Welcome back!
Scene One – Providing Entity
Hi Clancy and Tanya! Warren here from Loudon Private Wealth, presenting to you your personalised video Statement of Advice today. My authorising licensee and contact details are on the screen now, should you wish to reach out to me at any time. Okay, lets get right into it.
Same as Warren Scene 1
Scene Two – The Client
Clancy and Tanya, Oscar (child) you are a small family who recently purchased your own home in Maroubra. Clany and Tanya are both working.
Clancy’s goal: Assess Salary Sacrificing Clancy and Tanya’s goal: Establish an Investment portfolio for Oscar Clancy and Tanya’s goal: Protect your family from financial loss Clancy and Tanya’s goal: Review your Super
You are both in your early 40s and have a son. You are both working and have recently purchased your own home in Maroubra. You've come to me seeking advice in relation to reviewing your insurance, superannuation and investment options.
Show middle aged couple 40yo with a young boy around 10yo. Then show all of them again with a house next to a beach. Then in bottom row, show three images: superannuation building with label, insurance shield with label, and investment portfolio image from asset dictionary with label "Investments", all of them with magnifying glass.
Scene Three – Scope And Goals
You would like to investigate undertaking Salary Sacrificing as a means of minimising taxation and achieving your goals.
You have an existing Super Fund and would like to review this to ensure it remains suitable and continues to meet your needs.
You would like to ensure you and your family are protected and looked after in the event of any serious illness or major injury
You would like to establish an investment portfolio to help create and build your wealth. This investment will be held in Tanya's name on behalf of Oscar.
We therefore agreed that the scope of my advice will cover insurance, superannuation platforms, and personally held investments. Your first goal is for Clancy to investigate whether salary sacrificing is a viable strategy in order to minimise tax. Your second goal is to review your existing super funds to ensure it remains suitable and continues to meet your needs. Your third goal is to ensure that you and your family are protected in the event of any serious illness or major injury. And finally, Tanya would like to establish an investment portfolio on behalf of your son in order to help build wealth.
Scope:
Insurance
Superannuation (platform)
Personal Investments
Goals:
1. Minimise tax via a salary sacrificing strategy for Clancy
2. Review existing super funds for suitability
3. Review insurances for suitability and coverage
4. Establish investment portfolio in Tanya's name on behalf of Oscar to build wealth
Scene Four – The Advice
By salary sacrificing part of your pre-tax salary to super, you will reduce the amount of tax you pay on your income by $1,455 and increase your savings in super.
• Contributions made under a salary sacrifice arrangement form part of your concessional contributions. They are combined with other concessional contributions and count towards your concessional contribution cap. • Concessional contributions are taxed within your super fund at a rate of 15%.
1. Clancy and Tanya, we recommended you rollover the full the balance of your respective UniSuper and Australian Retirement Trust accounts to establish new netwealth Super Accelerator (Core) accounts. 2. Establish a diversified portfolio of Managed Accounts and Exchange Traded Funds (ETF), ensuring you are invested in line with your confirmed risk profile. 3. Arrange with your employer to have your future Superannuation Guarantee (SG) contributions and any other contributions directed into the recommended fund. 4. You have advised that in the event of your death you would like your superannuation to pass to each other. To effect this, we recommend you establish binding non-lapsing death benefit nominations within the new netwealth Super Accelerator (Core) accounts nominating each other as the sole beneficiary. 5. Dealing with super benefits on death is complex. We recommend that you speak with your solicitor to ensure that your wishes are appropriately reflected in your estate plan.
Clancy, this will reduce your superannuation administration and investment costs by approximately $390. Tanya, your costs will reduce by $361. Your new fund is also more tax-effective than your existing fund, as you do not pay Capital Gains Tax (CGT) unless you or the underlying manager sells an asset and realises a taxable gain. The recommended super fund also returns any tax credits earned by your super fund back to you on an annual basis.
• We cannot guarantee that the recommended super fund will provide you with greater returns than your existing fund. • Rolling over your super may incur transaction costs and tax arising from the sale of the underlying investments held in your existing super account. In addition, your funds may be uninvested for a period of time, and you may gain or lose if the market moves during the change of funds.
Clancy - PPS Mutual • Life Insurance in super of $1,787,792 • Total and Permanent Disability (TPD) Insurance in super of $1,787,792 • This cover should be established as a Split TPD Benefit, that is, held both inside of super with an ‘any’ occupation rating and outside of super with an ‘own’ occupation rating • Trauma Insurance of $250,000 • Income Protection in super of $12,500 per month • This cover should be established as a Split Income Protection Cover with benefit held both inside and outside of super • The cover should have a 90 day wait and benefit period to age 65
Clancy The insurance premiums of $1,422.12 per annum, held in your own personal name can be funded by your surplus cash flow. The insurance premiums of $3,385.20 per annum, held within superannuation, will be funded by your superannuation balance of $317,623. • A stepped premium price structure is initially a lower cost premium option, where the price of the policy increases at each policy anniversary in line with your age until expiry. The lower initial cost limits the impact on your cash flow during the earlier years of the policy, allowing you to focus on meeting more immediate needs. • The amount of cover recommended aims to cover your existing debts, pay for any necessary expenses (medical and associated ongoing care costs etc.) and provide enough money to support you and your family.
• All quotes are based on standard premium rates and circumstances you have informed us of. The insurance provider will confirm the final premium offered after assessing your application. • Do not cancel any existing cover until you have received policy documents for the recommended cover. Until your new insurance policy is in place and you have cancelled your current insurance, you could be paying some fees and charges twice - once for your current policy and once for your new policy. • Applications may be subject to medical acceptance by the underwriter. After their assessment they may vary your level of insurance cover or alter the estimated premium by applying a premium loading. In addition, they may place exclusions or exemptions to your insurance cover, or they may choose to reject your application. Should this be the case, we may need to adjust our recommendations and may provide further advice to you at that time.
Tanya - Zurich • Life Insurance in super of $1,787,792 • Total and Permanent Disability (TPD) Insurance in super of $1,787,792 • Trauma Insurance of $120,000 • Income Protection in super of $8,200 per month • The cover should have a 90 day wait and benefit period to age 65 • Child Cover of $50,000
Tanya The insurance premiums of $502.92 per annum, held in your own personal names can be funded by your surplus cash flow. The insurance premiums of $4,912.11 per annum, held within superannuation, will be funded by your superannuation balance of $142,691.
• All quotes are based on standard premium rates and circumstances you have informed us of. The insurance provider will confirm the final premium offered after assessing your application. • Do not cancel any existing cover until you have received policy documents for the recommended cover. Until your new insurance policy is in place and you have cancelled your current insurance, you could be paying some fees and charges twice - once for your current policy and once for your new policy. • Applications may be subject to medical acceptance by the underwriter. After their assessment they may vary your level of insurance cover or alter the estimated premium by applying a premium loading. In addition, they may place exclusions or exemptions to your insurance cover, or they may choose to reject your application. Should this be the case, we may need to adjust our recommendations and may provide further advice to you at that time.
1. We recommend that you invest in an Investment Bond in Tanya’s name as trustee for Oscar. 2. We recommend you make a $2,000 lump sum investment to establish a new Generation Life - LifeBuilder account. 3. We recommend you make regular investments of up to 125% of the previous years contribution each policy year. Initially this will be an additional contribution of $2,500 per annum. 4. We recommend that you invest in managed funds within the platform, specifically the Vanguard High Growth Portfolio. 5. We recommend that the bond be issued in the name of Tanya on the life of Oscar. 6. You have indicated that in the event of the death of the life insured, you would like the proceeds of the bond to be paid to Clancy. I recommend that they be nominated as the beneficiary under the bond.
• Investment bonds are tax paid investments. This means earnings on the investment are taxed in the hands of the life insurance company who issues the bonds. This means that the investment will not generate any assessable income for the investor on an annual basis provided funds are not withdrawn. • Investment bonds can be tax effective for long term investors who have a marginal tax rate higher than 30%. Insurance companies are generally taxed at a rate of 30% however the actual rate of tax payable may be less than 30% when tax deductions, tax offsets, and tax credits available to the life insurer are taken into account. • An investment bond is designed to be held for at least 10 years. If you hold the bond for at least 10 years, the returns on the investment, including additional contributions that meet the 125% rule, will be tax free on withdrawal. • When the proceeds of a bond become payable following the death of the life insured, no tax is payable, even if the bond has been in force for less than 10 years. • Investment bonds accept both regular and irregular additional investments. • Where a bond is issued on the life of a child, and its ownership is to vest in the name of the child at a future date, the bond is subject to Child Advancement Conditions. The owner of the bond may nominate an age, up to 25, at which the ownership of the bond will transfer to the child.
• • The life insurance company will pay tax on investment earnings in the insurance bond at the rate of up to 30%. This may be higher than your personal tax rate. • If you withdraw money within 10 years of the bond commencing, some or all of the income that accrues from your investment will be included in the investor';s assessable income, and taxed at their marginal tax rate. This may result in an increase in the tax you would need to pay for that financial year. This amount is taxed at the investor's marginal tax rate - however a 30% tax offset is allowed to compensate for the tax already paid by the life insurance company. Where an investor's personal tax rate is less than 30%, any unused portion of the tax offset can be used to reduce tax payable on other income in the same financial year. If you make a withdrawal within the first 10 years, the rate at which earnings in the investment bond are taxed will depend on when you make the withdrawal. • The 10 year tax free period is reset if your ongoing contribution exceeds 125% of the previous year's contribution, or if a contribution is not made in any one year, any further contribution will start the 10 year period again for the whole invested amount.
Establish Wills and Powers of Attorney
2. We recommend that you urgently seek legal advice to draft and implement a valid Will and Enduring Powers of Attorney as you do not currently have these documents in place. 3. We also recommend that you discuss the appropriateness of establishing Enduring Powers of Guardianship and Advance Healthcare Directive. 4. As you have children under age 18, we recommend you consider nominating someone you trust as the guardian of your children in the event of your death. 5. We recommend that you engage the services of a qualified legal professional to advise you and prepare this legal document.
• It may be possible for family members (and other eligible dependents) who do not agree with the terms of your Will to lodge a challenge through the courts, so it is important to discuss your full family circumstances as well as your wishes with your solicitor.
My first advice is for Clancy to enter into an agreement with his employer to salary sacrifice up to the concessional contribution cap of $30,000 per annum. We also recommend splitting 50% of the contributions made each year to Tanya's new netwealth Super Accelerator account, which I'll explain further in my second advice. Salary sacrificing super will reduce your tax on income by $1,455 and increase your savings in the tax-effective superannuation environment. However please note that you always remain under your $30,000 cap otherwise you will incur penalty tax, and please note that contributions are taxed within the super fund at 15%.
My second advice is for both of you to rollover your respective Unisuper and Australian Retirement Trust accounts to newly established netwealth Super Accelerator Core accounts and arrange with your employer to have future contributions directed into the recommended funds. I also recommend you invest the underlying funds as follows, which will result in your investments being aligned to your confirmed risk profile. Finally in relation to super, I recommend you establish binding non-lapsing death benefit nominations within the new netwealth Super Accelerator accounts, nominating each other as the sole beneficiary. Dealing with super benefits on death is complex. We recommend that you speak with your solicitor to ensure that your wishes are appropriately reflected in your estate plan. Following my advice will reduce superannuation fees by $390 and $361 for both your funds, will result in a more tax-effective super fund as you do not pay capital gains tax unless you sell an asset, and netwealth also returns any tax credits earned by your super fund back to you on an annual basis. However please note that we cannot guarantee that the recommended funds will give you better returns than your existing fund. Further, the rollover process may incur transaction costs and taxes in the transfer of funds, and due to being out of the market for a period of time, you may miss out on lost capital growth.
My third advice is for you both to take out the following insurances. Clancy's premiums are $1,422 per annum from cash flow and $3,385 from superannuation, while Tanya's premiums are $503 from cash flow and $4,912 from superannuation. We recommend a stepped premium structure as the lower initial cost limits the impact on your cash flow during the earlier years of the policy, allowing you to focus on meeting more immediate needs. Following my advice will ensure that the amounts of cover will cover your existing debt, pay for any medical ongoing costs of care, as well as provide sufficient money to support you and your family. However, please note that the premiums may change subject to underwriting, and please ensure you do not cancel any existing insurances until the recommended ones are in force.
My fourth advice is for Tanya to invest an upfront $2,000 in a Generation Life investment bond as a trustee for your son, followed by annual contributions of 125% of the previous year. We recommend you invest these funds in the Vanguard High Growth Portfolio. Finally, I recommend that Clancy be nominated as the beneficiary under the bond in the event of the death of the life insured, as this was your preference. Following my advice will result in a long term tax-effective investment as the intention is for the investment is your son's future. Please note however that if the funds are withdrawn prior to 10 years, there may be tax penalties.
My final advice is for you both to urgently seek legal advice to draft and implement a valid Will and Enduring Powers of Attorney as you do not currently have these documents in place. I also recommend that you discuss the appropriateness of establishing Enduring Powers of Guardianship and Advance Healthcare Directive. As you have a child under age 18, I recommend you consider nominating someone you trust as the guardian of your children in the event of your death. I recommend that you engage the services of a qualified legal professional to advise you and prepare this legal document. Please note that if you do not follow this advice, it may be possible for family members (and other eligible dependents) who do not agree with the terms of your Will to lodge a challenge through the courts, so it is important to discuss your full family circumstances as well as your wishes with your solicitor.
Show image of man and then blue arrow withg label "$30k pa" to building with label "Superannuation". Then under bluw arrow show another label "(50% split to Tanya's super)". Then show green tick labels "Reduce income tax by $1,455" and "Increase wealth in superannuation", then show red exclamation and labels "Penalty tax if $30k cap exceeded" and "Super contributions taxed at 15%".
Show image of husband, then show Unisuper building to Netwealth building with blue arrow labelled "Full balance" above it. Then underneath show wife and show Australian Retirement Trust building to netwealth building. Then when VO says "I also recommend you invest....", show screenshot 1 from Scene 5 on the right side of husband's information and screenshot 2 from Scene 5 on the right side of wife's information. On next screen, show same image we have used before for DBN nominations, showing one person's super benefit goes to the other person. Then show green tick with labels "Clancy saves $390, Tanya saves $361" and "No CGT, more tax-effective" and "Netwealth returns tax credits earned". Then show red exclamation mark with labels "Investment performance not guaranteed" and "Transaction costs and taxes due to rollover" and "Time out of market may mean lost growth".
Use same insurance visuals as Shaun videos, but with following information:
Husband insurer: PPS Mutual
Life: $1,787,792
TPD: $1,787,792 label "Any Occ in super, Own Occ outside super"
Trauma: $250k
Income Protection: $12.5k pm label "Split cover" and "90 day wait" and "Age 65 Benefit".
Wife insurer: Zurich
Life: $1,787,792
TPD: $1,787,792 label "In super"
Trauma: $120k
IP: $8.2k pm label "90 day wait" and "Age 65 benefit"
Child Cover: $50k (this is a new insurance, please use a fifth shield image with a picture of a baby in the middle of the shield
Then green ticks with labels "Existing debt covered" and "Medical and ongoing care costs covered" and "Funds to support family". Then red exclamation mark with labels "Premiums subject to underwriting" and "Do not cancel until new insurance in force".
Last screen, show Tanya face then blue arrow with label "$2k initial" pointing to building with Generation Life logo, then show another blue label under the first label with label "125% of previous year". Then show on the right of building green arrow pointing to Vanguard logo. Then show green tick with labels "Long term tax-effective investment" and red exclamation mark with label "Tax penalties if funds used before 10y".
Scene Five – Fees And Costs
Product fees
Screenshot-2025-10-20-at-11.25.55.png
Screenshot-2025-10-20-at-11.26.04.png
Screenshot-2025-10-20-at-11.26.14-1.png
Screenshot-2025-10-20-at-11.26.23-1.png
Screenshot-2025-10-20-at-11.26.31-1.png
Screenshot-2025-10-20-at-11.26.43-1.png
Screenshot-2025-10-20-at-11.27.08-1.png
Let's discuss fees. There are two categories of fees that you need to be aware of. The first is our advice fee, amounting to $3,940. This covers our advice to you as well as our ongoing management of your invested funds. The second category of fees is our ongoing service fee of $4,051. This covers an annual strategy review, access to me as your adviser throughout the year, and access to the Loodon Private Wealth Client Services Team throughout the year as required.
Same imagery as previously used for upfront fee and ongoing fee. Ongoing fee three services are "Annual strategy review", "Access to me" and "Access to Loudon PW Team".
Scene Six – Disclosures
I am now going to show you three important tables which disclose important information about our associations and disclaimers. Please pause the video and ensure you read them. The first table discloses any benefits, interests or associations that may be capable or reasonably seen to be capable of influencing my advice. The second table shows any benefits, interests or associations of my Licensee and its related companies. And the third table outlines the disclosuresd in relation to this advice to you. This advice purely considers your interests only, and is in your best interests. Please sign the authority to proceed if you wish to proceed with my advice. Otherwise, if you have any questions, please let me know. Thank you!
Show three screenshots, then rest of scene is same as other final scenes