Page 11 - FWP Wealth Adviser newsletter - Issue 117: August 2025

ISSUE 117
AUGUST 2025
Ask a in retirement. If structured properly, this can boost your

after-tax income considerably. Whether you hold the shares
Q&A: Question personally, inside superannuation, or through a family trust
can all affect the outcome.
An adviser can help assess which ownership structure
Question 1: makes the most sense based on your total income needs,
I’ve been hearing about the recent collapse of First your eligibility for Age Pension, and your estate planning
Guardian affecting people’s super. Should I review how my goals. They can also advise on how to build an income-fo-
super is managed and where it’s invested? cused strategy using Australian shares that continue to
The collapse of the First Guardian Master Fund has raised generate franking credits over time. Making the most of this
serious concerns around superannuation safety, particularly feature is about aligning your tax position with your broader
when large sums are invested through small or complex retirement plan.
structures without robust oversight. It’s a timely reminder
of how important it is to understand where your super is Question 3:
invested, who is managing it, and how it’s governed. Even With interest rates possibly coming down later this year,
if you’re in a reputable fund, it’s still wise to periodically should I be reviewing my fixed income or term deposit
review your investment mix, fees, and overall strategy to strategy so my income doesn’t fall?
ensure it aligns with your goals and risk profile. As markets begin to price in the potential for interest
Financial advisors can help identify any exposure to rate cuts from the Reserve Bank, many investors holding
higher-risk or unregulated structures and guide you toward term deposits or fixed interest products may want to
well-diversified, transparent investment options. Ensuring reassess their strategy. While term deposits offer capital
your retirement savings are protected isn’t just about protection, the interest they pay could become less com-
returns, it’s about long-term security and peace of mind. petitive as rates fall. Meanwhile, bond prices typically rise
when interest rates drop, meaning there may be opportu-
Question 2: nities to position in fixed income investments with capital
I’ve inherited some shares with franking credits. How can I growth potential, especially within managed funds or
make the most of franking credits in retirement? diversified portfolios.
Franking credits can be a valuable tool for retirees. These Advisers can help you evaluate whether you’re overly
credits represent tax paid at the company level, which exposed to low-yielding assets, and if a shift to more flexible
can be used to reduce your personal tax liability or even income options makes sense for your goals. With the right
be refunded to you if your taxable income is low, such as strategy, falling rates don’t have to mean falling income.

Future Wealth Planners

Level 1, 176 Main Street
Osborne Park WA 6017

P.O. Box 16
Osborne Park WA 6917

P: 08 9207 3844
W: www.fwplanners.com.au
E: clientservices@fwplanners.com.au

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