For some of us, in terms of estate planning and the management of our affairs, our main focus can often be on drafting a will-and putting arrangements in place for assets (e.g. super) that may not be covered by our will. These matters primarily centre on how we would like our affairs managed in the event of our passing. Importantly, thought should also be given to the management of our affairs while we are still alive. With this in mind, below is a brief overview of powers of attorney, and the different types that may be available and their benefits. Please note: Laws governing powers of attorney may vary in each state and territory. Please consider seeking professional advice to better understand how they may relate to your personal circumstances. Powers of Attorney overview In broad terms, a power of attorney is a legal document that gives authority for someone or a number of people (the attorney/s) that you (the donor or principal) appoint to act on your behalf regarding the management of your affairs. To make a power of attorney, you must have mental capacity-meaning you're deemed capable of understanding the nature, significance and effect of making a power of attorney when you sign the legal document. Appointing an attorney can be beneficial in the event you find yourself unable to manage your affairs, for whatever reason, either now or in the future. For example, if you suffer ill health, become confined to hospital, travel overseas, or are unable to attend a financial institution or real estate agency, or government office. An attorney can be a family member or a friend or someone else that you trust. However, in general, they must: be at least 18 years old, not be bankrupt or insolvent under administration, and not be your paid carer, health provider, or accommodation provider. This authority generally centres on financial matters (including related legal matters) and may include, for example, buying/selling shares, managing an investment property or operating a bank account. As an example, a recent report* estimates that in Australia there are several hundred thousand bank accounts being operated under a substitute decision-making arrangement, such as a power of attorney. Power of Attorney types When it comes to powers of attorney, the two main types are: A general power of attorney, which gives authority for someone to act on your behalf on financial matters, either broad or more specific (e.g. only managing your investment property or making all of your financial decisions for the time you're on holidays). This type of authority may commence as soon as it's signed by you and accepted by the person you appoint as your attorney-alternatively you may wish to state when you would like this type of authority to commence. Furthermore, this type of authority remains valid until one of the following occurs: it reaches its expiration date, it's revoked by you, it's cancelled or suspended by a relevant court or tribunal, you pass away or you lose your decision-making capacity. An enduring power of attorney is similar to a general power of attorney, however, this type of authority continues even if you lose your decision-making capacity. This type of authority may be of great assistance, should you lose the capacity to manage your affairs through illness, accident or advancing age. Please note: A medical power of attorney may also be possible-depending on your state or territory-and gives authority for someone to act on your behalf on medical matters. This can often be included in an enduring guardianship or enduring power of attorney. Considerations It's important to understand that giving someone the authority to act on your behalf is a serious decision. They should be someone that you trust will act in your best interests-and they should have the capacity and ability to make the required decisions should the event arise. It's important to consider making a power of attorney before you need it. This can be particularly true when it comes to an enduring power of attorney. As previously mentioned above, once you have lost mental capacity, you can't make a power of attorney. It's important to consider having a conversation with those you wish to appoint-as well as seek the advice of an estate planning professional to understand your options, the possible outcomes of your decisions, and make sure they align with your goals and objectives. Collins Hume together with Essential Wealth and Retirement is always ready to help, so please contact us on 02 6686 3000 if we can be of any further assistance. Source: The different types of powers of attorney. (2020). Retrieved from https://ewar.financialknowledgecentre.com.au/kcarticles.php?id=2895. The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial adviser to consider whether that is appropriate having regard to your own objectives, financial situation and needs. Whilst Essential Wealth and Retirement Pty Ltd is of the view the content of this website is based on information which is believed to be reliable, its accuracy and completeness are not guaranteed, and no warranty of accuracy or reliability is given or implied. Therefore, no responsibility for any loss or damage arising in any way for any representation, act or omission is accepted by Essential Wealth and Retirement Pty Ltd or GPS Wealth Ltd or any officer, agent or employee of Essential Wealth and Retirement Pty Ltd or GPS Wealth Ltd. *Australian Government, Attorney-General's Department. (2020). Enhancing protections relating to the use of Enduring Power of Attorney instruments. Consultation Regulation Impact Statement February 2020.

However, when it comes to retirement and retirement intentions, there can be common threads. For example, according to 2018-2019 ATO data*: The average age of retirement was 55.4 years. The top three reasons retirees left their last job included: they reached retirement age or became eligible for super; they experienced sickness, injury or disability; or they were retrenched, dismissed or no work was available for them. The main factor influencing a person's decision about when to retire was financial security. For people who were intending to retire, the average age they planned to retire was 65.5 years. The Government's Age Pension remains the main source of income for most retirees, followed by super. In terms of income from super, depending on your personal circumstances, there may be a number of options available. For example, income via a super retirement income stream, such as a: lifetime income stream; fixed-term income stream; account-based income stream; or non-commutable income stream. Importantly, a non-commutable income stream or transition to retirement income stream (TRIS) may be of benefit if you are still working, but nearing retirement, and looking to either: receive additional income; boost your super savings and reduce your tax; or reduce your work hours, whilst maintaining your income level. Below is an overview of the main points about a TRIS, inclusive of the two types of TRIS: accumulation phase and retirement phase. Accumulation phase TRIS To be eligible to commence a TRIS, you must meet a condition of release, namely, reached preservation age (determined by your date of birth, see below): To commence a TRIS, you need to transfer some or all of your super benefits to a pension account. No limit applies to the amount of super benefits that you can transfer to support a TRIS-referred to as the transfer balance cap (for more information, see below). The value of the assets supporting a TRIS form part of your total super balance. Upon commencing a TRIS, you can elect to have the TRIS (and income payments) transferred to an eligible dependant following your passing-referred to as a reversionary beneficiary nomination. Rollovers or contributions can't be made to a TRIS once it has been commenced. To receive rollovers or contributions (Super Guarantee and personal), you need to keep an accumulation account open. Earnings (investment income and capital gains) from the assets supporting a TRIS are generally taxed at a maximum rate of 15%. Lump-sum withdrawals can't be made from a TRIS with the exception of, for example, unrestricted non-preserved benefits, family law splits, or commutations/'rollbacks' to an accumulation account. Income payments from a TRIS must be between 4% and 10% of the account balance each year. Please note: The minimum drawdown requirements for retirement income streams, such as a TRIS, has been reduced by 50% for the 2019-20 and 2020-21 financial years. Income payments from a TRIS must be received at least once per financial year (except for the first financial year if you commence the TRIS in June). Please note: You can elect to receive income payments from a TRIS either fortnightly, monthly, quarterly, half-yearly, or yearly. The taxable component of income payments from a TRIS attract a 15% tax offset if you are between preservation age and 59. All income payments are generally tax-free if you are aged 60 or over. Insurance can't be held in a TRIS. To hold insurance, you need to keep an accumulation account open. Retirement phase TRIS An accumulation phase TRIS moves to a retirement phase TRIS when you meet a condition of release with a 'nil cashing restriction', such as permanent retirement, attaining age 65, permanent incapacity, or terminal illness. Please note: Aside from attaining age 65, you generally need to notify your super trustee that you have met one of the conditions of release listed above for the TRIS to move to a retirement phase TRIS-alternatively, you may have the option to commute your accumulation phase TRIS and commence an account-based pension. Importantly, when this move occurs, and with regards to what has been covered above, the following applies: A limit applies to the amount of super benefits that can support a TRIS-referred to as the transfer balance cap, which is currently set at $1.6 million (indexed) per person. Please note: If you only use a portion of the transfer balance cap, the unused portion will be indexed. The transfer balance cap does not apply to any subsequent growth or losses. Earnings from the assets supporting a TRIS are generally exempt from taxation. Lump-sum withdrawals can be made from a TRIS, and paid to you tax-free if you are aged 60 or over. Income payments from a TRIS are no longer subject to the '10% of the account balance each year' limit. However, income payments are subject to the minimum drawdown requirements (see the below table): Please note: The minimum drawndown requirements for retirement income streams, such as a TRIS, has been reduced by 50% for the 2019-20 and 2020-21 financial years. Important considerations By commencing a TRIS, you may be drawing down on your super earlier than expected. This may have long term consequences, such as reducing your balance earlier than anticipated in retirement. Depending on your financial situation, goals and objectives, a TRIS may or may not be appropriate for you. Therefore, it's important to consider seeking professional advice prior to commencing a TRIS. Collins Hume together with Essential Wealth and Retirement is always ready to help, so please contact us on 02 6686 3000 if we can be of any further assistance. Source: Transition to retirement income streams (TRIS). (2020). Retrieved from https://ewar.financialknowledgecentre.com.au/kcarticles.php?id=2856. The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial adviser to consider whether that is appropriate having regard to your own objectives, financial situation and needs. Whilst Essential Wealth and Retirement Pty Ltd is of the view the content of this website is based on information which is believed to be reliable, its accuracy and completeness are not guaranteed, and no warranty of accuracy or reliability is given or implied. Therefore, no responsibility for any loss or damage arising in any way for any representation, act or omission is accepted by Essential Wealth and Retirement Pty Ltd or GPS Wealth Ltd or any officer, agent or employee of Essential Wealth and Retirement Pty Ltd or GPS Wealth Ltd. *Australian Government, Australian Bureau of Statistics. (2020). 6238.0 - Retirement and Retirement Intentions, Australia, 2018-19.

Pssst; want to save some serious money? How long have you had your home loan? When was the last time that you checked the interest rate that you are being charged? Never thought about refinancing, here's why you should. A standard variable rate home loan is being charged 4.39% (comparison rate 4.49%). With a 3-year fixed rate loan available at 2.19% (comparison rate 3.15%) with full offset, how much could making the switch save you? Existing loan: Using a new loan: You save $109,848.96 OR keep the payments the same and you save 7 years and 1 month of repayments.Of course, there may be some costs in refinancing, but many lenders offer a rebate to cover these. Other things to consider: Are you eligible for the 2.19% offer? Will the rate difference remain the same over the life of the loan? Are you looking to sell and buy a new property in the future? Invest some time with a professional mortgage specialist who will work through these questions and others to check if your existing loan is suitable and is best for you. They will also advise you on the best refinance options if a change is in your interests. For full details, call David Seymour Regional Financial Solutions 0418 785 747. The above is general in nature and does not take into account your personal circumstances and position. Authorised Credit Representative 47331. Australian Credit Licence 484980. This is for general use and is indicative only depending on your personal circumstances.

We work to live, we don’t live to work Peter helps transform businesses with astute commercial advice innovation and growth initiatives that help them to thrive. Business constantly evolves and it can be challenging to keep up to date with every change, but Peter sees this as a positive. He loves helping people — personally and financially — to create the life they want and take control. That looks different to everyone so his motto is “Business by design, not by default”. The multi-award-winning accountant and advisor also helps fast-track business success and personally mentors business owners and Boards. Peter is a champion of work/life balance making sure that each client remembers this in their businesses. He is a great believer in working hard, working smart and keeping things in perspective. Peter encourages his clients to take their lifestyle as seriously as they take their business. Peter has been recognised as one of Australia’s business leaders. He also spearheads numerous activities that support local and global charitable causes. “I enjoy the diversity of industry and my interaction with each client,” says Peter. “My approach is to see the greater business picture and then devise long-term strategies to achieve goals.” “Whilst my perspective does not always follow a traditional path, I do consider issues from all angles in order to develop the best solutions.” Peter Fowler MBA CPA B Accounting SSA JP SA Fin Peter Fowler is a highly accomplished professional with a diverse skill set that spans the realms of finance, accounting, and business management. Holding a Master of Business Administration (MBA) and designation as a Certified Public Accountant (CPA), Peter brings a wealth of expertise to the table. Peter is also a Justice of the Peace (JP) and holds designations of SSA and SA Fin. These additional credentials underscore his commitment to upholding the highest standards of professionalism and ethical conduct. Peruse Collins Hume’s Welcome Booklet here »