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Tag: Financial Freedom

How to lead a happier life

Written by on . Posted in Life Balance. No Comments on How to lead a happier life

However, living a happy life doesn’t always come easy. Concerns about money, relationships and the future can often stand in the way of living the life you want. The good news is there are ways to take charge of your happiness.

Measuring happiness

It may sound simple – but what is happiness? How do we quantify happiness?

The World Happiness Report, published by the United Nations Sustainable Development Solutions Network, uses six key variables to determine a country’s happiness levels:

1. Income
2. Healthy life expectancy
3. Social support (having someone to count on in times of trouble)
4. Generosity
5. Freedom
6. Trust (measured by the absence of corruption in business and government)

Countries that rank highly in these six areas tend to have ‘happier’ populations, with individual’s reporting higher life satisfaction.i

Australia ranked highly in the World Happiness Report 2017, coming in equal ninth place with Sweden.i Norway was first, followed by Denmark, Iceland, Switzerland, Finland and the Netherlands.

Canada and New Zealand were just ahead of Australia, in seventh and eighth place, respectively. The US fell to 14th in 2016 (from third in 2007) due to reduced social support and increased corruption.i

So, as a country we’re doing well – but what about happiness on a personal level?

Achieving happiness each day doesn’t need to be an elusive goal. By building a sense of purpose, strong personal relationships and financial control, you could be well on your way to maximising your happiness.

A sense of purpose

Off the south coast of Japan lies Okinawa, an archipelago that boasts some of the longest living people in the world.ii Along with various other lifestyle factors, their pursuit of other goals lead to a sense of wellbeing and give more meaning to life.

Okinawans have a strong sense of purpose – what they call their ‘ikigai’.ii An ikigai is what drives you to get out of bed every day, your reason for being. It could be sharing your knowledge and skills with others, looking after your family, cooking delicious food, playing a sport or musical instrument, or advocating for others.

Finding an ikigai, whatever it might be, and trying to live it each day could increase your happiness.iii Ask yourself, what is my passion? How do I find meaning in life? When do I feel most at peace or energised?

Strong personal relationships

Enjoying close relationships with caring, supportive people is a key ingredient of wellbeing.iv Having someone by your side to share your thoughts, dreams and fears with, and who makes you feel loved and valued, can help you overcome the obstacles life throws your way. But where to start?

Think about who you reach out to – or have reached out to in the past – to connect and share with. Keep in touch with these people, and put in the effort to rekindle any relationships you’ve been too busy for lately.

Join a group or club. From book clubs to sports teams, bushwalking groups to community advocacy organisations, joining a team that shares your passions is a great way to form a deep connection with someone – and even live your ikigai at the same time!

Financial control

Financial stress affects nearly one in three people in Australia, according to new research from Core Data, commissioned by Australian start-up Financial Mindfulness.v

Importantly, Core Data’s research showed that experiences of financial stress was not confined to low-income households but felt more widely across different salary brackets.v These experiences of financial stress could include being unable to pay bills on time, afford a meal with friends or holiday, or raise sufficient funds in time for something important, among others.vi

So, perhaps minimising financial stress isn’t only about how much money you have – but how well you manage it.

While the idea of reviewing your finances and setting up a budget may provoke feelings of gloom, it could be an effective way to reduce your financial stress and increase your happiness.

If you need further assistance, we are here to offer guidance to help you to achieve your financial and life goals.

Reach out

Remember, it’s not possible to be happy all the time. Many other factors play a huge role in our happiness. If things are getting you down, support is available. Contact beyondblue or call Lifeline on 13 11 14.

By finding your purpose in life, forming strong connections with others and achieving a sense of control over your finances, you can hopefully take charge of creating and maintaining your own happiness. And remember, you’re already off to a good start simply by living in Australia.

 

Do you want more financial control of your life?

For more help and strategies on taking care of your financial plans, speak to one of our financial planners – to make an appointment, contact us on 02 9328 0876.

 

i United Nations Sustainable Development Solutions Network (2017), World Happiness Report 2017
ii National Geographic, Blue Zones, Okinawa, Japan
iii World Economic Forum, 9 Lessons from the world’s Blue Zones on living a long, healthy lite
iv Australian Psychological Society (2016), APS Compass for Lile Wellbeing Survey
v Financial Mindfulness, Personal financial stress devastating Australian lives
vi Australian Bureau of Statistics, 6560.0 Household Expensitures Survey, Australia: Sumarry of results 2015-2016

Article by AMP Life, First Published March 2018

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.

 

Photo by Priscilla Du Preezk on Unsplash

 

Comfortable retirement?

Achieving a comfortable retirement

Written by on . Posted in Retirement Strategies. No Comments on Achieving a comfortable retirement

Comfortable retirement?

 

But this step often means being free from financial worries or concerns and for a large proportion of women, the prospect of a comfortable retirement can seem elusive. Especially when you do the sums.

The latest Intergenerational Report predicts the number of Australians aged 65 and over is likely to more than double by 2055 compared to today – and there could be as many as 40,000 people aged 100 and over by 2055. There were only 122 Australian centenarians forty years ago. Both male and female average life expectancies will jump significantly, with males at birth expected to live for 95.1 years and females for 96.6 yearsi.

While the prospect of a longer life is great news, the rub is that we’ll need to find extra money to fund lengthier retirements. Pauline Vamos, CEO of peak superannuation industry association, ASFA, says this issue is particularly important for women, who are expected to live longer, “yet are retiring with around half as much superannuation as men”.

Less superannuation than men

Women retire, on average, with $105,000 in super savings, which is $92,000 less than men, according to ASFAii. More concerning is that 1 in 3 women retire with no superannuation at all. The upshot is that around 90% of women retire with inadequate savings to fund a comfortable retirement. “Adequacy will also be a key factor, which is why we will continue to advocate for the Superannuation Guarantee (SG) to be increased to 12% as soon as possible,” said Ms Vamos.

There are many reasons for the difference in super savings. Not consolidating super accounts, a lack of personal contributions, and even a lack of knowledge about how superannuation works are factors. For many women taking time out of the workforce for children or caring for others, has a massive impact. According to an American research reportiii, women are likely to take an average of 12 years out of the workforce for family related reasons – and it’s likely the situation is pretty similar in Australia. When women return to the workforce, they often take part-time/low-paid or even free employment for several years to balance having a care-giver role as well.

When women work full-time, their average earnings are often lower than the take home pay of men. As our SG contributions are often linked to our earnings, men generally end up with larger superannuation nest eggs than their female counterparts.

Building a bigger superannuation nest egg

On the plus side, women can take steps to build their retirement funds. For instance, it’s critical to check your super balance regularly, as well as the insurance and investment options to ensure they match your circumstances and future requirements.

If you’ve worked in several jobs, you’re likely to have multiple super accounts and you can save fees by consolidating your super into a good quality, low fee super account. This could save thousands in unnecessary fees, which over time can make a big difference. Also note there is more than $14 billioniv in lost super and some of it could be yours. To find lost super, go to www.ato.gov.au/Super and then ‘Find your lost super’ tab.

Some super funds are trying to close the ‘knowledge-gap’ when it comes to retirement savings and what individuals are eligible for. Consider taking advantage of the seminars offered by your super fund.

Richard Denniss – Executive director, The Australia Institute, says “another way women can help themselves is to compare and switch funds with the aim of saving on fees: the average Australian spends more on super fees than they do on electricity.”v

And for working women backing yourself when it comes to discussing pay and negotiating total remuneration is vital. Being prepared to discuss your remuneration with confidence means making sure you can demonstrate the tangible value you contribute through your role. Never underestimate the lifetime value of earning your full worth.

Whatever your situation, “Those who receive financial advice are more likely to only rely on a part-pension rather than a full pension,” said Mark Rantall, CEO of the Financial Planning Association of Australia (FPA). “They are more financially secure, have a greater level of standard of living and are able to better manage any longevity risk.”

Doing what you most want in your later years means taking regular, active steps to look after your financial health.

 

Will you have the financial freedom you dream?

Whether your goal is to be debt-free, save enough to buy a property or to have a comfortable retirement, we can help you. Call us for professional advice on how to achieve your goals on 02 9328 0876.

 

i.  www.treasury.gov.au/PublicationsAndMedia/Publications/2015/2015-Intergenerational-Report
ii. www.superguru.com.au/super-sorter-power-hour
iii. www.caregiver.org/women-and-caregiving-facts-and-figures
iv. www.ato.gov.au/Media-centre/Media-releases/New-statistics-reveal-$14-billion-in-lost-super/
v. www.wgea.gov.au/sites/default/files/Womens-Super-Summit.pdf

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.

 

Photo by Rawpixel on Unsplash

Be a senior entrepreneur

Be a senior entrepreneur on your own terms!

Written by Sydney Financial Planning on . Posted in Income Strategies. No Comments on Be a senior entrepreneur on your own terms!

Be a senior entrepreneur

Retirement is no longer the destination it used to be. If you’re like many Aussies who are heading into their later years after a lifetime of developing skills and expertise, you undoubtedly have more to offer, not less. If you’re thinking about starting your own business or considering how you’ll keep sharing your skills and experience in your later years, you’re not alone. 

Many Aussies are blazing the trail into self-employment after retirement. And one of the effects of the increasing number of people venturing beyond retirement is the rising number of groups forming to provide guidance and help for older Aussies as they navigate through change in the digital age. 

Many older Aussies are far from ready to retire into the armchair just yet. Life after work can be a time for harnessing passions and creating new ways to help others or generate income.

If you’re thinking about going out on your own, you may be aiming to find your true purpose—what you really want to do. Are you inspired by ideas about getting involved in an area that interests you personally, creating something new or just giving back? New ventures can give you fresh energy and a renewed sense of purpose. 

Here are some things for you to consider if you’re thinking about foraying into the world as a senior entrepreneur: 

1. What do you love doing?

Find ways to be involved in doing the things you love. Follow your passion and aim to reap rewards on all levels: financially, mentally and emotionally. Working on something that interests you personally can be more sustainable and rewarding because a labour of love doesn’t feel like work. 

2. Find like-minded people.

Find people who share your interests regardless of any age differences. Discussing ideas with people experienced in the areas you may not be familiar with can lift your ideas from the drawing board into reality, without you having to pay for expensive mistakes. Communities like Hub Australia provide co-working services for small businesses. 

3. Start small.

By following in the footsteps of other successful people, you can start with small steps and test your ideas and decisions along the way without it costing you dearly. You’ll be able to see if an idea works or not—and adapt quickly as you learn what your market wants. Because there are no guarantees in business, it can be costly to risk everything on one idea. 

4. Get financially organised. 

The most valuable thing you can do to help yourself is to get on top of things financially. If your savings are on the line and the way you’ll earn money is changing, come and have a chat with us. You don’t have to do it all alone—together we can make sure everything’s arranged so you’ll be better off, not worse.

Help is at hand

If you’re aiming to go out on your own, consider contacting organisations like the SeniorPreneurs Foundation or Elderberry—groups like these can help you connect with other people who are forging ahead to become their own bosses and continue sharing their invaluable skills and experience on their own terms.

As you’re weighing up the pros and cons or wondering if or how you can become a senior entrepreneur, come and see us. We can help you manage the financial implications of being in business and any impacts on your government entitlements.

 

You have some great ideas, but have a few more questions?

We are always here to help guide you on your financial journey. Contact us for advice on how to get started or have your current situation reviewed, call us on 02 9328 0876.

 

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.

Career health check

Give your career a health check

Written by on . Posted in Career Strategies. No Comments on Give your career a health check

Career health check

If you answered ‘yes’ to the last question, it might be time to give your career a health check. We all know the benefits of having regular medical check-ups but, just like your body, your career needs a regular review to make sure you’re on track to meet your goals. 

Do a career health check

The average time Aussies spend in a job is about 3 years and 4 months (as at June 2014) so if you’ve been in your job for more than three years, now might be a good time to give your career a quick health check. 

But before you hit the search button on your favourite recruitment site, take time to work out what you really want to do – then you’ll have more chance of finding, or working towards, the job that will make you happy. 

Here are some tips for a career health check:

1.Take your pulse

List your top three work achievements over the last year. If you’re struggling to come up with any, think about where you want to be in five or ten years’ time. Will your current job get you there? 

2. Check your vital signs

List the top five reasons (in priority order) you’re in your current job. If you’re ranking your bonus and long-service leave higher than your job satisfaction, then things might be a little out of balance. It might be time to ask yourself whether you’re at the right place in your career. 

3. Take your own medicine

Think about how you could improve your career prospects:

  1. Refresh your personal brand – update your Linkedin profile, write a blog or upload articles which are relevant to your career. 
  2. Update your resume with your recent achievements. Make sure they match the type of work you’re looking for. 
  3. Do you need to study, get some training or update your skills? 
  4. Attend professional development events, workshops, seminars and conferences.
  5. Join professional associations to meet like-minded people in your industry. 
  6. Collaborate in online forums where you can show your expertise on a subject.

Should you stay or should you go?

It’s one of the hardest questions to answer. Can you achieve your career goals where you are or do you need to look for a fresh start somewhere else?

If you’ve built up a solid reputation at your current employer, consider applying for a different role at the same company to give you a new challenge.

Perhaps you want more life/work balance? If so, you could consider working part-time, as a consultant or doing freelance jobs.

But if you still feel as though you’re just going through the motions, it could be time to get on the front foot and take action. A career health check could help to keep you on track, reignite your spark and help you get (and keep) the job you’ve always wanted.

 

Does your career need a health check?

Whether your goal is to be debt-free, save enough to buy a property or to have a comfortable retirement, having the right income strategies can make a huge difference. Get in otuch to arrance to speak with one of our advisors on 02 9328 0876.

 

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.

Albert Einstein

Do you really want success?

Written by on . Posted in Financial Behaviour. No Comments on Do you really want success?

Albert Einstein

By far the better question is: “what will make my life more valuable?”

This is the question we ask clients to consider as financial planners. It won’t necessarily be in these words. It may not even be in this one succinct question. But it will involve genuine conversations which, at their core, uncover the real motivators each of us have in our lives. And motivators are what get us out of bed each morning. 

Caution: there is no universal answer!

Our clients will have different measures of what will add value to their lives; spending more time with their families, doing volunteer work, getting into shape…again the list is endless.

The important thing to remember is that before you can truly move in a direction which helps you to become more complete – more “happy” – you have to articulate what makes your life more valuable, and whether you have enough of it. But what next?

After articulating what is valuable, we can assess where we are today, where we want to be tomorrow and finally, how we can get there. And guess what? It relates back to what we do every day – how we allocate our time, our money and our focus.

It seems contrived to say the financial planning process achieves this, but only after opening up and having these honest conversations with a neutral third party is there hope of finding the clarity needed to identify what truly matters. A financial planner isn’t the only professional who can do this, but they’re the only professionals qualified to give holistic advice to help you achieve what you want to achieve.

This is what a financial planner is:

An accountable professional who can add real value to your life…not just your bank account.

So, ask yourself:

  • Have I spoken to anyone about what I like about my life?
  • Have I had an honest discussion about what I want more of in my life?
  • Have I reviewed how I allocate my time, money and energy?
  • Do I maintain a plan for my life which helps me to achieve happiness?
  • Or am I hoping for the best, and achieving short term satisfaction from things that don’t add value to my life?

Most of us would answer yes to this final question without realising the first, small step to independence and happiness could be as simple as a candid discussion with a neutral third party.

 

Need some help getting started?

No matter your dreams, sometimes getting professional advice and a plan of action in place can be life changing. Why not call us for advice on how to achieve your goals on 02 9328 0876.

 

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.

 

Day One!

It all starts with a single step. All you need to do is start

Written by on . Posted in Financial Behaviour. No Comments on It all starts with a single step. All you need to do is start

Day One!

How to stop procrastinating and start getting ahead

Why? Well, it’s got a lot to do with our personality, our ego, the fact that we’re so busy all the time and the actual process of admitting that what we’ve been doing is wrong. 

It can be especially difficult to change when we’re surrounded by same people with the same views as us. Why should I stand out?

Generations Y and Z…

Time is our most valuable asset and we’re all running out of it.For that very reason I would like to dedicate the next section to our sons and daughters, grandsons and granddaughters – the young people with still so much time on their hand.

When you’re young, it feels nice to have a first job, still live at home, spend the money on travelling and going out.

Let’s pause for a second and think about where you are at the moment

How much of your life have you already lived and how much you still have to live – a lifetime!!! What an opportunity…

What you may not fully realise day by day (because you just don’t) is that the time is on your side and you will never (ever) be in this position again. 

Use that competitive advantage! You don’t want to end up like the vast majority of adults – looking back in ten or more years’ time, realising what a massive opportunity you had… And you blew it!

What I’m talking about is the power of ‘doing’.

What can you do? You have two choices:

  1. Choice 1: Do nothing and spend every cent. This is what most of you will do. Just like everyone else (I thought you wanted to be different?)
  2. Choice 2: Start implementing tiny changes into your spending habits. Time is your best mate here. Time will do the rest, as long as you stay committed.

Remember, if you change nothing, nothing will change. The change doesn’t need to happen all at once. You can start with baby steps. 

One year later, you will definitely be in a better position than if you’d done nothing.

There are many ways to put money aside but here’s a fun example to start getting ahead – something that I call the reverse version of “The 52 week savings challenge”:

  1. You start with $52 that you put away in the first week – that is the biggest commitment you need to make. It gets easier from here.
  2. The next week it’s only $51. And as you continue, you decrease the money you put away, by a dollar every week, until you will end up with only a dollar contribution in the last week, a year later!

Over the course of the year, you will save exactly $1,378.

It’s a first step, it’s something. It can eventually give you that competitive advantage.

This can be used as a nice little deposit into an investment plan which can one day be converted into an investment property deposit. It will give you that competitive advantage.

It can be the difference between having to work every night to earn extra money for your ski trip compared to having a passive income to fund your travels so you can spend more time with your friends.

 

Is it One Day or Day One? all you need to do is start…

Do anything, just start…maybe it’s time to have an honest conversation about doing something about your future? Call us to arrange an appointment to speak with one of our advisors on 02 9328 0876.

 

General Advice Warning: This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.
Investment Performance: Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns.