How to get back the fees and commissions you - YourShare

$$
How to get back the fees and commissions
you unknowingly pay on your superannuation,
investments, home loans, insurance and moreвЂ¦
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2
Contents
Introduction вЂ“ The Truth About Fees
4
How you unknowingly pay fees and commissions
6
1
Superannuation
9
2
Pensions
10
3
Managed Funds / Investment Funds
11
4
Master Trust / Wrap Accounts
12
5
Cash Management Trusts
13
6
Life insurance
14
7
Income protection insurance
15
8
Total and Permanent Disability insurance
16
9
Trauma insurance
17
10 Home Loan
18
11 Investment Loan
19
12 Margin Loan
20
13 Home insurance
21
14 Car insurance
22
15 Landlord insurance
23
16 Travel insurance
24
17 NSW CTP insurance
25
18 Share Trading Account
26
19 Farm insurance
27
20 Business insurance
28
21 Caravan/Motorcycle insurance
29
22 Health insurance
30
Summary
31
Glossary
32
3
Introduction
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вЂњI got a cheque for $572 and i still canвЂ™t believe itвЂќ
Geoff, Mittagong, NSW
4
You can avoid these fees
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No additional cost to you
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At least 18 different products have fees and commissions you can reclaim
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вЂњItвЂ™s a no-brainer. The reason YourShare won our best rebate service for Money
magazine is thereвЂ™s no downsideвЂ¦вЂќ Paul Clitheroe, Sunday Mail, 5 July 2009
5
Home Loans
How commissions are paid now
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6
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Insurance
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7
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Investments / Retail Super & Pensions
How commissions are paid now
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1. Superannuation
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вЂњThanks for the update and being proactive in chasing the initial commission rebate
payment upвЂ¦ Thanks again for your great service.вЂќ Warwick, Castle Hill, NSW
9
2. Pensions
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вЂњYourShare is doing a wonderful job and it is great to know there is someone out there
that can help in getting some money back into their pocket.вЂќ Janine, Hocking, WA
10
3. Managed Funds / Investment Funds
!MANAGEDFUNDISAPOOLOFMONEYINVESTEDBYPEOPLEWHOHAVESIMILARINVESTMENTGOALS!PROFESSIONALFUND
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вЂњYou are my go-to-guy for mortgages and certainly
someone IвЂ™ll recommend to others.вЂќ Rebecca, Shepparton, VIC
11
4. Master Trust / Wrap Account
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вЂњWhy wouldnвЂ™t you give it a chance?вЂќ
Peter Switzer, Today Tonight, Channel 7, October 2010
12
5. Cash Management Trusts
#ASH-ANAGEMENT4RUSTS#-4SALLOWINVESTORSTOPOOLTHEIRMONEYINORDERTOTAKEADVANTAGEOFINVESTMENT
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вЂњThank you for letting people know about YourShare. We have just been put off work
and are struggling to pay the bills. This should help a lot of people out there that
are in the same boat as we are...вЂќ Judy, Loowood, QLD
13
6. Life Insurance
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SEPARATEPREMIUMANDTRAILINGCOMMISSIONS
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!NNUAL"ASE0REMIUM
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!NNUAL#OMMISSION#OLLECTED
USINGINDUSTRYAVERAGES
вЂњItвЂ™s money for jam.вЂќ
Helen Wellings, Today Tonight, Channel 7, October 2010
14
7. Income Protection Insurance
)NCOME0ROTECTION)NSURANCEPAYSANINCOMEINTHEEVENTTHATYOUBECOMEUNABLETOWORKDUETOINJURYORILLNESSAS
DEГјNEDBYPOLICYCONDITIONS)TISDESIGNEDTOPROVIDEANINCOMEREPLACEMENTFORTHEPERIODYOUAREUNABLETOWORK
4HEPREMIUMISTAXDEDUCTIBLEANDCANBEPAIDBYYOURSUPERANNUATIONFUND'ENERALLYTHEINSURANCEPAYSA
PERCENTAGEOFYOURAVERAGEANNUALINCOMEFROMTHEYEARSOFEMPLOYMENTPREVIOUSTOTHETIMEATWHICHYOUMAKEA
CLAIM)TDOESNOTPAYOFYOURCURRENTINCOME
)NCOMEPROTECTIONPOLICIESTYPICALLYHAVEUPFRONTCOMMISSIONSATTIMEOFPURCHASEANDONGOINGTRAILINGCOMMISSIONS
FORTHELIFEOFTHEPOLICY4HETRAILINGCOMMISSIONSRANGEBETWEENAND
%XAMPLE
%XAMPLE
$AVEISAYEAROLDSELFEMPLOYEDCHIROPRACTOR
(EHASAN)NCOME0ROTECTIONPOLICYWITHAMONTHLY
BENEГјTOF4HEANNUALBASEPREMIUMIS
0!
3UEISANDOWNSHEROWNДЊORISTBUSINESS3HE
HASAN)NCOME0ROTECTIONPOLICYWITHAMONTHLY
BENEГјTOF4HEANNUALBASEPREMIUMIS
0!
4HE4RAIL#OMMISSIONAT0!
4HE4RAIL#OMMISSIONAT0!
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
4RAILING#OMMISSION0ERCENTAGE
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!NNUAL"ASE0REMIUM
-Y!NNUAL#OMMISSIONS#OLLECTED
!NNUAL#OMMISSION#OLLECTED
USINGINDUSTRYAVERAGES
вЂњвЂ¦the easiest and the most lucrative.вЂќ
David Koch, Yahoo 7 Finance, 9 November 2011
15
8. Total and Permanent Disability Insurance
4OTALANDPERMANENTDISABILITY40$INSURANCEPROVIDESALUMPSUMPAYMENTIFYOUARETOTALLYANDPERMANENTLY
DISABLED40$INSURANCECANBEUSEDTOHELPPAYFORMEDICALANDREHABILITATIONCOSTSREPAYMENTOFDEBTSANDTHE
COSTOFLIVING
4HEREARETWODEГјNITIONSOFNOTBEINGABLETORETURNTOWORKWITH40$
4HEГјRSTISWHEREAPERSONISINCAPACITATEDSUCHTHATTHEYWILLNEVERBEABLETORECOMMENCEWORKINANYOCCUPATION
SUITEDTOTHEMBYEDUCATIONTRAININGANDEXPERIENCE
4HESECONDISWHERETHEINSUREDHASBEENUNABLETOWORKFORSIXMONTHSANDISINCAPACITATEDSUCHTHATTHEYWILL
NEVERBEABLETOWORKAGAININTHEIROWNOCCUPATION0REMIUMSFORTHISTYPEOFINSURANCEAREABOUTMORE
EXPENSIVETHANFORANYOCCUPATIONINSURANCE
40$POLICIESTYPICALLYHAVEUPFRONTCOMMISSIONSATTIMEOFPURCHASEANDONGOINGTRAILINGCOMMISSIONSFORTHELIFE
OFTHEPOLICY
%XAMPLE
%XAMPLE
4EDISAYEAROLDMECHANIC(EHASA40$
INSURANCEPOLICYFORWITHANANNUALBASE
PREMIUMOF4HEANNUALTRAILINGCOMMISSION
IS
!MANDAISAYEAROLDCHEF3HEHASA40$
INSURANCEPOLICYFORWITHANANNUALBASE
PREMIUMOF4HEANNUALTRAILINGCOMMISSION
IS
4HETOTALCOMMISSIONCOLLECTIBLEFROMTHETRAIL
IS
4HETOTALCOMMISSIONCOLLECTIBLEFROMTHETRAIL
IS
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
4RAILING#OMMISSION0ERCENTAGE
X
!NNUAL"ASE0REMIUM
-Y!NNUAL#OMMISSIONS#OLLECTED
!NNUAL#OMMISSION#OLLECTED
USINGINDUSTRYAVERAGES
вЂњItвЂ™s better in your pocket than theirs.вЂќ
Effie Zahos, A Current Affair, Channel 9, June 2011
16
9. Trauma Insurance
4RAUMA)NSURANCEISINSURANCEFORSPECIГјCMEDICALEVENTS)TPAYSALUMPSUMINTHEEVENTOFAMEDICALTRAUMAEG
CANCERSTROKEHEARTATTACKANDASPECIГјCSELECTIONOFMEDICALCONDITIONS
4HELUMPSUMPAYMENTCANBEUSEDATYOURDISCRETION)TISNOTATAXDEDUCTIBLEINSURANCECOVERANDCANNOTBEPAID
BYYOURSUPERANNUATION
4RAUMAPOLICIESTYPICALLYHAVEUPFRONTCOMMISSIONSATTIMEOFPURCHASEANDONGOINGTRAILINGCOMMISSIONSFORTHELIFE
OFTHEPOLICY4HETRAILINGCOMMISSIONSRANGEBETWEENAND
%XAMPLE
%XAMPLE
'REGRUNSHISOWNBUSINESSANDHASA4RAUMA
)NSURANCEPOLICYFOR4HEBASEPREMIUM
IS0!4HE4RAIL#OMMISSIONAT
0!
!NNETTEISA0ARTNERINALAWГјRMANDHASA4RAUMA
)NSURANCEPOLICYFOR4HEBASEPREMIUM
IS0!4HE4RAIL#OMMISSIONAT
0!
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
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X
!NNUAL"ASE0REMIUM
-Y!NNUAL#OMMISSIONS#OLLECTED
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USINGINDUSTRYAVERAGES
вЂњIвЂ™ve almost got back $20,000 back in the last two years thatвЂ™s a pretty good return
on filling in a form isnвЂ™t it.......Very easy money, i donвЂ™t do anything, I filled in the one form
and then every year around December I get a cheque.вЂќ Catherine, Townsville, QLD
17
10. Home Loan
)NSIMPLETERMSAHOMELOANISALOANTOPURCHASEORREГјNANCEAPROPERTY4HELOANISISSUEDUSINGTHEPROPERTYAS
SECURITY4HELOANHASASPECIГјCREPAYMENTPERIODANDANINTERESTRATEpWHICHCANBEEITHERГјXEDORVARIABLEDEPENDING
UPONTHELOANCONTRACT
4HEBORROWERPERSONWHOHASTAKENTHELOANMUSTMAKEREGULARMINIMUMREPAYMENTSUSUALLYMONTHLYTOTHE
LENDERORGANISATIONTHATHASISSUEDTHEHOMELOAN4HEMINIMUMPAYMENTISUSUALLYATLEASTTHEINTERESTCOMPONENT
OFTHELOAN
4HEHOMELOANCANBEPAIDOFFINLESSTHANTHEAGREEDTERMOFTHELOANpSOMEHOMELOANSHAVEPENALTIESASSOCIATED
WITHEARLYREPAYMENTS4HEFASTERAHOMELOANISPAIDOFFTHELESSINTERESTTHEBORROWERHASTOPAY
-OSTHOMELOANSHAVEENTRYANDEXITFEESASWELLASTRAILINGCOMMISSIONSPAIDEITHERTOABROKERORKEPTBYTHEBANK
ORГјNANCIALINSTITUTIONTHATISSUESTHELOAN"YSWITCHINGTYPICALLYYOUCANCHANGEYOURLOANTOONEWITHLOWERINTEREST
ANDGET#ASHBACKFROMTHETRAILINGCOMMISSIONSYOURLOANGENERATESEACHYEAR/BVIOUSLYTHEBIGGERYOURLOANAND
THELONGERTHELOANPERIODTHEMOREYOUCANSAVEANDTHEMORECOMMISSIONSYOUWILLCOLLECT
%XAMPLE
%XAMPLE
3COTTLIVESIN-ANLYANDOWESONHIS
YEARHOMELOAN"YSWITCHINGFROMARATEOF
TOARATEOF3COTTHASREDUCEDHISPRINCIPAL
ANDINTERESTREPAYMENTSBYAROUNDEACH
MONTH4HISSAVES3COTTAPPROXIMATELY
OVERTHELIFEOFHISLOANORKNOCKSYEARSAND
MONTHSOFFTHELOANTERMIF3COTTKEEPSMAKING
THESAMEREPAYMENTS!NDEACHYEAR3COTTlSLOAN
GENERATESOFTHELOANAMOUNTINANNUALTRAILING
COMMISSIONS)NYEARONETHISISAPPROXIMATELY
#HERYLHASAHOMELOANOFOVER
YEARSWITHANINTERESTRATEOF"YCHANGING
TOANINTERESTRATEOFSHEREDUCESTHEMONTHLY
PRINCIPALANDINTERESTREPAYMENTSBYAROUND
4HISSAVES#HERYLOVERTHELOANTERMOR
KNOCKSYEARSANDMONTHSOFFTHELOANTERMIF
SHEKEEPSMAKINGTHESAMEREPAYMENTS!NDEACH
YEARTHISLOANGENERATESOFTHELOANAMOUNT
INANNUALTRAILINGCOMMISSIONS)NYEARONETHISIS
APPROXIMATELY
4HETOTALSAVINGANDCOMMISSIONSOVERTHELIFEOF
3COTTlSLOANISAROUND
4HETOTALSAVINGANDCOMMISSIONSOVERTHELIFEOF
#HERYLlSLOANISAROUND
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
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-Y!NNUAL#OMMISSIONS#OLLECTED
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PLUSTHESAVINGSYOUMAKEOVERTHELIFEOFYOURLOAN
USINGINDUSTRYAVERAGES
вЂњWeвЂ™re really talking very big money here.вЂќ
Nicole Pedersen-McKinnon, Today Tonight, Channel 7, November 2011
18
11. Investment Loan
!NINVESTMENTLOANISUSUALLYAГјXEDINTERESTLOANUSEDFORTHEPURPOSEOFPURCHASINGAГјXEDASSETSUCHASAN
INVESTMENTPROPERTYOREQUIPMENTTHATPROVIDESAГјNANCIALRETURN
4HELOANCOULDBETOPURCHASEAPROPERTYORTOIMPROVEAPROPERTYORBUSINESSFORTHEPURPOSEOFIMPROVINGTHE
ГјNANCIALRETURNFROMTHATPROPERTYORBUSINESSTHEINVESTMENT
)NVESTMENTLOANSTYPICALLYHAVEENTRYFEESANDONGOINGTRAILINGCOMMISSIONSFORTHELIFEOFTHELOAN
%XAMPLE
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3IMONHASANINVESTMENTLOANOFOVER
YEARSWITHANINTERESTRATEOF(ECANSWITCH
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MONTHLYPRINCIPALANDINTERESTREPAYMENTSBYAROUND
ORCOULDKNOCKYEARSANDMONTHSOFFTHE
LOANTERM4HISSAVES3IMONAPPROXIMATELY
OVERTHELIFEOFTHELOAN!NDEACHYEARTHISLOAN
GENERATESOFTHELOANAMOUNTINANNUALTRAILING
COMMISSIONS)NYEARONETHISISAPPROXIMATELY
*ULIAHASANINVESTMENTLOANOFOVER
YEARSWITHANINTERESTRATEOF3HECANSWITCH
TOANINTERESTRATEOFANDREDUCETHEMONTHLY
PRINCIPALANDINTERESTREPAYMENTSBYAROUND
ORCOULDKNOCKYEARSANDMONTHSOFFTHELOAN
TERM4HISSAVES*ULIAAPPROXIMATELY
OVERTHELIFEOFTHELOAN!NDEACHYEARTHISLOAN
GENERATESOFTHELOANAMOUNTINANNUALTRAILING
COMMISSIONS
)NYEARONETHISISAPPROXIMATELY
4HETOTALSAVINGANDCASHCOLLECTIBLEOVERTHELIFEOF
THELOANISAROUND
4HETOTALSAVINGANDCASHCOLLECTIBLEOVERTHELIFEOF
THELOANISAROUND
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
4RAILING#OMMISSION0ERCENTAGE
X
#URRENT,OAN!MOUNT
-Y!NNUAL#OMMISSIONS#OLLECTED
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USINGINDUSTRYAVERAGES
вЂњRepeat after me: this is a no-brainer, itвЂ™s easy, youвЂ™ve got nothing to lose but tons of
cash to gain, almost zero paperwork, and an ingenious Australian business. Just do it!!вЂќ
Emma, Drummoyne, NSW
19
12. Margin Loan
!MARGINLOANISALOANUSEDTOINVESTINSHARESORMANAGEDFUNDS4HESECURITYYOUPROVIDETOTHELENDERFORTHELOAN
ISYOUREXISTINGCASHSHARESORMANAGEDFUNDS
-ARGINLOANSARERISKIERTHANSTANDARDINVESTMENTLOANSORMORTGAGESASTHEYMAYMAGNIFYYOURPOTENTIALGAINSAND
LOSSES-ARGINLOANSALSOHAVEANINBUILTLOANTOVALUERATIO,62WHEREIFTHEVALUEOFYOURINVESTMENTSEXCEEDSTHE
PERMITTED,62THATISTHEYDROPBELOWANAGREEDTHRESHOLDAMARGINCALLWILLBETRIGGEREDANDYOUAREREQUIREDTO
IMMEDIATELYREPAYPARTOFTHELOANUNTILYOUREACHTHEAGREED,62
-ANYMARGINLOANSHAVEONGOINGTRAILINGCOMMISSIONSFORTHELIFEOFTHELOAN
%XAMPLE
%XAMPLE
4OBYHASAMARGINLOANOFFORYEARS
WITHATRAILINGCOMMISSIONOF4HISWILLYIELD
COLLECTIBLECOMMISSIONSOF0!ORFOR
THELIFEOFTHELOAN
*OELHASAMARGINLOANOFFORYEARSWITH
ATRAILINGCOMMISSIONOF)TWILLYIELDCOLLECTIBLE
COMMISSIONSOF0!ORFORTHELIFEOF
THELOAN
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
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X
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-Y!NNUAL#OMMISSIONS#OLLECTED
!NNUAL#OMMISSION#OLLECTED
USINGINDUSTRYAVERAGES
вЂњRebates for almost any investment.вЂќ
EUREKA Report, 12 January 2009
20
13. Home Insurance
(OMEINSURANCEORHOMEOWNERSINSURANCEISINSURANCETHATCOVERSPRIVATEHOMES)TISAPOLICYTHATCOMBINES
VARIOUSPERSONALINSURANCEPROTECTIONSWHICHCANINCLUDELOSSESOCCURRINGTOONElSHOMEITSCONTENTSLOSSOFITS
USEADDITIONALLIVINGEXPENSESORLOSSOFOTHERPERSONALPOSSESSIONSOFTHEHOMEOWNER
)TMAYALSOINCLUDELIABILITYINSURANCEFORACCIDENTSTHATMAYHAPPENATTHEHOMEORATTHEHANDSOFTHEHOMEOWNER
WITHINTHEPOLICYTERRITORY4HEPOLICYREQUIRESTHATATLEASTONEOFTHENAMESINSUREDOCCUPIESTHEHOME
4HECOSTOFHOMEOWNERSlINSURANCEOFTENDEPENDSONWHATITWOULDCOSTTOREPLACETHEHOUSEANDANYADDITIONAL
ITEMSWITHINTHEHOUSETOBEINSURED4HESEAREUSUALLYATTACHEDTOTHEPOLICYASADDITIONALITEMSANDINCUREXTRA
COSTSWITHINTHEPREMIUM
4HEHOMEINSURANCEPOLICYISUSUALLYATERMCONTRACTINEFFECTFORAГјXEDPERIODOFTIMEUSUALLYANNUALLY4HEPAYMENT
THEINSUREDMAKESTOTHEINSURERISCALLEDTHEPREMIUM4HEINSUREDMUSTPAYTHEINSURERTHEPREMIUMEACHTERM4HE
PREMIUMCANBEPAIDANNUALLYINADVANCEORMONTHLY
4HEMAJORITYOFHOMEINSURANCEPOLICIESHAVEONGOINGTRAILINGCOMMISSIONSFORTHETERMOFTHEINSURANCEPOLICY
AVERAGEIS9OUCANSWITCHPOLICIESANDCOLLECTTHEONGOINGTRAILINGCOMMISSIONS
%XAMPLE
%XAMPLE
"ELINDAAND0HILHAVEABEDROOMBRICKHOMEINTHE
NORTHWESTERNSUBURBSOF3YDNEY4HEIRANNUALINSURANCE
BASEPREMIUMIS
4ALIAHASJUSTBOUGHTHERГјRSTHOMEUNIT4HE
ANNUALINSURANCEBASEPREMIUMIS
4HETRAILINGCOMMISSIONISOFTHEANNUAL
BASEPREMIUM4ALIACANCOLLECTX
0!
4HETRAILINGCOMMISSIONISOFTHEANNUALBASE
PREMIUM4HEYCANCOLLECTX0!
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
4RAILING#OMMISSION0ERCENTAGE
X
!NNUAL"ASE0REMIUM
-Y!NNUAL#OMMISSIONS#OLLECTED
!NNUAL#OMMISSION#OLLECTED
USINGINDUSTRYAVERAGES
вЂњThe first year was just over $1,000......Quite surprising particularly when I went directly to one of the
larger companies without going through an intermediary of any kind, a broker, or agent. And then to see
all these trailing commissions.....Each year the cheques just keep coming.вЂќ Mark, Davidson, NSW
21
14. Car Insurance
#ARINSURANCEISINSURANCEAGAINSTLOSSDUETOTHEFTOFYOURCARORDAMAGEINCURREDINATRAFГјCACCIDENT4HEINSURANCE
ISCALCULATEDBASEDONMANYFACTORSINCLUDINGTHEAGEMAKEMODELANDVALUEOFTHECARWHEREITISGARAGEDHOWIT
ISUSEDpFORPRIVATEORBUSINESSPURPOSESpANDTHEAGEOFTHEDRIVERS
,IKEHOMEINSURANCEPREMIUMSCANBEPAIDANNUALLYINADVANCEORMONTHLY4HEAVERAGETRAILINGCOMMISSIONON
CARINSURANCEIS0!OFTHEBASEPREMIUMYOUPAY9OUCANSWITCHPOLICIESANDCOLLECTYOURONGOINGTRAILING
COMMISSIONSEACHYEAR
%XAMPLE
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4ROYISUNDERANDHASAMODIГјEDSPORTSCAR
(ISINSURANCEBASEPREMIUMIS0!
+IMlSFAMILYHASAN356FORDRIVINGHERKIDSANDFRIENDS
AROUND(ERINSURANCEBASEPREMIUMIS0!
4HETRAILINGCOMMISSIONONHISCARINSURANCE
ISX
4HEANNUALTRAILINGCOMMISSIONONHERCARINSURANCE
ISX
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
4RAILING#OMMISSION0ERCENTAGE
X
!NNUAL"ASE0REMIUM
-Y!NNUAL#OMMISSIONS#OLLECTED
!NNUAL#OMMISSION#OLLECTED
USINGINDUSTRYAVERAGES
вЂњThanks heaps for our great cheque - much appreciated! WeвЂ™ve also got 2 existing
car insurances.....so more money back next year...вЂќ Lorraine, Moonta Bay, SA
22
15. Landlord Insurance
,ANDLORDSORPROPERTYOWNERSWHOLEASEHOMESNEEDPROTECTIONAGAINSTLOSSORDAMAGETOTHEPROPERTYCAUSEDBY
THETENANTS)TCANBEEITHERACCIDENTALORDELIBERATEDAMAGEANDCANALSOBECAUSEDBYEXTERNALINДЊUENCESSUCHAS
ГјRESTORMSEXPLOSIONSWATERLEAKSANDDAMAGEFROMBURSTORLEAKINGPIPESTANKSORDOMESTICAPPLIANCESIMPACT
BYVEHICLESTHEFTANDATTEMPTEDTHEFTTHROUGHFORCIBLEENTRYOREXITTOTHEPROPERTYANDSUBSIDENCE
)NCIDENTALCOSTSSUCHASPROFESSIONALFEESTHEREMOVALOFDEBRISANDTHECOSTOFALTERNATIVEACCOMMODATION
IFNECESSARYISUSUALLYALSOCOVERED
,ANDLORDINSURANCEPOLICIESTYPICALLYHAVEONGOINGTRAILINGCOMMISSIONSFORTHETERMOFTHEINSURANCEPOLICY
4HEAVERAGETRAILINGCOMMISSIONISOFTHEANNUALBASEPREMIUM9OUCANSWITCHPOLICIESANDCOLLECTTHE
ONGOINGTRAILINGCOMMISSIONSEACHYEAR
%XAMPLE
%XAMPLE
4RISHHASTWORESIDENTIALAPARTMENTSINONEBUILDING
WITHMEDIUMTERMRENTALS4HECOMBINEDLANDLORD
INSURANCEIS0!
'REGHASANINDUSTRIALUNITINWESTERN3YDNEYWITHA
LONGTERMRENTALCONTRACT4HELANDLORDINSURANCEIS
0!
(ERANNUALTRAILINGCOMMISSIONIS
X
(ISANNUALTRAILINGCOMMISSIONIS
X
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
4RAILING#OMMISSION0ERCENTAGE
X
!NNUAL"ASE0REMIUM
-Y!NNUAL#OMMISSIONS#OLLECTED
!NNUAL#OMMISSION#OLLECTED
USINGINDUSTRYAVERAGES
вЂњThank you for your efforts. A satisfactory result, and far more than I expected
from nominating yourselves as broker for the account.вЂќ Michael, Kirrawee, NSW
23
16. Travel Insurance
4RAVELINSURANCEPROTECTSATRAVELLERlSHOLIDAYCOSTSAGAINSTADVERSEEVENTSSUCHASCANCELLATIONANDINTERRUPTION
)TALSOREIMBURSESMEDICALEXPENSESTHELOSSORDAMAGEOFPROPERTYANDTRANSITDELAYS
4RAVELLERSARECOMPENSATEDIFTHEYHAVETOCANCELORINTERRUPTTHEIRTRAVEL4HEYAREALSOCOVEREDSHOULDTHEYNEED
EMERGENCYMEDICALTREATMENTMEDICALEVACUATIONOROTHERSITUATIONS
4RAVELINSURANCEPOLICIESTYPICALLYHAVETRAILINGCOMMISSIONSFORTHETERMOFTHEPOLICY/NAVERAGETHETRAILING
COMMISSIONISOFTHEBASEPREMIUMYOUPAYPERANNUM7HENYOUBUYTRAVELINSURANCETHROUGH9OUR3HARE
YOUCANCOLLECTTHEONGOINGTRAILINGCOMMISSION
%XAMPLE
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+ATEAND4IMAREGOINGONACRUISETO!LASKATHAT
INVOLVESAIRFARESACCOMMODATIONTRANSFERSCARHIRE
ANDTHECRUISE
2ORYISBACKPACKINGAROUNDTHEWORLDFORTWELVE
MONTHSINHISGAPYEAR(ISTRAVELINSURANCEBASE
PREMIUMWHICHCOVERSHISMEDICALANDTHIRDWORLD
COUNTRYPLANSIS
4HEIRTRAVELINSURANCEBASEPREMIUMFORTHETRIPIS
4HETRAILINGCOMMISSIONTHEYCANCOLLECTIS
X
4HETRAILINGCOMMISSIONHECANCOLLECTIS
X
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
4RAILING#OMMISSION0ERCENTAGE
X
!NNUAL"ASE0REMIUM
-Y!NNUAL#OMMISSIONS#OLLECTED
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USINGINDUSTRYAVERAGES
вЂњThanks for the regular update. If the fund managers were as efficient as you it
would all be done!! May I thank you for your excellent service which has certainly
been a highlightвЂ¦вЂќ Robin, Mount Evelyn, VIC
24
17. NSW Compulsory Third Party Insurance
#OMPULSORY4HIRD0ARTY)NSURANCEISALSOKNOWNAS#40'REEN3LIPINSURANCE
!'REEN3LIPISANINSURANCEPOLICYLINKEDTOYOURVEHICLETHATPROVIDESCOVERFORCOMPULSORYTHIRDPARTY#40
PERSONALINJURYINSURANCEWHENYOUORTHEPERSONDRIVINGYOURVEHICLEISTHEDRIVERATFAULTINANACCIDENTANDIN
CERTAINCIRCUMSTANCESREGARDLESSOFWHOWASATFAULT
#40)NSURANCEISCOMPULSORYIN.37ANDMUSTBETAKENOUTWHENREGISTERINGAMOTORVEHICLE7HEREVERYOULIVEIN
.37YOUR'REEN3LIPWILLONLYCOVERYOURVEHICLEIFITISREGISTERED)FITISNOTREGISTEREDYOUMAYBEPERSONALLYLIABLE
FORANYINJURIESYOUCAUSEINAMOTORVEHICLEACCIDENT
#40INSURANCEPOLICIESTYPICALLYHAVETRAILINGCOMMISSIONSWITHINEACHPOLICY4HETYPICALPOLICYAVERAGESOFTHE
PREMIUMYOUPAYEACHYEAR
9OUCANGETBACKTHISMONEYEACHYEARWHENYOURENEWORTAKEOUTANEWPOLICYWITH9OUR3HAREASYOURBROKER
%XAMPLE
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+ARENHASAYEAROLDHATCHBACKTHATSHEPARKS
ONTHESTREET(ERANNUAL#40'REENSLIPINSURANCE
IS
!DRIANHASANEW"-7SEDANTHATHEPARKSINASECURE
GARAGEANDHISWIFE-ICHELLEHASAYEAROLD(OLDEN
"ARINA4HEIRANNUAL#40'REENSLIPINSURANCEIS
(ERANNUAL#ASHBACKONTHETRAILINGCOMMISSION
ISX
(ISANNUAL#ASHBACKONTHETRAILINGCOMMISSIONIS
X
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
4RAILING#OMMISSION0ERCENTAGE
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!NNUAL"ASE0REMIUM
-Y!NNUAL#OMMISSIONS#OLLECTED
!NNUAL#OMMISSION#OLLECTED
USINGINDUSTRYAVERAGES
вЂњThis is the best Customer Service I have received in a very long time and my
experience with YourShare is fantastic.вЂќ Drazen, Reynella, SA
25
18. Share Trading Account
!SHARETRADINGACCOUNTISANEASYWAYTOBUYANDSELLSHARESONLINEOROVERTHEPHONE9OUOPENANACCOUNTWITHA
REPUTABLESHAREBROKER
4HEBROKERUSUALLYPROVIDESAWEBSITEWITHARANGEOFRESEARCHTOOLSANDANALYSISTOASSISTWITHYOURDECISIONMAKING
9OUALSOHAVEACHOICEOFTECHNICALPLATFORMSFORMANAGINGYOURTRADES
!FEEAPPLIESFOREACHTRADEANDVARIESACCORDINGTOTHEBROKERYOUUSE4HEFEEISCHARGEDACCORDINGTOTHEPLATFORM
YOUUSEANDTHEFREQUENCYOFTRADES4HEFEEINCLUDESACOMMISSIONTHATCANUSUALLYBECOLLECTEDBYACOMMISSION
BROKER
9OUR3HARECURRENTLYWORKSWITH#OMMSEC)FYOUOPENA#OMMSECACCOUNTTHROUGH9OUR3HAREYOUCANGETBACK
APPROXIMATELYPERTRADE
вЂњI am a bit skeptical, but I thought what can I lose. If I make a claim on fees
charged on all my policies, I can possibly get back between $1,500-$2,000вЂќ
Judith, Kingsford, NSW
26
19. Farm Insurance
&ARMERSCANGETSPECIГјCINSURANCEFORTHEIRFARMS)TCANEITHERBEFORFULLTIMEFARMINGPRODUCERSORHOBBYFARMS
UNDERHECTARESTHATGENERATEUNDERTURNOVERPERYEAR
4HEINSURANCEPREMIUMISDEPENDENTONTHELOCATIONCONSTRUCTIONCONDITIONANDAGEOFTHEPROPERTYASWELLASTHE
AGEANDCURRENTANDPREVIOUSHEALTHOFTHEPERSONINSURED
&ARMINSURANCEHASANAVERAGEONGOINGTRAILINGCOMMISSIONOF0!OFTHEBASEPREMIUM
20. Farm Motor Insurance
&ARMERSCANALSOGETSPECIГјCMOTORINSURANCETHATCOVERSFARMVEHICLESANDMACHINERYFROMLOSSDUETOГјRETHEFT
ANDDAMAGETOTHEIROWNOROTHERPEOPLElSVEHICLESORPROPERTY4HEINSURANCECOVERSAWIDERANGEOFVEHICLES
INCLUDINGGOODSCARRYINGANDAGRICULTURALVEHICLES
4HEINSURANCEPREMIUMISCALCULATEDBASEDONTHEMAKEMODELANDTYPEOFVEHICLETHEDRIVINGEXPERIENCEOFTHOSE
LISTEDONTHEPOLICYWHEREANDHOWITWILLBEUSEDANDWHERETHEVEHICLEWILLBESTOREDANDLOCATED
&ARMVEHICLEINSURANCEGENERALLYHASANAVERAGEONGOINGTRAILINGCOMMISSIONOF0!OFTHEPREMIUM
%XAMPLEp&ARM)NSURANCE
%XAMPLEp&ARM-OTOR)NSURANCE
*OANNEAND.ATHANOWNASMALL!LPACAFARMIN
4ASMANIA4HEYLIVEANDWORKONTHEFARM4HEIR
ANNUALBASEPREMIUMIS
%WANISATABLEGRAPEFARMERIN6ICTORIA(EUSES
SPECIALISTMECHANICALPICKINGEQUIPMENTTRACTORSAND
TRUCKSTOTRANSPORTTHEGRAPES4HEANNUALCOMBINED
PREMIUMFORHISVEHICLESIS
4HE4RAIL#OMMISSIONAT
4HE4RAIL#OMMISSIONAT
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
4RAILING#OMMISSION0ERCENTAGE
X
!NNUAL"ASE0REMIUM
-Y!NNUAL#OMMISSIONS#OLLECTED
!NNUAL#OMMISSION#OLLECTED
USINGINDUSTRYAVERAGES
вЂњI got a cheque for $510 and all I had to do was fill out a formвЂќ Jan, Bowral, NSW
27
21. Business Insurance
3MALLTOMEDIUMBUSINESSESHAVEINSURANCEREQUIREMENTSASVARIEDASTHETYPESOFBUSINESSES!REASCOVERED
INCLUDEPROPERTYBUSINESSINTERRUPTIONTHEFTOFSTOCKORMONEYPUBLICANDPRODUCTLIABILITYEQUIPMENTAND
MACHINERYBREAKDOWNCOMPUTERSAND)4EQUIPMENTEMPLOYEEDISHONESTYGLASSGENERALPROPERTYTAXINVESTIGATION
ANDMORE
"USINESSINSURANCETYPICALLYHASANAVERAGEONGOINGTRAILINGCOMMISSIONOF0!OFTHEBASICPREMIUM
22. Commercial Motor Insurance
#OMMERCIALCARINSURANCEPROVIDESCOVERFORAVARIETYOFVEHICLESTOBEINSUREDUNDERTHEONEPOLICYINCLUDING
CARSTRAILERSCARAVANSGOODSCARRYINGVEHICLESANDMOBILEPLANTMACHINERY4HEINSURANCEFOREACHVEHICLECANBE
CUSTOMISEDTOTHIRDPARTYTHIRDPARTYГјREANDTHEFTORCOMPREHENSIVEINSURANCE
#OMMERCIALMOTORVEHICLEINSURANCETYPICALLYHASANAVERAGEONGOINGTRAILINGCOMMISSIONOF0!
%XAMPLE
%XAMPLEp"USINESS)NSURANCE
p#OMMERCIAL-OTOR)NSURANCE
#LAREOWNSACHILDRENlSSHOESTOREINREGIONAL.37(ERBUSINESS
INSURANCECOVERSHERSTOCKPUBLICLIABILITYBUSINESSINTERRUPTION
THEFTEMPLOYEEDISHONESTY)4ANDEQUIPMENTBREAKDOWNTAX
INVESTIGATIONANDMORE(ERANNUALPREMIUMIS
3EANOWNSABAKERYWITHTHREE
DELIVERYVEHICLES4HECOMBINEDANNUAL
COMMERCIALMOTORINSURANCEPREMIUMIS
4HE4RAIL#OMMISSIONAT
4HE4RAIL#OMMISSIONAT
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/."USINESS)NSURANCE
4RAILING#OMMISSION0ERCENTAGE
X
!NNUAL"ASE0REMIUM
!NNUAL#OMMISSION#OLLECTED
-Y!NNUAL#OMMISSIONS#OLLECTED
-9#!3("!#+#!,#5,!4)/.#OMMERCIAL-OTOR)NSURANCE
4RAILING#OMMISSION0ERCENTAGE
X
!NNUAL"ASE0REMIUM
-Y!NNUAL#OMMISSIONS#OLLECTED
!NNUAL#OMMISSION#OLLECTED
USINGINDUSTRYAVERAGES
вЂњThank you for the cheque I just received. I am extremely
happy with the service you provide.вЂќ Vimal, Caloundra, QLD
28
23. Caravan Insurance
#ARAVANINSURANCEISINSURANCETHATCOVERSYOURCARAVANANNEXANDITSCONTENTSFROMACCIDENTALLOSSDAMAGEAND
THEFT4HEINSURANCECOVERSWHETHERYOURCARAVANISPERMANENTLYONSITEORWHETHERITISUSEDFORTRAVELLINGPURPOSES
#ARAVANINSURANCETYPICALLYHASANAVERAGEONGOINGTRAILINGCOMMISSIONOF0!
24. Motorcycle Insurance
-OTORCYCLEINSURANCECOVERSYOURMOTORCYCLEAGAINSTTHEFTORDAMAGEINANACCIDENT4HEINSURANCEPREMIUMIS
CALCULATEDBASEDONTHEMAKEMODELTHEDRIVINGEXPERIENCEOFTHOSELISTEDONTHEPOLICYWHEREANDHOWITWILLBE
USEDWHERETHEVEHICLEWILLBESTOREDANDLOCATEDTHETYPEOFCOVERANDPREVIOUSCLAIMSANDHISTORYOFTHEDRIVERS
LISTEDONTHEPOLICY
-OTORCYCLEINSURANCETYPICALLYHASANAVERAGEONGOINGTRAILINGCOMMISSIONOF0!
%XAMPLEp#ARAVAN)NSURANCE
%XAMPLEp-OTORCYCLE)NSURANCE
#YRILAND!LICEOWNACARAVANTHEYSTORESECURELY
ONTHEIRRESIDENTIALPROPERTYIN!DELAIDE4HEYARE
RETIREDANDREGULARLYTRAVELWITHTHEIRCARAVANTO
PARTSOF!USTRALIA4HEANNUALINSURANCEPREMIUMON
THEIRCARAVANIS
2ORYOWNSA9AMAHAMOTORCYCLETHATHERIDESTOWORK
ONIN0ERTH(ESTORESITINASECUREGARAGEATHOME
ANDINASECURECARPARKATHISOFГјCE4HEANNUAL
INSURANCEPREMIUMONTHEMOTORCYCLEIS
4HE4RAIL#OMMISSIONAT
4HE4RAIL#OMMISSIONAT
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
4RAILING#OMMISSION0ERCENTAGE
X
!NNUAL"ASE0REMIUM
-Y!NNUAL#OMMISSIONS#OLLECTED
!NNUAL#OMMISSION#OLLECTED
USINGINDUSTRYAVERAGES
вЂњThe past two years I have seen over $3,000.00 per year back in
my pocket. How goods that?вЂќ Kevin, Aroona, QLD
29
25. Health Insurance
(EALTH)NSURANCEPROVIDESCOVERAGAINSTTHECOSTOFMEDICALEXPENSESFORINDIVIDUALSORFAMILIES4HESEEXPENSES
CANINCLUDEHOSPITALDENTALAMBULANCEPHYSIOTHERAPYALTERNATETHERAPIESANDMORE4HEGOVERNMENTOFFERSMEANS
TESTEDREBATESTOPEOPLEWITHHEALTHINSURANCEPOLICIES
3AVEUPTOPERANNUMONSTANDARDPREMIUMSFORANYCOVERYOUCHOOSEWHENTHE(EALTH)NSURANCEISTAKENOUT
THROUGH9OUR3HARE
/NNEWPOLICIESTHISINSURANCEHASANAVERAGEONGOINGTRAILINGCOMMISSIONOFPA
%XAMPLE
7ILLIAMAND!RANNIHAVEJUSTMOVEDINTOGETHERANDHAVERECENTLYTAKENOUTSTANDARDCOUPLElSHEALTHINSURANCE
4HEIRSTANDARDANNUALPREMIUMOFWITHTHEDISCOUNTISREDUCEDTOSAVINGTHEM
EVERYYEAR!DDITIONALLYTHETRAILCOMMISSIONCOLLECTIBLEMEANSTHAT7ILLIAMAND!RANNIWILLADD
TOWARDSTHEIR#ASHBACKEVERYYEAR
#ALCULATEHOWMUCHCASHYOULOSEEACHYEARpBUTCOULDGETBACKNEXTYEAR
-9#!3("!#+#!,#5,!4)/.
4RAILING#OMMISSION0ERCENTAGE
X
!NNUAL"ASE0REMIUM
-Y!NNUAL#OMMISSIONS#OLLECTED
!NNUAL#OMMISSION#OLLECTED
USINGINDUSTRYAVERAGES
How YourShare charges for your Cash-back service
9OURECEIVEOFEVERYDOLLARWECOLLECTFORYOUUNTILYOUR#ASHBACKACCOUNTREACHESANDOFEVERY
DOLLARCOLLECTEDABOVETHATAMOUNTPERANNUM3OIFWECLAWBACKYOUWILLRECEIVECIFWECLAWBACK
YOUWILLRECEIVEPERANNUM
o!NAVERAGE!USTRALIANFAMILYCOULDBECOLLECTINGAROUNDAYEAR
o!SINGLEORCOUPLESJUSTSTARTINGOUTCOULDBECOLLECTINGAROUNDAYEAR
o%MPTY.ESTERSCOULDBECOLLECTINGAYEAR
o)NVESTORSANDRETIREESCOULDBECOLLECTINGAROUNDAYEAR
вЂњIвЂ™m always happy to recommend a great product. I was really
impressed with the service.вЂќ Sarah, Kingsford, NSW
30
Summary
Calculate Your Total Yearly Commissions collectible and savings
0RODUCT4YPE
-Y#OMMISSIONSCOLLECTIBLEANDSAVINGS
3UPERANNUATION
0ENSIONS
-ANAGED&UNDS)NVESTMENT&UNDS
-ASTER4RUST7RAP!CCOUNTS
#ASH-ANAGEMENT4RUSTS
,IFEINSURANCE
)NCOME0ROTECTIONINSURANCE
4OTALAND0ERMANENT$ISABILITYINSURANCE
4RAUMAINSURANCE
(OME,OAN
)NVESTMENT,OAN
-ARGIN,OAN
(OMEINSURANCE
#ARINSURANCE
,ANDLORDINSURANCE
4RAVELINSURANCE
.37#40INSURANCE
3HARE4RADING!CCOUNT
&ARMINSURANCE
&ARM-OTORINSURANCE
"USINESSINSURANCE
#OMMERCIAL-OTORINSURANCE
#ARAVANINSURANCE
-OTORCYCLEINSURANCE
(EALTHINSURANCE
-Y9EARLY#OMMISSIONS
COLLECTIBLEANDSAVINGS
вЂњJust wanted to say thanks with getting the mortgage transferred over and all set up with minimal effort.
Wanted to also let you know I received my Cash-back on Christmas week it came in at a perfect time.вЂќ
Derek, North Perth, WA
31
Glossary
!DVISERFEE!FEENEGOTIATEDBETWEENTHECLIENTANDADVISERFORADVICERELATINGTOAPARTICULARPRODUCTORSERVICE
4HEFEECANBETAKENFROMCLIENTSlFUNDSANDCANBEEITHERAPERCENTAGEBASEDFEEORAДЊATDOLLARAMOUNT4HEADVISER
FEECANBEONEOFFORONGOING
!LLOCATED0ENSION!TYPEOFRETIREMENTINCOMEARRANGEMENTUNDERWHICHANINDIVIDUALINVESTSALUMPSUMANDTHEN
DRAWSDOWNANANNUALPENSIONTOAVALUEHESHESEESГјTTAKINGACCOUNTOFHISHEROWNEXPECTEDCASHДЊOWNEEDS
ANDLIFEEXPECTANCY)FTHEDRAWDOWNISGREATERTHANINVESTMENTEARNINGSTHENPARTOFTHEINITIALCAPITALSUMISUSEDTO
MAKEUPTHEDIFFERENCE5NLIKEATRADITIONALPENSIONORANNUITYANALLOCATEDPENSIONCANTHEREFOREPROVIDETHERETIREE
WITHCONTINUALACCESSTOTHECAPITALSUMINVESTEDANDALLOWSANYBALANCETOBEPASSEDONTOBENEГјCIARIESUPONTHE
DEATHOFTHEINDIVIDUALCONCERNED
!NNUITY!NARRANGEMENTUNDERWHICHPERIODICPAYMENTSAREMADETOAPERSONINRETURNFORTHEINVESTMENTOFALUMP
SUMUSUALLYFORTHEPURPOSEOFPROVIDINGRETIREMENTINCOME0AYMENTAMOUNTSDEPENDONTHELUMPSUMEXPECTED
FUTUREINVESTMENTRETURNFREQUENCYOFPAYMENTSEXPENSESANDTHELIFEEXPECTANCYOFTHEINDIVIDUALPURCHASERORTHE
TERMIFITISAГјXEDTERMANNUITY
!SSET#LASSES!BROADLYDEГјNEDCATEGORYOFГјNANCIALASSETSEGDOMESTICSHARESOVERSEASBONDSCASH
PROPERTYETC
!USTRALIAN&INANCIAL3ERVICES!&3,ICENCE!NYPERSONWHOWISHESTOCARRYONAГјNANCIALSERVICESBUSINESS
SUCHASADVISINGONГјNANCIALPRODUCTSDEALINGINГјNANCIALPRODUCTSOROPERATINGAREGISTEREDSCHEMEMUSTHOLD
AN!USTRALIAN&INANCIAL3ERVICES,ICENSE!3)#REGULATESTHEPROVISIONOFLICENSESANDTHECONDUCTOFLICENSEES
"ROKER!NAGENTWHOHANDLESINVESTORSlORDERSTOBUYANDSELLSECURITIESCOMMODITIESINSURANCEPOLICIESOROTHER
PROPERTY
#ASH-ANAGEMENT4RUST#-4!POOLEDINVESTMENTVEHICLEFORINVESTORSWHOWOULDNOTINDIVIDUALLYHAVEACCESS
TOTHEPROFESSIONALMONEYMARKET
#OMMISSION!FEEPAIDBYTHEPRODUCTPROVIDERTOANADVISERBROKERORAGENTFORFACILITATINGTHEPLACEMENTOFAFUND
ORPRODUCT4HECOMMISSIONCANBEEITHERINITIALONLYORINITIALANDONGOINGANDISNORMALLYAPERCENTAGEOFTHEDOLLARS
INVESTEDORPREMIUM
#OMMUTATION)NRELATIONTOSUPERANNUATIONBENEГјTSTHEPROCESSOFCONVERTINGAPENSIONORANNUITYINTOALUMP
SUM
#OMPLYING3UPERANNUATION&UND#OMPLYING0ENSION3OCALLEDBECAUSEITHASTOCOMPLYWITHCERTAIN
REQUIREMENTSOFTHE3UPERANNUATION)NDUSTRY3UPERVISION!CTANDISTHEREBYELIGIBLETORECEIVECONCESSIONAL
TAXATIONTREATMENT
%NTRYFEE-ANYFUNDSCHARGESTANDARDENTRYFEES4HESEFEESMAYBEDISBURSEDASACOMMISSIONTOINTERMEDIARIES
WHOINTRODUCEINVESTORSTOTHEFUNDS
вЂњJust wanted to say thanks for your help in setting up my home loan. Very simple process and impressed
with how knowledgeable and experienced you staff are. Anyone not getting a loan though you would
have to be mad (or have a strong dislike of money)! Thanks Guys!вЂќ Tim, Caulfield South, VIC
32
Glossary
%XITFEE!LSOREFERREDTOASAREDEMPTIONFEETHISISACOSTFORWITHDRAWINGMONEYFROMFUNDS)TCANBEA
PERCENTAGEBASEDFEETHATREDUCESTONILAFTERACERTAINDATEOREXPRESSEDASAДЊATDOLLARFEEPARTICULARLYINREGARD
TOSUPERANNUATIONROLLOVERS
&INANCIAL0LANNING4HESERVICEPROVIDEDBYAГјNANCIALPLANNER4HISISALONGTERMSERVICEPROVIDEDFORCLIENTS
THATCONSIDERSALLTHEIRГјNANCIALAFFAIRSANDDEVELOPSAPLANTOACHIEVETHEIRГјNANCIALOBJECTIVES4HEPLANWOULDBE
REGULARLYREVIEWEDTOENSUREGOALSREMAINONTARGETWITHMODIГјCATIONSBEINGMADEASNECESSARY
&INANCIAL0RODUCT!ГјNANCIALPRODUCTINCLUDESANYOFTHEFOLLOWINGINTERESTSINAMANAGEDINVESTMENTSCHEME
DERIVATIVESGENERALINSURANCELIFEINSURANCESUPERANNUATIONLOANSBASICDEPOSITPRODUCTSANDRETIREMENTSAVINGS
ACCOUNTS&ORSOMEPURPOSESSHARESANDDEBENTURESAREALSOCLASSEDASГјNANCIALPRODUCTS
&/&!4HE&UTURE/F&INANCIAL!DVICE4HISISAN!USTRALIAN&EDERAL'OVERNMENTINITIATIVE)TISDESIGNEDTOIMPLEMENT
REFORMSTOIMPROVETHETRUSTANDCONГјDENCEOF!USTRALIANRETAILINVESTORSINTHEГјNANCIALPLANNINGSECTOR4HEREFORMS
AREDESIGNEDTOTACKLECONДЊICTSOFINTERESTTHATHAVETHREATENEDTHEQUALITYOFГјNANCIALADVICETHATHASBEENPROVIDED
TO!USTRALIANINVESTORSWWWFUTUREOFADVICETREASURYGOVAU&/&!WILLNOTAFFECTALLEXISTINGINVESTMENTFUNDS
SUPERANNUATIONPENSIONSANDINSURANCEPOLICIESINFORCEBEFORE*ULY
&UND-ANAGER!COMMERCIALORGANISATIONTHATMANAGESINVESTORSlMONEYFORAFEE7HENTHEFUNDISAMANAGED
INVESTMENTSCHEMETHEFUNDMANAGERISUSUALLYTHERESPONSIBLEENTITY
-ANAGED&UND!MANAGEDFUNDISMADEUPOFAPOOLOFMONEYWHICHALLOWSPEOPLEWITHSIMILARINVESTMENTGOALS
TOINDIVIDUALLYINVESTANAMOUNTOFMONEYINTOTHEFUND-ANAGEDFUNDSAREALSOKNOWNASMANAGEDINVESTMENTS
SCHEMESMANAGEDINVESTMENTSORUNITTRUSTSANDAREMANAGEDBYPROFESSIONALFUNDMANAGERS
-ANAGEMENT%XPENSE2ATIO-%2OR)NDIRECT#OST2ATIO)#2!RATIOEXPRESSINGTHEMANAGEMENTTRUSTEEAND
CERTAINOTHEREXPENSESOFACOLLECTIVEINVESTMENTFUNDASAPROPORTIONOFTHENETASSETVALUEOFTHEFUND)#2ISARATIO
OFTHEkINDIRECTlMANAGEMENTCOSTSOFINVESTINGINTHEFUNDBOTHRATIOSMAYINCLUDETHEFEESANDCOMMISSIONSPAID
TOEXTERNALBROKERSADVISERSANDEXTERNALRDPARTIES
0ERFORMANCEFEE!TYPEOFFEETHATGIVESAPORTIONOFTHERETURNSOFAFUNDORINVESTMENTTOTHEMANAGERASAREWARD
FORPOSITIVEPERFORMANCE4HEFEEISGENERALLYAPERCENTAGEOFTHEPROГјTSMADEONTHEINVESTMENTS4HISTYPEOFFEE
ISDESIGNEDTOREWARDMANAGERSFORINCREASINGTHEVALUEOFAPORTFOLIOSINCEINVESTORSWILLSEEVALUEONLYWHENTHE
PORTFOLIOGROWS
0ERSONAL!DVICE&INANCIALADVICETHATTAKESINTOACCOUNTYOURPERSONALOBJECTIVESГјNANCIALSITUATIONORNEEDS
0LATFORMFEE4HISISANADMINISTRATIONFEECHARGEDBY-ASTER4RUSTSAND7RAP!CCOUNTSFORPROVIDINGTHEIRSERVICES
INMANAGINGCLIENTACCOUNTSANDTHEINVESTMENTSLISTEDUNDERTHEIRSERVICE
вЂњitвЂ™s a terrific way to get some of our money backвЂќ
Vancho, Bella Vista, NSW
33
My Cash-back
0RODUCT$ISCLOSURE3TATEMENT0$3!0RODUCT$ISCLOSURE3TATEMENTAND4ERMSAND#ONDITIONSBROCHUREISA
DOCUMENTORGROUPOFDOCUMENTSWHICHDESCRIBEAГјNANCIALPRODUCTORSERVICEINCLUDINGTHEFEATURESBENEГјTS
COSTANDRISKSASSOCIATEDWITHTHATPRODUCT
0ROPERTY4RUST!TYPEOFCOLLECTIVEINVESTMENTINVESTORSPOOLTHEIRMONEYTOGETHERANDAPROFESSIONALMANAGER
OPERATESTHESCHEMEWHICHINVESTSINRESIDENTIALORCOMMERCIALPROPERTIES
3TATEMENTOF!DVICE3/!7HENYOURECEIVEPERSONALADVICEFROMAN!USTRALIANГјNANCIALSERVICES!&3LICENSEE
ORITSAUTHORISEDREPRESENTATIVETHENYOUWILLBEGIVENA3TATEMENTOF!DVICEASWELLASAГјNANCIALSERVICESGUIDE
4HE3TATEMENTOF!DVICERECORDSTHEADVICEYOUHAVEBEENGIVENANDEXPLAINSTHEBASISFORTHEADVICE
3UPERANNUATION3UPERANNUATIONISATAXEFFECTIVEVEHICLETOSAVEMONEYFORRETIREMENT9OUANDYOUREMPLOYER
CONTRIBUTEONYOURBEHALF&ORMOSTPEOPLESAVINGTHROUGHSUPERCANBEMUCHMORETAXEFFECTIVETHANSAVINGTHE
SAMEAMOUNTOUTSIDESUPER!NYCONTRIBUTIONSMADEUPTOACERTAINLIMITANDANYRETURNSONYOURSUPERARETAXED
ATAMAXIMUMOFRATHERTHANYOURMARGINALTAXRATEWHICHCOULDBEASHIGHAS'ENERALLYMONEYINSUPER
ISNOTAVAILABLEUNTILYOUREACHAMINIMUMAGESETBYTHE'OVERNMENTANDMEETTHECONDITIONSOFRELEASE
4ERM!LLOCATED0ENSION4!0!4!0PAYSYOURSUPERBACKTOYOUPERIODICALLYFORASETPERIOD4HEAMOUNTYOU
RECEIVEDEPENDSONHOWMUCHMONEYYOUHAVEAVAILABLETHELIFEEXPECTANCYUSEDANDTHETERMYOUSETFORTHE
PAYMENTS
5NIT7HENYOUINVESTINAMANAGEDFUNDORMANAGEDINVESTMENTSCHEMEYOUHOLDUNITSINTHESCHEME4HEUNITS
MAYДЊUCTUATEINVALUEDEPENDINGONTHEMARKETPERFORMANCEOFTHEUNDERLYINGASSETSOFTHESCHEME
вЂњI didnвЂ™t know the fees and charges and I didnвЂ™t know they could
be recouped.вЂќ Terry, Rozelle, NSW
34

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