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The Importance of Staying Invested in Volatile Times

All / 20.03.2020

The Importance of Staying Invested in Volatile Times

TNRWealth utlises MorningStar as one of its investment research partners due to its size, expertise and capability.

Please click the following article/and video to highlight the current market conditions.

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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3 things you may have forgotten to plan for in retirement

All / 12.03.2020

3 things you may have forgotten to plan for in retirement

Retirement can be an exciting phase in your life. But all the recent changes to superannuation bring with them lifestyle and financial issues you need to be aware of as you plan your retirement.

Retirement means different things to different people. For some, it’s an opportunity to travel, to begin that project they’ve been putting off for years, or to just relax, spend time with the grandkids and dabble in their favourite hobbies. Retirement should be a time to relax and be free.

Plan smart for a stress-free retirement

Your retirement should be a time to free yourself from financial stress. Planning and good advice from a qualified financial adviser is the key to a trouble-free retirement.

If you’re considering retirement, there are issues you need to think about and plan for before you take the plunge. Here are 3 decisions retirees commonly miss in planning for their retirement:

1. Have a re-contributions strategy

Few prospective retirees have heard about a ‘re-contribution strategy’ but you do need to know what it is and how it works.

Your superannuation entitlements comprise both taxable and tax-fee components. A re-contribution strategy is one where you withdraw your money from your superannuation account and re-contribute that cash back into your fund.

Why a re-contributions strategy is important

Re-contributing all or part of your withdrawn funds back into your superannuation as a tax-free non-concessional contribution increases the level of tax-free funds in your superannuation account.

This reduces the tax payable on your superannuation pension if you dip into that pension while under 60 years of age. A re-contribution strategy can also lower the tax payable on benefits paid to your beneficiaries when you direct your superannuation benefit to your non-dependent beneficiaries following your death.

2. Death nominations

A lot of retirees often forget death benefits are payable to your dependents or your estate from your superannuation fund upon your death.

There are four forms of death nominations. You can make a binding death benefit nomination while you are alive. This is a written direction to your superannuation trustee establishing how you wish your superannuation death benefits to be distributed.

Secondly, a reversionary beneficiary is where a superannuation fund member receiving an income stream nominates a beneficiary to receive those payments upon their death.

Thirdly, you can make a non-binding death benefit nomination guiding how you wish some or all of your superannuation death benefits is be distributed following your death.

Lastly, you may make a non-lapsing binding death benefit nomination directing your superannuation trustee to distribute some or all of your superannuation death benefits. This nomination, if allowed by your fund trust deed, remains in place unless the member cancels or replaces it with a fresh nomination.

Why a Death Benefit Nomination is important

If you don’t dictate how your superannuation death funds are to be distributed, the trustee of your fund has discretion as to who should receive your superannuation death benefit in the event of your death.

3. Ensuring your money will last and maximising Centrelink

Australia’s social security system is means tested. It is designed to act as a safety net. So, the higher your income or assets you have on retirement, the lower your Age Pension entitlements may be.

If your income or assets exceed the set cut off limits, you will not be eligible to an Age Pension at all. Hence Australians are expected to use more of our own savings to fund our retirement.

Currently, for every $10,000 of assets above the allowable Age Pension threshold your pension drops by $390 per year each if you’re a couple or $780 per year for single.

Why ensuring your money lasts is important

The more heavy lifting your pension does, the less you’ll draw on your retirement savings. This is important as our increased life expectancies coupled with a turbulent investment environment make it challenging to ensure your retirement savings will go the distance.

Final observation

Planning your retirement can be complicated. As you can see from the above three issues, the various legislative frameworks are complex. While it pays to understand how retirement works, contact a qualified financial adviser to discuss your personal situation and retirement needs.

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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Will there always be an age pension?

All / 05.03.2020

Will there always be an age pension?

With all of the talk about the need to be self-sufficient in retirement it’s not surprising that many people assume that the government-funded age pension will be phased out altogether sometime in the future. But will it?

Both sides of politics have committed to retaining the age pension “for those in need”. The age pension is means tested using both an income and an assets test – the test that pays the lowest pension is the one that is used.

Conclusion – The age pension will remain, but not for everyone

There are two other aspects to the government’s retirement income policy – compulsory superannuation and tax-concessional voluntary superannuation. Following the increase to the assets test thresholds in January 2017, many people now qualify for only a part pension. Meaning, the general rule still holds – as you build more super, you will qualify for less age pension.

One aspect that people don’t consider is the age when a pension becomes payable. Historically, it has always been age 65 for men, and since 1995 the qualifying age for women progressively extended to age 65.

With people now living longer lives, the age pension may be payable for 20 to 30 years – a very long-term commitment for governments. This raises the question “why 65?”

The answer to this question suggests another key issue in the provision of the age pension. It all goes back to Otto von Bismark, the German Chancellor in the 1880s. He introduced state funded “accident and old age insurance” – the first pension scheme in the world. This standard was followed throughout the rest of Europe and eventually the world.

His actuaries nominated age 65 as when the “old age insurance” would be payable. This was at a time when the average life expectancy of a German male was 44. A very small percentage of the population could expect to receive the pension and they were not likely to receive it for long.

In 2010 the government considered the question of ‘why 65?” and the age pension age was increased. Starting from 1 July 2017, the qualifying age for both men and women increases by six months every two years. From 1 July 2023, the qualifying age will be 67.

With increasing “grey power” as our population ages, it would be political madness for any government to even consider abandoning the age pension. Instead, fewer people are likely to qualify at a later age for a shorter period.

This is all the more reason to continue to build your own superannuation nest egg and become self-sufficient in retirement.

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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Insurance – don’t go it alone

All / 27.02.2020

Insurance – don’t go it alone

There is no doubt that the very thought of claiming on your own insurance policy is depressing, but extensive research tells us that you (and even me) may be unable to work for an extended period during your life due to sickness or an accident. The problem is that nobody has any idea when that might happen. Please try to fight the urge to stop reading now and ‘worry about it later’ because there is an important message here.

It’s a confronting topic that makes us think about our own mortality. However, as a financial adviser I have helped many clients through the process. The worst can happen to anybody. If it does happen to you, you want to make sure that:

  1. you took due care (supported by advice and help from someone in the know) when preparing your initial application, and
  2. that you actually have the cover in place. The first question after, ”are you ok?” is often, ”do you have insurance?” If you think your answer would be ”I think so” or ”no”, please stop now and consider how your family would cope in this situation, or more to the point, how would you cope financially if something happened to a beloved family member?

Where do you start if you don’t have cover?

Find a licensed financial adviser who specialises in Personal Risk Insurance. I can help you here. The application process is so important to relieve stress in the event of a claim. It has to be done right; and the conditions and definitions (the boring stuff) must be spot on.

Don’t be satisfied with approval of cover that required very little in the way of medicals or blood tests. You may think you have cover but it’s a nightmare to be told at claim time your application is rejected because you ‘broke the rules’ since you forgot (often genuinely) to tell the insurer something small but now seemingly crucial.

A professional adviser will ensure you have insurability from the very moment the cover is granted. Yes, you will have to pay for that advice, but it’s invaluable. The last thing anyone wants when they have suffered a serious injury or have been diagnosed with a life-threatening illness is a delay. Or worse still, have any doubt the claim will be paid.

This is where the role of an adviser throughout is so important. Your adviser usually knows someone ‘higher up’ and ‘in-house’ who could assist through the process. That means, it’s not only your adviser who is onto the insurance company but their internal contacts, often part of a large Head Office, which the insurer does not want to get offside. This alone is a huge advantage over buying insurance online, because who will be there to back you up?

So please don’t put it off another moment – and this is the ‘pulling-on-heartstrings part’ – do it for those you love and who love 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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Achieving Financial Freedom

All / 20.02.2020

Achieving Financial Freedom

What does financial freedom mean to you? The ability to travel the world and build a dream home? Or to be able to enjoy a simple but active retirement, and support some good causes?


We all have different desires and goals in life, but most of us share the dream that one day we would like to achieve our particular version of ‘financial freedom’. The challenge is that most of us don’t really know what it takes to turn our goals, be they vague wishes or burning desires, into reality.

However, with just a little bit of forethought, some expert advice, and by acting on that advice, we are much more likely to reach that goal of financial freedom.

Making the list

Your key ally in achieving financial freedom is your financial adviser, and amongst the most important things your adviser will need to know is what your goals are. So make a list and prioritise it. Which of your goals are essential, and which ones are you willing to compromise on?

Reality check

Just as we have different goals, so do we have different financial resources. One of the first things your adviser will do is run a reality check. Given your income and expenditure, job outlook, health and family situation, are your goals realistic and achievable?

Your adviser will also check if key goals are missing. For example, life insurance can be an essential tool for protecting your family’s future financial freedom, yet many people overlook it.
With the big picture now clear, your adviser can develop strategies that will bring that goal of financial freedom closer to fruition.

Perfect timing

When’s the perfect time to start your journey to financial freedom?

Today.

Because the sooner you get started, the sooner your goals will be achieved.

So think about your goals and desires. Importantly, write them down. Then make an appointment to sit down with your financial adviser, and take those critical first steps towards achieving your financial freedom.

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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Renting in Retirement: Is it possible?

All / 13.02.2020

Renting in Retirement: Is it possible?

As record numbers of Australians transition into retirement, considering your cost of living and comparing it to your expected average annual retirement income is a crucial step in retirement planning. For many Australians transitioning into retirement, the increasing cost of housing continues to be a burden on people’s ability to pay off their property in their lifetime. This can lead to a few common scenarios — selling the property prior to retirement and renting, continuing to pay down the mortgage and leaving beneficiaries with an asset that has debt owing, or renting due to lack of affordable properties on the market. Naturally, this is a stressful situation for anyone to think about, whether you’re about to retire or you’re a young adult watching your parents plan for retirement.

How much money do you need to retire comfortably in Australia?

According to the Association of Superannuation Funds of Australia (ASFA), there are two broad categories of lifestyle in retirement — comfortable or modest. A comfortable retirement affords people with a good car, top-tier private health insurance, dining out on regular occasions, travel, and the other lifestyle factors you enjoyed while working. In a modest retirement, you will be entitled to the Age Pension, but you’ll only be able to afford a basic lifestyle, with limited funds available for home improvements.

To live a comfortable retirement, you need to have a nest egg of approximately $545,000 for single people, and $640,000 for a couple. These nest eggs would generate an income of $43,000 for single people and $61,000 for a couple.

For a modest retirement, you require a much smaller nest egg around $70,000 for single people and couples. This modest nest egg is all that’s needed for a modest retirement because the Age Pension and associated pension supplements will cover most of your living expenses.

How can renting affect your retirement income?

While these numbers help you understand what your nest egg should be before you retire and what you can expect your annual income to be, things become complicated if you don’t own your home. The ASFA’s calculations assume that retirees will own their property before retirement, therefore not needing to allocate money towards mortgage repayments or rent in the household budget. According to the ABS, people aged over 65 years old and renting account for around 285,000 Australian households. While renting can afford you the ability to live in a more desirable location than if you owned a property, the cost of your rent still needs to be factored into your retirement planning.

Can you rent and afford a comfortable retirement?

Based on the ASFA’s calculations, if you live in Sydney retired couples and singles would need $1,166,000 or $1,045,000, respectively to afford a comfortable retirement lifestyle and rent. While this number may be slightly lower for other cities and regional centres where rental prices are lower, it’s a good reminder to get an understanding of exactly how much your retirement nest egg should be if you’ll be renting throughout retirement. Further, living off or relying on potentially living off the Aged Pension alone will limit your ability to enjoy a comfortable lifestyle and restrict your living options. This is why it’s vital to understand how you can maximise your super funds in the accumulation and drawdown phases.

Understanding the best way to drawdown on your superannuation balance is important too. This is because, like other passive investments, you need to ensure you’re not drawing down so much capital each year that your balance isn’t compounding at an adequate rate to provide you with enough retirement income for the rest of our life. For example, if the average return on your super balance is 9% per year, you’ll want to avoid drawing down more than 4% of your balance each year, so the rest of your balance can continue to grow and fund your future years of retirement. A good financial adviser can help you with these calculations to ensure your nest egg and drawdown rate meets your desired lifestyle.

What are the alternatives to renting in retirement?

Fortunately, if you’re not interested in renting throughout your retirement, there are alternatives. These alternatives include living in a motor home, moving into a retirement village, securing granny flat rights, or, if you’re a fan of the ocean, living on a cruise ship. While these options may not be for everyone, the very nature of retirement, not needing to be in one specific place for work, can give you the flexibility to live a nomadic lifestyle. Or, if you’re interested in staying in one place, a retirement village or granny flat rights will provide you with that lifestyle.

In conclusion

There’s no one size fits all when it comes to your finances, especially when you’re planning your retirement. But, if you don’t own your home, you’ll need to factor the cost of rent into your retirement planning to ensure your nest egg and the annual income you’ll draw is enough to provide your desired retirement lifestyle.

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

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

All / 06.02.2020

A good time to review your insurance

Not a year goes by without some part of Australia being devastated by a natural disaster. Bushfires, floods, storms and tropical cyclones are a part of our lives. And as we’ve witnessed in recent years, destructive weather patterns and events occur regularly throughout the year, often with little or no warning. This means that any time of the year is a good time to review your insurance cover to ensure your financial possessions are protected, as well as the security of you and your loved ones.

The pain of under-insuring

The images of families losing all of their possessions during widespread flooding, storms and bushfires over recent years should provide a constant reminder of how a lifetime of hard work can vanish in minutes. It is even worse when so many of these victims were either uninsured or under-insured.

Most people understand the consequences of being uninsured: you bear the total loss of whatever damage is suffered and property lost. On the other hand, being under-insured means that you have not insured your property for its full value, which is considered to be less than 90% of any rebuilding costs.

This may not be intentional. It’s easy to fall into this trap, particularly if you don’t review your policy in relation to the value of your home and possessions on a regular basis. How much has your property changed in value over the past three years?

This is how easy it can happen

You don’t have to lose your entire home to suffer the effects of under-insurance. Partial loss can place a challenging strain on your finances.

Take the example of Jake and Olivia whose home was valued at $500,000, but to save money on premiums they decided to insure it for only $375,000 – three-quarters of the value. An out-of-control truck ploughed through their front fence before coming to rest halfway through their master bedroom. Thankfully they were both at work and nobody was injured. Their home sustained $100,000 worth of damage but Jake was shocked when he learned that the insurance company would only cover three-quarters of the loss – just $75,000. They had to borrow the $25,000 shortfall.

If you look at it from the insurer’s perspective, when you insure for less than the real value, they are receiving less money in premiums, so they’re not likely to pay the full value in a claim.
Natural disasters and accidents are not fussy about who they affect so don’t let the next one be the catalyst to review your insurance coverage.

And while you’re doing this, make sure you have appropriate and adequate life insurance in place. You and your loved ones are far more valuable than your possessions. Now is the time to act.

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.
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Nine tips to help you get your finances back on track and achieve your goals

All / 30.01.2020

Nine tips to help you get your finances back on track and achieve your goals

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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Is paying your mortgage off quicker really the best option?

All / 23.01.2020

Is paying your mortgage off quicker really the best option?

Not so long ago one of the most effective, low risk wealth creation strategies was to use spare savings to pay down a mortgage, either directly or via the well disciplined use of an offset account. If your mortgage interest rate was 8% per annum, that’s the effective, after tax investment return this strategy delivered, substantially reducing the term of the loan and delivering big savings on interest.

But what about now? With home loans being offered at interest rates of less than 4% pa, does using surplus savings to pay off the mortgage still make sense? Or is it better to contribute those savings to an investment that may provide higher returns? Let’s see what we can learn from Emma’s situation.

Emma is a 45-year old, single professional with a $200,000 mortgage on her home. The home loan interest rate is 3.4% pa, and Emma’s marginal tax rate is 39%, including the Medicare levy.

Following a recent promotion, she has a savings capacity of $2,000 per month, plus annual bonuses. Her only other debt is $10,000 on her credit card with an interest rate of 20%. Emma has a healthy superannuation balance for her age, and does not want to contribute more to super.

So where to from here?

Although a relatively small amount in dollar terms, by virtue of its high interest rate the credit card debt should be cleared as soon as possible. The rules of managing high interest debt are simple: pay off the debt with the highest interest rate first, and work down to the lowest interest rate debt. If possible, consolidate all debt at the lowest interest rate. In Emma’s case, if she has the ability to redraw some funds against her home loan, she should do so to pay off the credit card.

Doing better

With the credit card completely paid off, Emma’s attention now turns to how to make the most of her savings ability. After looking around, she’s identified a number of investments that have consistently produced returns of more than 3.4% pa. Wouldn’t they be a better option than paying down the mortgage?

They may well be, but there are two important things that Emma needs to consider: tax and risk.

Tax

Extra payments made to the mortgage provide Emma with a net return, after tax, of 3.4%. But if Emma contributes her savings to a purely income paying investment, that income will be taxed at her marginal rate of 39%. To earn 3.4% after tax, Emma’s investments need to earn 5.6% pa before tax.

If Emma opts for investments that provide a mix of income and capital growth, such as shares and property, the tax situation becomes a bit more complicated. Tax on any capital gains isn’t paid until after the investments are sold, and if held for more than 12 months, Emma will benefit from the capital gains tax discount.

Even without these tax perks a targeted return of greater than 5.6% pa is one that Emma can realistically aim for, as long as she is comfortable with the risk.

Risk and return

A fundamental ‘law’ that investors can’t avoid is that higher returns come with higher risk. Paying off the mortgage is about as close to a risk free return that Emma could achieve. However, in the current environment, Emma may well feel that pursuing the higher returns from an investment strategy is well worth the greater risk.

What’s right for Emma isn’t necessarily right for everyone else. Age and stage of life, health and overall financial situation all influence the level of risk we may need or want to take on.

Is paying off the mortgage as quickly as possible the best option? It really depends on your situation. And it doesn’t need to be all or nothing. A blend of paying down debt and investing may provide a happy median.

Got some spare savings capacity? Your financial planner can help you work out a wealth creation strategy that’s right for 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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Work, life, travel – you can do it all!

All / 16.01.2020

Work, life, travel – you can do it all!

Michael was twenty-something and eager for adventure when he spotted the advertisement. It read, “Japanese schools seeking English teachers. No experience necessary – we train you.”

What followed changed Michael’s life forever as he successfully completed the organiser’s training program, and embarked on a year of living and working in Japan.

Many dream of escaping mundane work-lives by experiencing another country’s culture while earning a living.

In this age of internet connectivity, the work, life, travel proposition is very do-able. In fact, many of us already utilise video-conference technology to communicate and attend business meetings from home. Why can’t that home be in another country?

Maria is Greek and was living in Sydney with her Australian husband Peter when her elderly mother became ill. The couple visited Greece to care for Maria’s mum, and Peter was able to continue his Australian job via remote desktop connection.

Working remotely isn’t possible for everyone so we’ve rounded-up a few alternative jobs you can do while travelling the world.

Travel writing: Good with words? Write travel articles or blogs and get paid for sight-seeing and exploring new places.

Considerations: This highly competitive industry can be difficult to break into so have some cash behind you until you establish yourself. Stick to unusual or quirky locations; nobody needs another story about Rome’s Colosseum. Further, people rely on travel articles for their own holidays so write honestly. Provide insider tips and discuss risks.

Travel photography/video: Social media is a terrific showcase for your travel pics and videos. Team up with a writer, or write your own copy, to create travel blogs or narrated vlogs (video blogs).

Considerations: Photography and video tourism may be slow to start but opportunities include YouTube or Vimeo to present work. You might also think about publishing a coffee-table book once you’ve established a portfolio.

Housesitting: Get paid to mind peoples’ homes and care for their pets while they’re away.

Considerations: Housesitting opportunities are located via dedicated organisations like trustedhousesitters.com. You must provide a police check and references and pay a membership fee but you’ll be supported by the organisation as you travel the world. Housesitting doesn’t pay well but you’ll have no accommodation costs.

Hospitality: See the world through its hotels, restaurants and bars. Opportunities exist worldwide, particularly if you have food and beverage experience.

Considerations: Traditionally a rite-of-passage for school-leavers, these days, chefs, baristas and hoteliers are gaining creditable experience in international establishments.

Other considerations

Research and plan carefully before jetting off. For example:

  • Contact the consulate of your intended country to understand what Visas are required and their terms and conditions.
  • Many countries impose age restrictions for those taking a working holiday.
  • Even if you’re not a resident or citizen, income may be subject to tax in the country in which it’s earned. You should also speak to your accountant about your Australian tax and superannuation obligations, particularly if you’re working remotely on your Australian job.
  • Take out travel insurance. Earning money doesn’t automatically grant you access to a country’s medical scheme.
  • Update your will and consider nominating a power of attorney to manage your affairs back home.
  • Notify your bank, you’ll need some savings to get started, and keep a cash back-up for emergencies. Holiday jobs can be low-paying so expect to live pay-to-pay.
  • Check out overseas job sites; websites like Seek and Indeed list jobs worldwide.

Australians are an intrepid lot and we live in an age of endless opportunities to explore the world and live the work-life-travel dream.

Do your homework and plan carefully; your new adventure could be just over the horizon.

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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