pension of 4 per the strategy would have when he passes away. cent in year one, which is $48,000. He will not pay any tax on this Without With income, as the numbers below illustrate. As a result, there would re-contribution re-contribution be little point using a re-contribution strategy if the sole aim was to manage income tax. Pension income $20,000 $20,000 Pension balance at commencement $1,200,000 Other income $60,000 $60,000 Minimum annual pension (4%) $48,000 Total income $80,000 $80,000 Gross tax1 $7,147 Taxable income $80,000 $60,500 1 Less low income tax offset ($280) Gross tax $17,547 $11,210 Less 15% pension tax offset ($7,200) Less low income tax offset $0 ($93) Net tax payable Nil Less 15% pension tax offset ($3,000) ($75) Note: In this example, the offsets exceed the gross tax payable by Net tax $14,547 $11,042 $333. However, because both these offsets are non-refundable, the Net income $65,453 $68,958 tax payable is nil.

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Some rules of thumb are that a 60 will increase your client’s Related strategies Age Pension age. It can also re-contribution strategy: taxable income, even though no enable taxable money to be tax will be payable on taxable When a spouse is under Age converted into tax-free money. • may be worthwhile if your Pension age client is sure their death amounts up to the low rate cap Furthermore, the strategy (which is $195,000 in 2015/16). A popular social security could result in a Government benefi t will go to non-tax strategy involves a client who dependants; This could in turn impact co-contribution or spouse tax is of Age Pension age cashing offset. • may not be worthwhile if your Government benefi ts and out some of his/her super and client has a spouse and adult payments based on: having the money contributed When a client is terminally ill children; and • assessable income, such as in the super account of their If a client is terminally ill and Government co-contributions, spouse who is below Age their spouse is aged less than • should generally not be the preservation age, the considered if your client has spouse contribution tax offsets Pension age. and deductions for personal terminally ill person may want a spouse or young children This strategy can enable the to cash out some (or all) of their only. superannuation contributions; older spouse to get more Age and superannuation (which would Impact on Government Pension, as superannuation be tax-free, regardless of their benefi ts and payments • taxable income, such as in the accumulation phase is age and the underlying tax Withdrawing money from the the low income tax offset, not means tested when held components) and re-contribute taxable component before age Medicare levy and surcharge, in the name of a person under the money as an NCC. and Family Tax Benefi t. Example 4: Anti-detriment and a non-tax dependant Example 3: Anti-detriment and a tax dependant benefi ciary benefi ciary Let’s assume Carson from Example 2 dies and his super death Let’s now assume Carson’s death benefi t is paid directly to his benefi t is paid to his wife. If his super fund calculates the anti- non-tax dependant children, who would pay tax on the total taxed detriment amount based on the formula in ATO ID 2010/5, his wife element of the taxable component of the death benefi t (including the would be entitled to an anti-detriment payment of approximately anti-detriment uplift) at 17 per cent. 17.65 per cent of the taxable component of his death benefi t. The next table shows that when you take into account the anti- By using the re-contribution strategy, the anti-detriment amount detriment payment, Carson’s adult children would be $4,584 better paid to his wife would reduce from $35,300 to $883. So, even off if he used the re-contribution strategy and the death benefi t was though the strategy would help Carson to pay less income tax, the paid directly to them. trade-off is a lower total death benefi t for his wife. Without With Without With re-contribution re-contribution re-contribution re-contribution Taxable component $200,000 $5,000 Taxable component $200,000 $5,000 Tax-free component Nil $195,000 Tax-free component Nil $195,000 Anti-detriment payment $35,300 $883 Anti-detriment payment $35,300 $883 Total $235,300 $200,883 Total $235,300 $200,883 Tax payable by children $40,001 $1,000 Tax payable by spouse Nil Nil Net death benefi t $195,299 $199,883 Net death benefi t $235,300 $200,883

30 | Financial Planning www.fi nancialplanningmagazine.com.au CPD MONTHLY

The terminally ill person could This means, for example, that then use the money to start if a client’s superannuation QUESTIONS a tax-free pension that could benefi t is 50 per cent taxable 1. A recontribution strategy can be used by: revert to the spouse where and 50 per cent tax-free and a. Clients aged 55 or over. the tax-free status would be they withdraw $195,000, retained. Alternatively, the only half (ie, $97,500) will be b. Clients aged between 55 and 59. terminally ill person could retain taxable. On the fl ip side, if c. Clients who meet a condition of release and are still eligible the money in the accumulation the same person wanted to to contribute to super. phase where it could pass tax- withdraw a taxable amount of d. Any client. free to all eligible benefi ciaries, $195,000, they would need including fi nancially independent to withdraw a total of twice 2. While you should always do the numbers to check, a children. that amount (ie, $390,000). recontribution strategy is more likely to help clients to manage tax on pension payments between the ages of 55 and 59 if they: While an anti-detriment benefi t • It’s important to assess will be forgone on the portion whether clients actually have a. Receive little taxable income from non-pension sources. converted to the tax-free scope within their NCC cap b. Receive considerable taxable income from non-pension component, it is common that to re-contribute the desired sources. there is a signifi cant insurance amount. When doing this, c. Want the money to pass as a death benefit to their spouse amount included in the death make sure you consider when they pass away. benefi t and an insurance whether the client has made d. None of the above. amount does not attract anti- any other NCCs this fi nancial detriment. year and whether the three- 3. Where a super fund will make an anti-detriment payment year bring forward rule was when a lump sum death benefi t is paid, a recontribution Tips and traps triggered in this or the two strategy: previous years. • SMSFs are generally unable a. Should never be considered. Instead of utilising some (or to make anti-detriment b. Will not be worthwhile if the death benefit is to be paid to a all) of the NCC cap by re- payments due to funding non-tax dependant. contributing money already in issues. c. Will be worthwhile if the death benefit is to be paid to the the superannuation system, spouse or young children. • Where the potential monetary some clients may be better off benefi t to be derived from over the longer term by using d. May be worthwhile if the client is sure the death benefit will using a re-contribution their NCC cap to get new go to a non-tax dependant. strategy is nominal, money into superannuation. thought should be given 4. When the funds are withdrawn as a lump sum from the super Mansi Desai is a Technical as to whether the hassle of fund: Consultant at MLC Technical withdrawing the money and a. The withdrawn amount will reflect the taxable and tax-free Services. re-contributing it back to proportions at the time of the withdrawal. superannuation is justifi ed. b. It is possible to withdraw from the taxable component only, • When the withdrawal is Footnote even if there is also a tax-free component. made, the payment will 1. Medicare levy has been c. The maximum amount that can be withdrawn is $195,000. refl ect the split between the ignored. d. None of the above. tax components at that time.

October 2015 | 31 ToCentrelink answer questions www.fi nancialplanningmagazine.com.au/cpd

Premium structure: getting it right from the start

RACHEL LEONG The structure of the insurance increase signifi cantly and the claim as the insured person premium chosen for a client will total cost over the lifetime of ages has been factored in, with BT dictate its initial cost, as well as the policy can be much higher premiums being averaged over the total cost over the lifetime of compared to level premiums. a period of time. THIS ARTICLE IS WORTH the policy. 0.5 CPD HOURS Example 1 In this article, we explain the Level premiums Joshua, an accountant (non- CRITICAL THINKING types of premium structures smoker), obtains $500,000 Level premiums are designed available, the circumstances of Term Life and $300,000 Includes to remain the same from when they may be Living Plus cover at age 30. • Stepped premiums policy commencement up recommended, and the impact Table 1 shows the difference • Level premiums until the life insured reaches a on clients. in premium paid at age 30, • Hybrid premiums predetermined age (eg, level 45 and 55, under a stepped • Unit-based premiums Not all premium structures are to age 55), at which time the and level structure. available from all insurers. Retail premium converts to a stepped insurers will generally offer level structure. Advisers should take care to or stepped premium structures, ensure that the correct cover In practise, there may be with some offering a hybrid is in place at the inception of increases to level premiums option. Group insurers may only the policy, as any amendments over time. This may be a offer unit-based premiums; or may result in level premiums result of indexation of the if fi xed cover is available, it will being recalculated based on sum insured, or increases to most likely be offered under a the insured person’s current premiums due to changing stepped premium structure. age. These amendments can assumptions and expenses of include defi nition changes It’s important to get the the insurer. premium structure right from the (eg, own occupation to any Therefore, while level premiums start to maximise total savings occupation TPD), changes to are not guaranteed to remain over the life of the policy. an Income Protection waiting or the same throughout the life benefi t period, or anything that of the policy, any premium may result in a new policy (eg, Stepped premiums changes will usually be made moving from a personally owned Stepped premiums increase across the board – with stepped policy to a super owned policy). premium increases often being as the client ages to refl ect the There is also a variation to larger than level premium higher likelihood of a claim. It level premiums described as increases. is the most common premium ‘true level’ in the industry. structure used, as it’s the least Level premiums are usually Under a true level premium expensive option over the more expensive at policy structure, the additional short-term. However, as the commencement. This is premium charged each year client ages, the annual cost can because the increased risk of due to indexation continues to

Table 1

Age 30 Age 45 Age 55 Stepped premium1 $666 $1,758 $4,353 Level premium1 $1,088 $1,088 $1,088 (no indexation of sum insured)

32 | Financial Planning www.fi nancialplanningmagazine.com.au CPD MONTHLY

be calculated at the age of the Hybrid premiums become less expensive than for a younger client are lower insured person at inception of total stepped premiums? compared to when they are Some retail insurers will offer the policy. Under a standard The point at which accumulated older. Therefore, it takes longer level premium structure, the the option of a hybrid premium for accumulated stepped structure that allows the client level premiums are lower than additional premium is based on accumulated stepped premiums premiums to be more than the insured person’s age when to use stepped premiums for accumulated level premiums.); a portion of cover, together depends on the actual premium the increase occurs, which is payable. To properly assess • the age that level premiums generally more. with level premiums for the will cease (eg, level to age 65); remainder of cover. this, advisers need to be able However, standard level to make comparisons for each • the indexation of the sum premiums refl ect the increased This allows the premium client. This break-even point will insured; risk to the insurer more structure to be aligned to short- be affected by: • any loadings; and accurately as the insured person term or long-term needs within • the type of policy; • any additional options that ages, and is therefore more a single policy (see ‘short-term • the age of the client (note: the have been added to the sustainable. The risk of true vs long-term needs’ below). break-even point for a particular policy (eg, Double Living level premium policies is that client is likely to be later when benefi t). they may be more susceptible Premium expense they are younger. This is to re-pricing in the future. because stepped premiums Continued on p34 When do total level premiums Table 2: Pros and cons

Level premiums Stepped premiums Unit-based premiums Cost and More expensive over the short-term Less expensive over the short-term Not comparable to stepped or level affordability compared to a stepped premium compared to a level premium structure. premiums. structure. However, more expensive over the long- However, less expensive over the term. long-term. Premium Aside from indexation increases, the Premiums increase substantially as the Premium remains the same for the life of increases premium will remain the same over client ages. the policy. the life of the policy.

Level of Stays the same for the life of the Stays the same for the life of the policy. Decreases over the life of the policy. cover policy. Budgeting The client knows what the premium The client does not necessarily know The client knows what the premium will will be as they age and can therefore what the premiums will be as they age be as they age and can therefore budget budget for it. and therefore, cannot budget for it. for it. However, if a super policy is funded However, if a super policy is funded Group cover is usually offered through super. through mandatory contributions or through mandatory contributions or If funded through mandatory contributions or super balance, there is no direct impact super balance, there is no direct impact super balance, there is no direct impact on on the client’s personal budget. on the client’s personal budget. the client’s personal budget. Policy Promotes policy retention and Does not promote policy retention. Promotes policy retention and continued retention continued cover. If a policy is replaced, there is a higher level cover. If the policy is retained, there is a lower of exposure to some insurer remedies, if If the policy is retained, there is a lower level level of exposure to some insurer the duty of disclosure has not been of exposure to some insurer remedies, if remedies, if the duty of disclosure has complied with. cover is underwritten and the duty of not been complied with. disclosure has not been complied with. Policy Provides a disincentive to move There are no barriers in moving to Provides a disincentive to move to another replacement to another policy, which may have another policy, which may have better policy, which may have better terms. and terms better terms. terms.

October 2015 | 33 ToCentrelink answer questions www.fi nancialplanningmagazine.com.au/cpd

Unit-based • is likely to move to a new While it may be assumed that be access to a high standard policy in the short-term, for this will happen at age 18, of medical treatment, or premiums example, the client currently we should consider the reality even alternative treatment With unitised cover, premiums has a hazardous occupation, of this. Many young people, not available in Australia. It is remain fi xed, but cover but they are retraining for an although technically adults, unlikely that a client’s need decreases as the client ages. offi ce-based role; are not in a position to support for cover for this purpose will This will vary with each group • is close to the expiry age of themselves fi nancially and still change over time. insurer, however, cover will the policy; depend greatly on their parents. The same can be said for generally start to decrease for • does not require certainty Many will be gaining a tertiary clients who do not wish to live clients aged in their thirties. This about what the premium will education, or working in their on only 75 per cent of their can mean there is often very be in the future; or fi rst job while still living at home. income if they were to qualify for little cover in place by the time • has short-term insurance Another client base that may Income Protection payments. the client reaches their fi fties. needs. have a need for short-term If they choose to ‘top-up’ Example 2 Conversely, a level premium cover are those reaching their income to 100 per cent Carla receives three units structure may suit a client who: retirement age. The closer they through an additional amount of Term Life cover upon • is in a position where they are to retiring, the less time they of TPD or Living cover, this is a becoming an Australian can afford the immediately have to reach the critical break- requirement that persists. Super member. This equates higher cost; even point where the cumulative Once again, the client’s 3 to $300,000 of cover. • is likely to retain the policy, cost of level premiums exceeds retirement age has bearing Premiums will remain the for example, the policy is the cost of stepped premiums. on what premium structure is same throughout the life owned inside super; Therefore, it may make more most suitable. If retirement is of the policy. However, the sense to recommend a stepped some time away, and the policy level of cover will reduce • is much younger than the premium structure in this expiry age of the policy; doesn’t expire before then, a to $159,300 at age 40 and scenario. level premium structure may be 3 $40,500 at age 55 . • would like more certainty on Small business owners who suitable. how much the premium will have key employees may also be in future; or For business owners looking Comparative wish to cover them in the for a funding mechanism for summary of pros • has long-term insurance short-term. This could include their business succession (buy/ and cons needs. lump sum Term Life, TPD and/ sell) arrangement, insurance or Living (Trauma) cover, and provides an ideal solution. Table 2 provides a high-level Short-term vs could also cover a temporary While the amount of cover may summary of the pros and cons long-term needs loss of business revenue vary according to the value of level, stepped and unit-based through Key Person Income of the business, the need for premiums. A hybrid premium structure insurance. Stepped premiums cover remains consistent. may be the most suitable in this As mentioned above, the client allows cover for short-term Therefore, level premiums may instance if it’s unlikely that the may not be able to choose a needs to be paid through a be a good option for buy/sell key employee will stay in the premium structure if insurance stepped premium structure, and arrangements. business long enough to recoup is obtained under a group offer, cover for long-term needs to be the higher amounts of level Example 3 demonstrates how which means that retail cover will paid through a level premium premium paid in the initial phase stepped and level premium generally provide more choice. structure. of the policy. structures can be used in a That being said, the best Short-term needs single policy, to address both Long-term needs premium structure will depend ‘Short-term needs’ describe short-term and long-term cover on each client’s individual a requirement for cover that is ‘Long-term needs’ describe a requirements. circumstances. for a limited time. We will now requirement for cover that is Example 3 ongoing. That is, there is no A stepped premium structure discuss some examples of Rosemary, age 45, is married defi ned period that the cover may suit a client who: short-term needs. with two children, Philip (age is required for. We will now • is younger and unable The most common scenario 19) and Penelope (age 25). discuss some examples of long- to currently afford level is when children grow up and Philip is living at home and term needs. premiums; become fi nancially independent. pursuing his law degree at A client’s long-term need may university. Penelope moved

34 | Financial Planning www.fi nancialplanningmagazine.com.au CPD MONTHLY

out of home two years ago, stepped premiums. The cover is married, and working as an under a level premium structure QUESTIONS architect. remains, and Rosemary’s total 1. The benefi ts of stepped premiums are: Rosemary’s fi nancial adviser, premium cost over the lifetime a. The accumulated cost is lower in the short-term. The premium Terry, reviews her insurance of the policy is minimised. remains the same over the life of the policy (assuming no arrangements every 12 indexation), and this structure does not provide a disincentive to months to ensure her cover Conclusion moving to another policy which may have better terms. is keeping up with her The decision to use a stepped b. The accumulated cost is lower in the short-term, and this structure changing circumstances. While or level premium structure does not provide a disincentive to moving to another policy which Rosemary has had her Term should be based on a number may have better terms. Life, TPD, Living and Income of factors, including the purpose c. The accumulated cost is lower in the medium to long-term. The Protection policies for several of cover and importantly, the premium remains the same over the life of the policy (assuming no years, for simplicity, we will clients’ personal circumstances. indexation), and this structure does not provide a disincentive to only discuss her TPD cover. There are advantages and moving to another policy which may have better terms. Her current level of TPD cover disadvantages to each premium d. The accumulated cost is lower in the short-term, and this structure is $1 million, comprised of structure, however, if the policy provides a disincentive to moving to another policy. cover for: is expected to continue for the • debt $350,000 (long-term 2. The benefi ts of level premiums are: medium to long-term, the total need); aggregate cost of level premiums a. The accumulated cost is lower in the short-term. The premium • home modifi cations $50,000 will eventually be lower than total remains the same over the life of the policy (assuming no (long-term need); stepped premiums. In cases indexation), and this structure promotes policy retention. • lost future income to pay where there is a shorter-term b. The accumulated cost is lower in the short-term. The premium ongoing living expenses of need for insurance, it may be remains the same over the life of the policy (assuming no $350,000 (long-term need), more suitable to recommend indexation), and this structure does not provide a disincentive to of which $100,000 covers stepped premiums. moving to another policy which may have better terms. children’s expenses (short- term need); and Making the right decision at the c. The accumulated cost is lower in the long-term. The premium only • top-up income in addition to outset is important, as changes increases due to age but not because of health changes, and this Income Protection benefi ts to policy or premium structure structure promotes policy retention. payable of $250,000 (long- can impact the total cost to the d. The accumulated cost is lower in the long-term. The premium term need). client over the life of the policy. remains the same over the life of the policy (assuming no indexation), and this structure promotes policy retention. Rosemary’s cover for long- Rachel Leong, Product term needs amounts to Technical Manager, Life 3. A hybrid premium structure allows a: $900,000, of which Terry Insurance, BT. a. stepped premium to be used on a portion of cover, and a level recommends using a level premium to be used on a portion of cover, within a single policy. premium structure. Cover Footnotes b. stepped premium to be used on a portion of cover, and a level for short-term needs is for 1. BT Protection Plans premium premium to be used on a portion of cover, over multiple policies. $100,000, of which Terry rates as at 1 August 2015. c. level premium to be used over multiple policies. recommends using a stepped premium structure. A hybrid 2. Based on BT Protection d. premium rates to be used that is between level and stepped premium structure is used that Plans premium rates as at 10 premium rates. allows both stepped and level August 2015. 4. Level premiums may be most suitable for clients: premiums to be used in one 3. Based on the Australian a. who require more certainty about what premiums will be in the policy. Super ‘Insurance in your future and can afford the initially higher cost. When Philip moves out super’ guide issued 1 July b. have long-term insurance needs. 2015. of home and becomes c. are likely to retain the policy for the long-term. fi nancially independent, d. all of the above. Rosemary reduces her cover by $100,000, which is the portion of cover funded through

October 2015 | 35 Chapter Events

Leader of the future On the green The Sydney Chapter Future2 Foundation Golf Day was held on 2 September at Stonecutters Ridge Golf Club, with over 65 planners and fund managers in attendance. The day provided competitions for golfers of all skill levels, with 18 holes of Ambrose or Stableford, for players who have an offi cial PGI Handicap under 20. Competition was strong amongst the teams, with fi rst place prize going to the Hill Capital team – Tim Amor, Tom French, Brigette Leckie and Ian Markus. The Chapter congratulates all the winners on the day and thanks all participants for attending. The Chapter is also grateful for the support Avril Henry talking about the ‘Leader of the Future’. of the day’s sponsors, including the major sponsor, Perpetual. The Sydney Chapter held a culturally diverse and gender equal Women in Financial Planning workplace. Lunch on 16 September, with She said people today have much members and guests hearing higher expectations of their leaders from widely acclaimed speaker, and their organisations than Avril Henry, who spoke about the ever before. Leadership can and ‘Leader of the Future’. must be learned to enable agile, Avril’s presentation centred on sustainable organisations that can what it takes to lead the workforce survive and thrive in the future. today and what it will take to lead Avril said it was essential to in the future. She also spoke about understand what motivates each the characteristics to be a leader of generation, which will enable the future. greater attraction, recruitment and Avril said globalisation, technology retention of both good employees and change have all created and good clients. uncertainty for the future, which The Chapter thanks the major will present new and unique sponsor of this event, BOQ Golfers enjoyed their day at the Stonecutters Ridge Golf Club: Brigette challenges for leaders who will be Specialist. Leckie, Stuart Dunn, Tim Amor, Ian Markus and Tom French. leading a more multi-generational,

Thank you to our Chapter supporters Upcoming Chapter events AIA Australia Legg Mason 1 October Seminar – ‘Estate planning with ANZ Wealth Leverage Equities Townsville: Chapter Coffee investment bonds and fi xed BlackRock Magellan Asset Management Meeting income markets’ BOQ Specialist MLC 5 October 19 October BT Paper Magic Geelong: Member Lunch – South Australia: Future2 BT Investment Management Perpetual ‘Alternatives are the answer to Foundation Golf Day Challenger Stirling Andersen your diversifi cation dilemma’ 23 October Colonial First State Vanguard 14 October Western Australia: Young Hays Watkins Coffey Martin ACT: Member Lunch – ‘Global Professionals Networking Lawn investment opportunities, and Bowls Hill Capital Winston Capital Partners IOOF estate planning and management’ 28 October 16 October Tasmania: Member Seminar – For a list of upcoming FPA events in your local Chapter, go to Far North Coast NSW: Member ‘Failure of Financial Advice’ www.fpa.asn.au/events/

36 | Financial Planning www.fi nancialplanningmagazine.com.au Elev8-ing young professionals The Sydney Chapter recently Mentor, consultant and held its young planner and facilitator, Keith Peel gave a student networking event – Elev8. thought-provoking presentation Close to 100 young and on behavioural fi nance and ‘young-at-heart’ professionals why some people achieve their attended the event, with a fi nancial goals, while others fail. strong representation of fi nancial In a highly engaging planning students. Elev8 presentation, Christian provides an opportunity for Lotter CFP® spoke about his young professionals to come motivation and journey to attain together in a casual, relaxed the globally recognised CFP® Erin Shields (Dixon Advisory), Lonni Aylett (Ord Minnett Financial environment to meet and be mark, and how this designation Planning), Allison Macfarlane (FPA Sydney Chapter committee). entertained by passionate, has helped him, his clients and non-professional speakers, the wider profession. presenting on topics that inspire, Other speakers included Ryan excite and challenge those who Eather (Archon Property) and attend. Serena Peddle and Laura Attendees were entertained by Casaceli (Inspired Adventures). six individuals who provided Elev8 is about engaging with quick, engaging eight minute young professionals who want presentations that went directly to hear from other ‘grassroots’ to the heart of some great ideas. professionals about fresh ideas The inaugural Gwen Fletcher and concepts on better ways Memorial Award winner and of engaging with clients, and Dixon Advisory practitioner Erin transforming their own business Shields CFP® spoke about the and themselves. challenges young planners face The Kaplan crew: Aleeya Hamza, Angela Pellitteri and Luis Medina. in overcoming potential biases and doubt when working with older clients. She said young planners should not be daunted by age differences when working with older clients, and to practice what you preach in your recommendations, and importantly, to back yourself as a professional.

Yap Ngan and Hiroko Ishikawa. John Dacker (Shadforth Financial Group), Troy Ottens (Shadforth Financial Group) and Tim Laurence.

From BOQ Specialist: Michael Josh Robertson and Michael Attending from Kaplan were: Carly Francis, Alasdair McDonald and Fernandez and Leighton Packer. DeBomford. Alycia Tuttlebee.

October 2015 | 37 Centrelink

Simplifying online services for seniors Planning for your clients’ retirement is a lengthy process that involves a number of considerations about their fi nancial circumstances. The good news is, the Department of Human Services is introducing more online options to make it quicker and easier for seniors to do their Centrelink business.

If your client is currently receiving Pension, they can still complete started with myGov if they recommended action they should an eligible income support the transfer online. To check if haven’t already, and once they’ve take before they depart. payment, they will be able to they are eligible, go to transferred to the Age Pension, There are some exceptions, simply transfer to the Age humanservices.gov.au/agepension they’ll be able to make use of including if your client is paid Pension without needing to The eligible income support other time-saving features. under the terms of a social complete the full claim form. payments are: If your client receives the Age security agreement with another • Austudy Pension, and plans to go overseas, country or has returned to So how does it • Carer Payment they may need to contact the Australia within the last two years work? • Disability Support Pension Department and fi nd out if their after having lived overseas and • Newstart Allowance travel will affect their entitlements. became a recipient of the Age Once your client is within nine • Parenting Payment Pension during this period. weeks of Age Pension eligibility, The Department of Human • Partner Allowance Services has simplifi ed the process, Commonwealth Seniors Health they will receive a letter from the • Sickness Allowance Department, either in the mail or so now pensioners can notify us of Card holders can travel overseas • Special Benefi t their overseas travel using their for up to 19 weeks before their online – if they have registered to • Widow Allowance receive letters this way. Centrelink online account through card is cancelled. • Widow B pension myGov, without needing to visit a The letter will include an invitation • Wife Pension For more information about service centre or call us. overseas travel and your client’s to apply for a transfer to Age To take advantage of the Pension online through a simpler They can add, view and update obligations to notify the streamlined process, your client overseas travel details and Department of Human Services, process than beginning a new will need to be registered for a paper claim from scratch. answer a few simple questions to visit humanservices.gov.au/ Centrelink online account via see information tailored to their paymentsoverseas or If your client was already over 65 myGov at my.gov.au circumstances about how humanservices.gov.au/ years of age before this new This is a great opportunity to travelling outside of Australia may olderaustralians to learn about process was introduced, and encourage your clients to get affect their payment, and any services available for seniors. they are eligible for the Age

38 | Financial Planning www.fi nancialplanningmagazine.com.au FPA Chapter directory New South Wales Ballarat Mackay Member Services: Paul Bilson CFP® James Wortley CFP® 1300 337 301 Sydney Chairperson Chairperson Vicky Ampoulos T: (03) 5332 3344 T: (07) 4957 1600 Phone: 02 9220 4500 Chairperson E: [email protected] E: [email protected] T: 0411 743 098 Email: [email protected] E: [email protected] Bendigo Rockhampton/Central Qld Web: www.fpa.asn.au Gary Jones AFP® David French AFP® Mid North Coast Chairperson Chairperson Julie Berry CFP® T: (03) 5441 8043 T: (07) 4920 4600 Chairperson E: garyjones@ E: [email protected] T: (02) 6584 5655 platinumwealthbendigo.com.au E: [email protected] Sunshine Coast Geelong Andrew Geddes CFP® FPA Board Newcastle Brian Quarrell CFP® Chairperson Mark Alexander CFP® Chairperson T: 0437 835 609 Chair Chairperson T: (03) 5222 3055 E: [email protected] Neil Kendall CFP® (QLD) T: (02) 4923 4000 E: brian.quarrell@ E: [email protected] bendigoadelaide.com.au Toowoomba/Darling Downs Chief Executive Offi cer Bob Currie CFP® Mark Rantall CFP® New England Gippsland ® Chairperson ® Rod Lavin CFP David Newberry AFP T: 0420 301 081 Directors Chairperson Chairperson E: [email protected] ® T: (03) 5176 0618 Marisa Broome CFP (NSW) T: (02) 6766 9373 Matthew Brown CFP® (QLD) E: [email protected] E: [email protected] Townsville Gavin Runde CFP® Bruce Foy (NSW) Riverina Goulburn Valley Julie Matheson CFP® (WA) ® Chairperson ® John Foster CFP Marie Suthern CFP T: (07) 4723 9188 Delma Newton CFP® (QLD) Chairperson Chairperson E: gavin@journeyfi nancial.com.au Philip Pledge (SA) T: (02) 6921 1999 T: (03) 5821 4711 E: [email protected] E: [email protected] Wide Bay Louise Jealous-Bennett AFP® Board Committees Western Division South East Melbourne ® Chairperson Peter Roan CFP® Scott Brouwer CFP T: (07) 4153 5212 Regional Chapter Committee Chairperson Chairperson E: [email protected] Matthew Brown CFP® T: 0447 538 216 T: (02) 6361 8100 E: [email protected] E: peterr@roanfi nancial.com E: [email protected] South Australia Professional Standards Wollongong Sunraysia Petra Churcher AFP® ® and Conduct Committee ® Stephen Wait CFP Mark Lockhart AFP Chairperson Marisa Broome CFP® Chairperson Chairperson T: (08) 8291 2800 E: [email protected] T: (02) 4244 0624 T: (03) 5022 8118 E: [email protected] E: [email protected] E: mark@allfi nancialservices.com.au Audit Committee Queensland Northern Territory Philip Pledge ACT Susie Erratt CFP® E: [email protected] Claus Merck CFP® Brisbane Chairperson Governance and Chairperson Steven O’Donoghue CFP® T: (08) 8980 9300 T: (02) 6262 5542 Chairperson E: [email protected] Remuneration Committee E: [email protected] T: 0457 528 114 Neil Kendall CFP® E: steven.o’[email protected] Western Australia E: [email protected] Victoria Cairns David Sharpe CFP® Policy and ® Melbourne Kris Robertson AFP Chairperson Regulations Committee Julian Place CFP® Chairperson T: (08) 9463 0047 Marisa Broome CFP® T: 0439 724 905 E: [email protected] Chairperson E: [email protected] T: 0418 111 224 E: [email protected] Professional Designations E: [email protected] Far North Coast NSW Tasmania ® ® Committee Albury Wodonga Shane Hayes CFP Todd Kennedy CFP Julie Matheson CFP® Wayne Barber CFP® Chairperson Chairperson Chairperson T: 0411 264 002 T: 1300 651 600 E: [email protected] T: (02) 6056 2229 E: [email protected] E: [email protected] E: [email protected] Gold Coast Matthew Brown CFP® Chairperson T: 0418 747 559 E: [email protected]

To update these details, please advise FPA Events on 02 9220 4543 or [email protected]

October 2015 | 39 Explore the power of many ideas

Introducing TED style keynote sessions If you’ve ever watched a TED Talk, you’ll know they’re packed with ideas and concepts that make us re-think the status quo. Our two Shaping Futures keynote sessions will deliver a series of curated speakers who will inspire and ignite discussion, and challenge your future thinking forever.

Register at fpacongress.com.au

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