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Welcome to todays Webinar

Your Presenter is: William Johns, HFIYour Facilitators are: Chris Porter

Multiple Sclerosis Limited

Acknowledgement

We acknowledge and pay respect to the traditional custodians past

and present on whose lands we meet today.

We acknowledge the deep feelings of attachment and the

relationship of Aboriginal people to country and respect the

cultural authority of the elders in each community

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Multiple Sclerosis Limited

Informed Choice

This presentation has been prepared and is presented by an

independent expert.

The views presented are not necessarily the views of Multiple

Sclerosis Limited.

Individuals are encouraged to seek further advice regarding the

relevance of the information presented for their situation.

PRACTICAL SOLUTIONS FOR COMPLEX MATTERS.

April 2016

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The legal bit…Any views expressed in this webinar are the presenter’s alone and should not be attributed to any other person.

Any advice in this presentation is general advice only and does not take into account the objectives, financial situation or needs of any particular person. You should obtain financial advice relevant to your circumstances before making investment decisions. Whilst every care has been taken in the preparation of this information, Australian Unity Personal Financial Services Ltd does not guarantee the accuracy or completeness of the information. Australian Unity Personal Financial Services Ltd does not guarantee any particular outcome or future performance. Past performance is not a reliable indicator of future performance. Australian Unity Personal Financial Services Ltd is not a registered tax agent. If you intend to rely on any tax advice in this document you should seek advice from a registered tax agent. Australian Unity Personal Financial Services Ltd ABN 26 098 725 145, AFSL & Australian Credit Licence No. 234459, 114 Albert Road, South Melbourne, VIC 3205.

Health & Finance Integrated is a Corporate Authorised Representative of Australian Unity Personal Financial Services Limited (ABN 26 098 725 145) AFSL 234459, 114 Albert Road South Melbourne VIC

3205

Presenters: William JohnsManaging Director, Certified Financial Planner.

Education

Certified Financial Planner

Education

Bachelor of Business (Applied Finance & Financial Planning).Master in Disability Studies (School of Medicine, Nursing & Health Science. Flinders University)

Carer for mother with MS & Advocate for the past 16 years and tens of clients with MS.

Specialisationdisability & complex health related financial planning issues.

Awards & recognition includeNational MS Topic Expert Panel Money Management Magazine Financial Planner of the Year (runner up),National Disability Awards (UN, Emerging Leaders, finalist), and FPA Certified Financial Planning Professional Best Practice Award

Contact: William@healthfinance.com.au

1300 10 44 99

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Taking control of your future:

Planning for Early Retirement- Part 2AFTER DIAGNOSIS WITH MS

Donna is wanting to focus more on her health, and less on her job.

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Donna is 39Has relapsing- remitting MS. Worried about health and finances.She looked at her situation and it is as follows:

ASSETS

Super: $140,000

Debt: Credit cards $2,000

Bank account: $20,000

INCOME

Donna’s Income: $85,000 plus super

Rob’s income: $90,000 plus super

Other info:

Mortgage

House: Value $600,000

Mortgage: $400,000

Interest (some fixed, some variable) @ 4.2%

What worries DonnaI want to focus on my health.

I have taken too much sick leave. I had a relapse.

I am worried and scared that I should not be home alone.

Complicating factors: What if Donna has a child?

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Donna says: “I don’t want to retire.”Does not want. We must respect Donna’s desire to keep working. But it would really help if Donna could articulate to herself and others why she wants to keep going:

In your experience, what are some reasons that Donna may want to keep going?

1. I to feel “useless”

2. Needs the income

3. Wants to be socially included

4. Wants to feel “normal’/ MS will not beat me.

5. Bored at home/ has always worked and doesn’t know how to settle down.

6. I fear being judged by my family/friends

7. All or a combination of the above?

NOW I WANT YOU TO NARROW IT DOWN TO THE THREE MOST IMPORTANT REASONS FOR YOU, AND PUT THEM IN ORDER OF IMPORTANCE.

There are legitimate health reasons Are you stressing yourself?

If you work in a stressful environment, it can contribute to flare-ups, relapses etc. So managing your emotional health is extremely important.

In the Autumn 2014 edition of Intouch Magazine this was the cover story and Dr Craig Hassed(GP) said “Although maintaining good emotional health isn’t easy, it’s worthwhile committing to, because poor emotional health leads to immune-system stress, which can cause your MS to progress more rapidly.”

There are numerous resources available for you including the MS Connect team who will help you assess the level of stress and strategies to cope with it. But the best way is to avoid things that stress you.

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Donna says “If I did give up work, it is because I am fatigued”

In a publication, The Australian MS Longitudinal Study has previously shown that fatigue is the leading cause of departure from the workplace in over 70% of people with MS.

If you had to give up work, what would be your main reason?

If your partner gave up work, what would be their main reason?

Let’s help Donna understand the “universe of systems” in which she lives

Donna

Wills

Housing

Guardianship

Financial Managem

ent

BankingSuperannu

ation

Centrelink

Non Medical

Care Provision

Medical Care

Provision

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System 1: Superannuation

What is it?

It is a tax effective environment to save for your retirement.

Your employer generally puts 9.5% of your salary into it and this is taxed concessionally at 15%.You can also contribute to it but there are many rules including limits on how much you can contribute into it.

Question:The government has recently proposed a new limit of how much you can contribute into superannuation from your pre-tax dollars.Question What do you think the limit is. Is it: a. $25,000b. $30,000c. 35,000

Superannuation continuedDonna asks:

If I stopped working, can I access my superannuation?

Answer: There are 14 ways you can access super!

Those include:

severe financial hardship

terminal illness

permanent incapacity

balances of $200 or less

permanent departure from Australia

https://www.humanservices.gov.au/customer/services/centrelink/early-release-superannuation

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Insurance inside superannuationThere are three insurances you can hold in super

Life

• When you die

• Diagnosed with terminal illness

Total and Permanent Disability

• After you stop work due to illness that is permanent

• Cover can substantially be reduced year after year

Income Protection or Salary Continuance

• Pays up to 75%

• For a particular duration like 2, 5 years or longer

• Can be tricky if it covers only temporary illnesses

We usually assist clients with supporting the claim process, and giving advice on which fund to claim, timing, and impact on Centrelink, Housing and Tax

Donna asks “Are there penalties if I do access superannuation early?Yes! And they need to be planned carefully:

Accessing superannuation can have many potential problems that need to be managed carefully such as:

1. Tax implications: You may need to pay tax of up to 17% on every dollar you draw down.

2. Housing implications: You may lose public housing eligibility if superannuation is unpreserved (depends on which state you live in).

3. Centrelink implications: Centrelink is means tested. This means if you take money out of superannuation it becomes as a financial asset and you may lose some or all your payment.

4. Family Tax Benefit: this is always missed, but if you are receiving family tax benefits you need to be careful when accessing superannuation as you may end up with a liability to pay it back.

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What about the tax system?When you are planning to retire, it is important to understand there are several tax consequences:

1. Termination Payment

2. Leave paid out as lump-sum (long service, annual)

3. Employee Share Scheme (your employer giving you shares) after working a certain time.

4. Study subsidies/ benefits that you may need to refund.

5. Tax on superannuation.

Planning it appropriately can save you a lot of tax.

What about Centrelink (social security)?This confuses Donna the most because she has heard many stories of how difficult it is to get on the Disability Support Pension.

She also thinks that because of the family income and assets, she does not qualify.

Here is what Donna needs to understand:

If Donna is single, she can earn up to $1918.20 a fortnight before she becomes ineligible for the Disability Support Pension.

But because Donna is married, we would use the couples rate of $2,936.80 a fortnight.

BUT WAIT: You are likely to be offered Newstart or Sickness Payment while your application for the Disability Support Pension.

Newstart and Sickness Payment have other testing, such as “liquid asset test” which means if you have more than $11,000 in your bank as a couple, you must serve a waiting period of up to 12 weeks.

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Donna is relieved. She says “that’s great because my husband is looking at going part time to spend more time with me while he can”

Don’t be excited yet, Donna, lets see what your plans are to work out your Centrelink entitlementsTwo tests will determine if you are eligible for Centrelink, and how much. They are:

a) asset test

b) income test

1. We assess what Donna and Rob have in financial assets such as:

How much savings they are likely to have at the time

Whether they will stay in their property or move out and rent it or sell it.

Whether Donna will want to work casual or part time

Whether she plans to access her superannuation savings

Why does this need careful planning?Firstly, if her home becomes inappropriate for her needs, and she moves, then it becomes a financial asset. So we need to plan this carefully.

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Donna asks you “Can I work part time or casual and still access my superannuation?”

Possible answers:

a) Yes

b) No

c) It is complicated, and depends on whether you are seen to be “gainfully employed” under the Superannuation Industry (Supervision) Act and the trustee deed of your superannuation fund.

I think you better tell Donna to speak to a financial adviser who understands disability and the system really well, it is not straight forward, is it?

Donna needs to think about housing and whether where she lives will be appropriate for her in the futureBest thing to do is to assess if her current housing is:

A) Physically suitable (by asking an expert such as an Occupational Therapist to make such assessment now and in the future)

B) Financially viable: Can I afford mortgage payments? Can I afford the rent?

If this is an issue, you may need to think about the following options:

1. Is it possible to modify your home in the future to your needs? Will you pay for that or will the NDIS?

2. If you are renting, will the landlord allow you to modify it?

3. Should you consider Public Housing and Social Housing?

4. What about National Affordability Subsidy Scheme?

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Notes on housingPhysical modifications:

Not all homes can be modified due to structural and design issues. You need to think 5-10 years at least. Do not rush in buying a place before you assess its long term suitability.

There are many guides available and you can also call MS Connect for further advice on what is considered a good home for a person with MS.

Financial considerations:

1. Assess the mortgage and whether a better product is available.

2. Assess Housing eligibility. Public and Social housing has strict income tests. In NSW for example, this threshold is $585 per week from all sources and this includes interest they deem you are earning on your superannuation if you have released/ unpreserved it, bank accounts etc.

3. Can a Special Disability Trust be utilised to purchase a home on your behalf?

Non-Medical System (NDIS)Provides funding for care and support services, and enables you to be active within your community.

Translation: we will pay for reasonable costs associated with your care and services you need, equipment, necessary home modifications, transport etc, but we will not pay for things you would need to pay for if you did not have a disability (home, car, food etc).

Medical System (medicare)Supports Australians when they need medical assistance (hospitals, primary health etc).

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Like everybody, Donna panics.

Donna quickly feels overwhelmed and describes her feelings as:WorriedUncertainScaredanxiouspanic

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Will’s message

Understand that being rich should not mean having many possessions, it is about living and having a dignified life built on certainty and security.

Certainty in this context refers to the certainty that your financial goals align with your personal and health situation and is flexible to accommodate future changes.

An elastic band is certainly stretchable.

We talk Deborah through and help her reflect on where she was, where she is now, and where she wants to go through our 4 Steps.

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Donna comes to our office, and says “OK I am ready to retire”

Here is what Donna has done to get herself ready:

1. KNOW WHERE YOU STAND

Identified what she has such as superannuation accounts, insurances she holds inside super, mortgage statements, bank accounts, credit card statements.

2. EDUCATE YOURSELF

Looked into how Centrelink can work for her and her husband Rob. She understands the Centrelink assessment process and eligibility criteria.

3. DON’T DELAY PROFESSIONAL ASSISTANCE

She has called our team at HFI to ask questions and we clarified things along the way.

4. HAVE AN END GOAL- HOW MUCH MONEY DO I REALLY NEED ?

Beyond financial planning:Donna and Rob’s financial CarePlan©

Because Health & Finance Integrated is a specialist firm, we were able to provide Donna with advice and to help plan ahead.

Our advice included:

Support and Advocacy

Income planning

Simplify Superannuation

Claim on insurances

Limited tax advice with strategies

Future accommodation planning

Research your entitlements (taxi subsidies, medicare, etc)

Back-up planning. What happens if?

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Can I apply to claim insurance myself?Yes! And we encourage it! You do not need a lawyer or financial person to claim

Statistics show that on average, 9 out of 10 policies result in a payout first time round.

BUT there are tricks and pitfalls you need to be aware of, so seek advice.

For example, Chris who is 52 identified an insurance policy in his super. He has $200,000 in super, mostly taxable component. He made a claim and succeeded for $150,000 TPD policy. He now has $350,000.

Introducing ClaimAssistClaimAssist: This service is designed to

Support you during a claim

We aim to:

o Low cost- can substantially minimise your costs of making a claim (a set low fee, payable after you get paid)

o Fee includes financial advice to ensure you maximise your Centrelink entitlements, not lose your housing eligibility, and minimise taxes, and what to do with it (pay debts, invest etc)

referral to no win no fee lawyers if you need legal representation or claim is declined.

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How do we charge?An hourly rate, capped at an amount you are comfortable with so you always know what things will cost.

Our clients also enjoy

Free general and specialised advocacy (e.g. Centrelink, Housing)

Free initial meeting where you can get immediate advice and guidance to burning issues.

Access to our client mobility car in Sydney.

National service. We utilise Skype and other tech to speak with you no matter where you are.

Ongoing support for clients

Leading and award winning financial advice.

Our team is highly specialised in your needs. Click here for bio or visit healthfinance.com.au

If your cash-flow situation is tight, please speak to us. Sometimes we can bill through superannuation or we can undertake some work pro-bono.

Special offer to you10% off our standard fees for people with MS or their carers

Extra 5% if you are unable to access our services face to face and use technology (skype etc) for appointments

Initial assessment of your situation at our cost (free to you)

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Q&A!

Please Ask

ms@healthfinance.com.au

1300 10 44 99 (8 AM-5 PM)

William: 0408414497 (24 Hour emergency)

Multiple Sclerosis Limited

Handouts

Handouts have been sent separately.

This contains a copy of the slides presented

today and possibly other relevant reading

material depending on the topic

Handouts will follow today’s session along

with an online evaluation request

(delete whichever is not applicable)

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Multiple Sclerosis Limited

Questions

MS Connect

1800 042 138

msconnect@ms.org.au

Multiple Sclerosis Limited

Library & Publications

In the Library & Publications section of our website you can find information about:

• MS Library services

• How to borrow both eBooks and print books on topics such as wellness, and managing multiple

sclerosis and its symptoms

• Accessing our online library catalogue

• MS publications, including Intouch magazine, email newsletters, booklets and information

sheets

Visit our website for more information www.ms.org.au

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Multiple Sclerosis Limited

Library & Publications

Multiple Sclerosis Limited

Resources

Title: The Can Do multiple sclerosis guide to lifestyle empowerment

Author: Patricia Kennedy

Published: 2012

Availability: Print and eBook

Incorporating exercise, nutrition, and positive thinking, this book shows you

how to move the focus from what you can’t do by putting it on what you

can do to live fully with multiple sclerosis.

Title: Navigating life with multiple sclerosis

Authors: Kathleen Costello, Barbara Giesser and Ben Thrower

Published: 2015

Availability: eBook

Multiple sclerosis may cause a myriad of symptoms and varies greatly from

person to person. The authors demystify the illness and offer practical

solutions and guidance based upon their extensive combined clinical and

research experience.

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Multiple Sclerosis Limited

The National Disability Insurance Scheme

A major change to the way disability supports and services are funded and delivered

• Available to people who are: under 65, satisfy residency requirements and are able to demonstrate that their disability substantially affects daily living

• Promoting choice, control and social and economic participation

• Providing a whole-of-life approach

• It is not means tested

• Providing reasonable and necessary supports and services

• Ensuring equity of access

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Multiple Sclerosis Limited

We can help you to

• understand the eligibility requirements

• understand the pathways to access the NDIS

• prepare for a planning conversation

• understand your current supports and any unmet need

• develop your goals

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Multiple Sclerosis Limited

We are a ‘Registered Provider’

Once you have an NDIS approved plan MS is registered with National Disability Insurance Agency to deliver:

• Support Coordination – assistance to help make your plan active

• Residential Respite

• Social Support Day Program (Vic)

• Exercise physiology and personal training (NSW)

• Specialist Continence Assessment (NSW)

• Physiotherapy and Occupational Therapy (NSW and Vic)

• Want to learn more - please call MS Connect

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Multiple Sclerosis Limited

Thank you

MS Connect

1800 042 138

msconnect@ms.org.au

Education

education@ms.org.au