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In this edition, we discuss the following:
- Cash Flow: Keeping top tips top of mind
- Insurance Planning - Corrie's Story
- Take control of your retirement
- Five ways to stick to your financial resolutions
Please scroll down for each item in this edition
Keeping top tips top of mind
all like a good cost saving tip, even if it is something we already know, it
never hurts to revisit some top tips and take a look at our current situation
to see if there are savings to be made.
little savings we make throughout the year can be diverted to a bigger savings
pool such as an investment portfolio or term deposit to help build wealth over
you are not completely aware of what you have in your super fund and how it is
performing now is the time to do a quick investigation. Having one fund,
instead of multiple funds may save you on fees. Being with a top performing
fund rather than a default fund could mean a higher return on your investment,
which really adds up over time. Making sure you are only paying for what you
need is important, if you are paying for insurance when you have a separate
insurance policy this could be an expense you get rid of. However, there is not
a one size fits all approach, which is why tailored financial advice could help
to find a super solution that suits your individual circumstances.
is a good way to reduce your taxable income and boost your super. Some of your
pay is diverted to your super fund, hence reducing your taxable income, and
this money is taxed within the super fund at only 15%. The other benefit of
course is that it boosts your super fund and with the power of compound
interest over time you can set yourself up for a nice retirement lifestyle.
your utility costs each year can be a great way to make little savings add up.
By reviewing the contracts you are on, asking the provider for a better deal or
getting onto a pay-on-time contract that offers a discount are simple ways you
can save on utilities. Consider ways you can be smarter with your utilities at
home – buy energy efficient appliances, turn of lights when you are not using
them, take shorter showers, install a water tank, be conscious of your use of
you don’t want to deny yourself too many little luxuries or conveniences,
looking at your levels of consumption could expose some cost savings. Consider
walking or taking public transport rather than driving everywhere, only buy
what you need at the grocery store rather than stockpiling, reduce the number
of times you eat out or buy coffees by one less a week, don’t rotate your
wardrobe items until you have worn out existing items, take advantage of free
activities in your local area such as the library, beach, bush walks which will
connect you with the community and save money on entertainment.
can help you with cash flow and budgeting and then help you divert your savings
into a vehicle that will start making you some money, as well as other smart,
simple strategies for enhancing the benefits you gain (and retain) from your
Insurance Planning - Corrie's Story
|Hear Corrie's story about the very different impacts her two sons and their respective families have felt from the same accident, and the impact this has had on her and her retirement plans. This latter issue - which we refer to as 'Family Risk' - is one that we have recognised for many years and which we encourage all retirees with children or other family and friends to whom you may wish to provide financial assistance if they experienced financial hardship. We also note the importance of high quality, careful and personalised financial advice with relation to insurance and superannuation. Click on the video below to watch more
control of your retirement
you affected by the increase in the Age Pension’s qualifying age? Take steps
now to avoid getting caught short on retirement income.
minimum age to qualify for the Age Pension has started going up. For those born
on or after 1 July 1952, the qualifying age increases by six months every two
years until it reaches 67 in July 2023. It rises to 66 in July this year.
if you’re turning 45 this year and plan to retire when you reach 60, you will
need to wait until you’re 67 before you can apply for the Age Pension. You’ll
have to rely on your own savings and super in the interim, making it crucial to
ensure you have enough money put away for later years. But the good news is
that there’s still time to grow your retirement savings.
more to your super can be a reliable route to bolstering your retirement fund.
By making extra contributions through salary sacrifice, you can grow your super
and at the same time reduce the amount of income tax you pay. The government
will tax your salary sacrificed contributions at 15 per cent, which could be
much lower than your marginal tax rate.
non-concessional or after-tax contributions is another option. You can
contribute up to $100,000 each financial year if your total superannuation
balance is less than $1.6 million. To understand how these contributions work,
it’s wise to speak with us.
Beef up your
personal savings can supplement your super payments in retirement. But are they
growing enough now to provide you with some income when you retire?
build up your savings, you may have to invest part of it and make sure it’s
growing faster than the rate of inflation. Investing in a managed fund or
buying an investment bond may help you increase your nest egg, but you should
seek professional advice to see if these instruments are appropriate for you.
the Age Pension, you may be eligible for other government benefits and
concessions. The Seniors Card, for example, offers individuals over the age of
60 discounts on some commercial and public services. Concessions that allow you
to buy prescription medicine at a discount are also available.
keep in mind that these benefits have strict eligibility rules. There’s also no
guarantee that these entitlements will still be available by the time you
retire. So take charge of your retirement. By working with us as your trusted adviser, we can develop a strategy that helps ensure you’ll be well provided
for regardless of changes to pension policies.
Five ways to stick to your financial resolutions
Setting a financial goal for the New Year? Take
steps to make
It’s that time of year when we set new goals
or dust off old ones. But how can we boost our chances of sticking to our financial
resolution? Here are some practical tips.
1. Choose an attainable goal
It’s good to be ambitious, but you may have a
better chance of adhering to your resolution if you have a smaller, reachable
goal. Using the well-established SMART formula can help. SMART stands for:
- Specific – make your financial goal as
clear as possible.
- Measurable – if your goal is specific,
most likely it is measurable too.
- Achievable – choose a goal that you can
reach in the foreseeable future.
- Relevant – ensure you really want this
goal and that it would benefit you.
- Time bound – set a timeline for achieving your target.
2. Have a plan
Create a plan that can help you take small but
regular steps toward reaching your financial goal.
The key is to set specific milestones and a time frame for each. You may wish to
talk to us about setting a plan for your financial situation and goal.
3. Announce your resolution
Tell your family members or friends about your
resolution, or post it on social media. By making your resolution known to
others, you might feel more responsible for sticking to it.
4. Track your progress
Record and analyse your progress against your
milestones. It could help to get us to check your progress every so often.
5. Enjoy the process
Enjoying the process of reaching your goal may
help you stick to your financial resolution. So give yourself a small reward
every time you hit a milestone.
Whether you want to boost your savings or
retirement fund, we, as your trusted adviser, may be able to help you stay on
track to achieve your resolution.
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