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In this edition

In-house asset rules and Self Managed Superannuation Funds
Coping with redundancy
Super Co-contribution - the end of Financial Year is fast approaching!
The Taggart Group of Companies - What we can do for you.

Article brought by Dr Jim Taggart OAM

Dr Jim Taggart OAM

Jim's career began as a Teacher and a Deputy Principal of a Catholic High School. Since entering the field of financial planning in 1987, he has successfully developed his business to service nearly 6,000 clients in which his organisations provides advice on Financial Planning, General Insurance, Finance & Leasing. The Taggart Group Pty Ltd runs the General Insurance business, and hold an AFS Licence as General Insurane Brokers. Taggart Nominees Pty Ltd is an AFS Licensee and runs the Financial Planning and Life Insurance Broker business.

Also during this time Jim has completed another Masters Degree in Commerce, majoring in Financial Planning to add to his other qualifications of Diploma of Teaching, Bachelor of Arts and a Master of Arts from Macquarie University. Jim had completed his Doctorate in Business Administration, and also holds the FChFP designation awarded by the Association of Financial Advisers.

In the field of writing Jim has written two books while he was teaching with his senior geography text winning a geography award. In recent times Jim has written many articles for industry publications as well as newsletter articles for various networking associations.

Jim became a CFP with the Financial Planning Association of Australia in 2002, a desingation he still holds. Jim is also QPIB qualified, being the highest in his profession for General Insurance in Australia. Jim is the recent past National President of the Association of Financial Advisers [AFA] ending his tenure in October 2010, and was the NSW/ACT Director from 2006 - 2008. 

Jim has lived in the hills area at Kellyville for over 28 years. Jim has been actively involved in community activities such as: -

  • Salvation Army
  • Vice President of Regional Chamber of Commerce 1999 - 2000
  • Past board member of Gilroy College and Marion College
  • Past Chairperson and current member of the Hills Excellence in Business Committee 355 Management Committee
  • Past Chairman of the Advisory Council for TAFE NSW Western Sydney Institute

Jim is married with four children, and conducts a very active and preferred insurance/finance and financial planning practice.

For many years Jim has performed community services in diverse areas and was Chairman for the Red Shield Appeal in Western Sydney(past 7 years). Jim was the Chairman for the Olympic Fundraising Committee for the Western Region.

Jim has been fortunate to speak at offshore conferences in the areas of Financial Planning and Motivation in such countries as Switzerland, New Zealand and U.S.A.

In November 2005 Jim was awarded the 2005 Zurich / Association of Financial Advisers [AFA] Adviser of the Year Award. In January 2006 Jim was presented with the 2006 Baulkham Hills Shire Australia Day Community Service Award.  In January 2010 Jim was awarded the Medal of the Order of Australia in the 2010 Australia Day Honours.

 

Contact details

Website
The Taggart Report
Phone
02 9894 9155
Fax
02 9894 8599
Email
Email us

Coping with redundancy

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The last decade has been good for job seekers. Unemployment has been low, and companies have been crying out for good staff. The resources boom continues to shield Australia from some of the problems being experienced in other countries, but parts of our economy are starting to show signs of weakness in the face of higher interest rates and petrol prices.

One consequence of a slowing economy is that more people are likely to experience redundancy. Redundancy is a stressful event, but if it happens to you, there are ways in which its impact can be reduced.

Redundancy payments provide many people with a welcome lump sum and bona fide payments receive special tax treatment. This includes a tax-free component which is currently $7,350 plus a further $3,676 for each completed year of service. Anything in excess of the tax-free amount is treated as an “employment termination payment”. The first $140,000 of an employment termination payment is taxed at 15% if the recipient is over 55, or 30% if under 55. Any payment in excess of $140,000 is taxed at 45%.

As a redundancy payment may be the last pay cheque you receive for some time, it’s important to make sure it’s put to good use. This is where budgeting comes to the fore. When money is tight, it’s time to reassess the difference between needs and wants. Budgeting can be a chore, so why not approach it as a game? Get the family involved, and you’ll be surprised where you can find savings. Don’t treat your situation as all doom and gloom. Decide now how the family will celebrate when things get back to normal.

Managing debt is a vital part of the budgeting process. Talking to your lenders from the start will give them the greatest opportunity to help you. Good financial advice is crucial at this time, so make a point of getting in touch with your adviser as soon as possible.

Many companies provide employees with outplacement assistance to help them find a new job. Make the most of any offers. This is a chance to review your career path, to try a new direction, or maybe to start your own business. Redundancy is the trigger for many people to undertake training in areas quite different to their previous occupation.

Redundancy results from events beyond individual control, but it’s still easy to feel a sense of personal rejection. Men, to a greater extent than women, often gain more than just an income from their work. In many cases it provides them with their identity and sense of worth. It may also be their main social network. In addition to support from their families, it’s important for anyone going through redundancy to seek any help they may need in dealing with the emotional upheaval that can occur at this time.

Stressful as redundancy is, it can be a great opportunity. Many people emerge from the redundancy experience with fresh motivation, happily embracing a new career.

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