The proposed changes to the superannuation system will create an opportunity for advisers to add value to their clients’ service by developing alternative investment strategies, according to Lifeplan.
Federal government “tinkering” with superannuation has given advisers an opportunity to develop alternative investment strategies where superannuation is not the single retirement savings methods, according to Matt Walsh, head of Lifeplan.
“Even if the clients don’t adopt [the strategies], clients would appreciate that their advisers are working for them behind the scenes thinking about other strategies, structures, how to deal with the tax challenges, the caps and the restrictions on super” Walsh told ifa.
“Clients are expecting their advisers to help them steer through the noise, there’s a lot of confusion around super at the moment and clients have an expectation that planners will help them navigate that,” he added.
Walsh suggested a “better” strategy is likely to be investment bonds, which limit the tax on earnings to 30 per cent or less, with no cap.
“Furthermore, for advisers, there is the possibility of creating intergenerational wealth management opportunities in the way the investment bond is set up,” he said.
Another strategy investors are starting to consider is using family trusts, however these are less attractive following changes to the low income tax offset, Walsh said.
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