by Jodie | May 14, 2014 | Australian Economy, Budget, Debt Management, Economy, Finances, General, Taxation
Are you a Mature Australian? Or would at least like to think so? Wondering how the budget changes will affect you – or those other Mature Australians around you?
Here’s a quick wrap of the main alterations that may impact you from Budget 2014:
- The Super Guarantee levy has been pushed back by one year. It will increase to 9.5% on 1 July 2014 and then be frozen until 1 July 2018. Previously, the levy was to reach 12% by 1 July 2019 under Labor proposals, 1 July 2021 under the Coalition promise, now 1 July 2022.
- Excess non-concessional contributions – excess contributions tax eliminated (positive) – now refunded, any earnings taxed at marginal rate.
- Increase in caps (positive) – concessional $30,000, non-concessional $180,000.
- Australian Defence Force Super – new recruits from 1 July 2016 end of defined benefit.
A couple of other Tax Changes:
- The Mature Age Tax Offset abolished from 1 July 2014 (previously restricted).
- Dependent Spouse Tax Offset abolished from 1 July 2014 (previously restricted).
Changes to the Pension include:
- The pension age will rise to 70 by 2035.
- Indexation by CPI (rather than average male OTE) from September 2017.
- Indexation of asset test/income test thresholds frozen for three years from 2017.
- Deeming rates (for income test) reset to $30,000/$50,000 from 2017 (currently $46,600/$77,400).
Updates to the Commonwealth Seniors Health Card will be:
- Superannuation balances are to be counted in the income test (presumably at the deeming rate) – which makes it harder for non-pensioners to qualify (income limits currently $50.000/$80,000).
- No Seniors supplement – abolished from 1/7/14 ($876.20 for single, $1,320.80 couple).
It’s been a tough budget, but perhaps not as tough as some were expecting. All Australians have been told to bear the burden. According to Federal Treasurer Joe Hockey, “the economy is growing at less than normal speed and the time to fix the budget is now.”
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by Jodie | Apr 17, 2014 | Advisers, Budget, Debt Management, Finances, General, Insurance & Protection, Money
It’s possibly unfortunate, but most things we do in our lives we rely on money. And money is definitely required to maintain our family’s standard of living.
The issue is not about how much we earn or what we take home at the end of the day. It’s about living within our means and even the consistency of what and how much we earn.
Travelling broadens our view on the issue of material wealth, especially when we see the lives of people who have substantially less then we do. This was brought home to me on a recent trip to Bali, although the happiness and smiles of the locals often put us to shame. That’s where we realize that it’s not about money to find family happiness. Rather, it’s about the security of our income, and the ability to live within our means.
It’s no secret that the greatest cause of stress in most families stems from money or a lack thereof. That’s why at Wealth Planning Partners, one of our values is to assist our clients maintain family happiness by keeping their heath, income and their wealth financially secure.
One effective way to achieve this, is through income protection, something that when put in its place can save our family from unnecessary stress and pain in the unfortunate but common case of the family income being put on hold. Often, due to unforeseen occurrences, such as illnesses or injury that strikes out of left field!
Although we can’t take the stress out of major illness or injury, being able to assist with continuity of income, gives the team at Wealth Planning Partners great satisfaction, knowing it’s one less thing for our clients to worry about. We’re there at claim time for you, assisting with the forms, liaising with doctors and ensuring processing whenever you need us. Don’t hesitate to get in touch for a price, or complete the insurance quotation tool on the www.wealthplanningpartners.com.au website.
by Jodie | Mar 30, 2014 | Advisers, Australian Economy, Debt Management, Economy, Finances, Insurance & Protection, Money
The fact that 95% of Australian families do not have adequate insurance is likely a direct result of the “She’ll be right, mate” attitude and is also directly coupled to an over-generous social system.
The post baby-boomer generations have grown up under this system, resulting in the expectation that the Government will always be there in time of need or financial difficulty. This in turn, has led to an under-insurance epidemic!
A few statistics from the financial industry are quite sobering and have highlighted under-insurance as one of the biggest security threats facing Australians.
According to OnePath’s Insurance Fundamentals:
• One in five families will be impacted by the death of a parent, or a serious accident or illness that renders a parent unable to work;
• The typical Australian family will lose half or more of their income following a serious illness, injury or the loss of one parent as a result of under-insurance;
• Under-insurance is expected to cost the federal government $1.3 billion over the next 10 years.
As Australia’s debt levels continue to rise and the government has committed to paying down debt, the social system we have all become accustomed to will, and is very rapidly shrinking. Australians are going to have to face the fact that they are responsible for their own financial health, their financial futures and eventually their own funded retirement.
This is where the importance of a Financial Planner for every person or family will become vital. The current situation presents itself as a major opportunity for Financial Planners going forward and many are already offering better engagement with clients through marketing and social media. Ongoing contact will enhance the experience for the client and additionally build trust ensuring more families embrace risk protection strategies to help in time of need.
These are exciting times with many positive changes in store for both the consumer and adviser. Carpe diem…..
by Jodie | Feb 2, 2014 | Budget, Budgeting, Debt Management, Finances, General, Money
Being honest about what we have, or don’t have can be a start to cleaning up our financial life. For whatever reasons (upbringing, culture, entrenched ideas) many suffer from money shame. Sweeping our financial issues and emotional baggage around the issue under the carpet might hide our situation from others, but doesn’t help us, short or long term.
Often, we’d rather not speak up and tell someone if we can’t afford a certain outing or meal with friends. We want to fit in, hang out and be accepted so we can lie to ourselves and others rather than be honest about where we’re at.
There should be no shame or embarrassment in speaking the truth. So, if it’s time for you to ‘man up’ (or ‘lady up’ as the case may be) with your finances, here’s a new way of looking at things that may help out.
Do speak up! Be brave enough to tell your family, kids or friends ‘I’m watching my money these days. I’ve got some dreams I’m pursuing and that’s my current priority.’ It may be that you’ve decided to get on top of your credit card debt, save for that trip you’ve always wanted, be serious about that housing deposit or just be more mindful about where your money goes. Putting it out on the line often means we then will be accountable for our actions and have a better chance of achieving our dreams.
Perhaps you could offer offer an alternative when social invitations arise. You might not be able to afford go out to dinner and a movie, but maybe you can have a night in with a video, popcorn and drinks. Could your friends come back for a cuppa and bickies later? Have a supper or dinner party at home where friends are responsible for different plates to share, and importantly, let others know when your kicking your financial goals. Have a celebratory bubbles or whatever lights your fire, when you do clear the credit card. We often forget to pat ourselves on the back, even for little achievements, so have milestones that you work to along the way and enjoy the sense of achievement as you go.
Often saying ‘I can’t afford it’ feels shameful or embarrassing and we may feel we’re a burden on our friends, even a killjoy, but there’s no shame in standing up and being honest about what you choose to spend your hard earned dollars on.
Possibly, some of your friends may even be inspired to watch their own dollars and cents more closely, or take better charge of their financial journey.
It’s your choice to shrug off the shame and make positive and constructive choices around money.
And if you want a hand with budgeting, don’t be afraid to ask. An investment in ‘getting it together’ may just be the best decision you’ll ever make!
by Jodie | Nov 25, 2013 | Advisers, Business, Finances, General, Social Media
November 25, 2013 – The Financial Standard Power 50 was announced last week at an event hosted by Financial Standard and principle sponsor Zurich at the Gowings Bar & Grill in Sydney.
The #FS Power 50 is a list of the fifty most impressive social media activists in the Financial Services sector. The list is a combination of individuals who have distinguished themselves as shining lights in the digital world. They are the innovators, influencers and communicators who combine clout and class to take centrestage in the Financial Services discussion in Australia.
The list was adjudicated by a panel led by Financial Standard Head of Media and Publisher Michelle Baltazar, “We were looking for digital activists that cut through the discussions and added value to their audiences. Our thinking was that the Power 50 needed to be both the effective vectors of content and interesting conversationalists.”
Commenting on the list’s launch, Financial Services Council senior policy manager and Power 50 member Cecilia Storniolo said, “Congratulations to Financial Standard on the publication of #FSPower50 which celebrates the power and benefits of leveraging social media to connect the connected within the world of financial services. I’m honoured to be named amongst them.”
The Power 50 are showcased in a print guide with a complimentary online version available at www.financialstandard.com.au/fspower50.
For the full press release, please click here.
Amanda Cassar of Wealth Planning Partners was pleased to be announced in the Financial Standard Digital Dozen, the FS Power 50 and to walk away with The Conversationalist Award (jointly with Karin Hanna of Financially Fabulous) on the night!
by Jodie | Apr 30, 2013 | General
Do you like to have a punt?
I once declined placing a bet on the Melbourne Cup and was told I was absolutely, positively UnAustralian! I’ve never even played Two-Up on ANZAC Day… Just saying!
But then, gambling on anything has never been my thing. I feel I work way too hard to give it away. And I’m not sure I’m ever going to be the luckiest chick on the planet when the roll of a dice, randomly chosen numbers or the athletic ability of an animal I’ve chosen based on the pretty colour of jockey’s silk is the deciding factor.
Plenty I know tho, do like to have a punt on the races – whether the gee-gees or the dish lickers and regularly allocate part of their salary to this pastime. And most non-gamblers will even purchase a ticket or two when Lotto run their massive $20million+ draws!
The Australian Bureau of Statistics (ABS) state that gambling activity grew enormously during the nineties. ABS data revealed that expenditure on legalised gambling exceeded $11 billion back in 1998 and by 2010 this was over $17 billion!
So, it turns out, we all have ‘a thing,’ something that’s important to us, that we choose to ‘waste the ready’ on. I may be guilty of a shoe fetish or spending on a spot of jewellery, and although gambling is not ‘my thing,’ you may choose to allocate part of your earnings to looking forward to the big win and retiring in style – proving all the doomsayers wrong!
Like anything, it’s about keeping it all in perspective, staying on top of debt and never spending more than we earn. I have a quick chat about the issue on a recent trip to Las Vegas.
Find out more on my YouTube blog here: Does Gambling form part of your Financial Plan?
by Jodie | Apr 29, 2013 | Economy, Finances, General, US Economy
As most of us are aware, Michigan was severely hit by the Global Financial Crisis and that particular state of the US certainly was one of the hardest hit in the nation due to their strong reliance on the car industry.
We heard about the issues facing the automotive industry, which in turn led to an employment crisis in the area. Since the year 2000, employment declined by nearly half a million jobs or 10.5% with a 36.9% loss of manufacturing jobs, and a 50% loss of employment in vehicle manufacturing.
These stats, combined with personal credit debt, rising foreclosures by the banks and dropping consumer confidence impacted the broader community and things were incredibly grim.
Policy responses of temporary cash infusions, increased rebates and interest rate cuts have either helped relieve financial markets over time; or worsen and deepen the crisis, depending on your particular point of view.
However, on my recent visit in March 2013, I found although it was happening slowly, there was a cautious feeling of optimism emerging.
Some plants had reopened, or put to different uses, and staff had been rehired. Things appear on the surface at least, to be on the mend.
Here’s our Video Blog on YouTube: Financial update from Michigan, USA
by Jodie | Apr 29, 2013 | Advisers, Debt Management, Finances, General, Investments
We’ve all heard the stories: Lotto winners broke within a couple of years, professional athletes running out of money and filing for bankruptcy, and those with a windfall or inheritance wondering where it all went.
It’s stories like these that inspired Amanda Cassar to do a short video blog when recently staying at the Bellagio in Las Vegas to discuss the importance of a financial plan and having a professional help with managing your money.
See more here on our YouTube clip: Managing a Financial Windfall
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by Jodie | Jan 18, 2013 | Finances, General
So it’s already half way through January are most of us are wondering where those few weeks of R&R went. So how are you going with those Resolutions you made? Still hanging in there or already over?
I thought I’d have a look at the Top 10 New Year’s Resolutions made and see how they tally with yours. According to the website squidoo.com, these are the Top 10 on the Resolution List are:
1. Stop Smoking
2. Get into a Habit of being Fit
3. Lose Weight – the Battle of the Bulge
4. Enjoy Life More.
5. Quit Drinking
6. Organise Yourself – this is one of the keys to reaching your goals
7. Learn Something New
8. Get out of Debt
9. Spend More Time With Family
10. Help People.
The way I see it, over half of these involve either saving or spending money to achieve.
I’d suggest perhaps just hitting your top two or three and seeing how you go with achieving these before moving on. Some motivation might come from setting a basic budget – i.e. seeing how much you’ll save on quitting smoking and reducing grog.
All this talk of new year resolutions can be a bit overwhelming. Goal setting is great, but when it comes to strict diets and gruelling work targets, studies show that if we’re too hard on ourselves we’re actually more likely to binge, burnout and end up going further backwards than forwards.
When it comes to making long term changes, the old adage of “slow and steady wins the race” is often best. We like that idea much better! Perhaps buddy up with a pal with similar plans and kill two or more birds with one stone – you may Get into a habit of Being Fit, Lose Weight, and Enjoy Life More… all at the same time! Then again Quitting Smoking and Reducing the Grog may also help with Getting out of Debt!
And always – if you need the help of friends, family or an expert – never be afraid to ask.
Hope 2013 is a cracker of a year for you!
by Jodie | Nov 14, 2012 | In The Media
Well, I do love to travel and really enjoyed heading to fabulous Melbourne for the Women in Finance Vic (WIF) working lunch. I don’t need much arm twisting to get me to Victoria and was glad to combine some appointments with clients, colleagues and a great lunch.
WIF had combined forces with the Australian Centre for Financial Studies and the Financial Services Institute of Australia (FINSIA) to put on a great lunch in Collins Street to discuss “Finding Parity for Women’s Super.”
A great panel of women leaders representing the Industries of consumer and wealth management sectors discussed:
- Why the Value of women’s super is so much lower than men’s
- Why some women don’t have super and don’t focus on it
- What various sectors of the industry are doing about it; and
- What is and isn’t working
Some of the history of discriminatory superannuation measures against women were highlighted, including the Married Women’s Fund, available for the Public Sector; along with limited or no access to superannuation benefits for working women and the exclusion of super being mandatory for those earning under $450 per month from certain employers.
Need to find a solution to the big problem
As 75-80% of Australians currently access the Age Pension (of approx. $20k p/a) self-funding for retirement is becoming of increasing importance to all.
Not surprisingly, it was highlighted that women often have multiple or many employers, especially for casual work, and an erratic working life, due to pregnancy, child birth and motherhood.
Women also have a longer life expectancy than men, and need to fund for retirement longer. On average, the girls currently have around 17% less than men in their Super funds, but require around 13% more.
Women are perhaps more disengaged with their funds feeling superannuation saving is for the future, not really important, that their family situation will take care of things. Or that most Advisers are men, and they aren’t really sure about trusting them with their small and unimportant nest eggs.
Anne-Marie Corboy, CEO of HESTA, a large industry fund highlighted that the average balance across their 750,000 members is $29 886 for men, and a bit over $26k for women. Hardly enough to set up for a comfortable retirement, for anyone!
So, what can be done?
Some of the suggestions included constantly consolidating superannuation accounts whenever changing employer, not to ‘lose’ any super funds, make the most of incentives such as the Co-Contribution and Spouse Superannuation schemes and taking a lot more interest and control over your own financial journey.
As one of the Advisers put it, ‘A Man Is Not a Financial Plan!’ So girls, time to engage more with what is yours and ensure every penny is accounted for. And if you need advice, I’d love to give it!
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