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Category : Finance

The Four Main Types of Insurance.

  • Willard Lloyd
  • November 20, 2019
Reading Time: 6 minutes

All of these four insurances can be called “life insurance” as they are all insuring your life.

  • Death cover
  • Total & Permanent Disability (TPD) Cover
  • Trauma or Critical Illness cover
  • Income Protection (or salary continuance)

3 Main Categories of Life Insurance

  • Willard Lloyd
  • November 12, 2019
Reading Time: 4 minutes

The three main categories of life insurance available in Australia

The complexity of insurance within Australia can seem difficult to understand with this article we hope to relive any murky knowledge around the understanding and help influence your decision to ensure you are best protected.

Direct Insurance (Crappy – but better than nothing)

Group Insurance (on balance pretty crappy – but OK cause it’s better than nothing)

Retail Insurance (the only real option for those serious about protecting themselves or their family).

Dementia: How to future-proof your finances

  • Willard Lloyd
  • September 3, 2019
Reading Time: 4 minutes

Dementia: How to future-proof your finances

As life expectancies increase, dementia will become an ever-more important issue. The good news is that it is normally a condition that progresses slowly, thus giving families plenty of time to prepare for it. Don’t fall for the myth that your spouse or next of kin can make financial decisions on your behalf in the absence of an enduring power of attorney. Don’t fall for the myth that your spouse or next of kin can make financial decisions on your behalf in the absence of an enduring power of attorney. The bad news is that there is no current cure and that many people move to avoidance, instead of preparation, and thereby leave themselves at risk of huge financial problems down the track. It is critically important to have an enduring power of attorney (EPA) in place long before it appears to be needed. The person giving the EPA must have the capacity to do so.

Senior Associate – Paraplanner

Reading Time: 2 minutes

Kofkin Bond & Co. is an Australian, diversified wealth and asset management company. With over 40 years of combined experience, we work with individuals, families, businesses, and institutions – to deliver services and solutions that help build, preserve and manage wealth.

A  position has opened for someone who wants to be part of a company culture that is always abreast of the industry’s evolution and changes and embraces technology for better delivery of advice and services.

How to really defend your portfolio

Reading Time: 3 minutes

No-one in their right mind would invest purely in a single asset class. Most people are invested in what is called a “balanced” portfolio that contains 60-70% of their assets in equities.

“Balanced” is one of those words that create a feeling of comfort and lack of danger. It’s a bit like the way “gaming” has replaced “gambling” or “climate change” took the place of “global warming”. The effect is the same no matter what you call it. The perception, however, is completely different.

So people invested in “balanced” funds should be able to assume that all their risks are equally weighted, in the way that a seesaw is balanced when two children are on either side. When one child goes up, the other child goes down and vice versa. That’s balance.

Comfort for Australian Expats after decision from Full Federal Court.

  • Willard Lloyd
  • March 7, 2019
Reading Time: 2 minutes

Australian expatriates have been offered some relief after a Full Federal Court decision against the ATO in a tax residency case clarified the definition of “permanent place of abode”.
Harding v Commissioner of Taxation, ruling that the taxpayer’s “temporary” apartment qualified as a “permanent place of abode” under the tax residency test and was not liable for tax in Australia.

Be in Control of your Financial Well-being- Is Money Holding back your Happiness?

Reading Time: 3 minutes

The Commonwealth Bank and the Melbourne Institute: Applied Economic and Social Research at the University of Melbourne, released a new benchmark measure of financial wellbeing of it stating weighing on the minds of a large number of Australians is their challenges of managing personal finances and putting enough money aside to ensure their financial futures. 

What is the CBA-MI financial scale? 

The scale combines banking data and peoples’ perceptions about financial outcomes.  The unique concentration of the individuals perception with the banking data reveals the barriers, drivers and behaviours that are linked to positive financial well being across both ‘self-reported and ‘observed’ scales. 

The Australian Share Market Slumped to a Two-Year Low.

Reading Time: 3 minutes

For around 12 months we have believed that Australian and Global equity markets have been extremely overpriced and riding on the strength of euphoria as we couldn’t find many opportunities for growth.

We had always been saying that the Australian and US equity markets have been overvalued and thus very early on had little exposure to both asset classes. Most Australian investors who aren’t our clients have a love affair with domestic and US shares thus seeing very large declines in their portfolios over the past 3 months {-12% to -22%}

Couples and the “F” word – Let’s make it less taboo

Reading Time: 2 minutes

It turns out it is not just a taboo amongst Australians.  It has been revealed that people would rather speak about religion, politics and even sex, than they would about their finances, especially when talking to family and friends. 

Talking finances is seen as something the majority of Australians are uneasy with, a staggering 50% will never discuss their finances with family or friends, while a further 14% still consider the topic taboo.  Why do we find it so difficult to mention the ‘F’ word? Perhaps because money symbolizes different things to different people; power, control, security or ego. 

Money is seen as an emotive topic, more so than religion or politics.  Many people view their financial situation as a reflection of their personal success.   

The Traps of some Industry Super Funds – A Precautionary Tale 

Reading Time: 3 minutes

As from November 19, the first sizable industry fund, Australian super, will be making some significant changes to their fund, that may cause some concern for investors, especially if they were coming close to retirement.  These changes come as amid fears of a potential property market plunge.  Amongst the changes, property funds will be frozen for up to two years in the event of a crisis. Furthermore, the fund will prevent members from investing more than 70% of their savings in its property portfolio option.  

According to Kofkin Bond and Co, one of the most challenging changes will be the rule that states that, for up to two years, the fund has the right to freeze any attempts at withdrawing savings from the property option, as well as prohibiting funds out of, as well as any new contributions into, the options.