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Create wealth at the tip of your fingers

All / 13.06.2019

Create wealth at the tip of your fingers

You’re probably already pretty impressed by what your smart phone can do, but have you thought of it as a wealth builder?

It’s all down to the apps you can install, and there’s an increasing range to help you manage your spending, supercharge savings, complete your tax returns and manage your investments – all at the tip of your fingers.

Track your spending

Most people approach the ‘b’ word – budgeting – with dread, but getting your spending under control is fundamental to any wealth creation plan. For starters, you’ll want to know where the money is going. Several apps take much of the drudgery out of tracking each dollar you spend while also helping you to take control of your money. This includes separating your ‘wants’ from your ‘needs’, further categorising expenses and setting spending limits for each category.

ASIC’s TrackMySPEND covers the basics. Another popular app is Pocketbook, which syncs with many Australian bank accounts and largely automates the task of categorising each transaction. It also tells you exactly what your bank balance is and how much you can safely spend to stay within your budget for each category.

Boosting savings

Remember piggybanks and the pleasure of slipping the day’s loose change into the slot? With electronic transactions now dominating our spending, loose change is a disappearing commodity.

The Raiz app provides a digital solution. It automatically rounds up each purchase you make on a linked debit card to the next dollar and invests this ‘loose change’ into one of six diversified investment portfolios. You can also set up regular contributions or make one-off additions to your portfolio.

Carrott also takes a rounding up approach, with the additional amount going to paying off your mortgage.

Manage your investments

From simple watch lists for shares to mobile apps that give you full access to a stockbroker’s trading platform, a vast range of apps is available to the connected investor. Check out what’s available from your super fund, investment managers and share broker. In many cases you’ll find apps that can do everything that you would normally use your desktop computer for, and often with more convenience. Enjoy lunch in the park while you check up on your super or snap up a few shares.

File your tax return

We know that apps are mainstream when the tax office gets in on the act. The ‘ATO app’ includes the myDeductions tool to help you track expenses. Sole traders can also record income as well as deductions. Come tax time the data can be emailed to a tax agent or you can use your app to prefill your tax return before lodging it yourself.

Pocketbook also has a dedicated tax return app, though a fee applies to lodge the return with the ATO.

Be appy

This is just a brief sampling of the many mobile financial apps that are available. Many are free, but be aware of ‘in-app purchases’. In some cases, functionality may be limited unless you upgrade to a ‘premium’, paid option. Also remember that you may be sharing your financial information with a third party. Make sure you’re happy with the app provider’s privacy policy and security.
Then, when you’ve found the ideal electronic helpers for your financial needs, ‘app up’ and get your mobile phone building your wealth.

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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How much do I need to start investing?

All / 06.06.2019

How much do I need to start investing?

Far from being the realm of the rich, building an investment portfolio is something that most people can do. It can start as a simple savings plan – a few dollars in the bank – before expanding into a diversified portfolio containing a range of asset classes.

Getting started may be easier than you think, so let’s look at some of the basics.

How do my goals influence investment choice?

Your goals have a big bearing on how you invest.

If you are saving for a specific purpose such as an overseas trip, a car or a home deposit, you’ll most likely have a relatively short investment time frame and will want your savings to grow in a predictable way. In this case an interest-bearing bank account or term deposits will provide the greatest certainty of meeting your savings goal. With no upfront costs you really can get started with a few dollars.

If you have a longer timeframe and the desire for your investments to deliver higher returns, you’ll be looking to include asset classes that can provide capital growth as well as income. These include shares and property. For small investors the most practical way to access property may be via a managed fund. Shares can also be purchased through managed funds, or directly via a share broker.

Taking into account minimum brokerage costs on shares and minimum investment amounts set by fund managers, you’ll probably want to have $1,000 to $2,000 available to make the move from ‘saver’ to ‘investor’.

What are the risks?

Shares, property and even fixed interest investments can all rise and fall in value. In other words, they carry greater risk than cash investments. Spreading your money across a range of asset classes and specific investments, and sticking to a long-term strategy decreases investment risk. But fluctuating markets also create opportunities. If you regularly contribute new funds to your portfolio, you’ll get more for your money during down times than you will when markets are booming.

What about costs?

Fund managers may charge entry fees, management fees and exit fees, and it’s important to be aware of all of the specific fees that apply to you. All other things being equal, the higher the fees the lower your investment returns. Tax can also be considered a cost, and depending on the complexity of your investments, you may also incur fees for accounting and financial advice.

Should I start with a lump sum or with a savings plan?

This depends entirely on you circumstances and desires. Receiving a lump sum such as an inheritance or a tax refund is often the catalyst for someone to start investing. But without such a windfall, it’s still possible to build a great portfolio. Many managed funds offer the option of starting with a relatively small initial deposit followed by regular or irregular additional contributions.

How do I start investing?

Over long time frames, decisions made now can make a big difference to the performance of your portfolio. If you’re new to the field one of the best investments may be to consult a financial adviser. An adviser can help you clarify your goals, understand the jargon and determine your tolerance of risk. They can also recommend specific investments and point out the potential tax implications of different investment choices.

Excited by the possibilities? Getting started is as easy as making a phone call.

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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How to ask for a pay rise

All / 30.05.2019

How to ask for a pay rise

You seem to have the perfect job: the people are great; the location is convenient; and the hours suit your lifestyle. So why are you checking the online job ads?

For many, the belief that we’re not paid what we could, or should, be paid is common. Not knowing what to do about it is equally common.

We keep our concerns to ourselves because the thought of requesting a pay rise is so daunting, we don’t know where to start.

If you’re nodding right now, read on as we provide a few tips for navigating the pay-rise minefield.

Research

Do your homework! The government’s Fair Work Ombudsman website is a great place to start. Check out www.fairwork.gov.au for information and calculators to help you work out what you should be earning.

Hop onto online job-seeker sites and find out what others in comparable roles are being paid. Take into account skill levels, experience and tertiary qualifications.

Now, consider your company’s internal policies and think about:

  • the company’s scheduled performance and salary reviews and time your request appropriately
  • company pay scales and whether you can move upwards incrementally
  • where your role sits on the company pay scale

Armed with these details, it’s time to prepare your approach. Firstly, think about timing, for example are you coming up for an employment anniversary?

Next, break your conversation into three parts:

Part 1: Prepare the conversation

Ensure you:

  • book a time and place to meet – you’ll need about a half hour without interruption
  • be clear about wanting a review of your salary and what your expectations are. Be realistic though, otherwise you won’t be taken seriously.

Part 2: The conversation

During the conversation with your manager:

  • thank them for their time
  • say how long you’ve been working there
  • summarise your responsibilities and your achievements
  • articulate what you bring to the role

Part 3: After the conversation

It’s likely your boss won’t give you a decision on the spot so be prepared for them to get back to you.

Back at your desk:

  • email to thank them again
  • reiterate your key points
  • book a calendar appointment for any follow-up meetings.

If you’re successful, get the details of your pay increase in writing. Clarify how much it will be and when it will commence.

If your request is declined, consider other forms of recognition such as time off in lieu or bonuses. Alternatively, try suggesting your request is revisited, in say, three or six months.

Remuneration for a job is linked to feeling respected and valued, so it’s hard not to be emotional. Saying things like, “I’ll leave if …” is a big no-no. Nobody reacts well to ultimatums.

Enter all discussions well-prepared. Keep the discussion professional and articulate your request succinctly and factually. This way, you’ll be giving yourself the best opportunity to succeed.

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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Personal Insurance FAQs

All / 23.05.2019

Personal Insurance FAQs

Personal insurances are designed to provide protection from the financial consequences of death or disability. They therefore form an important part of most financial plans. Here, in brief, is how they work.

What are the different types of personal insurance?

Life insurance. This pays a lump sum benefit if you die.

Total and permanent disability insurance (TPD): This pays a lump sum benefit if you meet the definition of being totally and permanently disabled. It is often bundled with life insurance.
Trauma insurance: Also referred to as recovery insurance, trauma insurance pays a lump sum benefit if are diagnosed with or suffer from one of the specified illnesses, such as cancer, heart attack or stroke.

Income protection insurance: If you are unable to work due to illness or injury, income protection insurance will pay you a regular income, usually capped at 75% of your pre-illness income. You can select the waiting period before benefits become payable, and the length of the benefit period.

How much life insurance should I have?

For life and TPD cover, one rule of thumb is to work out how much is needed to pay off debts and provide for current and future family living expenses. Subtract from this total the value of current investments, including superannuation, to arrive at an approximate value of the insurance cover you require.

Of course, individual circumstances vary widely. Your financial adviser will be able to help you assess your needs and resources, and perform the relevant calculations for you.

How often should I review my cover?

Your personal insurances should be reviewed whenever there is a major change in your personal situation. Key events to look out for include:

  • Taking out a home loan
  • Getting married or setting up house with someone
  • Starting a family
  • Receiving an inheritance
  • Retirement

Generally, as savings increase and debts decrease, the level of cover required reduces over time, but again, much depends on your individual situation.

How do I understand my insurance contract?

It’s important to understand what is and isn’t covered by your insurance. This will be detailed in the Product Disclosure Statement, so it’s important to read and understand this. If you are unsure about anything, ask your adviser for an explanation.

How do I choose the best insurance?

While pure life insurance is pretty straightforward, the other personal insurances may differ significantly from policy to policy. Definitions of diseases may vary. There may be a range of optional extras – some valuable, others more of a gimmick. With TPD insurance, you may have the choice of ‘own occupation’ or ‘any occupation’. Insurance companies vary in the speed with which they process claims, and beyond that is the question of which insurances should be held via a superannuation fund and which should be held directly.

All this complexity means that selecting the best insurance cover is best done with the help of an experienced financial planner.

More than one third of Australian families have no life insurance cover. Many more are under-insured, even though the financial impact of not being adequately insured can be severe.

Put your mind at rest. If you have any concerns about the level of protection provided by your current personal insurance policies talk to your adviser today.

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 cost of owning a pet

All / 16.05.2019

The cost of owning a pet

Australians are a nation of animal lovers. According to the Australian Companion Animal Council, we have one of the highest incidences of pet-ownership in the world!

Dogs and cats are our favourites; around 36% of Australian households own a dog, and 23% own a cat. We’re familiar with the companionship pets bring, and the social interaction they foster, but there are other benefits too, such as:

  • Lowered blood pressure and cholesterol
  • Increased physical activity
  • Strengthened immune system and reduced incidence of allergies
  • Children learn responsibility, empathy and respect.

When considering a pet, you expect costs like, food, bedding and the annual vet visit, but there are other costs you may not have thought about.

Let’s start at the beginning. Those purchasing a pet from breeders, could pay anywhere from $100s to $1,000s. Additionally, there are de-sexing, vaccination, and microchipping costs.

Conversely, there are fewer surprises from rescued cats and dogs. Shelters are overflowing with abandoned pets seeking a second chance and adoptions cost around $200 (puppies/kittens) or anything from $150 (adult dogs/cats). De-sexing, vaccinations and microchipping are included in the adoption fee.

But that’s not the end of it. How much, for example, will your pet grow and can your weekly grocery budget expand to feed another hungry family member? Standard dog food can be around $2 per 700g tin. A large dog may require more than one tin a day in addition to dry food and treats.

In most municipalities, pets must be registered – at a cost, of course. Then you need to think about fencing. Pets must be restricted to your property meaning ensuring your boundaries are securely fenced; cat-owners may need to invest in a cat-safe enclosure.

Regularly exercising your pet and providing toys to keep them mentally stimulated will assist in preventing costly property damage through boredom or escape attempts.

Ongoing health care can be pricey too. According to moneysmart.gov.au, health care estimates start around $3,000, excluding unexpected problems.

Pet insurance policies are widely available and offer cover from $50 per month.

As with any insurance, choose wisely. Carefully read the policy document checking for:

  • Benefits and limits
  • Eligibility/age limits
  • Pre-existing conditions
  • Excess options
  • Waiting periods/discounts

Depending on your pet’s circumstances, you might opt to regularly contribute to a dedicated account instead, ensuring there’s money available when needed.

Reduce costs by keeping your pet healthy and happy through diet, exercise, training and play.

Pet-care while you’re on holiday is an additional cost. Dog boarding kennels charge from about $40 per day (cats about $20). Alternatively, a pet-sitter staying in your home could charge anything from $30 per night.

In recent times household expenses have been attracting more scrutiny than ever from financial institutions. Lenders are increasingly antsy about approving loan applications without seeing a full household budget.

When looking to borrow or renegotiate an existing loan, you must know your position. Your financial adviser will help you work through your income and expenses to determine whether a new family member will fit into your budget.

Pet ownership is a long-term financial obligation, but there’s no denying its rewards. With a pet-ownership of 62%, the majority of Australian households would agree.

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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Frequently Asked Questions About Super

All / 08.05.2019

Frequently Asked Questions About Super

If the ins and outs of superannuation leave you confused, the answers to these frequently asked questions will help you understand the basics.

How much do I need to retire?

According to the Association of Superannuation Funds of Australia (ASFA), a couple requires savings of $640,000 if they wish to enjoy a ‘comfortable’ lifestyle in retirement. For a single, the figure is $545,000.

Due to support from the age pension, a single or a couple can fund a ‘modest’ lifestyle with savings of just $70,000 at retirement.

How is my super taxed?

Broadly, contributions are categorised as either concessional or non-concessional.

Concessional contributions are contributions on which an employer or an individual has claimed a tax deduction.

Non-concessional contributions are made from after-tax income. They include many personal contributions and government co-contributions.

Concessional contributions are taxed at 15% within the superfund, with a tax offset available to low income earners. Non-concessional contributions are not taxed within the fund.

Investment earnings are taxed at 15% in the accumulation phase. Over age 60, earnings in the pension phase, and any payouts from the super fund, are tax-free.

How can I contribute to super?

If you are over 18, employed, and earn more than $450 per month your employer will contribute 9.5% of your ordinary time earnings to super. You can further boost your super by:

• Asking your employer to make concessional salary sacrifice contributions from your pre-tax income.

• Making personal contributions from your after-tax income. Subject to set limits you may be able to claim a tax deduction for these contributions in which case they will become concessional. If no tax deduction is claimed they will be non-concessional.

• Low to middle income earners who make a personal non-concessional contribution may receive up to $500 as a government co-contribution.

• If you contribute on behalf of a spouse who earns less than $37,000 a year, you can claim a tax offset of up to $540.

• A special ‘downsizing’ contribution is available to over-65s who sell a home.

Age limits and work tests may apply to some types of contribution.

When can I access my super?

• When you turn 65, even if still working.

• When you reach preservation age (between 55 and 60 depending on date of birth) and have retired.

• If you start a transition to retirement (TTR) income stream.

• If you face severe financial hardship, specific medical conditions or under the first home super saver scheme.

Who can I leave my super to?

If your super fund allows binding death benefit nominations, you can elect to have your superannuation paid to your legal personal representative. The money will then be distributed as instructed by your Will. Alternatively, you can instruct your fund trustees to pay your death benefit to one or more of your ‘dependents’. Under superannuation law these are:

• Your spouse (includes same-sex and de facto partners).

• Children.

• A financial dependent.

• People you had an interdependency relationship with.

Without a binding nomination, your super fund’s trustees decide which dependents will receive the death benefit. They will be guided, but are not bound by, any non-binding nomination.

How do I make the most of my super?

Superannuation remains, for most people, the best vehicle within which to save for their retirement. However, it can be complicated and there are numerous rules to navigate.

That creates challenges, but it also generates opportunities, many of which can add thousands of dollars per year to your retirement income.

Ready to unearth those opportunities and make the most of your super? Now is the perfect time to talk to your 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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Placing your family wealth in trust

All / 10.04.2019

The basic function of a trust is to separate control and ownership. The result of using a trust is that assets are protected and profits are distributed in the most tax-effective way. There is no ‘one-size-fits-all’ type of trust. The trust you use depends on many factors, such as the type of asset or business, financing, income type, marital status, susceptibility to being sued – just to name a few.

Whilst there are many types of trusts the two most commonly used are:

  1. Testamentary trust – set up through a directive left in a will, which takes effect after the will-maker’s death;
  2. Discretionary trust – set up by a ‘trust deed’, which commences during the life of the individual(s) establishing the trust.

Both types allow for income and capital to be flexibly distributed to beneficiaries, while those beneficiaries have no legal entitlement or interest in the trust’s property until the trust deed declares it so.

The trustee is the legal owner of the trust property and is responsible for managing the trust fund on behalf of the beneficiaries. The trustee has a legal duty to obey the terms of the trust deed and to always act in the best interests of the beneficiaries. A trust can operate for up to 80 years in Australia, though it is common to have a clause within the trust deed to allow the trustee the option to wind it up earlier if considered appropriate.

Benefits of using trusts to manage family wealth include:

  • Cost: For a straightforward structure, the costs of establishment are relatively low. Specialist advice should be sought for more complicated family scenarios.
  • Effective family tax management: Income can be directed to members of the family on lower tax rates. It also allows different types of income to be directed to different family members.
  • Simplified regulation: Trusts are less complicated than operating a company structure.
  • Tailoring: Most modern day trust deeds are flexible in their operation and can often cater for a wide variety of beneficiary classes and investments.
  • Geographical flexibility: A trust established under Australian law can operate effectively in every Australian state. Where potential beneficiaries live overseas, specialist advice should be sought to determine the optimal structure.
  • Protection of assets: Under certain conditions, family assets may be protected from creditors in the event of bankruptcy or insolvency.

Due to the taxation flexibility that discretionary trusts provide, the ATO scrutinises these trusts to ensure all transactions are undertaken on a commercial, arms-length basis. It checks that distributions are in accordance with the trust deed, specifically targeting the distribution of different types and amounts of income to individual beneficiaries.

Trusts allow considerable estate planning benefits providing more certainty in how your assets will be dealt with after your death. Many wealthy people in Australia use family trusts to gain some peace of mind that their loved ones will be looked after financially when they no longer can, but you don’t have to be rich to benefit from a well-planned structure.

 

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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Retirement: it’s time to get busy living!

All / 10.04.2019

Many people eagerly anticipate retirement. Others view its approach with trepidation, worried over how they’ll fill their days.

Bob retired from work in his early sixties and, deciding he was way too young to retire from life, downsized his suburban home for a country lakeside retreat. He bought a little boat, adopted a shelter-dog and got busy.

The local volunteer fire service deemed him past firefighting age, so Bob helped by cleaning the station and equipment. During emergencies, he was an important member of the team manning relief centres and distributing food and drink to the firefighters.

At home, he grew vegetables and revisited the hobbies of his youth: re-learning the guitar and painting landscapes. Summer afternoons found Bob and his dog out on the boat. During winter Bob did odd jobs around his cottage.

His children complained that he was never around, but Bob had worked since he was fifteen and had been hanging-out for retirement. He’d planned for it, dreamed about it, and now he was living it.

Australians are living longer; it’s not unreasonable to assume you’ll be retired for 20 or 30 years. Not sure how you’ll fill all those days? We have a few ideas to kick-start your new life.

Learn/Teach something

Do you have skills and talents you can share with others? Are you interested in learning from others in return? The University of the Third Age (U3A) may be your kind of group.

Located all over Australia, U3A groups meet regularly to provide learning and engagement for older people and disabled younger people. Organisers run structured courses with professional leaders or casual knowledge-share sessions conducted by group members or invited guests.

Look up the U3A in your area or visit www.u3a.org.au for information.

Become an Olympic athlete

Return to your favourite sport or learn a new one. Sports like archery and golf are Olympic sports! It’s true, and organisers of the 2020 Tokyo games are considering including bowls as well. Or closer to home, you can begin preparing now to enter the Pan Pacific Masters Games on the Gold Coast in 2020.

Write your memoirs

Everyone has a story to tell – yes, even you! You may think your life is rather ho-hum, but your children and grandchildren might disagree. Many independent publishers will help you produce a beautiful memoir with a short print run, perfect for family and friends.

Community

Feel like giving something back? The Australian Men’s Shed Association is a body that supports the health and wellbeing of men. It’s a terrific organisation for retirees with academic or practical skills to share through events and learning activities. To find a Men’s Shed near you, go to www.mensshed.org for details.

If that’s not your thing, or you’re the wrong gender, consider helping 4-legged friends at your local animal shelter. Love children? What about becoming a “Pyjama Angel”? Full details can be found on the Pyjama Foundation website www.thepyjamafoundation.com. Or check out your community notice board for local opportunities.

If retirement has snuck up and caught you unprepared, think about what you enjoy doing, what your skills and interests are and get busy. You’ve still got a lot of living to do – and finally, it’s all about 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 Advice is not the same for everyone

All / 10.04.2019

Financial planning. That’s for people with lots of money to invest, isn’t it?

Not necessarily.

Sure, investment planning is an important part of financial planning, but underpinning the whole process of creating wealth in the first place is having a good financial strategy.

For many people that strategy is taking each day as it comes and letting the future look after itself; but in a complex and ever-changing world, isn’t a more active approach a good idea?

Each of us has specific needs and desires, of course, but there are a number of common challenges that we need to think about when developing our financial strategies.

Stage of life

Baby boomers (born 1946-1964) are moving into retirement in droves so Gen X (1965-1976) is taking on the mantle of being the great wealth accumulators. For the most part, this generation has their strategies in place: pay down the mortgage, contribute to super, maybe buy an investment property, and wait for the kids to leave home.

Generationally, it’s millennials (1977-1995) who face the greatest challenges in developing a financial strategy. Younger millennials are just embarking on careers and the focus is, understandably, on having a good time. Many feel priced out of the housing market, and while the ‘gig’ economy promises greater work flexibility, this comes with reduced job security and often no employer superannuation contributions. Then there’s the challenge of balancing starting a family with establishing a career. All up there’s a lot to plan for.

Gender

The path to income equality is a slow and frustrating one. In general, over their working lives, women continue to earn significantly less than men. This is largely due to time out of the workforce to look after children.

However, progress is being made, and an increasing number of women are earning more than their partners. Having Dad take time off to look after the kids then becomes a viable financial strategy. On top of that, the gig economy, and technology in general, is opening up more opportunities for stay-at-home parents to earn a decent income.

Relationship breakdown

Sadly, many long-term relationships and marriages end, and the emotional and financial costs can be high.

This isn’t an issue that anyone wants to think about, but is obviously a trigger for developing a new financial strategy. This is particularly important when children are involved, and expert help will likely be needed.

Inheritance

More wealth is being transferred from older to younger generations than ever before, and thanks to superannuation, this trend can only grow.

Receiving an inheritance is often the event that leads many people to seek financial advice. While the focus may be on creating an investment plan, this is an ideal time to look at the broader financial strategy to make the most of any inheritance.

Never too soon to start

The upshot is that pretty much everyone can benefit from having a financial plan. It doesn’t need to be complicated and you can get the ball rolling yourself. A simple savings plan or paying off credit card debt can be good places start.

But to make the most of your situation it’s a good idea to talk to a financial adviser.

A qualified adviser can help you understand our complex financial environment and what you need to know to work out the likely outcomes of different strategies.

Ready to take control of your finances? Give us a call and let’s chat.

 

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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8 Common Financial Mistakes People Make In Their 30s

All / 10.04.2019

Climbing the career ladder, perhaps buying a home and starting a family – the 30s are an exciting stage of life. However, the decisions made now can make a big difference to future financial wellbeing, and with so much going on it is understandable, even inevitable, that the best decisions won’t always be made. So what are the common financial mistakes that 30-somethings should be alert to?

  1. Buying an expensive car

New cars plummet in value when driven off the showroom floor, and the higher the price tag the greater the fall. Buy with borrowed money and you’re paying interest on an asset of diminishing value.

Settling for what you need in a car, rather than what you want, can add hundreds of thousands of dollars to your future nest egg.

  1. Living on plastic

If you don’t pay off your credit card balance in full each month, you’ll be paying a high rate of interest on the carryover balance. Over time, the growing interest bill makes it increasingly difficult to clear the debt. If not used carefully, buy-now-pay-later schemes can also become something of a debt trap.

It might sound boring, but the antidote is to save up for the things you want to buy, and to avoid going into debt for consumer items.

  1. Forgetting to save

A rule of thumb is to save at least 10% of your income, but saving even a small amount is better than doing nothing. And in your 30s you have time on your side.

For instance, when Nicole turned 30 she started to put away $200 per month at an interest rate of 5% per annum (after tax). By the time she’s 60 her savings will grow to $166,452. If she waits until she is 40 to start her savings plan she will accumulate just $82,207 – less than half!

  1. Focusing only on the money

On the other hand, it’s possible to be too fixated on the money – working too hard, snapping up investment properties like it’s a competition. This may be a hard habit to break, but working on some current lifestyle goals and finding some balance can deliver a different type of reward.

  1. Getting caught up in investment fads

Tulips, alpacas, ostriches, the tech boom, crypto-currencies. Investment fads have come and gone, making fortunes for a few, but big losses for many. It pays to heed tried and true rules such as only investing in things you really understand, and diversifying investments to reduce risk.

  1. Not insuring your most important asset

No, it’s probably not the house. For most 30-somethings your biggest asset is the ability to earn an income. Most health-related absences from work are due to illness or non-work related injuries – things that are not covered by worker’s compensation. Income protection insurance can replace much of the income lost due to accident or illness. However, it’s a complex product so seek expert advice.

  1. Still feeling bullet-proof

Sadly, death and disability can strike at any age. Now is the time to make a Will. Investigate powers of attorney and health directives. If the worst happens, these documents will make it easier for your loved ones to settle your affairs.

  1. Being too hard on yourself

Let’s face it. We’re all human, and we all make mistakes. Unfortunately, if we beat ourselves up about a mistake we have made it may compound the problem. The sour taste of a bad investment, for example, might put us off making a good investment.

That would be a pity because the 30s is a decade of huge potential. Good advice now can help you unlock that potential.

 

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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