problem rectified at no cost to

them. The surgery is funded

and sponsored by Australian

Business’s, including the

ABC Vision Centre in

Sydney. I was fortunate to

witness a couple of these

procedures which I found

amazing. The eye surgeons

are very well trained and

extremely talented in these

operations.

We then went to Sien Reap to

spend a few days looking at

the temples of Angkor Wat

and other ancient temples. All

in all, it was a wonderful, life

changing experience, one that

I shall never forget. One of

the most distressing factors

was the poverty of Cambodia,

like many Southeast Asian

Countries there was a vast

difference between the haves

and the have nots. You and I

could sell up everything we

have here in beloved South

Australia and move over there

and live like kings and

queens. Were it not for

organisations like the 2H

Foundation, and there many

like minded organisations,

which help these people,

things would be even worse.

We need to continue to

remind ourselves just how

lucky we are.

So in closing while spending

Christmas day with your

loved ones and friends, have a

thought for those less

fortunate. Not only in

Cambodia or other 3rd world

countries, but also for those in

our local community that

won’t have a Christmas.

Merry Christmas to you all

with our Very Best Wishes.

Chris, Vicki and Emma

Let me begin by wishing you

all a wonderful, relaxed

Christmas and of course a

prosperous New Year for

2011. I certainly hope your

dreams and goals for 2011 are

realised and we hope we can

play a major part in these

objectives.

I would ask, that over the

Christmas period, you give a

thought to those who won’t

be spending Christmas with

family and friends or who

won’t be enjoying a

Christmas meal with all the

traditional trimmings. In our

country alone there are more

than 105,000 homeless on any

given day, who won’t be

sharing the joys of this festive

season with loved ones this

year.

As you may have read in our

previous newsletter, I was

involved in a 2 week

mission to Cambodia with my

Rotary Club, the Rotary Club

of Kent Town. We organised

for 2 containers with medical

equipment be sent to the

Battanbang Referral

Hospital. There were 30

wheel chairs, 40 beds, four

operating tables and much

more. This equipment came

from Donations in Kind,

which is a Rotary Partner.

They collect second hand

equipment which is still in

good working order, and store

it at a warehouse in Salisbury

until it is needed. We had a

total of ten members from the

club along with Ms. Kate

Taylor of the 2H foundation.

Kate was the inspiration for

this project as she originally

came to the club 18 months

ago telling us about the

foundation and the work that

it was doing.

(For information about 2H, go

to birthingkitfoundtion.org.au).

We arrived in Phnom Penh and

toured the city before heading

up to Battanbang. We spent

some time with the administra-

tors and health officials of the

hospital. Our original plan was

to unload the containers and

prepare the wards but as the

containers hadn’t arrived at the

hospital (although they had

arrived in Cambodia) we were

unable to achieve this goal. We

asked if we could help some

other way and found ourselves

cleaning, washing and painting

some 59 beds from the hospital

that looked like they had come

out of the “Ark”. They were

covered in filth and rust, and

badly in need of repair. We

were able to paint all 59 beds, a

feat achieved mainly by yours

truly, going to a local hardware

shop (not Bunning’s or Mitre

10) stocked mainly by 3rd

world handyman gear purchas-

ing a compressor and spray

gun. Instead of painting each

one by hand which took an

average of 35 minutes it took

us just 7 minutes per bed with

the spray gun.

The following day we were

trained in Eye Testing for

vision impairment through

Cataracts and Pterygium

growths. The basic eye test

uses a simplified eye chart. We

then headed out to a village

approximately 30 km outside

of Battanbang where we tested

approximately 250 local village

people. We identified 32

Cambodians with poor sight

through either Cataracts or

Pterygium. These people will

attend the 2H clinic in

Battanbang to have the sight

A Word from Chris

Summer Newsletter 2010

December 2010

Inside this issue:

A Word from Chris 1

Are you properly insured?

2

Transitioning to

Retirement

3

Aviva Investors

Market Monitor

3

Onsite

Tech Support

4

Money Works

Financial Planning Pty Ltd

The Insurance Gap:

As it stands, Australians are underinsured. In

fact, the gap between life cover we have and the

life cover we need is estimated at around $1.37

Billion.1

The Facts:

Heart disease kills one Australian every 10

minutes.2

42,000 Australians are expected to die from

cancer this year alone.3

96% of Australian families lack enough life

insurance to protect their families for 10 years

or more, meaning only 4% of families are

adequately covered.4

Someone in their mid-30’s with two young

children and earning around $50,000 pa will

need life insurance cover of between $500,000-

650,000, or 10-13 times their annual pre-tax

income. 5

Why insurance is so important:

Most financial experts agree that insurances such

as income protection, life insurance, trauma

cover and total and permanent disability (TPD)

insurance are fundamental to any good financial

plan.

The cover you need: 6 Life insurance: -

Pays your beneficiaries a lump sum when

you die. For around $2 a day, or less than the

cost of buying a coffee, you can get life

insurance cover of $750,000.

Total and Permanent Disability (TPD)

Pays you a lump sum if you are unlikely

to work again due to total and permanent

disability. For around $3 a day, or less that the

cost of a beer, you can get TPD cover of

$750,000.

Trauma cover

Pays you a lump sum if you suffer a specified

and serious illness, such as a heart condition

or cancer. For around $7.20 a day, or less that

the cost of a newly released DVD, you can get

trauma cover of $500,000.

Income Protection Replaces around 75% of your income if you

are sick or injured and can’t work. For around

$1 a day, or less than the cost of a chocolate

bar, you can get income protection of $3,000

per month.

Like to know more?

If you would like to know more about

insurance and whether or not you have the

right level of cover for you and your family,

please call our office for an appointment.

1_Rice Walker Actuaries, Analysis of Insur-

ance Needs, May 2005.

2_Heart foundation, March 2009

3_Cancer Council Australia, March 2009

4_TNS Research, Investigation the issue of

underinsurance in Australia, August 2005.

5_Rice Walker Actuaries, Analysis of Insur-

ance Needs, May 2005

6_The cost of insurance will depend on indi-

vidual circumstances and insurance needs. All

costs examples are for a 45 year old non-

smoking female, except income protection

where the case study is a 45 year old female.

All rates are approximate, assuming no load-

ings and exclusions. Policy fees and stamp

duty are excluded and costs are to be consid-

ered a guide only. Rates are for policies writ-

ten for BT Insurance on Super Wrap of Wrap

Platforms. (BT Brochure)

Are you Properly Insured?

Page 2 Summer Newsletter

Continued from Page 1

The children in

the hospital were

overjoyed to

receive the

clothing donated

by caring people

here in Adelaide

Since July 2005, when the Transition to Retirement („TTR‟) rules

came into effect, strategies surrounding these rules have contin-

ued to grow in popularity. As the “aged pension” may eventually

be fazed out, the aim of TTR is to ensure that people have the

capacity to retire independently on their own funds. While many

believe they will be able to survive with their current super plan,

most don‟t realise they could be a lot better off with an effective

TTR Strategy.

TTR is quite a simple concept. Anyone who has reached

“superannuation accessibility age” (preservation age) but does

not meet the definition of retirement, can fully or partially roll

over their superannuation benefits into an alternative income

stream, known as a „non commutable income stream‟. By doing

so you increase the pre-tax contributions into super, which

provides significant tax benefits while you are still working.

Effectively, your superannuation fund goes from accumulation

phase to pension phase. With a TTR strategy you can keep

working full time, or even reduce your working hours.

Why Use a TTR Strategy

Here are 4 key ways an employed person, at preservation age

or over can benefit from TTR strategy:

By salary sacrificing more income into your super, your

contributions are paid from pre-tax dollars, which may other-

wise be taxed at up to 46.5%.

Salary sacrificed contributions are only taxed at 15%.

Income streams have a 15% tax credit applied up to age 60.

Income streams from age 60 are completely tax free.

Account balances in pension phase, are exempt from tax on invest-

ment earnings, compared to the 15% tax applied in accumulation

phase. Important: Similar advantages are available to self-employed

persons by claiming tax deductions on their personal contributions

to reduce their taxable income. The following example, is based on

a 60 year old individual and compares retirement outcomes with and

without a TTR strategy. (Australian Financial web article and table 1.1)

Aviva Investors Market Monitor

Summer Newsletter Page 3

Global Equities

UK financial stocks led the market down

and then up in a volatile week for equities.

With the $7billion sale of its interest in

Argentina’s Pan American energy, BP

confirmed asset disposals topping

$20billion since April – proceeds are

funding the Gulf of Mexico clean-up.

Shareholders approved the £4.5 billion

merger of BA and Spain’s Iberia, creating

Europe’s second largest carrier after Air

France-KLM.

Motorola added 3.3% after the telecoms

equipment maker said it will split it’s

handset business from remaining operations

in January 2011.

Global Bonds

Peripheral bond prices finally lifted as the

ECB began purchases mid-week.

Portuguese ten-year yields fell over one per

cent, also buoyed by a US statement

suggesting the IMF should play a greater

role stabilising Euro zone sovereign debt

markets.

US and UK government bond yields rose

further as well-received economic reports

Global markets

Equity markets ended the week higher,

as initial fears that Ireland’s financial

crisis would spread to Portugal, Spain,

and possibly Italy and Belgium, were

relieved by concerted European Central

Bank (ECB) purchases of peripheral

bonds.

While peripheral bond prices recovered

as the ECB began buying the debt of

weaker Euro zone members, core bond

prices continued to trend down, with

corresponding yields rising.

Commodities generally advanced on

encouraging manufacturing reports

from the US and China. Copper surged

to 400 cents and ounce, close to an all

time high.

Sourced from

Aviva Investors

Market Monitor

Tuesday 7th

December 2010

saw investors move into riskier asset

classes. Yields on US ten-year government

bonds rose 20 basis points to over three

percent – their highest level since July.

Yields on German ten-year bonds

increased 10 basis point to 2.85% last

week.

US economic data on the improve

Over the past two months, US

economic data has improved markedly.

The ISM Manufacturing Index rose

to 56.9 in October from 54.4 in Sep-

tember in response to strength in

new orders.

Non- farm payrolls rose 172,000 in

October and 39,000 in November.

Retail sales rose 0.6% in Septem-

ber and 1.2% in October. Over

the past year, sales are now 7.3%.

Q3 GDP rose at an annual rate of

2.0%.

This suggests the US economy is stabilis-

ing and that the consumer may be entering

a period of recovery. This is significant as

consumer demand comprises about 70% of

the US economy.

Transitioning to Retirement

Personal Income Situation

No TTR strat-

egy TTR strategy

Take home salary $120,000 $80,800

Pension income $17,000

Assessable pension income $0

Assessable income $120,000 $80,800

Tax payable $33,050 $18,320

Medicare levy $1,800 $1,212

Personal contribution

Net income $85,150 $78,268

Decrease in income using TTR $6,882

Superannuation situation

Total employer contributions $10,800 $50,000

less tax on contributions $1,620 $7,500

Net contributions $9,180 $42,500

less pension payment $17,000

Increase in net super (excluding

investment earnings) $9,180 $25,500

Figure 1.1

Technology is vital to your business.

No matter what the economic climate we all need a computer that functions well and systems in place to protect our

precious data.

The thing to consider with regards to your technology needs is do you have adequate protection? There are 3 simple

steps to give you peace of mind.

The first step is to ensure you have an up to date Internet Security program. Are you protected from viruses that can

attack not just from emails, but also from website links you click on that take you to infected webpages? It is not

enough to just have an anti-virus – you need a total Internet Security Program to protect your PC and your business.

Although there are free anti-viruses available that do offer protection to a point, they are not effective enough to

cover the various forms of attack out there these days.

Second step in protecting your business is to make sure you have a backup system in place to protect you from loss

of data due to a hard drive crash, theft or fire. Backup systems are a relatively inexpensive way to protect your data

and give you peace of mind. The most common method is to an external portable hard drive which can be supplied

with software to automate the backup process which can be supplied for under $200.

The third step in protection is to have an Uninterruptible Power Supply (UPS) unit. A UPS allows for equipment like

computers, monitors and modems to be protected from power outages as well as power spikes and surges. It also al-

lows you to run for a period of time during a power failure on the internal batteries allowing you to save any files or

documents that you are working on at the time of the blackout. And it will stop the corruption of database files which

do not react well to sudden disconnections.

At Onsite Techsupport we are happy to offer all Money Works clients a free audit during the month of

January to assess if your business systems are adequately

protected.

For all your IT needs contact:-

Onsite Techsupport on 1300 318 579.

Onsite Techsupport - Damien McGrath

135 FULLARTON ROAD

ROSE PARK SA 5067

PO BOX 241

KENT TOWN SA 5071

PH: 08 8304 8088

FAX: 08 8431 8211

EMAIL:- vicki@moneyworkspl.com.au

If you like the work we do for you,

the greatest compliment that you can

give us,

is to recommend

Money Works Financial Planning

Pty Ltd

to your friends and family.

We’re on the web …

Visit www.moneyworkspl.com.au

As many of our clients have their

own successful small businesses,

we will be

advertising on behalf of our cli-

ents in each of our quarterly

newsletters.

If you would like us to display

your business details in our next

issue, please contact Vicki on

(08) 8304 8088

or email

vicki@moneyworkspl.com.au

The information provided in this newsletter is of a general nature only and does not constitute

financial advice or a recommendation. You should obtain and consider a Product Disclosure Statement (PDS) before making any decision to acquire a product. Please seek expert advice from

a qualified and experienced Financial Planner or accountant or other professional, prior to making

a decision on your financial situation.

Detailed information on our services and fees is provided in our Financial Services Guide, which is

provided prior to or at the first consultation and is also available on request.

Money Works Financial Planning Pty Ltd is a Corporate Authorised Representative of Millennium3 Financial Services Pty Ltd

ABN 61094529987 AFSL 244252 Unit 7, 50 Borthwick Ave Murarrie Qld 4172

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