Viewing posts categorised under: All

The 9 golden rules of investing

All / 01.08.2019

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.
Read More >>

Could a tree-change work for you?

All / 25.07.2019

Could a tree-change work for you?

Cleaner air, less traffic, open spaces, lower cost of living…did we mention less traffic? There are any number of reasons to consider a tree change, but if you’re serious about leaving the bright lights behind, better do your homework first.

Housing affordability

Buying a home is more affordable in the country, and that goes for renting too.

In Wodonga on the Victoria-NSW border, you can rent a 4 bedroom, 2 bathroom, modern family home for around $390 per week. You’d pay around $610 for a similar home in Melbourne’s Glen Waverley.

You could buy a 4 bed, 2 bath home on a 1,000 square meter block in Orange for just over $500,000, while a similar dwelling 250 ks up the road in Hornsby, Sydney could set you back over $1 million.

While property is generally cheaper to rent or buy in the country you’ll need to consider other factors such as council rates.

Some regional municipalities cover large areas – that equates to a lot of maintenance with fewer residents. This means council and water rates can be pricier than in the city.

Another point to think about is bushfire zoning. If you’re in a high-risk area, insurance premiums can be more costly. When building a house in a bushfire-prone area you may be required to modify your building plans to accommodate the area’s fire rating. This will increase the cost of your project.

Make sure you do your sums. Talk to local councils about rates and levies. If buying land, read your Section 32 carefully and be aware of all zoning requirements.

Work

Government incentives encourage industries and businesses to move to regional areas. As employment opportunities in regional areas grows, so too does the economic well-being of its towns.
This flow-on enables local governments to build and maintain community infrastructure such as parks and family-friendly spaces and resources, such as libraries, transport and shops. All of this provides a wide range of employment opportunities.

It’s a good idea, to check the job-market in the area, and if possible, have a job lined up before you make any final decisions.

Could you make it work?

Holidaying and living are two separate things. Try not to make the mistake of assuming an idyllic getaway will be your perfect permanent tree-change.

On holiday you’re relaxed; you’re not a taxi for your kids’ weekend activities, you’re not harried by housework, school and work pressures.

If you’re serious about moving to the country and you’ve a location in mind, do your due diligence. Start by researching the following:

  • Schools
    • primary/secondary/tertiary
    • adequate facilities and teaching resources
    • good range of subjects
    • good location
  • Medical
    • hospitals, doctors, dentists
    • ambulance service
  • Community
    • kids/adults sporting clubs
    • library
    • public transport
    • local theatre or art group
    • swimming pool
    • well-maintained parks and gardens
  • Entertainment
    • bars, restaurants, cafes
    • theatre or cinema
    • shops

Australians are blessed with an abundance of wide-open spaces. If you’re dreaming of a tree change, do your research and draw up a plan; your dream could become reality.

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.
Read More >>

Why it just got harder to get a home loan

All / 18.07.2019

Why it just got harder to get a home loan

Anyone applying for a home loan these days will find that there are more hurdles to jump than has recently been the case. So why is it harder to get a home loan? And what can you do to improve your chances of getting a loan?

The Royal Commission

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that concluded in early 2019 discovered a number of lax lending practices by some of Australia’s biggest lenders. Of particular concern was that some banks failed to verify the living expenses of home loan applicants. In many cases this lead to people receiving loans that they were unable to repay. The Royal Commission also revealed that one of the bank regulators, ASIC, did little to punish misconduct, so there was little incentive for banks to comply with their legal obligations.

In response to the Royal Commission ASIC promised greater scrutiny of lending practices and lenders began to ask for a lot more information when assessing home loan applications. They now require detailed proof of both income and expenditure at a level that many people may find intrusive.

Bigger deposits

The decline in home prices in Australia’s major cities mean that buyers don’t need to borrow as much for a given property, which should make it easier to get a loan. However, falling prices create a greater risk for the banks, and one way to reduce this risk is to require a higher deposit, extending the time it takes to save that deposit.

Stringent stress testing

Even before the Royal Commission the prudential bank regulator, APRA, introduced a requirement that banks check on their borrowers’ ability to service their loans if there is a significant increase in interest rates. While it might be possible to borrow at an interest rate of less than 4% per annum (pa), the banks need to check that the loan is still affordable at an interest rate of more than 7% pa, thus reducing the amount that can be borrowed.

Being prepared

The main response to this more difficult lending environment is simple, but that doesn’t make it pleasant. Unless you are able to increase your income, you’ll need to save more. Inevitably, that means spending less:

  • Apps such as TrackMySPEND from MoneySmart can help you track your spending and make it easier to work to a budget.
  • Keep detailed records of saving and spending. You will be asked for them come loan application time.
  • Start early. You are more likely to be successful in your home loan quest if you can show a consistent history of saving and responsible spending spanning years rather than months.
  • Shop around. By all means start with your regular bank, but also check out what the non-bank lenders and mortgage brokers can offer.

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.
Read More >>

Tax rules do not treat all income equally

All / 11.07.2019

Tax rules do not treat all income equally

Anyone who has completed their own tax return will know that the tax office treats different types of income differently. Bank interest is recorded in one section, dividends from shares in another and managed fund distributions somewhere else. And unless you are taking a pension or lump sum from your super, you don’t need to include your earnings on those funds at all.

Returns from investing in shares and property – in particular – come with some real tax benefits. The trick is to make sure you take advantage of them.

Understand the rules

The most common tax benefits are:

  • Franked dividends from Australian shares – these represent a tax credit of up to 30% for tax already paid by the company. But beware, if your franking credit entitlement is over $5,000 the shares must have been held for at least 45 days.
  • A fifty percent discount on the capital gain made from the sale of a personally held asset. Superannuation funds can qualify for a one-third discount. But this only applies where the asset has been held for at least 12 months.
  • Capital losses can be offset against capital gains and the net gain is only payable when the asset is sold. The tax can be deferred for a long time.

Choose who owns the assets

The best tax outcome can be achieved with a low-income earner holding investment assets. They could earn up to $20,542 tax-free, receive a refund of all imputation credits and pay less tax on capital gains. For instance, if an investor on the top marginal tax rate of 47% had a $100,000 capital gain they would pay $23,500 in tax and Medicare. If an investor with no other income had a $100,000 capital gain they would pay $8,797 – a saving of $14,703.

Choose the structure

Superannuation funds have the most generous tax arrangements. If you manage a share portfolio in a super fund, capital gains will be taxed at 10% or 15%, whereas if you held them privately they would be taxed up to 23.5% or 47%.

Imputation credits are especially valuable in a super fund because the fund pays a flat 15% tax and the 30% tax credit can be used to offset tax on other income.

Be smart about timing

The 45-day and 12-month rules are obviously important to maximise tax benefits. Capital gains are only incurred when an asset is sold and capital gains tax (CGT) can be deferred indefinitely. An investment asset can be passed through your estate to future generations and no CGT would be payable.

Superannuation provides special opportunities to avoid CGT altogether. In the accumulation stage of superannuation, the fund pays tax at 15% but once a pension is started, the fund pays no tax at all. A share portfolio or a property can be sold once the pension has started and no CGT would be payable.

The opportunity to invest tax-effectively using some of these methods will vary from one person to the next. Make sure you seek advice about how they relate to your own situation.

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.
Read More >>

5 small business strategies for kick-starting the financial year

All / 04.07.2019

5 small business strategies for kick-starting the financial year

How often do you give your business finances a tidy-up? As another end-of-financial-year rolls by, now is as good a time as any to undertake a bit of housekeeping.

The stresses of running a small business often see us rushing, unprepared, towards June 30th. It’s that time when we draw a line under our business finances for one year, take a deep breath, and plunge into the next.

This year, before holding your nose and leaping into July, why not take a moment to dust off your finances and begin the year with a fresh outlook?

Here are five ideas to get you started.

Insurance

The Australian government’s business website, www.business.gov.au can help you understand your compulsory insurance requirements, along with other cover you should consider, like personal insurances to protect yourself, your income and your family in the event you’re injured or become too ill to work.

Additionally, there are policies to protect your premises, your stock and machinery.

If you’ve had insurance for a while, perhaps shop around and see if there are better deals to be had.

Tax planning

The start of a new financial year is perfect for developing a forward strategy. To get organised, and stay organised, throughout the coming year start by understanding your industry’s regulatory obligations and entitlements. Look at government concessions, asset write-offs and deductions.

Stay up-to-date with compliance responsibilities like, Single Touch Payroll, effective from 1 July 2019.

You should:

  • analyse your profit and loss: monthly, quarterly, annually.
  • track revenue to ensure billing and collecting provides adequate cash flow.
  • calculate the cost of doing business; devote more time to activities that are the most profitable and help grow your business.

Your tax accountant can help you put a system in place that will keep your tax records organised and up-to-date throughout the year. Why not call them to arrange a time to talk it through?

Systems

If you’re doing things a certain way because that’s how they’ve always been done, it may be time to cast a critical eye over your business procedures. Are there :

  • better/faster/more efficient ways of doing things?
  • technologies to simplify processes, e.g.: point-of-sale (POS) systems?
  • process bottle-necks or duplicated steps that can be safely bypassed?
  • ways to automate manual processes like running reports or paying regular accounts?

Business tracking

Staying on top of business performance, trends and cash flow can eliminate surprises by spotting potential problems and identifying supply and demand patterns.

Start by:

  • analysing data from previous years or seasons.
  • looking for peaks and troughs in sales/turnover/productivity.
  • identifying what worked and what didn’t work.

Plan to grow

Once you know where you are, you can look for ways to move forward.

Whatever your business’s growth strategy, be sure you have the resources to support it. Consider whether you’ll need to invest in machinery, supplies or specialist staff?

Now, update your business plan and review it regularly to stay focussed on where you’re heading.

Running your own business is hard work, but it’s also one of the most satisfying things you can do.

Richard Branson once said, “A business is simply an idea to make other people’s lives better.” So, this new financial year, start refreshed and set yourself up to make your life, your family’s life and your customers’ lives better.

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.
Read More >>

Is household debt consuming you?

All / 27.06.2019

Is household debt consuming you?

By the end of 2018 Australia had, relative to the size of its overall economy, one of the highest levels of household debt in the world. At 127% of gross domestic product (GDP), our household debt, as a percentage of GDP, had nearly doubled over the last 20 years.

So are Australian households groaning under the weight of oppressive levels of debt? For the most part the answer is no. A major reason for the increase in household debt is that interest rates are much lower than they were 20 years ago, so it’s easier to service larger loans. And over 90% of our household debt is owner-occupied home loans and investment loans.

Good debt, bad debt

Home loans and investment property loans are often referred to as ‘good’ debt because, when used responsibly, they (usually) improve wellbeing and build wealth over the long term. That said, poor choices or unfortunate changes in circumstances – borrowing too much, loss of a job or an increase in interest rates for example – can see ‘good’ housing debt turn ‘bad’.
Another type of bad debt is lifestyle debt. This has a negative impact on wealth because the debt is being used to buy things such as cars and clothes, holidays and groceries – that lose value rather than gaining it. In today’s world it’s easy to accumulate bad debt.

Temptation galore

Credit cards, digital wallets on our phones, payday loans and buy-now-pay-later options all make it easier to spend money, even if it’s money we don’t have. Relentless, targeted advertising, the fear of missing out, the increasing level of peer pressure enabled by social media or just paying for daily essentials are all capable of leading us into spiralling debt.

Is debt consuming you?

Some warning signs that you have a debt problem include:

  • Not paying off your credit card in full each month. This means you will be paying a high rate of interest on the carryover balance.
  • Your total debt is increasing, along with your interest payments.
  • You’re experiencing housing stress. This means rent or mortgage repayments consume more than 30% of your pre-tax household income.
  • You’re using debt to fund basic living costs.

Taking control

How do deal with your particular debt problem depends very much on personal circumstances.

  • Track your spending. Australians buy huge amounts of clothes they don’t wear, food they don’t eat and gadgets they don’t use. For every purchase ask yourself, “do I really need this?”
  • Take out a lower interest rate personal loan to pay off high interest debts such as credit cards. Repay the loan as quickly as possible.
  • If you have a home loan, make sure it has a linked offset account that you use for everyday banking. You only pay interest on the difference between your loan balance and offset account balance so all of your money is working to pay down your loan.
  • Review your home loan regularly. You may be able to refinance at a lower interest rate. Check for all the fees involved.
  • Talk to your financial adviser. They can look at your specific situation and recommend strategies that will put you in control of your debt rather than having debt consume 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.
Read More >>

Don’t wait until your 60s to see a financial adviser

All / 21.06.2019

Don’t wait until your 60s to see a financial adviser

Ask most 30 year olds who their financial planner is and the typical response might be ‘huh?’ After all, financial advisers are for older people with plenty of money to invest, aren’t they?

Well, yes, people nearing or in retirement will benefit from sound advice. But so will younger people. With the benefit of having time on their side, and with some help from an adviser, a 30-something can easily establish a wealth creation plan that can deliver a big payoff in the future.

Harness compound interest

It’s been called the most powerful force in the universe, and compounding returns – earning interest on your interest – can deliver dramatic results.

Imagine that, at age 30, you commence a simple savings plan. You contribute $2,000 each year to an investment that delivers an after-tax return of 6% pa. After 30 years you will have contributed a total of $60,000, but your investment will be worth $158,116. The magic of compound interest will have delivered you an effortless $98,116! The longer you go and the more that you contribute the bigger the ultimate balance.

Manage debt

The wrong sort of debt can have a huge impact on your future wealth. High interest debt such as credit cards and payday loans should be avoided if at all possible. Consolidating several debts into one lower interest loan can help get debt under control and save you heaps of interest.

Even with ‘good’ debt, such as a home loan, simple strategies can pay big dividends.

For example, repayments on a $500,000 mortgage at a 4% pa interest rate over 30 years will be $2,146.90 per month. Increase mortgage repayments by $166.67 per month ($2,000 per year) and the loan will be repaid in just under 25 years, saving $80,144 in interest.

In these examples the savings plan delivers the bigger result due to the higher interest rate. However, paying down the mortgage is a low risk strategy. The higher return from a long-term savings plan is likely to come with a higher level of risk. An adviser can help you find your investment risk comfort zone.

Where will the money come from?

While many people in their 30s can easily find a couple of thousand dollars a year for savings and debt reduction, for other that’s not such an easy task. However, significant savings may be hiding in plain sight. For example, the average Australian household throws away over $1,000 dollars’ worth of food every year. There’s half the target already. Buying lunch each day can easily cost over $2,000 a year. Taking lunch from home occasionally could easily provide the rest.

Don’t forget protection

Regardless of age, bad things can happen. The financial consequences of death, illness or disability can be devastating, and the younger you are the bigger the potential impacts. How will your retirement look if you’re no longer able to earn an income or contribute to super?

Most Australians have much less life and disability insurance than they need. Your adviser can help you ensure that your family’s wealth creation plans are well protected.

Who’s your financial planner?

Simple savings plans or increases in mortgage repayments are simple strategies that anyone can put in place. However, we live in a complex financial environment, and expert advice can really help you make the most of the wide range of opportunities available. This includes choosing the right savings structures (superannuation or non-superannuation), and investment products that suit your resources and priorities. A planner can also help you find hidden savings, and run the numbers to help you choose between different strategies.

Ready to meet your financial planner? Just give us a 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.
Read More >>

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.
Read More >>

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.
Read More >>

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.
Read More >>