Tag Archives: Wealth

Retirement Goals!

For some, retirement is a long way off!  For others, it seems to be creeping up a lot more quickly than expected.  The years have flown by and it’s time to start taking stock.

Many who visit me in their late 40’s to mid 50’s sometimes realise that they’ve put retirement on the back burner for a little too long.  With taking care of the Mortgage and the kids… retirement saving was a long way down the list!

But for those ready to hang up the boots, whether at 65, 70 or beyond… what can you expect?

Many advise that a new kind of balance is required, one that takes a bit more planning than expected.

It’s good to start thinking about your vision for your retired life and the values you have that may drive those goals.  Have you been planning travel? volunteering? hanging out with the grand kids? visiting more with elderly parents? taking up a hobby?

Strange tho it may seem, retirement and pure leisure hours only, can impact your health.  Everything you’ve ever known has suddenly stopped.  Routine, income and your network is no more which can have a big impact on mental health especially.  Choosing to be optimistic about your future options is incredibly important.

Family relationships can also come under scrutiny.  Suddenly spending 24/7 with your life partner may not be what either of you expect.  Learning how to communicate what both of you need, while maintaining some sense of independence is vital!

Are you looking to replace the hours you spent working with something else?  Some enjoy volunteering, others enjoy researching the family history or writing that book that you always put off, even learning a new skill or going back to school can be considered.  Travel plans also need consideration – those who’ve traveled extensively during their work life may not wish to venture so far from home, others can’t wait to become intrepid explorers!

Often, what to do with the family home also needs consideration.  Some empty-nesters love keeping their family home and it’s memories, others like to move on and downsize for less maintenance and possibly availing themselves of additional funds.  Moving interstate to be near the family or a group of friends also needs consideration but taking on too many things at once can be a little overwhelming… it’s good to learn to pace yourself.

Managing the finances also requires careful consideration.  Some find that their immediate spend in the first few years following retirement is much higher than they’d previously thought it might be.  Funding travel or new gadgets may be fun, but if they haven’t been budgeted for, can impact the long term value of savings.  Longevity risk is gaining a lot of exposure now, with many living well into their 90’s and hoping they don’t outlive their savings.

Who knew that ‘hanging up the boots’ could be so complicated?

It’s a great idea to sit down with your adviser and talk through your options.  What works for one, won’t work for all, so setting and achieving what’s important to you is vital.

What’s the deal with Financial Infidelity?

Cheating on your partner with money is a thing.  And for many, can be just as emotionally destructive as finding out about the sexual kind of infidelity.

Many admit to having lied to their partners about how much they earn, have spent, have borrowed or lent, especially to family members and friends.  It’s just a little lie right?

And although you may not feel the need to share every decision you make with your partner, little lies can lead to big ones.  Covering your tracks takes serious time and effort and if and when your partner discovers the extent of the cover-ups, things can get seriously out of hand.

Being upfront about your finances is about trust.  It’s much easier to achieve your joint financial goals when family funds are pooled and work together for the common good.

Others choose to keep their finances completely separate and private, but pool equal or set amounts into a joint fund to cover family expenses or goals such as combined holidays.  Either way, being upfront and honest about your financial commitments and obligations is paramount.

There’s plenty of reasons people don’t want to share, or won’t.  If you’ve been in a relationship before and have moved on, you may not want your new partner to know all the gory and intimate details of your financial life.  Others are just as happy to share.  It’s setting the expectations early and having regular money talks that can prevent massive issues down the track.

For those who’ve been in financially abusive relationships, there’s likely to be massive trust issues with sharing.  Financial abuse is rarely discussed, yet a widespread problem globally.  And I’m not talking about having a low budget for the groceries.  Financial abuse is about someone using money to exercise power and control in a relationship.

It covers everything from running up debts, defaulting on joint loans, putting a partner under inordinate amounts of pressure to reduce, limit or stop spending, even banning access to accounts.  No wonder those who’ve ‘been there before’ believe in maintaining some form of independence, including a completely hidden and private stash.

If you’d like to know more or think you may be experiencing financial abuse in your relationship, you can visit ASIC’s MoneySmart website to find out more.  Thankfully, there’s lots of options on where to turn if you think you’re a victim of financial abuse, or believe someone you know may be experiencing this kind of crisis.

Lost Super?

There are about 14.8 million Aussies with a superannuation account, 40% of which hold more than one account.

Some of that 40% make up the $18 billion in ‘lost super’. Is some of that yours?

Find it

Moved home? Changed your job? Don’t quite remember where your teenage self stashed your super? It’s really pretty easy to track it down.

Combine it

Save on fees, reduce your paperwork, keep track of your hard earned money, grow your retirement fund.  But maybe get advice first!  If your health has changed and getting new insurance is problematic, it may be worth keeping more than one account open.

Get online

Many websites and super funds offer to help find and combine your super. It is quick, easy and free. You can check with your known superannuation provider/s, your MyGov site or the Australian Tax Office.

Grow it

A qualified financial adviser can help you find an appropriate superannuation fund that will grow your hard-earned income ready for your retirement – and the sooner you get on top of this, the better!

Fees are just part of the story, do you also know how your fund has performed?  Are you able to choose your own insurance levels?  Or opt-out of insurance if not required?  Do you know your investment risk profile and which style of investing is best for you?

Truth is, most of us get excited when we find $20 in a pocket or an old handbag… your superannuation is likely worth thousands, and it is YOUR money!  Take care of it!

 

Source: https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Super-statistics/Super-accounts-data/Super-accounts-data-overview/

What should I expect when seeing an Adviser?

What should I expect at my first meeting?

Your initial consultation with a financial planner will give you a chance to get to know each other.  Most provide an initial consultation at their own time and expense.

Your financial planner will explain how their service works, and how it can work for you.  You should receive a Financial Services Guide and an Adviser Profile and have these documents explained to you.  You’ll have the opportunity to talk about your current financial situation and your financial goals.

Some questions to consider before your first meeting:

  • Reflect on what you want in life. Start with the next few years. Are there any changes you’d like to make, or things you’d like to do? What about 5, 10 or 25 years from now? Where do you want to live? What do you want to be doing?  Is retirement on your radar?  Are there specific goals you’d like to meet in the near future?
  • Consider your attitude to money.  Are you a spender or a saver? A risk taker or someone who prefers more certainty? When it comes to spending and managing money, what do you enjoy and what keeps you awake at night?  You can complete a Risk Profile questionnaire that can provide you with you personal risk profile in relation to different investments.  You might be much more aggressive when investing your superannuation than you would be if saving for a home deposit.
  • Think about the financial issues you find most challenging.  Where do you think you could be making better decisions?  What do you think you need to better understand?  Do you know you have downfalls in specific areas?

Talk to your spouse or partner about these issues too. When you visit a financial planner, you’ll want to discuss what it is you want to achieve together as well as your individual dreams.

Many people also neglect to educate their children about money.  What issues did you wish you knew about when you were younger.  Is there something you could pass on to make their life a little easier going forward?

What to bring along

To help your financial planner gain a clearer understanding of your current finances and the services that could be right for you, a little preparation can go a long way. If possible, try to gather the following information before your first consultation:

  • Your income. If it’s easier, feel free to bring in tax documents, especially if you have income from multiple sources or you’re self-employed.  Otherwise, a recent payslip is helpful.
  • Your assets. Including property, superannuation, savings and investments.  Do you also have different structures like Trusts that hold assets?
  • Your budget.  An estimate of where your money goes each month, including your mortgage or rent, personal or business loans and credit card debt will be helpful.
  • Insurance covers. Especially life, disability and income protection policies, if you have them.
  • Questions. In addition to a list of your short and long-term financial objectives, bring any questions or concerns you may have.  And write them down so you don’t forget any!

Your first meeting is informal so don’t worry about gathering all the details if you can’t lay your hands on everything.  The important thing is to get started thinking about your financial future.  If you choose to proceed with your Adviser, you can nail the details in subsequent meetings.

To find out more, contact us and we can guide you through the process.

What is Bitcoin all about?

Chances are by now you’ve heard all about Bitcoin… but you may not know too much about what it really is.

Bitcoin is a type of digital currency known as a cryptocurrency. It operates on a decentralised peer-to-peer networked program on your computer, meaning that transactions can be conducted between a buyer and seller without the need for any third party oversight such as a regulator or bank. The underlying technology that makes all cryptocurrencies possible is the blockchain.

Bitcoin’s ‘wild run’

Bitcoin’s value has oscillated wildly. It peaked at US$20,000 in mid-December 2017, lost 40 per cent of its value within a week, then bounced back and hasn’t stopped bouncing since.

What are the risks?

Bitcoin certainly has all of the hallmarks of a ‘speculative bubble’ and history is littered with plenty of examples of speculative fevers that ultimately collapsed. Another risk is regulation. Some cryptocurrencies are becoming the preferred medium of exchange for criminals due to anonymity, if governments can find a way to crack down they surely will.

Want to know more?

There’s lots of information now available.  Have a chat to your financial adviser who can help you work out if Bitcoin or cryptocurrency, merits further investigation or is worth leaving behind.

It’s Finally Here!

My latest baby has now arrived… and ok, it’s been 19 years between births and this one didn’t hurt quite so much, (or weigh over 4 kgs) but my first book has now hit the shelves!

Financial Secrets Revealed hit bookstores just before Xmas and features interviews with 20 pretty amazing people.

I’ve interviewed 8 amazing ladies who are kicking goals as business owners and asked the best advice they’ve ever been given.  I’ve spoken with Financial Advisers from Australia and the UK about their back stories, how they got involved in financial services, and the top tips they like to leave their clients.  I’ve also found four amazing everyday heroes who are happy to go about their daily lives, and also make a difference, whether to their families or globally.  I ask how they manage – on Centrelink pensions,  running an international charity or heading into space for NASA.

If you’d like to learn about the setbacks suffered by entrepreneurs and how they’ve recovered, how our beliefs around money affect our behaviour, if budgets are all they’re cracked up to be, then Financial Secrets Revealed  may just be the book you’ve been looking for.

A New Year is often the time we swear that this is the year we’ll finally get on top of our financial situation, so maybe this is the incentive you need to stay motivated and on track with your money goals.

If you’d love to get your hands on a copy, you can let me know directly, or find the book locally or on Amazon.com  Booktopia.com.au or Barnes & Noble.  Also available as an e-book.  I’d love to hear your key take-outs from the book and what you learnt from the interviews.  Stay in touch!

PS  If you’re in Sydney, I have my book launch coming up at Business Chicks HQ on Feb 7 from 5.30 and would love to see you there.  Get your tix here.

Thanks Foxy!

Well, today’s the day that I received my final copy of my manuscript back from the publisher!  How cool is that??

I’ve cast my eye over the final copy, the book cover and we’re ready to hit the print button.  Can’t hardly wait!

I’ve had some amazing mentors through this writing journey with the fabulous Andrew Griffiths coaching along the way and Michael from Hanrahan Publishing providing guidance and accountability along the publishing path.

I’d also love to do a shoutout to Brad Fox for putting together the Foreword of my book Financial Secrets Revealed.  We first met ten years ago when Brad was starting out in advice and it’s been great to see his journey and transformation over those years.

As he points out, you won’t find any get-rich-quick schemes in the book, but it’s all about questioning your relationship with money which is something we all need to do – and preferably sooner rather than later.

As Brad says, ‘money is an enabler’ so what will you find to do with it?

Hopefully, I’ll be giving you the link to purchase in the very near future!