Sent: 05-04-2011 10:58:05
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Excess Contributions and First Impressions
Two topics this week:
a. Excess Contribution Assessments
There has been a reasonable amount of excitement about an article appearing in the Financial Review yesterday about financial advisers being asked to compensate clients for poor super advice that led to excess contributions tax.
Such media coverage could not come at a worse time for an industry hoping to convince the Government that it is doing all it can to rid itself of the "whatever it takes" mentality that has been very common.
The idea of seeking compensation for shonky advice should not really surprise anyone.
It's often free to complain to either a planner's AFSL or to the Financial Ombudsman's Service and
there's nothing to lose. Why wouldn't people complain?
What is the average cost of defending a claim for $5,000 of excess contributions tax? Probably several times that amount of money.
This issue has been brewing for some time. There was an Administrative Appeals Tribunal case about planner advice and excess concessional contributions.
b. Initial Impressions Count
I read with much interest in a recent edition of The Spectator Australia that "a guest's enjoyment and appreciation of almost every aspect of a hotel is coloured by their initial experience of their visit".
The speed and ease with which they can check-in are fundamentally important.
People who were looked after at this point thought the food tasted better and the rooms cleaner. People made to wait on arrival were more critical about everything.
The article argues that devotees of behavioural economics will not be surprised. This shows the workings of "confirmation bias".
Having made a judgement about something we look for signs that confirm our first impressions and are blind to much of what contradicts.
It also supports other research which says our memories of events are much more determined by how they begin and end than the "stuff in the middle".
Finally please consider purchasing a copy of "A How To Book Of Self Managed Super Funds". You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne
The 4th edition was released just before Christmas.
For details of the changes made from version 3 to version 4 visit: http://www.atcbiz.com.au/r.php?r=8mz1024
As you'll see from the list there have been many changes.
Two purchase options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST). The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb
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