Open the door to your financial future
Many people use the Christmas/New Year period to reflect on the year that has just passed, often in a blur, and begin thinking about the future and how to achieve their hopes and dreams. Similarly, the new financial year is a good opportunity to reconsider financial strategies and goals.
If that sounds like a good idea, below is a simple guide to tidy up your finances for the year ahead.
If you have already started a family or are planning to, you already understand the costs associated with kids, particularly solving the dilemma of going back to work or staying at home. Driven mainly by concerns over the household budget, parents doing their sums are weighing the rising costs of childcare against government benefits and tax concessions.
Last week we had our quarterly staff meeting. We often have regular meetings to ensure that we all remain up to date on changes to the business, industry and keep providing quality advice to our clients.
This is a great opportunity for the staff and myself to discuss any issues or questions we have encountered and develop strategies to make continuous improvements to our business.
Being made redundant from your job can be hard to accept. It is the sudden shock that catches most people but try not to take it personally. Redundancy is usually not about your personal performance; it’s the performance of your employer’s business, the industry sector in which you work, or even the global economy.
Dealing with the key considerations below can help you take back control of your life and career.
If you’re the eldest sibling in the family, or deemed to be the “most responsible”; if you’re seen to be a good friend by someone; or a fine upstanding citizen by others, chances are you will be asked to be an executor of someone’s will.
Work/life balance is something many of us continuously strive for but rarely feel we achieve. Here are some simple tips to help you on your way.
One of the most obvious questions asked when planning for your retirement is what level of comfort you want to enjoy in your golden years. To know what constitutes “comfortable”, the Association of Super Funds in Australia (ASFA) publishes a quarterly survey as a guide to what the average person spends per year.
The survey assumes home ownership and shows figures for a ‘modest’ and ‘comfortable’ lifestyle for singles and couples. A modest lifestyle means better than just surviving on the age pension but still only being able to afford fairly basic activities. Comfortable means being able to afford a broad range of leisure and recreational activities, private health insurance, a reasonable car, good clothes, a range of electronic equipment, with domestic and occasionally international travel.
The current figures for singles and couples living in New South Wales are shown in the table.
| Modest | Comfortable | |
| Single | $27,368 | $42,764 |
| Couple | $39,353 | $60,264 |
With the current maximum annual age pension for singles being just $23,598 and $35,573 for couples, this is a powerful incentive to increase your own savings.
It’s never too early to start planning for your retirement. Speak to us about the options available to ensure you don’t miss out.
Note: the pension figures quoted include the Maximum Pension Supplement & Energy Supplement.
Sources:
www.humanservices.gov.au Payment Rates for Age Pension
The Association of Superannuation Funds of Australia Ltd – ASFA Retirement Standard http://www.superannuation.asn.au/resources/retirement-standard/
General Advice Warning and Disclaimer
Robards Wealth Management is a Corporate Authorised Representative (No. 325120) of Evermore Money Management AFSL 401712 / ABN 22 149 269 116
This document has been prepared for the general information of investors and does not take into account the investment objectives, financial situation and particular needs of any particular person. Recipients of this document should seek professional advice to confirm that the investments or strategies mentioned are appropriate in the light of their particular investment needs, objectives and financial circumstances prior to acting upon any information contained in the document.
While reasonable care has been exercised and the statements contained herein are based on information believed to be accurate and reliable, neither Evermore Money Management Pty Ltd nor its directors, employees, agents or Authorised Representatives shall be liable (unless otherwise required by law) for any loss or damage suffered or caused to any person or corporation resulting from or contributed to by any error or omission from such statements including any loss or damage caused by any fault or negligence on the part of Evermore or otherwise”.
Imagine you were no longer able to look after your financial affairs, or simply found it an increasing burden to manage your money. How easy would it be for a trusted family member to step in and help you?
There are many reasons why you might find it more difficult to manage your finances as you get older. On top of complex investment structures and a busy lifestyle you might find a normal, age-related decline in your memory creeping up on you. Or it may be a major illness or the onset of dementia that leaves you unable to take proper care of your financial affairs.
To make life easier, both for you and your family, it’s crucial that you plan ahead.
Hope for the best, plan for the worst
While it’s more pleasant to think about long holidays, new adventures or spending time with grandchildren, you also need to plan for the worst. And as nobody can predict the future, the sooner you work up your financial management bucket list the better.
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Welcoming a new family member is exciting but with so many aspects of your life changing, when it comes to your finances some forward planning can make the transition so much easier.
Fortunately, babies allow several months to prepare for their arrival and can be easy to get caught up in the excitement. When making preparations it’s important to have all of Bub’s needs ready; but is equally important for Mum and Dad to be financially organised.
It’s wise to conduct a review of your financial affairs as early as possible, even before you start your family. A good idea is to draw up a “baby-budget”. Do this by listing all household income and expenses under three columns: before pregnancy, during pregnancy and after pregnancy.
This allows you to see and compare your financial position at the different stages you’re going to experience.
