Viewing posts from: March 2017

How Perception Affects Investing

All / 28.03.20170 comments

When it comes to choosing to invest in property and shares, many issues are the same:

  1. do the research before you buy,
  2. be aware of your investment timeframe,
  3. monitor performance, and
  4. know when to sell.

But there is one big difference and it’s all about perception of risk.

Shares are valued daily so you can see the volatility in prices every time you read a newspaper or visit the ASX website. To some investors these price movements are very distracting and they perceive that shares are more risky. .

Property, on the other hand, is not subject to continuous public evaluation. You only really know the value when a similar property sells or you ask someone to put a price on it. This means investors are more likely to see property as a long-term investment and perceive it to be less risky.

Investments in growth assets – property and shares – should be seen as long-term investments. The real risk to investors is that they become disturbed by price volatility and sell quality investments at the worst time. History has shown that changing asset allocation too frequently can ruin sound long-term investment strategies.

For more information or to speak to one of our Financial Advisers please contact TNR Wealth Management on 02 6621 8544.

 

Disclaimer

Past performance is not a reliable indicator of future performance. The information and any advice in this publication does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. This article may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. It is important that your personal circumstances are taken into account before making any financial decision and we recommend you seek detailed and specific advice from a suitably qualified adviser before acting on any information or advice in this publication. Any taxation position described in this publication is general and should only be used as a guide. It does not constitute tax advice and is based on current laws and our interpretation. You should consult a registered tax agent for specific tax advice on your circumstances.

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A Lifetime of Super

All / 24.03.20170 comments

As a rule of thumb, it is suggested people should aim for a retirement income of between 50% and 70% of pre-retirement
salary/wages. If you want a retirement income equal to about 60% of your final salary, regardless of what that final salary is,
then it is estimated you will need to save around 15% of your income for 40 years. The problem here is that your employer is only compelled to provide superannuation contributions for you at the current rate of 9.5% of your income per annum.

The solution is simple – start contributing to super earlier in your working life, raise the combined rate of your super contributions to 15% by making personal contributions, and take heed of the following tips throughout your working life.

Young, single and independent

  • Retirement is a long way off but starting early lays the foundations for future comfort.
  • Maximise your government co-contributions—they will potentially add thousands to your super.
  • If appropriate, take out disability insurance through your super fund. It is often the cheapest and most tax-effective way of providing insurance cover.
  • Choose an investment strategy that suits your long-term risk profile.

A family and a mortgage

  • Your focus may be on repaying the home loan, but don’t forget your super entirely.
  • Take out life and disability insurance through superannuation. A mortgage and young children mean insurance is a top priority.
  • Check eligibility for a tax offset on spouse superannuation contributions and government co-contributions.
  • Review your investment strategy and risk profile.

The “in between” years

  • A higher income and a smaller mortgage open up the opportunity to boost your super.
  • Find out how salary sacrifice can boost your super savings.
  • Review your insurance cover and investment risk profile.

Retirement is looming

  • Over 55s enjoy some great incentives to contribute to superannuation.
  • Combine salary sacrifice with a transition to retirement pension.
  • Review your insurance cover, investment strategy and risk profile.
  • Start comprehensive retirement planning.

Down tools

  • You’ve made it. For retirees over 60, withdrawals and pension payments are tax free!
  • Review your investment risk. Keep enough growth in your portfolio to ensure your money lasts as long as you do.
  • Review your insurance.
  • Stay active and enjoy life (and keep working if you want to!)

 Remember, it’s never too late to start…

For more information or to speak to one of our Financial Advisers please contact TNR Wealth Management on 02 6621 8544.

Disclaimer :Past performance is not a reliable indicator of future performance. The information and any advice in this publication does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. This article may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. It is important that your personal circumstances are taken into account before making any financial decision and we recommend you seek detailed and specific advice from a suitably qualified adviser before acting on any information or advice in this publication. Any taxation position described in this publication is general and should only be used as a guide. It does not constitute tax advice and is based on current laws and our interpretation. You should consult a registered tax agent for specific tax advice on your circumstances.

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No Insurance? Why Take the Risk?

All / 17.03.20170 comments

On average, only 25% of debilitating injuries occur at work or are work related

In 2013/14 there were approximately 531,800 work-related injuries in Australia. Of these, only around 298,000 received workers compensation.

Two-thirds of workers can expect to be off work for more than three months during their working life due to illness or injury.

Research conducted by Rice Warner in 2014 revealed that underinsurance in Income Protection cover costs the government $260,000,000 per year in providing income replacement benefits.

Who needs it?

Some people may not need cover. For instance, if you

  • are near retirement and would give up work if you were disabled;
  • have lots of sick, annual leave and long service leave to give you protection;
  • have access to adequate amounts of cash to rely on;
  • have a partner or other people who will support you.

Other people may just misunderstand. A common cause of confusion is to think you are covered by worker’s  compensation insurance. This, however, only covers accidents at or during work, or illness directly attributed to work.

If you are not aware of the cover available, read on!

Income protection insurance pays an income to you if you are unable to work due to an accident or illness. The income is usually 75% of your pre-disablement income and is payable after a “waiting period”. You choose the waiting period to suit your needs – for instance, if you had a lot of unused leave you could choose a longer period.

Income protection is particularly valuable for self-employed people, casual workers or anyone else who relies on their income but has no sick leave. You will be required to provide evidence of your usual income when taking out a policy.

The income will be paid until you recover and return to work or for a “benefit period” – this can be as short as one year or up to age 65. Some policies pay a rehabilitation benefit to help ease you back to work.

Income protection insurance premiums are tax deductible. Many people pay the premiums annually near the end of the financial year to bring forward the tax deduction. However, be aware that the income payments are taxable.

Premiums are generally based on your age, gender, occupation and previous medical conditions but you can save money by choosing a longer waiting period and a shorter benefit period. However, there is no point in having insurance that doesn’t pay out when you need it.

If you’re not sure of your specific needs, talk to your financial adviser who can recommend a solution to suit you. Why take the risk?

For more information or to speak to one of our Financial Advisers please contact TNR Wealth Management on 02 6621 8544.

 

Disclaimer :Past performance is not a reliable indicator of future performance. The information and any advice in this publication does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. This article may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. It is important that your personal circumstances are taken into account before making any financial decision and we recommend you seek detailed and specific advice from a suitably qualified adviser before acting on any information or advice in this publication. Any taxation position described in this publication is general and should only be used as a guide. It does not constitute tax advice and is based on current laws and our interpretation. You should consult a registered tax agent for specific tax advice on your circumstances.

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TNR Wealth Management Sponsors Local Charity Event Raising Money for “Our Kids”

All / 10.03.20170 comments

On Saturday 4 March 2017 TNR and TNR Wealth Management Sponsored the the Annual Lismore Samson Challenge, a local charity event to raise money for “Our Kids”.

The Samson is a major fundraiser for “Our Kids” helping to raise money to purchase paediatric equipment for the Children’s Ward and Special Care Nursery at Lismore Base Hospital.

TNR and TNR Wealth Management were proud sponsors and provided volunteers on “Prowler Push” leg of the event.  We also had 3 teams that participated in the challenge.

We would like to congratulate everyone who participated or volunteered on the day and helped raise $20,000 for Our Kids.

Image courtesy of SOK IMAGES

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TNR – TNR Wealth Management Participate in Local Charity Event Raising Money for “Our Kids”

All / 10.03.20170 comments

   

On Saturday 4th March 2017 three teams from TNR and TNR Wealth Management participated in the local charity event “Lismore Samson Challenge”. This is a major fundraiser for “Our Kids”, helping to raise money to buy equipment for the Children’s Ward and Special Care Nursery at Lismore Base Hospital.

It is a gruelling four person team event and the teams were put through their paces during the ten tough challenges and still finished with smiles on their faces.

    

Not only did we participate in the Challenge, but TNR and TNR Wealth Management were a sponsor of the Prowler Push Leg of the event and we had volunteers who helped competitors on the Prowler Push leg on the day.

A big congratulations and thanks to everyone involved in a great event that raised $20,000 on the day for Our Kids!

Images Courtesy of SOK Images & TNR

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Making Your Money Work Harder

All / 03.03.20170 comments

When establishing a long-term savings plan, online savings accounts and fixed term deposits in a low-inflation economy will not generate much growth. As an alternative, managed funds, given at least five years, can have a higher potential to surpass cash and fixed term investments.

Managed funds are also an easy way to invest in Australian and international shares. Through managed funds you can spread your money across different assets with one application, which can increase the potential for growth. Your choice of fund can restrict the investments to particular segments to meet your risk tolerance.

Investing works best over the longer term. But don’t let that deter you. Five or ten years isn’t “forever”.

How much do I need to start?

Depending on the fund chosen, you can start with as little as $1,000 initial investment, then make regular payments to build your investment. Salary deduction is an ideal way to establish a regular savings plan – if you don’t get it you can’t spend it and probably won’t notice it “missing”. Meanwhile it’s working for you.

Growth, income… and the opposite

Your money will be exposed to capital growth through rising unit prices as well as income from distributions. The income you receive is taxed in the same way as bank interest, at your marginal tax rate. It also carries the benefit of any franking credits attached to dividend income distributed by the fund, reducing the tax payable. Be aware though, like any investment, the value of unit prices, and your investment, can also go down. It’s another reason why good research and professional guidance is essential.

What about borrowing to invest?

Using someone else’s money to improve your own financial worth can be good as long as the terms work in your favour. It all comes down to the fact that all debt must be serviced. The interest and fees need to be paid. Ask yourself, “Will the return on my investment be greater than the cost of the debt?” If you can’t answer this question, seek professional advice and if the answer is “no”, find something more appropriate to you.

For more information or to speak to one of our Financial Advisers please contact TNR Wealth Management on 02 6621 8544.

 

Disclaimer

Past performance is not a reliable indicator of future performance. The information and any advice in this publication does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. This article may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. It is important that your personal circumstances are taken into account before making any financial decision and we recommend you seek detailed and specific advice from a suitably qualified adviser before acting on any information or advice in this publication. Any taxation position described in this publication is general and should only be used as a guide. It does not constitute tax advice and is based on current laws and our interpretation. You should consult a registered tax agent for specific tax advice on your circumstances.

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Financial Planning – More Than Just Advice

All / 01.03.20170 comments

Financial planners are often the first port of call for people seeking advice on investing a lump sum of money. But that is just the tip of the iceberg. A professional financial adviser has the knowledge and skills to help you achieve your goals and objectives by tailoring strategies to address your specific needs.

TNR Wealth Management can and will provide you with assistance and guidance on:

  • Budgeting – reviewing your finances and identifying opportunities to manage debt and save money.
  • Risk management – guiding you on protecting your family and your assets in the event of illness, injury, disability or death.
  • Government benefits and allowances– determining your eligibility for government assistance for various benefits from pensions to co-contribution allowances and ensuring you receive the correct entitlements.
  • Retirement planning – helping you find answers to the important questions such as; “how much money do I need to retire?”; “what do I need to do before I retire?” and “will I be able to retire comfortably now?”
  • Estate planning – we work closely with estate planning professionals to show you how best to structure your assets to benefit your estate when you’re no longer here.
  • Education – helping you to understand your investments and other key financial matters. This builds your knowledge and confidence.

Quite simply, we can help alleviate the worry and stress associated with your finances, leaving you with more time to enjoy life. Get started now by giving the team at TNR Wealth Management a call on 02 6621 8544.

For more information or to speak to one of our Financial Advisers please contact TNR Wealth Management on 02 6621 8544.

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  • Attention: SMSF Trustees

    When it comes to retirement funding, over one million Australians have established Self-Managed Super Funds (SMSFs) to take more control over this crucial stage of their lives. However, SMSF trustees take note – to protect your and your fellow members’ best interests, there are strict rules governing SMSFs which, if broken, attract strong penalties. The […]

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