Tag: Financial Advice

How to turn One Day to Day One – Budgeting

Written by on 24 April 2019. Posted in Budgeting. No Comments on How to turn One Day to Day One – Budgeting

We’ve heard it all before. It’s not that we don’t want to take control of our money. I mean it makes sense – we all work so hard for it, it would make sense to know what happens to it once it hits our bank account. Even better if it went to all the right places.

But the reality is, it JUST GETS TOO HARD!!!

That is all true, but…you don’t have to go from zero to 100 in one day. You can just start somewhere basic, get used to it, then move on once you’re comfortable. Doing something is always better than doing nothing.

Here’s something you can do today, 5 simple steps:

Step 1 – think about all the reasons why you think you should get in charge of your money

Would it mean more cash for travelling? Would it make you less stressed? Maybe more fun money for going out? Maybe just have a regular cash reserve so you don’t have to dip into your credit card every time? Maybe it’s time to finally start paying off some debts…?

Whatever it is, you need to be clear on these reasons. Once you have the clarity, write it all down. (make sure you don’t skip this step, writing down is an important step).

Step 2 – think about all the stuff you just wrote down

Rate all the reasons based on their importance. Are some of them more important than others? What would it mean to never achieve some of them? How would it make you feel?

Step 3 – time to pause and think.

You’ve just articulated all the reasons why you want to be in control, and how bad you’d feel if you never got there. It’s time to ask yourself – What have I done about it so far?

Step 4 – if the answer to the last question is ‘Not much’, what do you think you should do now?

Are you really going to change something after reading an article like this? That’s right. Knowing we should do something doesn’t mean we actually end up doing it. It’s human nature. Well, if you won’t change something, nothing will change. You know you won’t do it alone.

Step 5 – Ask for help

Asking for help isn’t a weakness. It’s called being smart and doing something different to people around us. It’s the only way not to end up like everyone else around us.

Procrastinating, getting distracted, being busy – it’s all human but it all stands in your way to move ahead. It’s ok to ask for help, it’s ok to talk to a third-party financial expert. They’re not going to bite your head off and I can promise you one thing – you’ll know you when you find the right one. You’ll look back one day and go ‘what took me so long!?’.

If you change nothing, nothing will change. Change ONE DAY… to DAY ONE!

Do you need some help with creating a new day one?

Send us a message if you want to ask anything. Make a booking or call us on 02 9328 0876 to arrange a meeting.

Article by Michal Bodi | Senior Financial Planner

General Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please seek personal financial advice prior to acting on this information.

Fussy buyers snub houses that don’t present well

Written by on 20 March 2019. Posted in Property. No Comments on Fussy buyers snub houses that don’t present well

When property prices boomed, buyers would look past the 1970s bathroom and the untidy garden, but with prices coming down, those looking to sell need to go the extra mile if they are to maximise the sale price.

As prices move down and buyers become more fussy, real estate agents and buyers’ advocates say vendors risk not getting the price they want by not putting in the effort to present their property well. Scrimping on fixing-up the front fence or giving the property a lick of paint can mean the property is passed by.

“Buyers are very fussy at the moment. I’ve seen buyers not want to buy a property over the smallest things like a feature wall that you could paint over a weekend,” says Peggy Willcox, the founder of Mooney Real Estate in Penrith in Sydney’s west.

Bradley Willmott, the founder of Pursuit Property Advisory in South Melbourne, says the market has changed.

Willmott, who represents both vendors and buyers, but never on the same property, says: “If a [property] is not spot-on, buyers will keep looking because there are more out there.”

Looking for something bigger

Nolan Singh, 36, a finance director and his wife Mandy Singh, 37, who works in human resources are selling their four-bedroom house in Jordan Springs, north of Penrith in Sydney’s west by private treaty, through Mooney Real Estate in Penrith.

They are looking to buy a larger house in the same area, not only because of their growing family of three boys – Tristan, 13, Ethan, 11, Jaiden, 9, but because the family hosts a lot of visitors from overseas.

“The house is big enough, but we would like to have something even bigger and we would like to have a swimming pool,” Nolan Singh says.

The house is only a few years old and the couple has not had to do that much to prepare it for sale. Singh repaired the post box, re-stained the deck, cut the grass and hedges and fertilised the lawn.

The couple took the opportunity to throw away things they didn’t need to declutter the main rooms, such as lounge room, and store everything else into the garage.

Spruce-up to get an edge in “lumpy” market

Christine Roughead, who is semi-retired and works in human services policy, is selling her terrace in Richmond in inner Melbourne where she has lived in for 27 years.

“I bought it as an unrenovated terrace and had it renovated in 2000,” she says.

“The kitchen and bathroom are in really good shape; I had to update the appliances within the last 18 months anyway with a new oven and dishwasher.” She describes the property market as “lumpy”.

Roughhead is selling her house by private treaty. “It could take longer to sell or it could be quicker,” she says. Roughhead is working with vendors’ advocate Bradley Willmott who gave her some tips on how to present the house, which is being sold by agency Whitefox.

“I have only had to make some cosmetic changes like having the inside and outside painted,” she says.

Roughhead is moving to another terrace in inner Melbourne with a little bit more land as she intends to spend more time in the garden as she transitions to full retirement.

Willmott says it is important to make the house appeal to as broad a market as possible. Almost every house needs a coat of paint on the inside and outside, he says.

“[Inside] it’s important for colours to be neutral so that potential buyers can more easily imagine putting their stamp on the property with their own furnishings,” he says. The focus should be on decluttering of the key interior spaces, like the living room, he says.

Alan Yeung, a property consultant at Location Property Group in Sydney’s St Leonards, says making a house feel like a home is very important. “This might include having some bread toasting or coffee brewing when potential buyers come to view a property.

If you are considering selling your property, give us a call to see how it could impact your finances.

Speaking with one of our financial planners could make all the difference. Make a booking or call us on 02 9328 0876 to arrange a meeting.

Aricle by John Collett

General Disclaimer: Originally published by The Sydney Morning Herald on 13 October 2018. This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please seek personal financial advice prior to acting on this information.

6 steps to get your money stuff together

Written by on 20 March 2019. Posted in Money Management. No Comments on 6 steps to get your money stuff together

Here are some easy wins to keep you on the right track for 2019

1. Work out your goals

If you don’t know what you’re trying to achieve, you’ll never get anywhere. And different goals need different strategies…saving for a new car is very different from building up your retirement income.

Take a few minutes to write down your goals for this year and beyond. If your goal is to pay for this year’s big trip, you’ll need to start making some savings to free up some cash.

If your goal is to finance your upcoming wedding, you’ll need to think about putting some money away in a fairly low-risk investment option. If your goal is to buy a house, you’ll need to work out where you can afford to live and how you’re going to build up a deposit.

And if your goal is to put your kids through school, you’ll need to start thinking about a long-term investment plan.

2. Go paperless

You might be the kind of person who enjoys paperwork. But for many of us the age of electronic commerce has been a game changer. Unless you want to, there’s no reason to be receiving any bills or statements by snail mail.

You don’t have to sort it all out today. Just make a point of every time a bill comes in, follow the simple instructions to go paperless—most suppliers offer an electronic option these days. In a few months the postie will only be stopping at your door with exciting purchases from Amazon.

3. Start a budget

We’re all different. Some of us work best off a screen, some of us prefer old fashioned pen and paper.

If an Excel spreadsheet sounds too hard, there are a number of apps that can take the hard work out of paying, saving and spending.

4. Shop around for better deals

You wouldn’t willingly pay more for an item of clothing when the store down the road is selling it for less. So when it comes to your home loan, your utility bills or your credit card why shouldn’t the same rule apply?

Talk to your providers about whether you’re getting the best deal for your particular circumstances. And if not, be prepared to take your business elsewhere.

5. Make a will

It doesn’t matter what stage of life you’re at, you don’t want complications for your loved ones in the event anything happens to you. If your needs are fairly simple, you might want to consider setting up a will online. If your needs are a bit more complicated, your financial adviser, a solicitor or a public trustee can help.

And remember, if you experience major life changes like embarking on a new relationship, starting a family or splitting up with your partner, you need to make sure that your will is up-to-date.

7. Get your tax sorted

If you’re the kind of person who’s already got their receipts filed in date and alphabetical order, you can skip this bit.

But if you’re like many of us, you tend to approach tax time with trepidation. Your receipts are all over the place, you’ve forgotten the work HR password to retrieve your payslip and you still haven’t got around to looking into the Medicare levy surcharge.

It’s time to get back to basics. Don’t worry about how disorganised you’ve been in the past, focus instead on getting your affairs in order for the future.Create a simple spreadsheet for your tax receipts to make your next tax return much easier.

You’ll be surprised at what difference a few really basic steps can make to your personal finances. A phone call here, an online form there…and before you know it, you’ll be well on the way to getting your money stuff together this year and beyond.

If you need help getting your money stuff together, give us a call.

Is your credit card debt sinking you?

Speaking with one of our financial advisors would be a good place to start. Make a booking or call us on 02 9328 0876 to arrange a meeting.

i https://corporate.amp.com.au/newsroom/2018/january/new-year–new-financial-resolutions-

Marriage in later life

Written by on 15 February 2019. Posted in Life Events. No Comments on Marriage in later life

So, if you’re considering marriage, perhaps for a second time or more, give thought to the financial implications of marrying later in life and sidestepping some of the money-related hazards.

Financially, there are two important areas to address. Probably not for the wedding day speeches – but what happens to your money if you get divorced, and what happens to it when you die?

The answers largely depend on, in whose name your assets are held, and what you specify in your will. And let me stress, it’s essential you have a properly drawn-up will. It’s the only way to ensure your estate goes to whom you want it to.

Let’s assume you are both getting married for a second time, and both of you have children from your previous marriages. You have to decide what assets you wish to keep in your own name and control, degree to which you combine assets, and what is passed onto your children if you die before your spouse.

Home ownership choices

If you want to own a home together, you’ll need to choose whether to buy it as ‘joint tenants’ or ‘tenants in common’. If it’s the former and one person dies, their partner automatically owns 100% of the property, whereas with ‘tenants in common’, if one partner dies their half share in the property goes to whomever it is willed to. When there are children involved and inheritance issues to deal with, ownerships of assets such as the new marital home require careful consideration – and maybe a family conference.

Consider super

Then there’s super. While there’s been a big move towards self-managed super, setting up a SMSF with your new spouse, as opposed to maintaining your own super fund, needs careful consideration. Your new spouse may have a different attitude to investment risk than you, leading to investments you may not be happy with. And in the unfortunate outcome your second marriage fails, getting out of a self-managed super fund is much messier than keeping your own super in your own name. Just make sure you specify, via a ‘binding nomination’, to whom your super is to go, such as your children.

Financial agreements

Many couples marrying later in life have a financial agreement drawn up by a lawyer before they tie the knot. This binding agreement spells out what assets each party brings to the union, and who gets what in the event the marriage collapses. While not very romantic, Australian lawyers have more recently shied away from these agreements in the event they get challenged in court and are found not to be watertight, leading to problems for the lawyer! There is still a case for entering into a financial agreement before marriage, particularly if there is a significant disparity between the wealth of the spouses. Just make sure a good lawyer draws it up.

Getting married again, or in your later years, particularly if you have children and/or significant assets, is a key time when seeking advice and assistance from professional advisers, both financial and legal, is likely to be a good idea.

Need a professional to go through things?

For more help and professional advice on what things you should put in place, book a coffee or call us on 02 9328 0876.

Article by AMP Life Limited

Investing in a holiday home

Written by on 22 January 2019. Posted in Investment Property. No Comments on Investing in a holiday home

And you start thinking: “If we had our own place, we could go there all year ‘round and instead of contributing to someone else’s financial future we could be contributing to our own”.

It’s a tempting thought.

That was then…this is now

In days gone by, a second home by the sea might only have been a glorified shack with an outside loo, but it was an integral part of the Aussie dream. And it was pretty cheap so it didn’t break the bank.

But fast forward to the present day and you’d be hard pressed to find many cheap and cheerful beach shacks anywhere near a major city.

These days, a holiday house is a major financial investment that’s got to work over the long term. And if you’re like most Australians, any major financial investment becomes an emotional investment too.

The great dream…

It’ll be great for the kids –they will love it and the memories will last a lifetime!
It’ll be great for your sense of freedom – you can transform it into the holiday home of your dreams!
It’ll be great for cash flow – you could receive a regular income from tenants.
It’ll be great for your tax bill – your tax deductions will mount up.
It’ll be a great way to make money over time – you could be looking at a decent capital gain if the value of your holiday home increases.

…versus the reality

Before turning your dream into a reality, you should ask yourself what owning a holiday home will really be like.

Do you want to go on holiday to the same place every year? Young kids will enjoy the routine. But think about when the kids are older and looking for more cultural experiences.
Will you be able to improve the property? Many holiday homes are part of a body corporate, so you may not be able to renovate or redecorate easily the value of your property could be affected by other owners.
How easy will it be to attract tenants? Unlike a permanent rental, occupancy rates can fluctuate throughout the year, depending on school holidays, long weekends, public holidays and summer. Plus external factors can also affect bookings, like economic downturns and the high Aussie dollar. So you should ask yourself how attractive the property will be to prospective holiday makers: Is it within driving distance of a major city? Is there a nearby airport? Is there an oversupply of similar properties in the area?
What are the running costs? Although many of these are tax-deductible, your rental income could be swallowed up by:
- cleaning costs every time a tenant leaves
- body corporate fees
- agents’ fees
- marketing costs
- utility bills
- general upkeep
- What sort of capital gain could you be looking at? Holiday regions can be the first to suffer and the last to recover when the market turns. So it’s best to do your homework, buy in the right area and hold onto the property for long enough. And don’t forget about stamp duty when you buy the property and capital gains tax when you sell.

A holiday home isn’t for everyone. If all you’re worried about is your return, there may be better ways to invest your money – a city apartment with a permanent tenant or Australian shares with franked dividends are just a couple of examples.

But if you’re looking for a family getaway that will leave your kids with wonderful memories, plus the opportunity to reduce your tax bill, receive some ongoing income and benefit from a potential long-term capital gain, a holiday home could be for you.

Making the decision to buy or not to buy can be complex, so it’s important to talk to your financial adviser or mortgage broker before you take the plunge.

Are you considering investing in a holiday home?

Speaking with one of our financial advisors would be a good place to start. Make a booking or call us on 02 9328 0876 to arrange a meeting.

Planning is key to getting ahead financially

Planning is the key to making it financially

Written by on 22 January 2019. Posted in Financial Planning. No Comments on Planning is the key to making it financially

A study by comparison site Finder found paying off the mortgage is the financial milestone 74% of Australians value most.

Having enough in super to retire comfortably comes a close second for 59% of us, and one in three people see the ability to jet-set overseas each year as a sign of financial achievement.

These are all reasonable goals, and definitely a lot more sensible than owning a sports car, which 5% of people say indicates financial success (for the record, cars are a dreadful investment!).

A plan of action

No matter what your financial goals look like, you’ve got a far better chance of achieving them with a plan of action in place.

Let’s say for instance, that you’re keen on paying off your mortgage early. It’s a smart strategy that will leave plenty of spare cash to devote to overseas travel. And it can be done.

Start with your loan

The trick is to plan how you’ll get there with clear steps you can stick with over time. A good starting point is to check the rate you’re paying. The average variable rate is currently 5.3% – that’s a terrible rate when you consider there are plenty of loans costing less than 4%.

If you’re sure your loan is competitive, one of the easiest yet most effective strategies to be mortgage–free sooner is to pay a bit extra off your loan each month.

On a mortgage of $400,000 with a rate of 4.0%, tipping just $20 more into the loan each week could see you clear the slate 18 months ahead of schedule and pocket savings of $17,217 on overall interest.

Grow your super

If you’re keen to grow your super, talk to the boss about contributing to your fund through salary sacrifice. This is where part of your before-tax wage or salary is paid into your super rather than receiving it as cash in hand.

Before-tax contributions are taxed at just 15%, which is below the personal tax rate of most workers, so salary sacrifice can be a very tax-friendly way to boost retirement savings. Chances are, after a few pay days you won’t notice the difference in your pay cheque but it can have a valuable impact on your final nest egg.

Think about your money milestones

The start of the new financial year is a good time to think about the money milestones that matter to you – from building a portfolio of investments to starting a successful business or being able to retire early. Don’t just nut out some goals though, think about how you will achieve them, and start putting plans in place to make it all happen.

We can help – It’s an area where good advice can pay off!

We will work with you to prioritise goals, and develop a roadmap of action that helps you work through your personal bucket list. Make a booking with one of our financial planners or call us on 02 9328 0876.

Article by Paul Clitheroe AM – Co-founder and Executive Director of ipac securities limited, Chairman of the Australian Government Financial Literacy Board and Chief Commentator for Money magazine.

Get ready for the first year of retirement

Written by on 28 December 2018. Posted in Retirement Strategies. No Comments on Get ready for the first year of retirement

Some of the changes may include; preparing mentally for the shift to not working full-time, adjusting to not getting a regular salary, ensuring your money can last for about 30 years and keeping your mind and body active.

Three paths

Researcher Professor Robert Atchley identified a number of ways people react to leaving work permanently and split the period immediately after paid employment into three paths:

the “honeymoon” path, for people who dive into many of the fun activities they did not have time for previously, especially travel
the “immediate retirement routine” path, which covers people who had full and active schedules outside their employment that flow into busy lives soon after retirement
the “rest and relaxation” path, taken by people who choose to do very little in their early retirement after very busy careers with limited time to themselves

What to consider

The phase before actual retirement, Professor Atchley says, usually involves disengagement from the workplace and planning for what lies ahead.

If possible, you should use this period to transition into retirement by reducing your working hours or by changing your workload over time. Speak to your adviser about a Transition to Retirement strategy that could see you reduce your working hours, but not necessarily your income. You should also determine what sort of retirement you want, using the three paths as a guide, and try to plan ahead for your lifestyle adjustment during the first year of transition. If you know what you want, you will be able to take stock of your finances and take advantage of final opportunities to boost your superannuation if there are gaps in your savings plans. Remember, your retirement funds may need to last 30 years.

Make your life satisfying

A study by the Australian Institute of Family Studies shows there is little change in life satisfaction for both men and women in the year immediately following retirement as they adjust to their new circumstances but thereafter, it improves for both sexes. Once you have ensured that your savings are on track for retirement, you should start thinking about how you will handle the loss of the worker role and what you can do to improve your life satisfaction. Will you be one of the “honeymoon” phasers, or will you fall into an “immediate retirement routine”? It may help to try new things before you retire to decide if they will be right for you, such as hiring a caravan for a short jaunt before buying one for a big trip. If you are considering a sea change or tree change, rent in the area you fancy before making the final leap.

Be fit and healthy

Recent research suggests you need to be fit to retire to age well. Try getting into an exercise routine before you retire that you will be willing to continue when work no longer dominates your life.The health benefits of regular exercise cannot be overstated as it keeps you mentally fit and helps you ward off disease and disability, even if you start late in life. And try to do more than just exercise, such as being careful with your diet, as it will increase your health and wellbeing.