Innova Active Portfolios – 2022 Wrap Up

It was great to catch up with Dinyar Irani, the Chairman & Co-Chief Investment Officer of Innova Asset Management recently to review our Innova Active Portfolios which operate under our ‘Dynamic Asset Allocation’ approach.

2022 was a BIG year in many ways and Dinyar and I discussed the following main points:

# 2022 – the year that was

# What may happen moving forward

# How have we positioned the portfolios?

You can watch our recorded discussion below.

To speak to an adviser about how our bespoke, actively managed portfolios can benefit your retirement and investment goals, contact us on (07) 3371 0866.

Innova Active Portfolios - 2022 Wrap Up

For a clearer picture of what retirement holds for you, contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together! 

Defining a comfortable retirement

I speak to people a lot about retirement being more than just dollars and cents.  Sure, money is important but if you can’t articulate your objectives and goals, if you don’t fully understand what a purposeful retirement means to you, then what’s the point?

At the end of the day, we all want to be comfortable in retirement.  And comfort means different things for different people.

Recently, the Association of Superannuation Funds of Australia (ASFA) released it’s latest report on how much a 65-year-old needs to retire comfortably.  They even went so far as to provide a breakdown of weekly costs and a budget!

To access the full budget breakdown, click here!

I’m not a fan.

Not only do I think the numbers are misleading, but I also don’t like the message it sends (‘unless you have this much money, you can only lead XYZ kind of lifestyle‘ – what rubbish!), and I don’t like the cookie-cutter approach they are using (every single person is different and has their own unique objectives).

But… it does get people thinking about their own lifestyle objectives and how they want their ‘day-to-day’ to look in retirement. And that is a good thing!

So, what does ASFA say you need as annual income for a comfortable lifestyle in retirement?

$66,725 per year for a couple who own their own home, or

$47,383 per year for a single person who owns their own home.

And what does a comfortable lifestyle in retirement look like according to ASFA?

So that’s the ‘standard’!  Your challenge is to define your goals and objectives, understand what a purposeful retirement looks like to you and challenge the ‘standards’ to walk your own retirement path.  Your first step should always be discussing your situation with a retirement planning specialist.  With the right guidance and education, you will be living your best life in no time!

For a clearer picture of what retirement holds for you, contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together! 

Who will your Super be left to?

It is important to ensure that if you pass away, your superannuation savings end up with the right beneficiary.

The trustee of your super fund has the ability to consider your potential beneficiaries and decide who should receive the money. But you are able to give instructions through a binding death benefit nomination if your super fund offers this option.

The trustee will have no choice but to follow these instructions if your nomination is valid and current at the time of your death. This means you make the choice instead of the superannuation fund trustee.

But this is where many people make some very simple but significant mistakes. They either don’t keep the nomination up to date or fill in the forms incorrectly. These mistakes may make the nomination invalid and ineffective.

Here are some tips to help you avoid these mistakes:

Renew your nomination regularly

Most binding nominations need to be renewed every three years or they lapse. It might be easier to diarise a renewal every year, perhaps on 1 July or when your super statement arrives.

Make sure the person you nominate is appropriate

You can only nominate a beneficiary who meets the super rules to be nominated. This includes your current spouse, child or another person who is either financially dependent upon you or in an interdependency relationship with you. Your nomination is not checked until after you have passed away and if you nominated the wrong person, the nomination is invalid. If you want the money to go to someone who is not an allowable beneficiary, you could nominate your estate and provide instructions in your will.

Review if your circumstances change

If your circumstances change (e.g. you marry, have a child or separate from your partner) look at who was nominated as your beneficiary and make changes if necessary.

Estate Planning and Super law can be tricky.  Discussing your options with one of our financial planners will provide clarity and comfort and allow you to ensure that your wishes will be carried out to protect your loved ones!

For a clearer picture of what retirement holds for you, contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together! 

Retirement Income – What you NEED and what you WANT!

When discussing ongoing income needs in retirement with clients, we look at two very different and very important areas – NEEDS and WANTS.

Needs – This is the income that you spend on a day-to-day basis.  It is used for buying the groceries, paying the phone and electricity bill, a dinner out and a trip to the movies on the weekend… just the normal, everyday living expenses that you require to live a certain lifestyle.

Wants – These are the ‘special objectives’. You may have heard me call it your ‘Fun Fund’. This income covers your travel aspirations, your renovations, your gifting objectives and any expenses that you will incur outside of the normal day-to-day parameters.

Moving closer to retirement, it is important that you start considering your NEEDS and WANTS in relation to your income objectives.

A great place to start is with a cash flow budget – I know…it’s a bit boring!  But it’s essential that you understand ‘how’ you spend your money to understand what your future lifestyle, based on today’s situation, looks like once you finish work.

“Contact your adviser or our office on 3371 0866 to access our client-specific, online Budget Questionnaire”

Once you have a better understanding of your expenses – the NEEDS – you can start to define your WANTS.

For example – if travel is an important objective to you, start considering where and how you want to travel.  Do your plans involve overseas trips each year, with lots of activities?  If so, you will need to allow for a larger sum of funds to cover this expense.  If staying in Australia, seeing the sights and generally taking it easy is more your style, then a smaller amount of funds will most likely be required.

You may wish to allow for a new car, a new caravan or look at some major renovations on your home.  These are all areas you will need to consider when defining your WANTS.

Either way, it all comes back to being clear on your objectives (what is it you really want to do when you stop working?) and understanding your cash flow requirements (what does it cost me to live my life the way I want to on a day-to-day basis?).

Our retirement planning specialist advisers can help you to understand your options, articulate your goals and objectives and work towards funding your best life once you finish work.

For a clearer picture of what retirement holds for you, contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together! 

Federal Election 2022 – What Could This Mean For You?

A number of changes were proposed by the Government during the election campaign, and support was also announced for a number of proposals made by the previous Government. 

So where do things stand, what’s next, and how could these proposals impact you? Below is a summary of some of the key announcements to date, and the opportunities which may exist. 

Proposals at a glance

Social security measures

– The Government has committed to freezing deeming rates for two years until 2024. This may benefit you if you’re receiving an income tested pension or allowance, or are a concession card holder. While the deeming rates are subject to periodic change, the current deeming rates have been in effect since 1 May 2020. 

– The Government has proposed to extend the existing 12 month exemption that applies if you’re a social security recipient, and you sell your primary residence. The exemption applies to a certain potion of the sale proceeds of your home under the assets test. The proposal is to extend the exemption for an additional 12 month period. 

– The Commonwealth Seniors Health Card (CSHC) may be available to you if you’ve reached your Age Pension age, but don’t qualify for the Age Pension due to the income and/or assets test. The CSHC has an income test which is used to determine eligibility for the card.  It is proposed that the income test eligibility thresholds will be increased as below:


– The Regional First Home Buyer Scheme is proposed to provide support for 10,000 first home buyers to purchase a home in regional Australia.  The Government will guarantee up to 15% of the eligible purchase price which would allow mortgage insurance to be avoided. 

– The Government has proposed to introduce the Help to Buy scheme, which is a shared equity scheme. Support will be available for up to 10,000 people each year.  If you’re eligible, the scheme will provide support for up to: 

               – 40% of the purchase price of a new home, and
               – up to 30% for an existing home.


– The eligibility age for downsizer contributions is already legislated to be reduced from 65 to 60 from 1 July 2022. Downsizer contributions allow eligible individuals to contribute some or all of the proceeds of the sale of their home to superannuation, without impacting other contribution caps. 

What next?  

It is important to remember that at this time, these proposals are not yet law. You should not act on any of these announcements until they are legislated, or take effect. It is also important to speak to your financial adviser for more information about the changes and to understand how they may provide opportunities for you. 

Note – This communication does not take into account your objectives, financial situation or needs. Please seek personal advice before making a decision about a financial product. Information in this document is current as at 21 March 2022. No liability or responsibility is accepted by Collective Wealth Advisers or any of its employees of Collective Wealth Advisers, for any loss arising from reliance on this communication. 

For more information on how we can help you plan for YOUR ideal retirement, contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together! 

Super Opportunities Coming Your Way in 2022

Get ready people!  There are a raft of new opportunities coming your way in 2022 and they are ‘SUPER’!!!

The Federal Government has announced a range of changes to legislation that will present plenty of opportunities for Australians to contribute more of their money to the ‘tax-haven’ of super.

Increased Employer Contributions

As of July 1, 2022, Employer Superannuation Guarantee (or SGC payments) are legislated to increase to 10.5% from the current 10%, significantly increasing contributions being made on behalf of employees and boosting long-term retirement outcomes.  The government’s aim is for that figure to continue to rise until it reaches 12% on 1 July 2025.

With even more money going into your super retirement savings, it is even more important to ensure you have an up-to-date strategy in place to make sure you can lead the life you want in retirement.  Those with a salary sacrificing strategy in place, may need to revisit their current personal contributions to ensure they do not breach any contribution caps.

More access to the downsizer contribution

From 1 July, 2022, the minimum age that you can make a ‘downsizer contribution’ will drop from 65 to 60. The downsizer scheme allows you to make a one-off contribution into your super of up to $300,000 (or $300,000 each for a couple) from the sale of the family home.  Importantly, this does not count towards any concessional or non-concessional contributions caps.

Example – Tom and Robyn, aged 64 and 68 have decided that their current family home, which they have lived in for over 10 years, is too big and getting harder to manage.  They have decided to ‘downsize’ by purchasing a smaller property that better suits their lifestyle.  They sell their home for $1.2 million and purchase their new smaller home for $800,000.  This leaves them with a surplus of $400,000.  They make a contribution to their super for $200,000 each under the downsizer legislation (using the left over cash from the sale of their home), which is invested and now provides them with more ongoing income in retirement and preserves their retirement savings capital for longer.

The ‘work test’ for retirees will be removed

From 1 July 2022, individuals aged 67 to 74 will no longer be required to meet the work test when making, or receiving, non-concessional superannuation contributions or salary sacrificed contributions. These individuals will also be able to access the non-concessional bring forward arrangement, subject to meeting the relevant eligibility criteria.

Example – Noel is aged 69, retired, and holds a personal (non-super) investment account with a balance of $600,000.  Currently, this places him in a position where he is paying income tax due to the earnings of the investment.  Previously, he has not had the opportunity to contribute more to his pension due to his age.  He can now potentially make a contribution to his super fund of up to $330,000 next financial year.  This will ensure his funds are invested in a tax free environment and he will most likely no longer pay any income tax.


The recent changes highlighted are a positive step in the right direction for everyday Australians.

But, as with any new legislation involving superannuation and contributions, the details can be complex and there are a number of other issues to consider.  Professional advice from your financial adviser is a must when considering these strategies.

To discuss your opportunities in light of these new ‘super’ changes, contact us today!

For more information on how we can help you plan for YOUR ideal retirement, contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together! 

Navigating Separation and Super

Splitting your financial assets during a separation or divorce is often complex and overwhelming. Superannuation can often be overlooked but it is incredibly important!


Navigating separation and divorce can be an extremely stressful time for all involved.  The divorce rate has been falling over the last 20 years, however, the divorce rates in couples who have been married for 20 years or longer, is increasing.  With more and more Australians going it alone in retirement, the importance of superannuation in divorce proceedings, is greater than ever.

All situations are different, but in general, a couple’s superannuation is included in the overall ‘pool’ of assets (oddly not in WA however – I have no idea why!) along with your house, invested assets and any savings.  And given women generally have a lower balance of super than men, due to a number of social and work issues, this presents an issue for women to appropriately fund their retirement and be financially secure in their later years.

We have worked alongside many couples and individuals in their 50’s and 60’s to ensure their retirement needs are taken into consideration when separating or divorcing.  From our experience, there  are a number of issues to take into consideration:

– How much do I need in retirement to lead a certain level of lifestyle?

– What will be the impact on any Centrelink entitlements that I may be eligible for?

– What legal advice do I require and who can assist me in this area?

– What about any non-super assets I may receive as part of the settlement?

– What will my cash flow look like once we separate?

Being educated, understanding your options and getting help from the experts will ensure that you are prepared to make the most of your situation and create the best outcome possible.

For those who are members of a Self Managed Super Fund or a Defined Benefit Scheme, it is even more important to speak to a specialist about how to best navigate these waters as there is added complexity.

Essentially, you are not alone in having to make these decisions.  Separation is emotionally hard. Having expert and personalised advice on your financial arrangements will make a significant difference to your financial security, both now and in the future.   

For more information on how we can help you plan for YOUR ideal retirement, contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together! 

Retirees need to plan for higher inflation

Taking into account the effects of inflation should be an important focus of all retirement plans.

Rising inflation hits retirees the hardest. They normally do not have employment income or the time necessary to accumulate more retirement savings. And with inflationary pressures here to stay for a while longer, it’s never been more important to understand the effect inflation has on retirement income streams and retirement savings capital.

According to the Association of Superannuation Funds of Australia’s Retirement Standard (ASFA), prices rose 2.8% for those living ‘comfortably’ in a couple and by 3% for singles on a ‘budget’ over the year to September 2021. This represented the highest annual increases since 2010.

A large part of our role as professional retirement planners, is to prepare strategies to provide ongoing income to meet a clients lifestyle objectives once they stop working and earning a wage. This includes detailed cash flow and capital projections based on their situation, their desired level of income and all the fun things they want to do once retired – travel, buy a caravan, live next to the beach, etc. It is imperative that inflation is factored into these projections to give a true representation of a client’s situation over the longer term.

According to Challenger Investments, even low rates of inflation can have a large impact on your purchasing power. For example, if inflation averages 2.5% per annum, then after 15 years, 31 per cent of the real value of each dollar of retirement savings has been lost. After 28 years, half of the real value of their money has gone.

There is also the rise in superannuation guarantee (SG) to 12% over the next few years that will serve to help with the issues mentioned here for those still in accumulation stage and receiving an ongoing employment income.

For more information on how we can help you plan for YOUR ideal retirement, contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together! 

Is an SMSF right for me and my situation?

Self managed super funds can provide everyday Australians with a host of advantages in relation to their retirement savings. This can include a much wider range of investment choice, (including Real Property assets), more flexibility and control, The ability to pool your assets with other members, and in certain cases, can provide a much more cost-effective structure for your retirement savings.

However, being the trustee of an SMSF is not a task that should be taken lightly. There are a number of obligations and responsibilities, as well as significant penalties for not adhering to all the rules. Put simply, establishing an SMSF is not for everyone.

There are two main groups of investors who generally find establishing and operating a SMSF to be a fantastic option for their retirement savings.

1. Business owners operating from a commercial premises

Holding your business premises within a self managed super fund structure can provide a host of advantages including the protection of the property asset against any claims on the business, significant ongoing and long term tax advantages, as well as the security of a long-term premises for your business.

2. Individuals with combined super balances of over $500,000

While operating a self managed super fund can be more time consuming, there can also be significant cost savings. This is due to the fact that operating costs for a self managed super fund tend to be fixed, whilst fees and costs within a platform super fund (either retail or an industry fund) are percentage based and increase significantly as your balance grows. As a rule of thumb, funds with a balance in excess of $500,000 are generally more cost-effective within the SMSF environment.

As with all superannuation and investment decisions, it is extremely important to consult with professionals to ensure that you have all the facts and can make informed decisions about whether or not an SMSF is right for you and your circumstances. Ensure you only deal with professionals who hold a ‘SMSF Specialist’ designation and are experienced with the complexities of establishing and operating a self managed super fund.

Collective Wealth Advisers are ‘SMSF Specialist’ advisers who can provide advice, establishment services and ongoing support for existing self managed super fund trustees as well as those looking at their options.

To understand if an SMSF is the right fit for you and your situation,  contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together! 

40 needs to be the new 60!

61… That’s the average age of Australians when they start thinking about retirement and what life looks like after work.  61…!?

As retirement planning specialist advisers, we know that this leaves precious little time to implement important strategies and to make the most of investment and compounding returns. 

I get it.  Superannuation and retirement planning can be scary and complex and it is natural for people to just put it in the too-hard basket.  And then there are the BBQ chats… Friends, colleagues and family telling you what you should do.  How does the Centrelink age pension even work?  And don’t forget the media, who seem to have a different opinion every week (whatever sells papers…right?).

At the end of the day, it’s not all just about the dollars and cents.  What matters most is the lifestyle YOU want to enjoy once you do not have a regular employment income coming through the door!  The ultimate result of not addressing your retirement needs is that your lifestyle is not what you envisaged it to be.  And that’s a position we do not want to see anyone in.

So maybe we need to start getting the message out there that 40 is the new 60!  This is when people are hitting their straps professionally, have started a family and are working towards paying down their mortgage and investing their hard-earned cash savings!  With guidance, Australians can reap massive advantages from tax-effective strategies to place them in the best position possible for their eventual retirement.  

If you are nearing retirement and have not put thought into your options, strategies or what retirement is going to look like to you, then now is the right time – after all, it’s better late than never.

For more information on how we can help you plan for YOUR ideal retirement, contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together!