Can you guess the top mistakes that people make with their finances? Financial planning professionals discuss the most common mistakes that see.
Key financial advice for 2020
At the 2019 FPA Congress, Money & Life Team asked financial planners what their key financial advice is for Australians in 2020. The most common answer? Ask more questions! Whether it’s something you don’t understand or something that sounds too good to be true, planners say the best thing you can do for yourself and your finances is ask. Watch the video for more advice on how you can best handle your finances.
How to get out of debt
Many of us have debts and bills to manage, but what happens when you’re really struggling to pay? Find out what to do when you fall behind with bill or loan payments and what to expect if you don’t.
The key points are as follow :
What to do if you can’t pay
Accessing super to pay debts
What can happen if you don’t pay
What to do about debt recovery
How long can debts last?
How to save money
When you hear the term ‘savings’ you probably think of the extra money you have in a bank account. But there’s so much more to savings than simply depositing more money into your accounts than you take out. Taking a structured, strategic approach to saving can not only help you achieve your financial goals in the future, it can make managing your day-to-day spending less stressful. Here are five tips to help you save money.
The main points are as follow :
Get serious about budgeting
Change bad buying behaviour
Clear credit card debt
Have dedicated savings accounts
Look for little ways to save money every day
Aged care: Dispelling the myths
Six practitioners answer some commonly asked questions about aged care advice. The key questions are as follow :
Q1. Why did you decide to offer aged care advice?
Q2. How do you start the aged care conversation?
Q3. How did you market your aged care service?
Q4. Has aged care advice grown your business?
Q5. What does your business model look like?
Q6. How do you charge for aged care advice?
Q7. What would you do differently if you were just starting your aged care advice business?
Q8. Can you share a client story that illustrates the value of aged care advice?
Ethical investment mythbuster
We’ve been managing money in line with our Ethical Charter for 33 years and our track record speaks for itself. But despite the strong performance of the ethical investment sector we still hear the same old arguments. Here are some of the most common myths about ethical investment - busted!
The key points are as follow :
MYTH #1 – Ethical investing means sacrificing returns
MYTH #2 – Limiting the investable universe increases risk
MYTH #3 – Divestment achieves nothing
MYTH #4 – What is considered ‘ethical’ changes constantly
What are shares
Ever contemplated investing in shares but don’t know where to start?
The key points are as follow :
How do shares work?
How to trade shares?
Why are shares a great wealth-generating strategy?
What are the most common investment strategies?
A safer approach
Five good reasons for seeking financial advice
Financial advice isn’t just for people with wealth. Whether you’ve set your sights on owning a home or retiring early, advice from a financial planner can help you make it happen.
The key points are as follow :
Buying a home
Starting a family
Providing for your family
Getting rid of debts
Enjoying your retirement
What is a Power of Attorney?
Just as having a Will ensures assets are managed properly when you die, a Power of Attorney allows someone else to look after your finances when you’re unable to. Phillip Richards, Director of Endorphin Wealth Management explains more about what’s involved in having a Power of Attorney and why you’d be wise to have one, just in case.
The key points are as follow:
What is a Power of Attorney?
Why would I need a Power of Attorney?
Who can be my Power of Attorney?
How do I go about making a Power of Attorney arrangement?
How to plan for travel in retirement
For many, retirement is the perfect time to explore the world. For World Financial Planning Day 2019, we talked to Nathan Nash CFP® about how he’s helping clients #planwell2livewell by getting the balance right between travel goals and everyday living expenses.
The key points are as follow:
Looking at all the numbers
Flexible income options
Do away with debt
Get set for travel
Going solo in retirement
With divorce rates rising among couples aged 55+, more people could find themselves going it alone in retirement. We explore the pros and cons for your lifestyle and finances and speak to Dianne Kemp about her experience of planning for retirement after divorce.
The key points are as follow :
The financial impact of divorce
Retirement, then divorce
The pros and cons of independence
Making the most of a settlement
Navigating changes and opportunities
Making sense of Medicare and your tax obligations
This article talks about :
Who pays what?
Rebates for private health insurance
What exactly is the lifetime health initiative?
Estate planning – when should I start?
Money & Life bring you expert insights from Chris Morcom CFP®, Director of Hewison Private Wealth and Bernie O’Sullivan, Principal at Bernie O’Sullivan Lawyers on why an estate plan is so important and when you should make a start on yours.
The wallet challenge – savings and budget checklist
Budgeting and savings might sound very basic, but many people find it difficult to get these fundamentals right, or don’t have these in place at all. Here are some tips to help you get started, and on the right track to building your personal wealth.
The key points are :
Have a plan
Learn to budget
Be smarter about your costs
Become more disciplined
Better manage your debts
Get advice
Money and children
Money & Life
There are many resources available to help you talk about money with kids. And yet, the FPA’s Share the Dream report has found that many parents still find it challenging — they do not know how to talk to their children about money, what they should be saying, and when.
What’s more, our accelerated, invisible–money world is making it harder for children to grasp its value. Generation Alpha (children aged between 4 and 8) and Generation Zed (ages 9 to 18) are the first to be born into an always-on, multi-screen world that prizes instant gratification. Immersed in social media from an early age, their identity can easily become attached to brands and “buying stuff” long before they learn how their parents make ends meet.
According to our Share the Dream survey, nearly 65% of parents believe their children’s generation will be financially worse off than their own.
Having money conversations with your kids can make a positive difference to their financial future. But where to start? Attached is an ebook from Money & Life about navigating this tough conversation with your kids as they grow up.
How much will I get back from my taxes?
Money & Life
The Australian Taxation Office (ATO) refunds billions of dollars to over three quarters of all taxpayers annually, but it takes a little effort to ensure you get as much tax back as you can. But while Australian taxpayers receive on average around $2,5001 in tax refunds annually, there’s no guarantee two people earning the same income, will receive the same tax refund.
The key points are as follow :
Getting your financial house in order
The key variables
Super, investment costs or other items
Time is running out, will your super be affected on 1 July?
Get ready, there are changes coming to superannuation on 1 July that’s likely to affect three million Aussies – are you one of them?
The chances are you will be, if either your employer or you haven’t contributed to your super account for the last 16 months or more. If that’s you, then the changes mean that any insurance cover currently in place within your inactive super accounts will be switched off. Put simply, you lose your insurance coverage.
Your available options:
If your super account is active and is regularly receiving contributions, either by you or your employer, then the good news is that your insurance won’t be affected by these changes. So, relax, there’s nothing to worry about. It’s business as usual.
If your super account has been inactive for 16 months or more, then you have two options:
You can choose to keep your insurance but you will need to contact your super fund before 1 July and let them know. Your fund will probably ask you to formalise your request by putting it in writing, either via completing a form on the fund’s website, responding to a text message or sending an email; or
Simply let your insurance cover lapse on your inactive super account. Once you’ve made this decision, you don’t have to do anything.
Do you need insurance?
Choosing whether to have insurance or not through your super is very much a personal decision. There are a number of factors you need to consider like:
how much debt do I have;
how do I service that debt due to illness, incapacity or death;
how much does my family need to maintain their lifestyle; and
what conditions are covered, or not, by the policies I am considering.
Is this your year to retire?
If you’ve got retirement in your sights this year, we’ve got the ultimate checklist to help you retire in style. Discover how to prepare for this exciting new chapter in your life, safe in the knowledge that your finances will be taking care of you.
The key points are as follow :
Explore your goals and make plans
Work on your budget
Reduce your debts
Budget for big ticket items
Check your eligibility for government benefits and super
Find out about tax
Make a retirement income timeline
Take care of family matters
Find the right financial planner for you
Plan to be in the best of health
Your retirement income options
When you leave work for good and retire, where will your money come from? Discover your income stream options for covering living costs in retirement.
The main points are as follow :
Account-based pensions
Annuities
Other investments
Age Pension and other Centrelink benefits
Working part-time
How to budget: Your five step plan to brilliant budgeting
Budgeting doesn’t have to be complicated. In this guide you’ll find a simple five-step guide to becoming brilliant at budgeting so you can start saving and spending to achieve your personal and financial goals.
The key points are as follow :
The right mindset
Money in, money out
Organise your accounts
Get strict on spending
Team up and keep going