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.
by Jodie | Dec 10, 2017 | In The Media
Power of Social Amanda Cassar Director, Wealth Planning Partners.
In 2015, Amanda Cassar travelled to Uganda as part of the Hunger Project. She talks to Jamie Williamson about how the experience shaped her approach to financial advice.
by Jodie | Nov 20, 2017 | Budget, Christmas, Finances, Wealth
A bit of planning and forethought may help take the financial stress out of Christmas.
Christmas for many families, is a happy time of year that brings people together, but it can also be expensive!
With a bit of early planning you may control your festive season spending.
Here are some tips to help avoid a New Year financial blowout. You don’t want a heart attack when you get that statement in January!
Draw up a budget
You know it makes sense, but it can seem a bit Scrooge-like. Start with the total amount you want to spend. Divide this into gifts, catering, entertainment and travel and list the items you need to purchase in each. Then put a spending cap on each category.
Sort your gift-giving
Draw up a gift list and allocate how much you want to spend on each person. If money is tight, consider options such as vouchers for home-cooked meals or gardening as alternatives.
It may help for big groups of relatives or friends to agree in advance upon a spending cap per gift. Another option is to do a Secret Santa by choosing each other’s names randomly from a hat. Each person then buys the person they picked a gift, instead of buying for everyone.
Open a Christmas account
Set up a special bank account early in the year and use a regular auto payment option. The sooner you start saving, the more you will have.
You’ll also be able to make the most of all those annual specials from Boxing Day forward!
Make a shopping list
Wandering through the shops without knowing what to buy may cause you to overspend. Do your research first, then set out with your shopping list in hand and stick to it.
Be prepared to bargain as smartphones make it easy to compare prices. Avoid last-minute shopping as this may result in rushed and expensive decisions. Even better, pick up bargains in the sales earlier in the year and put them aside.
Above all, keep your head and stick to what you can afford.
Travel smarter
The holiday season is one of the most expensive times to travel, so it may be worth considering house swapping, camping or having a staycation. If you are travelling, a budget will help you stay
on track.
I’d love to hear some of the ways you stay on track each Xmas without blowing your budget! Let us know in the comments and share your top tips!
by Jodie | Nov 13, 2017 | Business, Finances, Insurance & Protection
How would your organisation cope if something happened to a key person?
Unexpected events can play havoc not only with people’s lives but also with businesses.
However, business owners are often so busy they don’t stop to consider the true cost of the loss of a key employee, business partner or even themselves.
The knock-on effects may include disruption to other staff, missed opportunities, delays or penalties for late delivery of projects, lost revenue, increased expenses, significant costs to find and train a suitable replacement, loan repayment and even loss of the business.
What is key-person insurance?
Key-person insurance protects a business’s financial position against the significant impact of a traumatic event such as the death or disablement of a key person.
A key person may be an employee, owner or an individual whose contribution to the business is significant.
This cover is not a specific kind of insurance but the application of life insurance to protect against key-person risk. It can be used with buy/sell life insurance (also known as business succession insurance) which covers the change of ownership if an owner dies or becomes incapacitated.
The benefits
Often a cash injection to an affected business may keep a bad situation from becoming worse or even catastrophic. The insurance proceeds may be used to:
- minimise or eliminate the potential loss of revenue, sales or profits
- help cover the often significant costs of finding or training a replacement
- service or repay any debts that are called in
- cover the impact of a writedown in the goodwill of the business
- provide needed liquidity
- help keep staff and maintain essential supplier relationships.
Are there alternatives?
A business may have other strategies to help manage their risks, including asset sales, promoting staff or reallocating workloads even temporarily, using profits, borrowing more, or drawing down existing loan facilities.
However, insurance is the only practical alternative where a business doesn’t have the capacity to cover its risks.
