Vogue Advisory Group CAR #126 1760 is an Authorised Representative of of Lifestyle Asset Management Pty Limited ABN: 58 113 067 968 which holds Australian Financial Services License AFSL No.288421


FAQs

Frequently Asked Questions (FAQs) concerning the service Voge Advisory Group provide.

SUPERANNUATION:

Financial Advice

  • Answer: A professional Financial Advisor offers personalised advice tailored to your financial situation and goals. They can help you understand your superannuation, potential growth trajectories, and suitable investment options. Advisors also provide insights on tax benefits, risk management, retirement, and estate planning. By leveraging their expertise, you can make informed decisions, optimize returns, and secure your financial future.
  • Answer: While any time is a good time to improve your financial knowledge, consider seeking a Financial Adviser during key life events such as marriage, buying a home, starting a family, or nearing retirement. Also, suppose you’re feeling overwhelmed about investment choices, unsure about your superannuation’s performance, or want to set clear financial goals. In that case, it might be the right time to consult an expert.
  • Answer: The “best” investment opportunities vary based on individual risk tolerance, age, financial goals, and market conditions. Commonly, superannuation funds invest in a mix of assets like shares, property, fixed interest, and cash. Diversified funds, which spread investments across multiple asset classes, are popular. High-growth options might offer more significant returns but come with increased risks. It’s essential to review your super’s performance regularly and adjust your investment mix as needed. Consulting a Financial Adviser can provide clarity on what’s best for your situation.

Self Managed Super Fund (SMSF)

  • Answer: An SMSF, or Self Managed Super Fund, is a private superannuation fund that you manage yourself, rather than having it managed by a professional superannuation provider. It’s designed to provide retirement income for its members, and it allows for greater control over how the superannuation is invested. However, it also comes with increased responsibilities, including adhering to regulations and ensuring the fund’s compliance.
  • Answer: An SMSF offers a wide range of investment options. Common investments include Australian and international shares, property (residential and commercial), fixed deposits, bonds, and managed funds. Additionally, SMSFs can invest in more unique assets like collectibles, precious metals, and certain derivatives. It’s crucial to ensure all investments align with the fund’s written investment strategy and adhere to the legal restrictions set by regulators.
  • Answer: Yes, SMSFs enjoy some taxation advantages. Earnings within the fund are typically taxed at a concessional rate of 15%, which can be lower than personal income tax rates. Capital gains on assets held for over 12 months can receive a discount. Furthermore, the income from assets supporting pensions can be tax-free in the pension phase. However, operating the SMSF correctly is vital to ensure compliance and avoid tax penalties. Consulting with a tax or financial advisor is recommended to maximize and understand these benefits.

Investment Advice (Non Super)

  • Answer: The best investment aligns with your financial goals, risk tolerance, time horizon, and knowledge. Start by setting clear objectives (e.g., buying a home, retiring comfortably, or building wealth) and assess your risk appetite. Diversifying across different asset classes can help manage risks. Research various investment options or, better yet, consult with a financial advisor who can provide personalised advice and insights tailored to your unique circumstances.
  • Answer: High-risk investments are those with a greater chance of losing value but also have the potential for higher returns. Examples include:
    • Cryptocurrencies
    • Penny stocks
    • Leveraged ETFs (Exchange Traded Funds)
    • High-yield bonds (often called “junk” bonds)
    • Startups or venture capital investments: Understanding the risks associated with each investment is essential. High-risk investments can offer substantial rewards, but they can also result in significant losses.
  • Answer: Non-Super investments can offer several tax benefits, depending on your jurisdiction:
    • Capital Gains Tax (CGT) Discounts: In some countries, holding an investment for over a year may qualify for reduced capital gains tax rates.
    • Negative Gearing: If investment expenses exceed investment income, the loss might be deductible against other income.
    • Dividend Imputation Credits: In some countries, dividends come with tax credits to avoid double taxation.
    • Tax-Free Accounts: Some jurisdictions offer tax-free or tax-deferred accounts for specific purposes, like education or health.

Separately Managed Account (SMA)

  • Answer: An SMA, or Separately Managed Account, is a type of investment vehicle where a portfolio of assets is directly owned by the investor but managed on a discretionary basis by professional asset managers. Unlike a mutual fund, where multiple investors pool their money together to invest in a collection of assets, in an SMA, the assets are held in the investor’s name, giving them a direct and transparent view of the individual assets in their portfolio.
  • Answer: SMAs offer several benefits:
    • Transparency: Unlike pooled funds, You can see each asset in your portfolio, where you only see a collective value.
    • Customization: SMAs can be tailored to meet specific investment objectives or to exclude certain assets or sectors.
    • Tax Efficiency: Because you directly own the assets, you have greater flexibility in managing capital gains and losses for tax purposes.
    • Reduced Cash Drag: Since cash doesn’t need to be held back for potential redemptions (as in mutual funds), more of your money remains invested.
  • Answer: SMAs can provide enhanced tax efficiency:
    • Tax Harvesting: You can strategically realize capital gains or losses to offset other gains/losses, thereby managing your tax liability.
    • Avoidance of Embedded Gains: Unlike mutual funds, where you can inherit embedded capital gains, you start with a clean slate in an SMA, so you’re only responsible for gains and losses incurred during your holding period.
    • Flexibility: The ability to customize your portfolio might allow for specific tax-focused strategies based on individual assets.

INSURANCE:

Life Insurance

  • Answer: Life insurance is a contract between an individual and an insurance company, where the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured. In exchange, the insured pays premiums, either as a lump sum or periodically. The primary purpose is to provide financial protection and support to beneficiaries in the event of the insured’s demise.
  • Answer: Life insurance provides peace of mind, ensuring your loved ones have financial support after you’re gone. It can cover funeral expenses, debts, and ongoing living costs. Additionally, certain policies can act as a savings or investment tool, accumulating value over time, which can be borrowed against or cashed out. In essence, it’s a safety net and a financial planning instrument.
  • Answer: When choosing a life insurance provider:
    • Research the company’s financial stability, often indicated by ratings from agencies like A.M. Best or Moody’s.
    • Compare policy features, benefits, and premiums.
    • Read reviews and testimonials from other policyholders.
    • Consider the company’s claim settlement ratio.
    • Seek advice from financial advisors or insurance specialists.

Temporary Permanent Disability (TPD) Insurance

  • Answer: TPD Insurance, often just called Total and Permanent Disability Insurance, provides a lump-sum payment if you become totally and permanently disabled and are unable to work ever again due to injury or illness. The exact definition of “totally and permanently disabled” can vary between policies. Some policies pay out if you can’t return to your previous occupation, while others pay only if you can’t work in any occupation.
  • Answer: The cost of TPD insurance varies based on several factors, including age, occupation, health status, the sum insured, and policy terms. Generally, high-risk occupations or existing health issues can increase premiums. It’s essential to compare different policies, understand what’s covered, and consider the level of coverage you need to determine if the cost is justified for your situation.
  • Answer: TPD Insurance provides financial security, ensuring that if you become permanently disabled, you and your family have the necessary funds to cover medical expenses, repay debts, and maintain a certain standard of living. It can be a lifeline during challenging times, alleviating financial stress when adjusting to a significant change in circumstances.

Income Protection Insurance

  • Answer: TPD Insurance, often just called Total and Permanent Disability Insurance, provides a lump-sum payment if you become totally and permanently disabled and are unable to work ever again due to injury or illness. The exact definition of “totally and permanently disabled” can vary between policies. Some policies pay out if you can’t return to your previous occupation, while others pay only if you can’t work in any occupation.
  • Answer: The cost of TPD insurance varies based on several factors, including age, occupation, health status, the sum insured, and policy terms. Generally, high-risk occupations or existing health issues can increase premiums. It’s essential to compare different policies, understand what’s covered, and consider the level of coverage you need to determine if the cost is justified for your situation.
  • Answer: TPD Insurance provides financial security, ensuring that if you become permanently disabled, you and your family have the necessary funds to cover medical expenses, repay debts, and maintain a certain standard of living. It can be a lifeline during challenging times, alleviating financial stress when adjusting to a significant change in circumstances.
  • to cover medical expenses, repay debts, and maintain a certain standard of living. It can be a lifeline during challenging times, alleviating financial stress when adjusting to a significant change in circumstances.

Business Expense Insurance

  • Answer: TPD Insurance, often just called Total and Permanent Disability Insurance, provides a lump-sum payment if you become totally and permanently disabled and are unable to work ever again due to injury or illness. The exact definition of “totally and permanently disabled” can vary between policies. Some policies pay out if you can’t return to your previous occupation, while others pay only if you can’t work in any occupation.
  • Answer: The cost of TPD insurance varies based on several factors, including age, occupation, health status, the sum insured, and policy terms. Generally, high-risk occupations or existing health issues can increase premiums. It’s essential to compare different policies, understand what’s covered, and consider the level of coverage you need to determine if the cost is justified for your situation.
  • Answer: TPD Insurance provides financial security, ensuring that if you become permanently disabled, you and your family have the necessary funds to cover medical expenses, repay debts, and maintain a certain standard of living. It can be a lifeline during challenging times, alleviating financial stress when adjusting to a significant change in circumstances.

TAXATION ADVICE:

Financial Reports

  • Answer: A Financial Report, often referred to as a financial statement, is a structured presentation of a company’s financial activities over a specific period. It typically includes balance sheets, income statements, and cash flow statements detailing a business’s financial health and performance.
  • Answer: Companies typically prepare Financial Reports ann­­­ually, often aligned with the fiscal year. However, some businesses may also produce quarterly or monthly reports depending on regulatory requirements and stakeholder needs. Always ensure you’re meeting the specific deadlines set by your jurisdiction or industry.
  • Answer: A Financial Report provides crucial insights into a company’s financial health, aiding in making informed business decisions. It offers stakeholders transparency into the company’s operations, performance, and value. Moreover, a well-prepared Financial Report is essential for securing investments, ensuring regulatory compliance, and guiding long-term strategic planning.

Property Tax Advice

  • Answer: Property tax is a levy on property that an owner must pay, typically imposed by local government entities. The tax amount is often based on the property’s assessed value, including land and any structures on it. Rates and methods of assessment vary by jurisdiction.
  • Answer: Property tax advice provides insights into maximizing deductions, understanding tax liabilities, and navigating local tax regulations. With proper advice, property owners can ensure they’re not overpaying and strategize for potential tax savings or rebates, especially during property transactions or renovations.
  • Answer: First home buyers can significantly benefit from property tax advice. Understanding potential tax liabilities, available exemptions, or rebates specific to first-time buyers can lead to substantial savings. Furthermore, being informed can help in budgeting for ongoing property-related expenses.

Tax Returns

  • Answer: To maximize your tax return:
    • Ensure all eligible deductions are claimed.
    • Maintain detailed records of income and expenses throughout the year.
    • Contribute to tax-advantaged accounts if applicable in your jurisdiction.
    • Stay updated on tax credits or rebates.
    • Consult a tax professional to identify potential savings or strategies tailored to your situation.
  • Answer: What you can claim depends on your jurisdiction and individual circumstances. Generally, you can claim deductions for expenses related to generating income. This can include work-related expenses, investment-related costs, or self-employment expenses. Always refer to guidelines provided by your tax authority, or better yet, consult a tax professional to ensure you’re claiming all eligible deductions.
  • Answer: Tax returns are typically lodged annually. The exact deadline varies by country; for instance, in the U.S., it’s usually April 15. Many tax authorities provide online portals for electronic submission. Paper filing is also an option, though it may be slower. If you need clarification on the process or have a complex financial situation, consider using a tax preparation service or consulting a tax professional to assist with lodgment.

Tax Withholding Advice

  • Answer: Tax withholding refers to the amount of money taken out of an employee’s paycheck by the employer to pay towards the employee’s annual income tax obligations. This is important because it ensures that taxpayers are paying into the tax system consistently throughout the year. Without withholding, many taxpayers would face a large bill at the end of the year, which could be challenging to manage. By distributing these tax payments over the year, withholding helps taxpayers meet their obligations without the strain of a one-time large payment.
  • Answer: The amount of tax to withhold can be determined using the W-4 form provided by the Internal Revenue Service (IRS) in the U.S. or the relevant tax authority form in other countries. By filling out the W-4 with accurate information about your income, deductions, credits, and other financial situations, you provide your employer with the details they need to withhold the correct amount. It’s recommended to review and, if necessary, update your W-4 periodically, especially after major life changes like getting married, having children, or getting a second job. Many tax authorities also provide online calculators to help you determine the ideal withholding amount.
  • Answer: Tax returns are typically lodged annually. The exact deadline varies by country; for instance, in the U.S., it’s usually April 15. Many tax authorities provide online portals for electronic submission. Paper filing is also an option, though it may be slower. If you need clarification on the process or have a complex financial situation, consider using a tax preparation service or consulting a tax professional to assist with lodgment.