Are you 40+? Then you are possibly mid-career, mid-family, or both. Life is hectic so outsource the budget, personal insurance and portfolio of investments to an expert who can help you get it sorted once and for all!

Advice Targeted To Your Circumstances

Are you headed in the right direction?

Our advice…

Our advice is to consider the following things carefully!

Many people think of their future and imagine a life with a family, a home and a secure job, it’s not often you would imagine a future of stress and health problems. It’s worth considering what you’ll need to do to achieve the life you imagined while dealing with the unexpected along the way.

Let’s look at the facts. How is your financial life shaping up right now?

  • 81% of Australian’s feel that life insurance is too expensive; however 61%[1] of people also overestimate the cost of life insurance. If you undertake life insurance at a younger age you could be significantly lowering the cost!
  • Australia’s average household makes an annual income worth 25%[2] of Australia’s average house price! This causes significant issues in housing affordability for the average family
  • The cost of raising two children from birth to age 21 is around $812,000[3] – how are you going to pay for it?
  • Most Australians will spend around 20 years in retirement[4] ensuring your savings and superannuation are sufficient is something you should consider when planning for the future.

Future planning may not feel like a huge priority right now, but the earlier you begin the easier it can be to achieve your long term goals and financial stability. Call us today for an appointment to discuss how you can plan for your future


[1] Hamiton Brokers, (2015). Why Many of Us Mistakenly Overlook Life Insurance. [Accessed 22 Jan. 2016].

[2] Kimmorley, S. (2014). CHART: The Average Australian Household’s Income Is $145,400, Here’s What They Spend It On. Business Insider Australia.[Accessed 22 Jan. 2016].

Mywealth.commbank.com.au, (2016). Average Australian house price reaches $563,000 | MyWealth Commonwealth Bank.[Accessed 22 Jan. 2016].

[3] Simply Smarter Blog, (2015). The Cost of Raising a Child in Australia – Simply Smarter Blog.[Accessed 22 Jan. 2016].

[4] Superguy.com.au, (2016). Average Retirement Age in Australia | Super Guy.[Accessed 22 Jan. 2016].

Abs.gov.au, (2016). 3302.0 – Deaths, Australia, 2014.[Accessed 22 Jan. 2016].

Enough Future Super?

Super – make your contributions count

Having an understanding of the different types of super contributions will help you to take advantage of some tax-effective ‘top-up’ strategies that can increase your retirement savings.

Here, John from RI Advice Canberra South looks at the different categories of super contributions and how you can use these in the most effective way.

There are two main categories of super contributions:

  • Concessional contributions,which are made from your pre-tax income."These include compulsory employer contributions, salary sacrifice contributions and contributions for which you intend to claim a tax deduction (if you are self-employed)", says John.
  • Non-concessional contributions,which are those made from your after-tax income, either for you or on behalf of your spouse."The main difference between the two”, says John, “is that they are taxed differently, so it is important that you consider each type before looking to 'top-up' your super."

"As an example, salary sacrificing into super involves making additional concessional contributions, while the Government’s co-contribution scheme uses after-tax income."

Using salary sacrifice to contribute to super is one of the easiest and most tax-effective ways to save for your retirement.

“However, not everyone is eligible for the co-contribution scheme”, says John “but it remains an excellent incentive, as it only takes one contribution to super to benefit from.”

Don’t wait until end of financial year to maximise your super

While there are advantages to using these and other contribution strategies, the Government does have limits on how much you can contribute each financial year, as concessional and non-concessional contributions.

“These contribution limits were also increased in 2014”, says John, “so now, more than ever, is the time to act.”

“Don’t wait until the end of the financial year to ‘top up’ your super – we can help you to decide on an appropriate contribution strategy that will help you build up your retirement savings.”

To find out more about these and other super contribution strategies that can help build your wealth over the long term, contact John from RI Advice on 02 6260 3232

Changing Jobs

Make the right choices. Increased economic uncertainty over the past few years has meant redundancy has become more commonplace.

So, what is the best way to cope with being retrenched and how can you keep on track with your financial goals?

While being retrenched is never pleasant, if you receive a significant payout it may actually improve your situation down the track.

This could be used to cover living expenses while you find a new job, help you set up a new business, or if you are in your 50’s or 60’s even set you up for an early retirement. But trying to work out what’s best for you can be difficult and financial matters can be complex – where do you start?

It’s time to plan getting some financial advice from a qualified professional.

Opportunities are often lost because people panic and act hastily without making the right plan at the outset.

Of course, everyone’s situation is unique.

An adviser can help you to answer questions like:

  • What annual income do you need to live comfortably?
  • What large expenses have you planned over the next 12 months?
  • How much money will you need for the short, medium and long term?
  • If you are over 55 can you afford to retire with your current assets?
  • Are you protected against illness or accident while you are looking for work?
  • Are you eligible for Centrelink benefits such as Newstart Allowance?

How can you maximise benefits from the taxation, superannuation and social security systems?

Restructuring your financial affairs can be the first step in achieving a new sense of direction and order in your life.

Please contact one or our team for more information.

Make the most of your Super

There is no question that redundancy is a major upheaval in life and one which can take a toll on your confidence and your plans for the future.

But how can you plan to recover successfully to create a positive future?

Here, we have broken down the planning process into 5 specific areas that all need attention to get your redundancy recovery happening as quickly and smoothly as possible.

There is no doubt that redundancy can be an unsettling and sometimes harrowing experience. There can be a range of reactions, depending on your circumstances.

But the good news is that there are always new possibilities. Redundancy is an increasingly common phenomenon in recent times and many have had to face it and come through it. Beyond the initial impact there can be opportunity.

With the help of a qualified Adviser, you can use the five steps above to get back on track following a redundancy.

Focus on the benefits

Your redundancy lump sum may be one of the most significant amounts of money you ever receive and it is a great opportunity to review your entire financial strategy.

So what can you do with it? In fact, you have many options.

The key areas to be considered are:

Debt reduction

Paying off debt with some of your redundancy payout is an option, but there it needs proper analysis before you rush into a decision.

It’s a good time to consider how your can rationalise your debt situation, maybe pay off high interest credit cards or consolidate debts with your mortgage. Again, an analysis is needed to make sound decisions.

Insurance

We have already mentioned the issue of continuation options on your employer super, but you should also take the opportunity to review your whole insurance portfolio, including income protection, life cover and trauma cover.

Investment

There are many ways in which you could invest your redundancy payout, but it must always be based on your specific circumstances and decisions should be made with in the context of a broader investment and financial independence strategy.

Superannuation

Super is one area in which you could direct some redundancy funds, but is it the best option? There are many factors to consider and analyse before rushing into that course of action.

If you are experiencing a redundancy and are looking for quality, tailored advice, call RI Advice Canberra South on 02 6260 3232

Looking at Retirement

What type of retirement are you seeking?

There are three basic elements of ‘lifestyle’ as it relates to planning your future finances in preparation for retirement.

Living – This is what you have to do to survive; pay for food, maintain a roof over your head, get your bills paid and so on. We all have these expenses and they are an important and unavoidable part of a financial plan. At the end of the day, budgeting for these eventualities means you don’t have to worry.

Life Balance – Life balance is about adjusting with the times: doing what you have always enjoyed, and including things that you would like to start doing. There may or may not be a cost involved in doing these things, but planning the continuation of these activities is pretty important..

Lifestyle – Lifestyle equals good times! What about that overseas trip, the new car, the swish boat or the antique book collection you always wanted to start? You have the time to do big things now and in retirement. The benefit of integrating lifestyle with life balance and living expenses is you create a full plan to do as much as you would like to do.

The key is to find a balance between today’s lifestyle and security for the future.

For more information on how to plan for the future, contact us for an obligation-free appointment today.

Aged care financial advice

Dealing with decisions on aged care can be overwhelming, but identifying the key issues and getting the right advice can help give you the clarity you need.

The fundamental objective is to achieve the best care without spending more than is necessary. The issues of assets, income, pension entitlements and type of care are interrelated and complex and there is no one-size-fits-all solution.

We have identified five key questions that need to be addressed.

  • What are the accommodation options?
  • How much is it going to cost?
  • Does the family home need to be sold?
  • What are the impacts on the age pension?
  • How can ongoing income meet your expenditure?

These critical questions you can help you find the answers on aged care fees, dealing with the family home, Centrelink entitlements and structuring investments appropriately.

How we can help

We can help you find meaningful answers with advice that can help you to:

  • fund aged care fees
  • make the most of Centrelink entitlements
  • appropriately structure assets and investments
  • provide a suitable ongoing income solution.

Our advice is designed to complement other assistance sourced from professional and government based services, such as your family doctor, the Department of Health (Aged Care, Assessment Team), your solicitor and Centrelink.

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