Viewing posts from: January 2018

Financial planning is for everyone

All / 25.01.2018

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Start planning early to get what you want!

All / 19.01.2018

Australians are living longer. According to the World Health Organization, we enjoy the fourth best life expectancy in the world behind Japan, Switzerland and Singapore.

Great news for Millennials! Your life expectancy has been tabled at 74 for men and 80 for women. Astounding advances in medical technology could mean you will live much longer! With all that living to be done, how on earth will you fund it?

Well there’s always the Bank of Mum and Dad, right?

Doubtful, you see, according to a 2017 joint survey by National Seniors Australia and Challenger, the main issue concerning older people is ensuring they have regular and sufficient income.

This is because they are also living longer and are structuring their affairs to ensure they don’t outlive their savings. Your parents are healthier and more financially savvy than their own parents were and they’re considering their options.

It might seem like an historical event now, but self-funded retirees took an unexpected hit during the Global Financial Crisis (GFC). Ten years on, and investments have still not recovered. A recent report by the SuperGuide announced the top-performing super fund for the last ten years to June 2017 earned an average of 6.1%. That’s not much.

It’s probably not a good idea to rely on an inheritance either. From the survey mentioned above, only 3 percent of respondents planned to leave their savings to their children.

A combination of longer life expectancy and sluggish investment growth has seen many retirees opting for strategies like downsizing their homes to supplement retirement income.

It’s common to live with Mum and Dad to save a healthy home deposit. Sometimes parents even offer financial assistance to give their children a leg-up into their first home. As a result, it’s quite reasonable to assume there’ll be further help later on.

These days, it’s increasingly likely that you’ll find your parents are simply not in the position to give further help, much as they’d like to.

But independence is empowering! It means taking control.

Borrowing from family can be awkward; they may want a say in how you spend the money, or it can leave you feeling you must consult them before making decisions.

Controlling your own destiny might be challenging, but financial self-reliance is rewarding. You just need to know where to start.

Financial advisers consider your income, expenses and financial goals. They work with you to tailor a plan to manage debt and develop a good savings habit to put you on track to getting what you want.

Contribute even the smallest regular amount and you’ll be amazed at what you can achieve.

This is because interest is calculated on your savings balance. Regularly topping-up your balance – even once a month – really boosts your savings as the interest combined with your contributions compound one on top of the other, over and over. It’s like free money!

What could be better? Only the fact that professional advice costs less than you might expect.

So, next time you need a favour from your parents, why not surprise them by asking for a referral to their financial adviser?

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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The Multitasking Effect

All / 15.01.2018

There’s an old joke about scientists discovering something that could do the work of two men. One woman.

The implication was that women are better at doing two or more things at once than men, now referred to as ‘multitasking’, and there is some science to back this up. Even so, and regardless of gender, there’s also plenty of evidence that multitasking isn’t all it’s cracked up to be.

The downside

We don’t need to look too far to see why we multitask. If it isn’t our gadgets that are constantly crying out for our attention, it’s the boss or colleagues, clients, customers and kids. But every time our attention is drawn to a new email, message or phone call, there’s a switching cost. The upshot is that multitasking reduces productivity.

Perhaps you’re different – a gifted multitasker? Sorry. Research has shown that people who multitask a lot and who feel it boosts their performance are actually worse at multitasking. They are slower to switch between tasks and have more trouble organising their thoughts than people who prefer to focus on one thing at a time.

If that’s not bad enough, there are even suggestions that multitasking can lower your IQ as well as your emotional intelligence. Bear in mind though, many of these conclusions are based on laboratory studies with contrived tasks. They may not always reflect the real world.

The upside

We all need to multitask to some extent, whether it involves frequently switching between tasks or doing two things at once.

Listening to a podcast while driving is an efficient use of time. Call centre workers and receptionists have no choice but to constantly switch from one task to another. For our ancestors, hunting for a daily meal while not being eaten by lions was essential to survival. And even if it does reduce your productivity, being seen to be a good multitasker may pay dividends at work (just don’t mention the pesky science to your boss).

The antidote

Like everything in life, multitasking needs to be undertaken with a degree of balance. With so many demands on our attention, one of the biggest problems is that we often aren’t even aware that we are multitasking. But if you automatically reach for your phone every time it pings you need to develop some healthier habits.

When you have a task to complete that requires concentration find a way to block distractions and interruptions. Some offices have quiet times and spaces for this purpose. Listening to music can help concentration. Wear big headphones and you’ll also deter interruption.

Learn to differentiate between what’s urgent and important, urgent but not important, important but not urgent, and neither urgent nor important. Your priorities will then be much clearer.

Relish ‘flow’. This is the state of absorbed concentration when you are truly at your most productive and time passes unnoticed. And if you are having an important conversation, turn off your phone or set it to silent, and give the other person 100% of your attention.

If you’re not sure if you’re a good multitasker or not, what else did you do while reading this short article?!

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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6 ways to master your debt

All / 15.01.2018

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You CAN afford a holiday

All / 15.01.2018

Are TV travel documentaries not close up and personal enough for you? Would you prefer to actually be there, immersing yourself in the environment, amongst the people, eating local delicacies, but you’re not sure if your budget can take you further than your lounge room?

An overseas holiday doesn’t have to be outrageously expensive, especially if you follow these money saving tips. You may be surprised how far your money can take you.

Research your options

  • Shop around. Go online and find the best deals without leaving your mouse. Seeking expert advice from a travel agent could also save you time.
  • Consider a travel package which includes flights, accommodation and meals. Often packages are cheaper than purchasing each component individually.
  • Choose a destination that doesn’t have a big impact on your budget. South East Asia, New Zealand and the South Pacific are cost-effective destinations for Australian travellers.
  • Consider choosing a venue that offers free activities, such as an island resort.

Time your travel

  • The weather doesn’t seem to follow the same patterns these days, so travelling off season may be a good option to save on flights and accommodation and still enjoy good weather.
  • Plan your trip well in advance and book early. The closer you get to your departure date, the more expensive travel costs are likely to be.
  • School holidays coincide with higher costs, as well as bigger crowds. If you don’t have to travel with children, steer clear of these times.

Save money on flights

  • Make the most of discounted flights but check terms and conditions carefully. “Discount” airfares have “add-ons” such as paying for seat allocation and luggage which make the promoted fare much higher.
  • Subscribe to the airlines’ “special deal” emails and act fast. There are restrictions on travel dates but the savings can be extraordinary if you’re flexible.

Be budget savvy with accommodation

  • Check out discount travel websites. Type “discount travel” into your favourite search engine. The choice is astounding – but stick to the more well-known and reputable sites.
  • Rent a fully-equipped holiday home or a serviced apartment rather than staying in a hotel.
  • Consider staying several nights in one location to take advantage of discounted weekly rates or deals like “buy 5 nights, get 2 nights free”.
  • Better still, arrange to house-sit or house-swap at your holiday destination and your accommodation could be free! There are many websites available offering these services.

With these money-saving tips, the most expensive thing you’ll do for your next overseas trip is renew your passport!

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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Make this year a financially healthy one

All / 15.01.2018

Another year is over – how was it for you? Did you achieve everything you’d hoped?

Are you better or worse off financially than you were this time last year?

With a new year in front of you, what can you do to make the most of every moment?

We’ve put together a guide to get you started.

January to March

Make a start by turning wishes into goals. Some might be long-term like becoming debt-free, saving a home deposit, or retiring in a few years’ time. What can you do this year to support those goals? Write it all down and give it a name – something you can own.

At the same time, don’t forget living for now. Prepare a month-by-month budget that makes room for the fun times – holidays and celebrations – as well as covering the necessities.

Anticipate spikes in your spending. Do your car, home and life insurance premiums all seem to fall due at the same time? Investigate monthly premium payments, or spreading renewal dates across the year.

Use this first quarter to bed down the budgeting habit and track your actual spending against your plan.

At the end of March, do a quick review of your progress so far and make adjustments if necessary.

April to June

It’s time to prepare for the end of financial year (EOFY). By June 30 you will want to have made any intended additional superannuation contributions (make sure you stay within relevant limits) and finalised donations to your favourite charities.

Is there any other tax-deductible expenditure you can bring forward?

June is also the month for EOFY sales – an opportunity to grab some bargains on early Christmas shopping and birthday gift purchases. Don’t forget to include these in your budget.

July to September

If you’re expecting a tax refund for the financial year just finished, lodge your tax return early.

What are you going to do with the windfall? Whether you put it towards one of your goals or blow it on a big night out is up to you. Just make sure it’s part of The Plan.

With your tax return out of the way, the third quarter is a good time to start a bit of financial spring-cleaning. Review your super and savings, insurance and will, loans and credit cards, power of attorney, and overall financial strategy. Is everything up to date?

How’s your super doing? Would salary-sacrificing help?

Can you consolidate debt or refinance at a lower rate?

October to December

Into the final strait and how are you tracking? Are you ‘on plan’?

Maybe the plan you came up with back in January wasn’t realistic. It’s not too late to adjust both your strategy and your expectations.

If things are looking good, it’s important to stay focused. Christmas is looming with its temptations to over-spend.

Once the turkey and plum pudding have settled, it’s time to review the year just gone and to give yourself a pat on the back for what you’ve achieved. Then take a deep breath, check your goals, and update your plan for the coming year.

Invaluable help

Your financial adviser is an expert in working out the financial details of how you can achieve your goals. Just as important is the regular encouragement they can provide along the way.

Ready to start planning? Give your adviser a call and make a date to nut out your plan for the coming year.

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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