![Diversification of assets is a good defence against a fall]()
by Jodie | Apr 20, 2018 | Economy, Money, Wealth
Increased Diversification can assist in lowering risk in times of market volatility.
A properly constructed portfolio can protect investors in downturns in the market and help provide appropriate returns at other times.
Portfolios which include diversifying assets may protect the overall portfolio against equity market volatility.
It’s been over ten years now since the last ‘global recession’ or ‘global financial crisis’ and many are wondering if another large correction or event is nigh.
If you have concerns about your portfolio and how it’s invested, have a chat with your adviser today.
by Jodie | Apr 9, 2018 | Budget, Finances, Savings, Wealth
Whether you’re planning a large, luxurious wedding or a small, intimate affair, smart budgeting could help free you from financial worries, so you can enjoy your special day.
Following these steps may help ensure no one’s worried about debt on the honeymoon.
1. Plan early
Given that the average Australian wedding costs $36,200[1], the sooner you start saving, the sooner your dream wedding can become a reality. The day after the engagement is fine!
2. Create a budget
Take stock of your income and calculate the maximum you can afford to spend on the wedding – and your ideal cost scenario.
3. Talk to your family
If you’re part of the bride’s or groom’s family and want to contribute, let them know. You could contribute a set figure or fund a specific part of the ceremony, such as the flowers or venue.
4. Prioritise
What must you have at the wedding and what can you compromise on? For example, do you want a live band but aren’t fussed about fancy table decorations? Agreeing on your priorities up front can help you clarify which aspects to save for and which to downplay or skip altogether.
5. Start a spreadsheet
Once you have an idea of your budget and priorities, it’s time to dive into the details. Use a spreadsheet to list a maximum cost for every wedding-related item from bouquet to band and compare it with vendors’ quotes. Don’t forget to take into account hidden costs like insurance, corkage and the marriage licence as well as costs related to the rehearsal dinner and honeymoon.
6. Stay accountable
Avoid blowing out your budget by keeping your spreadsheet up to date, setting up a wedding-expenses-only bank account, and sticking to your guns as far as your limits and priorities are concerned.
If you’ve created your budget and despair of affording your dream wedding any time soon, don’t worry. Here are some tips to help you reign in your costs.
- Limit your guest list to your favourite people: At $100 per head, every 10 guests cost you $1,000.
- Think outside the box when picking a wedding venue: A park, garden, art gallery or friend’s house may be more affordable than a hotel, and the natural ambience can save you money on decorations.
- Book an out-of-season wedding: It can be cheaper to schedule a wedding in winter, on a week night or a Sunday morning.
- Keep your menu simple: Stick with the specialties of the season and region, consider canapes or buffets over three-course meals, and ask for house spirits (not top-shelf varieties) or beer and wine.
Call in an expert
While you may call upon a wedding planner to help you organise your special day, a financial planner may be just as important.
A professional financial adviser may help you create and stick to your budget as well as stay accountable – so you can focus on the important things, like celebrating with the people you love!
[1] Australian Securities and Investments Commission, ‘How much can a wedding cost?’. MoneySmart. Available at: https://www.moneysmart.gov.au/managing-your-money/budgeting/simple-ways-to-save-money/how-much-can-a-wedding-cost
by Jodie | Feb 12, 2018 | Budget, Debt Management, Finances, Insurance & Protection, Investments, Money, Retirement, Superannuation
New Year’s resolutions are easy to make but often hard to keep. But there are real benefits to making financial resolutions. Here are some helpful suggestions to get you started.
Get back to basics
If you find it near-impossible to reach your financial goals, you may need to revisit the basics: sticking to a budget. Does temptation usually unravel all your good saving intentions? Consider opening a locked savings account that you can’t deduct money from for a period of time, then automatically transfer funds into it each payday.
Plan for large purchases
Whether you need a new fridge or are considering placing a deposit on a home, the earlier you start planning for these purchases, the more manageable they become.
Set up an investment plan
If you’re considering investing this year, developing a sound investment plan is essential for your success. This may include working with your financial adviser to identify clear financial targets, calculate how much you can afford to invest and determine how much risk you’re willing to take on.
Review insurance policies
Knowing you are properly insured may help provide peace of mind if your circumstances change unexpectedly. But identifying appropriate insurance policies and levels of coverage for your unique situation can be difficult – and getting it wrong is risky. This is why it’s important to regularly review your insurance policies with your financial adviser, especially if your situation changes.
Check your super
If you have multiple superannuation accounts – or have forgotten where your super is – you’re not alone. According to the Australian Taxation Office, there’s $18 billion of lost super waiting to be claimed nationally.1
Effectively managing your super is vital for building your retirement nest egg. Contact your financial adviser who may help you manage your super.
Set retirement goals
The earlier you set clear goals for your retirement, the more options you’ll have. Work out what assets you have – from your home to superannuation – and review your current spending patterns, then determine your goals for retirement and what lifestyle you’d like to enjoy. This will help you calculate how much you’ll need.
Create an estate plan
Estate planning involves more than writing a will. It outlines what you want done with your documents, contacts, debts, bills and assets, making the process easier for your beneficiaries after you’ve passed away.
Whatever your financial New Years’ resolution may be, seeking professional advice may help you make it reality this year.
Note:
1 The Sydney Morning Herald, 2017, ‘Almost $18b in lost super waiting to be claimed’. Accessible at:
http://www.smh.com.au/money/super-and-funds/tax-office-holds-records-of-almost-18-billion-in-lost-super-20170920-gylo3z.html
by Jodie | Jan 15, 2018 | Budget, Budgeting, Money
With the summer holidays right on top of us, it’s not too late to do your financial planning for the holidays – or start planning for later in the year. Here’s how to minimise your financial stress for a well-deserved break.
Plan ahead
The earlier you start planning, the more money you can save. And when it comes to peak travelling times such as December, typically the earlier you book your flights and accommodation the better your account balance will be.
Create a budget
Whether you choose Bali or the bush, create a budget. Account for expenses such as flights, petrol, food and activities, such as visiting museums or a spa. Research activities at your destination and see if you can book early – or if there’s some great free ones. The more you can book and pay for beforehand, the less you’ll need to worry about overspending.
Start saving
When you’ve worked out how much you will need, start saving. Even putting a small amount aside each week can add up, so you could enjoy some amazing experiences you may not have thought you could afford. A good tip is to open a high-interest savings account and set up an automatic transfer on your payday.
Hunt for bargains
There are lots of useful websites that compare deals on everything from flights to tours. Just make sure you turn on private browsing when researching online. Some travel sites track users and raise prices on the things you are researching if you return repeatedly.
And don’t worry if you have left things to the last minute – there’s a website for that too: lastminute.com.au.
While you’re on holiday…
It can be easy to splurge – you’re on holidays after all. But to avoid spending the new year paying it off, keep track of your finances while you’re away.
Set yourself a daily spending limit – or use a travel app to help you stay on track.
But if that’s too much of a buzzkill, you can transfer the exact amount you’ll need into a bank account just for your holiday. This may help you stay out of your other accounts unless it’s absolutely necessary.
Talk to your adviser
Your adviser may help you create a financial plan tailored to help you achieve the holiday you want.
Talk to your Wealth Planning Partners adviser to reach your financial goals for your holiday. Call on 07 5593 0855.
by Jodie | Dec 12, 2017 | Finances, Money, Self Managed Superannuation Funds, Superannuation
With the recent legalisation of same-sex marriage in Australia, it’s likely we’ll see a slew of marriages in 2018! But, be warned! Same-sex couples are urged to review estate planning documents, as marriage can invalidate a binding nomination… in some cases.
While the parties and proposals continue Down Under, same-sex marriage reforms will bring significant benefits to same-sex couples when it comes to both death and medical decisions, as marriage ensures more rights for those legally wed. However, there are still some important estate planning considerations for those looking to tie the knot.
Some super funds include terms that specify a binding death benefit nomination (BDBN) is not actually binding if certain life changes occur.
When members sign a BDBN for most super funds, it will usually be valid for three years; but in the conditions, it can state that it will be invalidated by an event such as marriage or the birth of a child.
Don’t fret! It doesn’t mean that somebody could be automatically cut out. They’d still have a right to apply to the trustee say: ‘I was the nominee before, but now the spouse,’ but that process could open the door for others to come in and argue about why they have some entitlement also, making the process longer and more drawn out than necessary.
While this is mainly noticeable amongst APRA-regulated funds (most large super funds,) there can also be similar clauses in Self-Managed Super Fund (SMSF) Trusts Deeds where wording may suggest a binding death benefit nomination is invalid when a lifestyle change occurs.
SMSF trustees, and all couples looking to wed, will want to make sure all estate planning documents are reviewed and updated where necessary, including Wills, powers of attorney and superannuation nominations.
