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INTERGENERATIONAL WEALTH MANAGEMENT

This presentation is for general information only and must not be considered as personal financial advice

UniSuper Management Pty Ltd (ABN 91 006 961 799) is licensed to provide

financial advice (Australian Financial Services License No. 235 907) and is the

administrator of UniSuper (ABN 91 385 943 850). UniSuper Management Pty

Ltd (USM) provides advice under the name UniSuper Advice.

UniSuper general advice representatives are employees of USM. They are

remunerated by way of a base salary and potential bonuses (based on the

quality of member servicing). See the relevant Financial Services Guide for

more details.

UniSuper Ltd (ABN 54 006 027 121, AFSL 492 806) is the trustee of UniSuper.

For more information about your UniSuper benefits, refer to the relevant

Product Disclosure Statements available on our website.

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AGENDA

Debt management

Investment structures

Investment philosophy

Insurance

Service options

Spending and saving

Creating a framework

Super strategies worth reviewing

Estate planning

AWARDS

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PERSONAL ACCOUNTS FOR YOUR FAMILY MEMBERS• Members’ families can now be

part of our award winning fund

• Our first fully digital product

• Streamlined application process

• Family members can access UniSuper Advice without having to join the fund

CREATING A FRAMEWORK

Financial independence

Structure Investment Insurance Debt Management

Estate PlanningBudgeting

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SPENDING AND SAVING

HOW DO AVERAGE HOUSEHOLDS SPEND THEIR MONEY?

What does your spending look like?

c

60%

(covering items such as housing, food, fuel and power, medical and

health care, clothing, footwear and transport)

EssentialSpending~$900p.w.

40%

(covering the rest)

Discretionaryspending~$600p.w.

Estimates based on 2015 ABS Household Expenditure Survey

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SPENDING AND SAVING

Do you understand how much you are spending?

Ideally understand where the expenditure is taking place

Is there capacity to generate surplus?If so where should it be directed?

DEBT MANAGEMENT

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DEBT MANAGEMENT

What is current debt repayment strategy?

Benefits of making additional repayments (interest saving

or term of loan)

Impact of increased interest rates

What is an offset account versus redraw and line of credit

Differences between tax deductible and non tax deductible debt

WHAT IS NON-DEDUCTIBLE DEBT VERSUS DEDUCTIBLE DEBT?Interest on a loan can be claimed as a tax deduction if the purpose of the loan is to produce taxable income.

Non-deductible

Money is used to purchase

something for personal use

Example – home loan to

purchase home you live in,

borrowing for a new car

Deductible

Money used to purchase

income producing assets

Example – investment property

that is rented out, borrowing to

buy shares or a business

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MORTGAGE VERSUS INVESTMENTWhich is the better wealth strategy?

INVESTMENT STRUCTURES

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Individual or Joint name(s)

Trust(i.e. family trust,

discretionary trust, testamentary trust)

Company Superannuation Insurance Bonds

Tax structure

DIFFERENT INVESTMENT TAX STRUCTURES

KEY CONSIDERATIONS OF EACH TAX STRUCTURE

Tax

Accessibility

Cost

Flexibility

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DIFFERENT INVESTMENT TAX STRUCTURES

Individual / Joint

Trust CompanySuperannuation

/ Allocated Pension

Investment Bonds

Tax rate 0 - 47% 0 - 47% 30% 0 -15% 30%

Capital Gains Discount

(CGT) Available

Yes Yes No Yes

No, however no further tax if

held for more than 10 years

Ease of management

Simple Complex Complex Moderate Moderate

INVESTMENT PHILOSOPHY

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RISK AND RETURN LADDER

Return

Risk

Cash

Fixed Interest

Property

Shares

ASSET DIVERSIFICATION

No one type of security, asset class or investment manager provides the best performance over all time periods.

A range of investments should reduce the risk of each of the investments within a portfolio experiencing drops in performance at the same time.

Diversification can be achieved:

• Across asset classes• Across markets and regions• Across investment management

styles

One of the most effective means of reducing the different types of risk is to diversify your portfolio.

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Direct versus Indirect

i.e. shares versus managed funds

Active versus Passive

i.e. replicating an index versus aiming to outperform

Environment Social Governance (ESG)

Striving to consider ESG issues in addition to fiduciary obligations

INVESTMENT PHILOSOPHY

RESPONSIBLE INVESTING AT UNISUPERAs a responsible investor, we assess environmental, social and governance (ESG) factors across every investment we make.

When we invest in a company, we look at a number of key factors, including:

• climate risk management

• ESG disclosure and transparency by investee companies

• human rights in the supply chain

• occupational health and safety (OHS)

• remuneration

We’re an active owner

Member choiceYou can choose from certain options that avoid investments in the following sectors (as well as fund wide divestment in tobacco):

• alcohol

• gaming

• weapons

• fossil fuel exploration and production

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INSURANCE

HAVING A SAFETY NET

InsuranceProvide support to your family in unforeseen circumstances

Cover yourself as well as your belongingsHealth, ability to earn income as well as you life

Insurance in your superCan provide additional cash flow that can be directed to other strategies

Include premiums within your essentials budgetLife happens and the reality is things can go wrong for anyone which is why it is so important to have in place

A budget assumes no unexpected life events!

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ESTATE PLANNING

ESTATE PLANNING CONSIDERATIONS

Your Will Management of your financial affairs after you die Important tool to enable

the restructure of ownership Nominates the Executor of the Estate

Enduring Power of AttorneyDocument that empowers a trusted person to act on behalf of another with

respect to the giver’s finances, assets or rights with respect to property.

Advanced Health Directives*Document that states your wishes or directions regarding your future health

care for various medical conditions. It comes into effect only if you are unable

to make your own decisions.

*Can differ depending on state/territory: https://www.advancecareplanning.org.au/resources/advance-care-planning-for-your-state-territory

Testamentary TrustCreated by a Will to provide a greater level of control and protection over the

distribution of assets to beneficiaries.

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ESTATE PLANNING CONSIDERATIONS CONTINUEDCase study – Fred and Mary

Estate to be paid straight to dependants

Litigation riskBankruptcy

Vulnerable beneficiaries

Earnings paid at marginal tax rate

Grand children

Adult child 1

Adult child 2

Separation

ESTATE PLANNING CONSIDERATIONS CONTINUEDCase study – Fred and Mary

Estate to be paid to testamentary trust(s)Taxed as adults

Grand children

Adult child 1

Adult child 2

Litigation safe

Protected from bankruptcy

Can have restricted wholesale access

Memorandum of wishes

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SUPERANNUATION NOMINATIONS Types of beneficiary nominations

Reversionary option*Nominating your pension payments to continue as a pension instead of being paid out as a lump sum

Non-binding nomination

Binding nomination

Beneficiary options

*option only available via pension products

SUPER STRATEGIES WORTH REVIEWING

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SUPER STRATEGIES WORTH REVIEWING

Catch up concessional contributions

First Home Super Saver Scheme (FHSSS)

Downsizer contributionsNew means testing for ‘Purchased’ Lifetime

income streams

SERVICE OPTIONS

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SERVICE PROVIDERSIt’s not just about super

Consider your plan

Discuss Consider Develop a plan Contact us

WHAT NEXT?

Do you know where you’re heading?

Making an appointment to clarify your financial position

Are you taking advantage of all opportunities?

When was the last time you reviewed your

plan? Are strategies still relevant?

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CONTACT US

1800 823 842

advice@unisuper.com.au

For an initial appointment (at no additional cost) to determine your needs

Advice fee can be deducted from your accumulation or Flexi Pension account (if related to superannuation)