Welcome back!
VID: 2025-12-03-
013
-19
Licensee Name: Quill Group Financial Planners
Adviser Name: Tony
Scene One – Providing Entity
Adviser: Tony
AR number: 238880
Contact number: 0738404700
Practice name: Quill Group Financial Planners
Licence name: Quill Group Financial Planners
AFSL number: 300810
E-mail: tony.marshall@quillgroup.com.au
Scene Two – The Client
Client name: Alice Moore
Age: 79
Gender: Female
Ethnicity: Caucasian
Lifestyle:
Retired; Residing in a dementia care facility; care costs covered by existing income Financial decisions driven by best-interest duty and estate intent
Retired; Residing in a dementia care facility; care costs covered by existing income Financial decisions driven by best-interest duty and estate intent
Reason for advice:
Client represented by: Rachael & Erik Moore (Enduring Power of Attorneys) Rachael & Erik, you have engaged us to provide guidance on how best to manage the lump sum of surplus cash held in Alice’s name and to ensure her financial arrangements are aligned with her long-term needs and estate intentions. As it is unlikely that Alice will require the $410,000 in her bank account, the primary objective is to structure these funds for longer-term capital growth, simplicity and efficiency for future estate administration. A suitable cash buffer also needs to be maintained for medical, care and estate-related expenses. Given Alice has already exhausted her lifetime cap on means tested care fees and her primary place of residence prior to entry is about to be rented there is no requirement for any additional income. This is due to the net rent covering the aged care fees In reviewing Alice’s position, we have also reviewed Alice’s existing Macquarie Pension and are recommending a replacement platform that offers greater investment flexibility and stability. Overall, the advice will outline how to invest the lump sum appropriately, manage taxation considerations (including rental income), maintain a suitable cash reserve, and ensure Alice’s financial arrangements remain straightforward for you to manage under the Enduring Power of Attorney and eventually as part of her estate.
Client represented by: Rachael & Erik Moore (Enduring Power of Attorneys) Rachael & Erik, you have engaged us to provide guidance on how best to manage the lump sum of surplus cash held in Alice’s name and to ensure her financial arrangements are aligned with her long-term needs and estate intentions. As it is unlikely that Alice will require the $410,000 in her bank account, the primary objective is to structure these funds for longer-term capital growth, simplicity and efficiency for future estate administration. A suitable cash buffer also needs to be maintained for medical, care and estate-related expenses. Given Alice has already exhausted her lifetime cap on means tested care fees and her primary place of residence prior to entry is about to be rented there is no requirement for any additional income. This is due to the net rent covering the aged care fees In reviewing Alice’s position, we have also reviewed Alice’s existing Macquarie Pension and are recommending a replacement platform that offers greater investment flexibility and stability. Overall, the advice will outline how to invest the lump sum appropriately, manage taxation considerations (including rental income), maintain a suitable cash reserve, and ensure Alice’s financial arrangements remain straightforward for you to manage under the Enduring Power of Attorney and eventually as part of her estate.
Scene Three – Scope And Goals
Scope: Superannuation (platform), Superannuation (investment)
Goals 1:
Invest surplus cash of $360,000 for long-term growth: Invest approx. $360,000 of surplus cash into a HUB24 Invest account structured with a Balanced or Growth strategy depending on the longer term cash requirements. The investment timeframe is greater than 5 years as Alice does not require these funds. The intention is that this capital will ultimately support or transfer to yourselves.
Invest surplus cash of $360,000 for long-term growth: Invest approx. $360,000 of surplus cash into a HUB24 Invest account structured with a Balanced or Growth strategy depending on the longer term cash requirements. The investment timeframe is greater than 5 years as Alice does not require these funds. The intention is that this capital will ultimately support or transfer to yourselves.
Goals 2:
Maintain $50,000 cash buffer: Retain $50,000 in cash across high-interest and accessible facilities for contingencies such as medical needs, funeral costs, and estate administration.
Maintain $50,000 cash buffer: Retain $50,000 in cash across high-interest and accessible facilities for contingencies such as medical needs, funeral costs, and estate administration.
Goals 3:
Review existing Macquarie Pension with a more suitable platform: Review Alice’s current Macquarie Pension and consider another Platform due to ongoing concerns about Macquarie’s investment menu contraction, SMA/fund availability risks, and restricted manager access. Ensure continued access to diversified, high-quality growth options and stable portfolio administration.
Review existing Macquarie Pension with a more suitable platform: Review Alice’s current Macquarie Pension and consider another Platform due to ongoing concerns about Macquarie’s investment menu contraction, SMA/fund availability risks, and restricted manager access. Ensure continued access to diversified, high-quality growth options and stable portfolio administration.
Goals 4:
Manage taxation efficiently in Alice’s personal name: Consider the impact of: • Rental income from Alice’s property • Pension income streams • Tax implications of retaining investments in her personal name • Preference for lower-income-generating, growth-oriented investments to manage taxable income
Manage taxation efficiently in Alice’s personal name: Consider the impact of: • Rental income from Alice’s property • Pension income streams • Tax implications of retaining investments in her personal name • Preference for lower-income-generating, growth-oriented investments to manage taxable income
Goals 5:
Ensure asset structuring supports smooth estate administration: Structure assets in a way that simplifies probate and enables flexibility for Rachael and Erik as attorneys. Consider whether assets may be wound down or transferred in specie at death depending on market conditions.
Ensure asset structuring supports smooth estate administration: Structure assets in a way that simplifies probate and enables flexibility for Rachael and Erik as attorneys. Consider whether assets may be wound down or transferred in specie at death depending on market conditions.
Scene Four – The Advice
Advice 1: Advice 1: Replace Macquarie Pension Manager II with HUB24 Pension (Core)
Basis:
• Macquarie’s SuperWrap platform has reduced and restricted investment manager access due to legal issues. Existing SMAs and underlying managed funds with Macquarie face potential future removal or constraint, increasing administration complexity and potential forced investment changes. • HUB24 provides: o Broader investment menus (existing SMA’s are available on HUB24) o Greater flexibility o Competitive, aggregated fee structure across pension + investment accounts o Superior long-term platform stability. • Continue minimum pension payments (currently $1,276.67/mth or $15,320 pa) • Ensures continuity of a conservative investment approach consistent with current Risk profile.
• Macquarie’s SuperWrap platform has reduced and restricted investment manager access due to legal issues. Existing SMAs and underlying managed funds with Macquarie face potential future removal or constraint, increasing administration complexity and potential forced investment changes. • HUB24 provides: o Broader investment menus (existing SMA’s are available on HUB24) o Greater flexibility o Competitive, aggregated fee structure across pension + investment accounts o Superior long-term platform stability. • Continue minimum pension payments (currently $1,276.67/mth or $15,320 pa) • Ensures continuity of a conservative investment approach consistent with current Risk profile.
Risks:
• Market volatility in growth assets. • Implementation timing risk: markets may rise or fall during transition.
• Market volatility in growth assets. • Implementation timing risk: markets may rise or fall during transition.
Advice 2:
Advice 2: Invest $360,000 in HUB24 Invest Account (2 Options) Option 1 : Balanced Portfolio Strategy Option 2 : Growth Portfolio Strategy
Advice 2: Invest $360,000 in HUB24 Invest Account (2 Options) Option 1 : Balanced Portfolio Strategy Option 2 : Growth Portfolio Strategy
Basis:
• Alice does not require income from this portfolio; therefore, investment in longer-term capital growth options benefit the estate. • Growth-tilted investment aligns with the family’s view that funds will eventually pass to Judith, Rachael & Erik. • We’re providing 2 options for your consideration, dependent on expected timeframe of investment and possibility of cash required (Growth portfolio = longer timeframe). • Investing via Alice’s personal name is required as she is over the age of 75 and restricted from making super contributions. • A growth-tilted portfolio reduces taxable income, which helps manage taxation given rental income already contributes to her assessable income. • HUB24 Invest provides high-flexibility administration and investment options. • Invest funds via Dollar Cost Averaging over 12 months.
• Alice does not require income from this portfolio; therefore, investment in longer-term capital growth options benefit the estate. • Growth-tilted investment aligns with the family’s view that funds will eventually pass to Judith, Rachael & Erik. • We’re providing 2 options for your consideration, dependent on expected timeframe of investment and possibility of cash required (Growth portfolio = longer timeframe). • Investing via Alice’s personal name is required as she is over the age of 75 and restricted from making super contributions. • A growth-tilted portfolio reduces taxable income, which helps manage taxation given rental income already contributes to her assessable income. • HUB24 Invest provides high-flexibility administration and investment options. • Invest funds via Dollar Cost Averaging over 12 months.
Risks:
• Growth asset volatility may cause short-term declines. • Taxable capital gains may occur upon future sale of assets by executors. • Portfolio income returns are fully taxed at individual rates. • A beneficiary-focused strategy means higher growth exposure; you both must remain confident this aligns with Alice’s best interests.
• Growth asset volatility may cause short-term declines. • Taxable capital gains may occur upon future sale of assets by executors. • Portfolio income returns are fully taxed at individual rates. • A beneficiary-focused strategy means higher growth exposure; you both must remain confident this aligns with Alice’s best interests.
Advice 3:
Retain $50,000 Cash Buffer / Invest in Higher interest options
Retain $50,000 Cash Buffer / Invest in Higher interest options
Basis:
• Provides liquidity for unexpected medical expenses, care facility changes, funeral arrangements, estate legal fees or delays around probate. • Reduces the risk of forced sale of investments at an unfavourable market time. • Supports the financial management responsibilities as attorneys.
• Provides liquidity for unexpected medical expenses, care facility changes, funeral arrangements, estate legal fees or delays around probate. • Reduces the risk of forced sale of investments at an unfavourable market time. • Supports the financial management responsibilities as attorneys.
Risks:
• Cash may not keep pace with inflation. • Low returns relative to growth assets.
• Cash may not keep pace with inflation. • Low returns relative to growth assets.
Advice 4:
Tax & Estate Structuring Strategy
Tax & Estate Structuring Strategy
Basis:
• Rental income from the apartment will increase Alice’s taxable income; therefore growth-focused investing reduces taxable distributions compared to income-heavy assets. • Keeping assets in Alice’s name is more tax-efficient than distributing early to adult children, who are likely on higher marginal tax rates. • Investment structuring should remain simple so that probate is easily managed at death. • Provides flexibility for executors to transfer assets in specie, particularly if markets are depressed at the time of estate administration.
• Rental income from the apartment will increase Alice’s taxable income; therefore growth-focused investing reduces taxable distributions compared to income-heavy assets. • Keeping assets in Alice’s name is more tax-efficient than distributing early to adult children, who are likely on higher marginal tax rates. • Investment structuring should remain simple so that probate is easily managed at death. • Provides flexibility for executors to transfer assets in specie, particularly if markets are depressed at the time of estate administration.
Risks:
• Capital gains tax may apply depending on market timing. • Probate delays may temporarily restrict access to accounts. • If in-specie transfer is chosen, beneficiaries inherit cost bases and taxation liabilities.
• Capital gains tax may apply depending on market timing. • Probate delays may temporarily restrict access to accounts. • If in-specie transfer is chosen, beneficiaries inherit cost bases and taxation liabilities.
Scene Five – Fees And Costs
One off advice fee: $2,200 inc GST
Ongoing service fee: Ongoing Service Fee : increasing to $4,290 pa (from $2,652 pa)
Ongoing service 1: Essentials Package: Ongoing service 1: Essentials package: Our Essentials ongoing service package is designed for those that have relatively straightforward needs and are looking for an ongoing service that provides them with greater peace of mind in the knowledge that their circumstances will be reviewed annually and changes made where appropriate to suit their changing goals and objectives. • Annual meeting with your Relationship Manager to review your portfolios and financial planning strategy -- this will be at our premises, via phone, or an online meeting • Annual written comprehensive Portfolio Review, including performance analysis • Annual review of your risk profile and asset allocation • Annual review of your estate planning needs and outcomes • Annual review of your life insurance needs and sums insured (if applicable) In addition to the above services, you may also receive: • Consideration of appropriate superannuation strategies, including co-contribution, contribution limits, minimum pension, etc• Superannuation, investment, and insurance product comparisons and analysis • Where applicable, assistance with Centrelink entitlements including the impact of any strategy• Regular contact with your adviser via telephone, e-mail and face to face Additional strategic advice, for example in the case of a windfall, inheritance or retirement, you may be charged at an hourly fee. This fee is currently $330 per hour including GST. Other services also available for an additional charge include: • Projections of capital required to meet your lifetime financial goals • Analysis of your progress toward your lifetime financial goals • Liaison with your solicitor, accountant or other key adviser We will always provide you with a quote prior to commencement.
Product fees
Like-for-like Comparison:
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Funds list with MER/ICRs:
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Product costs (ICR/MER):
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Scene Six – Disclosures
Incorrect/incomplete Info: We have based this advice on information gathered from our discussions, and your completed Client Confidential Data Collection Booklet. Therefore this information is not relevant to anyone other than you. We have assumed that this information is correct. Should any information have changed or be incorrect, you should contact us so we can review these strategies.
Associations/Conflicts: For information regarding benefits, interest and associations, please refer to the Financial Services Guide. We have already provided a copy, however you can view the latest version on our website: www.quillgroup.com.au. Alternatively we can e-mail or post a copy to you on request. Quill Group Financial Planners Pty Ltd is a wholly owned subsidiary of Quill Group Holdings Pty Ltd (QGH). QGH also owns Quill Group Financial Planners 1 Pty Ltd, Quill Group Accounting Pty Ltd, Quill Group Nominees Pty Ltd, Quill Group Investment Management Pty Ltd, a 50% share in WDN Wealth Pty Ltd, and a 50% share in Quill Group Lending Pty Ltd. The Directors of Quill Group Financial Planning also have a financial interest in QGH. Where you are referred to a related entity by your adviser and take up the services of that business, the Directors and shareholders may make monies from their ownership in QGH. The Directors of Quill Group Financial Planning also have a financial interest in QGH. Where you are referred to a related entity by your adviser and take up the services of that business, the Directors and shareholders may make monies from these relationships as part of the profits from their ownership in QGH. Employees of all the above entities, including your adviser, are paid a salary, and may be entitled to financial incentives. Employees who are also Directors may receive dividends from the profits of the business. From time to time, we and your financial planner may also receive other benefits from product issuers, such as technical advice and training and conference support in the form of travel and accommodation subsidies. We maintain an Alternate Forms of Remuneration Register. The Register, which you can review by contacting us, outlines some alternative forms of remuneration (including the incentive payments referred to above) that we may pay to or receive from licensees, fund managers or representatives (each of whom also maintains a register). Separately Managed Accounts ‘SMA’ The Directors and shareholders of Quill Group Financial Planning are also Directors and Shareholders of Quill Group Investment Management which offers a range of Separately Managed Accounts. Your adviser may recommend you invest in one of the SMAs if they determine it is appropriate based on your goals and objectives and relevant circumstances. Quill Group Investment Management, Quill Group Financial Planning and your adviser do not receive any additional investment fees for managing the investments in the SMAs on your behalf. Quill SMAs Quill Group Investment Management SMAs (Balanced, Diversified Alpha and Growth) are offered in collaboration with Hub24 Custodial Services (ABN 94 073 633 664, AFSL 239122) as the Responsible Entity and the administrative investment platform. All SMAs are researched and selected by the Quill Group Investment Committee. Hub24 charge an annual fee of 0.053% to Quill Investment Management to operate these SMAs which is passed onto investors. Hub 24 also receive administration fees which will be disclosed to you in your Statement of advice if we recommend one of these accounts to you. EQ SMAs EQ SMAs (Accumulator, Diversified, Long Term, Low Volatility) are operated by Elston (EP Financial Services Pty Ltd - ABN 52 130 772 495, AFSL 325252) as the Responsible Entity and Asset Consultant in collaboration with the Quill Group Investment Committee, and are offered via HUB24 and Macquarie Wrap as the administrative investment platforms. Elston, Hub24 and Macquarie Wrap receive fees for their involvement in our SMAs that will be disclosed to you in your Statement of advice if we recommend one of these accounts to you. Quill Group Investment Management, Quill Group Financial Planning and your adviser do not receive any additional investment fees for managing the investments in the SMAs on your behalf.
Sole Use: This Statement of Advice is for your consideration and use only.
Cooling Off: After you acquire certain financial products, a 14 or 28 day cooling off period will apply in certain circumstances. This means you can cancel or transfer to another financial product within this period if you decide this financial product no longer meets your needs. Please refer to the relevant PDS for details regarding your cooling off rights.
Sunset Clause: Our advice remains current for a period of 30 days from the date of this document. If you decide to implement our recommendations after this time (or if your circumstances change during this time), please contact us so we can confirm that the advice continues to be suitable for you. **Additional information to be added at end of each video** "Additional content regarding any projections, risk assessment, associations, referrals to third parties is attached with the video presentation in a written SOA addendum as well as covered off in our face-to-face meetings."