by Amanda Cassar | Feb 28, 2022 | Australian Economy, Economy
Russia Ukraine Event Update
On 21 February, Russia asserted its view on the independence of the Donetsk People’s Republic and the Luhansk People’s Republic. Russia began mobilising troops to conduct peacekeeping operations. This was a violation of Ukraine’s sovereignty and independence, the Minsk agreement, and has been widely denounced by the West. Subsequently, Russia instigated military strikes on Ukraine and has invaded. This is an initial event update on the war between Russia and Ukraine.
Russia initiates full scale military assault on Ukraine
The build-up of Russian forces on the Ukrainian border in recent weeks has been a clear indication of intent to take action. US and NATO Member nations have been providing Ukraine with military aid. This includes lethal weapons, anti-armour missiles & artillery, heavy machine guns, helicopters, small arms, ammunition, radio systems, medical equipment and spare parts. Monetary aid has been provided. US Administration has pledged aid to Ukraine of $650 million to date. UK, Danish and Dutch Governments have provided material monetary support.
Nothing has deterred Russia from invading Ukraine with missile strikes and border crossings. Russia seized key strategic assets including Chernobyl Nuclear plant and attacked military and civilian sites.
US and EU Member State Sanction Reactions
Post the initial move on Ukraine, sanctions were imposed. Post the missile strikes, further sanctions have now been imposed by US and other countries. Further sanctions and action may be taken.
US has sanctioned Russia’s foreign debt, meaning it can no longer raise money from Western financial institutions. This will impact Russia’s ability to finance military efforts. Further sanctions are likely as Russia deepens its invasion of Ukraine. All 27 EU Member states have agreed on a range of anti-Russia measures. Russian banks have had assets frozen in the UK. Certain wealthy Russian billionaires have been issued travel bans. Their ability to access funds from EU banks has been denied. Further, trade between EU and two rebel-held regions has been banned.
Germany has halted major infrastructure projects, including Nord Stream 2 gas pipeline,. Additionally, 351 members of Russia’s Duma, or parliamentary lower house have been hit with restrictions. Further restrictions may be imposed excluding Russia from global financial messaging service Swift, used by most banks worldwide. That would seriously curtail Russia’s ability to do business.
At some point, further sanctions would start to harm the economies of those imposing them. Countries such as the US and Germany have strong ties with Russia via trade.
Macroeconomic Impacts
Ukraine is the second largest country in Europe and a huge source of agriculture. The economic damage could have worldwide implications. Russia has inflicted economic damage on Ukraine, with contracts being cancelled and businesses withdrawing people. The White House has warned US silicon chip industry prepare for a ban of exports to Russia. This may well soon extend to all electronics supplies.
Crude Oil WTI has risen about $3 USD/Bbl today or about 3.33%, continuing recent increases.
Source: Iress
Prolonged conflict is almost certain to put further upward pressure on oil and natural gas prices. Sanctions will continue to limit supplies and force prices higher. This is particularly true in Europe, which is already struggling with high energy prices and limited supply. This may mean sustained or higher inflation, which could mean further upward pressure on interest rates.
Gold is usually seen as a safe haven in times of conflict. Main Ukraine exports are raw materials iron, steel, mining products and agricultural products, chemical products and machinery. Ukraine is a large exporter of grains and cereals so there is potential for significant price rises. The US is a large purchaser.
Equity Market and Sector Impacts
The Russian move into Ukraine will cause further increases in equity market volatility. We will continue to feel the impact in rising energy prices. As can be seen from the graphic below, Russia and Ukraine account for a material amount of Oil and gas products. They share a total around 22% of global exports combined.
Russian gas exports to Europe account for 40-50% of its import needs. Energy markets have been tight as COVID related lockdowns have abated and travel resumes. Overlay this with increasing concerns around ESG and banks in western economies under pressure to cease funding fossil fuel projects. This further underpinned already tight supply demand dynamics. We suspect there is already a premium in energy prices for current tensions. There is more upside in prices likely should full scale war break out. This feeds inflationary concerns which are already a dominant theme in equity markets. Most companies in current reporting season cite rising cost pressures in materials and labour.
Soft Commodities
Soft commodities like wheat and corn would be impacted given Russia and Ukraine account for 25% of global exports. This could potentially be an export boost for Australia if supply is restricted or sanctions placed on exports from Russia. Not included in this graphic is ammonium nitrate. Russia is responsible for around 65% of global production. This is the primary ingredient used in fertilisers. Russia banned the export of this mineral product recently, with the ban to extend to April 2022. Should sanctions remain in place for an extended period, the impact of inflation on food prices could be enduring.
Gold
During times of heightened geopolitical tension gold and gold stocks tend to be a safe haven. Gold has been out of favour as risk aversion has been low and sentiment poor. This has been reflected in valuation of gold stocks with many trading at significant discounts to respective valuations as measured by P/NAV. This is highlighted below with gold stocks on the left of the chart. We highlight Northern Star (ASX:NST) which was recently trading at P/NAV of 0.73x with a FCF yield of 7% in FY22. Sentiment appears to be changing as many investors seek safe haven assets.
Source: Iress
Valuation of Gold stocks on the left side of the chart
Source: Goldman Sachs Oct 21
Asset Class Impacts Since the Russian Move into Ukraine
Commodities
Both Oil and Gold have rallied in recent weeks, with the specter of reduced oil supply driving prices higher. Gold has performed its traditional role in periods of market stress, Investors seek protection via the precious metal.
Source: Iress
Interest Rates
Have been largely driven by inflation and market expectations of rate hikes over the next 12 months. US Bonds saw some buying. Investors shifted allocations in a flight to quality given uncertainty inherent in equities markets during times of elevated uncertainty.
Equity Markets
Equity Markets have been volatile for some time, with high growth stocks suffering over the past 3 months. The potential for rate hikes became clearer, however increased volatility presented by the Russian invasion of Ukraine dominated narrative since late January.
Source: Iress
German markets have seen most volatility among major European exchanges. Emerging markets have been languid over the past 12 months compared to developed market peers. Whilst the read-through impact of any conflict on Emerging Markets is likely to be varied, potential higher inflation (and consequent higher US Interest rates) is likely to be a headwind. However, the relatively higher exposure to the energy sector (6.8% in EM vs 3.8% in Developed Markets) may mitigate some volatility.
Source: Iress
Long-term implication for portfolios
It is worth noting historically, market impacts of localised geopolitical events like this have been short-lived. Diversified model portfolios are built on a Strategic (Long-Term) Asset Allocation foundations that include stress testing for geopolitical events.
We continue to monitor the situation closely as events unfold. We will continue to provide Russia Ukraine updates. Further deterioration in this conflict may necessitate the need to implement defensive portfolio changes. At this stage we are not making changes and keeping a watching brief on our Asset Class weightings. There is a fair degree of defensiveness built into current settings. The situation is deeply concerning and we will monitor closely.
From a very long-term perspective, we note that volatility has historically tended to cluster (both to the upside and downside.) See the chart below on the left. If investors react to large negative movements by selling out of equities, they run the risk of being out of the market for large positive days. The consequences of missing a handful of these “best days” can be substantial. This is evidenced by the chart below on the right. So, we are mindful of this before taking action and continue to take a long term view.
Date: 27th January 2022 Source: ASX
Author: Andrew Simpson, Andrew Ash, Ross Stanley, Steve O’Hanna. Reviewer: Matt Olsen
Footnote
This document has been prepared by Actuate Alliance Services Pty Ltd (ABN 40 083 233 925, AFSL 240959) (‘Actuate’), a member of the Insignia Financial group of companies (‘Insignia Financial Group’). This is for use and distribution by representatives and authorised representatives of Australian Financial Services Licensees with whom any Insignia Financial Group member has a commercial services agreement.
Information in this document is of a general nature only and does not take into account your objectives, financial situation or needs. You should seek personal financial, tax, legal and such other advice as necessary or appropriate before relying on the information in this document or making any financial investment, insurance or other decision.
Information in this document reflects our understanding of relevant regulatory requirements and laws etc as at the date of issue, which may be subject to change. While care has been taken in preparing this document, no liability is accepted by Actuate or any member of the Insignia Financial Group, nor their agents or employees for any loss arising from any reliance on this document.
If any financial product is referred to in this document, you should consider the relevant PDS or other disclosure material before making an investment decision in relation to that financial product.
Please don’t hesitate to reach out to the Gold Coast team of financial planners at Wealth Planning Partners to discuss your personal situation.
by Amanda Cassar | Feb 25, 2022 | Australian Economy, Economy, Finances, Investments
Worried about the impact of Russian Ukraine concerns and your finances? Please reach out directly to the Wealth Planning Partners team if you want to discuss your personal financial plan.
So, a little perspective on the Ukraine and Russian situation. This geopolitical event is concerning on practically every level. And there are a wide range of potential outcomes and scenarios. Putting aside views on the way this might evolve, our role is to look at this financially and you are secure. This requires us to avoid prediction and instead use multiple layers of thought.
Want the Good News?
- Your direct exposure to Russia and Ukraine is negligible. We maintain exposure to emerging markets for some clients given the attractive valuations and diversification. Weightings to Russia and Ukraine are small. Russian companies only account for around 2.8% of the emerging market basket for equities and around 4.1% for bonds. Ukraine doesn’t register on factsheets because it is so small. Perversely, if prices in these regions fall significantly, the expected reward for buying might exceed the risk. This in turn creates a buying opportunity—but that isn’t the case right now.
- Knock-on effects? The risks are much more notable, but we do see some offsetting positives. Again, starting with the good news… tensions are pushing commodity prices higher. This has supported sentiment toward energy companies, which have done very well for portfolios lately. We carry a long term, valuation-driven focus in portfolios (preferring cheaper assets) which tend to do well in this kind of environment.. That said, we can’t rule out an exodus of investor money if things deteriorate quickly. Never expect straight lines in markets! And if negativity really takes hold, it could open a world of opportunity to add undervalued assets to your mix.
Rest assured, we are monitoring this situation closely and hearing from a range of industry experts to understand the impact as it evolves. Ultimately, we are keeping a close eye on any consequential impacts and given everything we know (while acknowledging the unknowable), it reinforces the benefits of a long-term, valuation driven approach. We’re staying in touch with the Morningstar research house to navigate this uncertain period, keeping us all on the path to achieving your goals.
What to do?
If anything changes, we’ll be sure to let you know, but for now we hope you find this touchpoint useful. In the meantime, it’s usually best to ‘hold the course.’
Please don’t hesitate to contact the Robina office or your adviser directly if you have any questions or issues. Gold Coast Financial Planners, Amanda Cassar & Mitchell Cassar are here to take your calls if needed. Contact details here.
by Amanda Cassar | Dec 4, 2020 | Emotions, Finances, Money
Do you dream about money? Daydream even? When you have dreams about money, it can be a bit of an interesting view into what your subconscious is thinking about when it comes to the topic of money or finances. Your dreams can influence your decisions, so it’s a good idea to delve deeper into what you’re dreaming about. Are you dreaming of winning money or giving money away? Whatever the case, there can be a hidden meaning. Let’s take a look at what it all might mean?
What does it mean to dream about money?
Firstly, it’s not weird to have dreams about money, you’re not the only one. Many folks out there have dreams about money. Even Women’s Day have run articles about dreaming about the dollars! Although you might think it’s odd, it can be fun to try and see what it all might mean!. Once you have a better understanding of what your dream might mean, you can nut out a plan and take action. We’re going to go through some common dreams that are commonly experience – then we can see if we can make these become a reality!
Dreaming about finding cash?
How exciting! You’ve found money! You might find $20 in a jacket or purse, or perhaps you’ve spotted a few bucks on a footpath. Just think… did you feel excited? Perhaps the amount of money you found is somewhat less important than the exciting feeling you get finding it. When dreaming about finding money, your subconscious could be indicating that you might have misplaced some cash somewhere. Have you checked to see if you have any unclaimed money around? Who knows… it’s worth checking!
Dreaming about winning money?
Dreaming about winning money doesn’t necessarily mean that you’re about to win big in some lottery draw. However, it could insinuate that you currently have positive energy in your life, making you feel happier or might have a bit more luck than usual. Use the opportunity to harness this positivity and look for ways to boost financial security. Perhaps you could start a side-hustle that suits your hobbies as well as your income goals.
Dreaming about losing money?
This one’s more stressful! Even though you can wake up from such a dream, you might be in a situation where it’s a representation of your current reality. Meaning, your real-life finances don’t match your financial goals. Take a look at your budget. Are you spending money on items that don’t serve you any value? Maybe you could cut the pay-tv? In turn, needing to rein in or cut out necessary spending can take away the feeling that money is slipping through your fingers. Why not take advantage of this Budget Planner?
Dreaming about a shopping spree?
We all like this one, right?! A fantasy shopping spree! A spending spree that satisfies your wants and needs sounds like a fantastic dream. However, excessive shopping can also have the down-side of placing you into debt. With this in mind, you might want to re-evaluate your money goals and make saving a priority.
The bottom line
As you probably know, heaps of people dream about money at some point in their lives. When you experience this for yourself, you can decide what action you need to take. Listen to your subconscious and aim to move toward a financial life that brings you peace of mind. If you’d like to review your own finances, reach out to our Gold Coast based financial planning team, Amanda Cassar and Mitchell Cassar, based in Robina.
by Amanda Cassar | Nov 26, 2020 | Advisers, Budget, Business, Debt Management, Insurance & Protection, Money, Wealth
As a result of all the global economic changes from the COVID pandemic, many have started their own business to generate income. With this global shift, people have figured out new ways to be their own boss, in turn, gaining more control of their finances, and have found new opportunities. For some, this has provided entrepreneurial pathways to success. However, operating your very own business has its own pressures too. Running your own show can be super rewarding, and watching it success makes it all worthwhile.
But, you may ask, what happens if you’re unable to work? How do all the fixed business expenses get paid? You’ve got commitments with rent and staff! What can you do?
Business Expenses insurance – what is it?
So, if you’re self-employed or have a small business, you can be reimbursed for particular business expenses incurred while you’re totally or temporarily disabled – (up to your insured monthly benefit amount for up to 12 months). This ensures that you can keep the doors open whilst you recover.
Don’t forget, if there is more than one owner, you will receive your share of the covered business expenses.
What are the key features of Business Expenses cover?
- You will receive a monthly benefit for up to a year for certain business expenses that are incurred should you become totally disabled
- You can also choose a waiting period of either 14 or 30 days
- If you’re on claim the premiums are automatically waived while you’re receiving benefits
- Recurring disability benefit continues a previous claim with no new waiting periods if the same disability recurs
- Make sure you go for Increasing Cover, so keep in line with inflation
- And, as a bonus, it’s generally tax deductible!
Do you need Business Expenses insurance?
So, consider Business Expenses insurance if you:
- have a business or are self-employed.
- You have recurring business expenses like rent, non-income producing staff, accountancy and fixed business overheads.
To get further information with regards to Business Expenses cover, please do not hesitate to reach out for a chat using the form below.
Or contact your Gold Coast based financial Advisers,
Amanda Cassar or Mitchell Cassar or Brisbane based adviser Richard Ayre.
by Amanda Cassar | Nov 2, 2020 | Advisers, Investments, Money, Wealth
by Amanda Cassar | Oct 28, 2020 | Finances, Money, Wealth
From a young age we are taught…
GOOD GRADE = GOOD UNIVERSITY = GOOD JOB = GOOD MONEY
Teenagers are believing that this is the only route to lead a success.
It’s a cycle, churning throughout time – being handed down from generation to generation, merely reciting what they heard from parents and teachers in the early stages of their lives.
Are you a slave to money?
So, who has taught their children…
“If you don’t study hard and get good grades, you’ll never get a job!”
Does this sound familiar? I’m not going to lie… it’s what I was taught!
How about… “Acting like a child isn’t going to get you into a good university” We are constantly pushing our kids to strive for academic excellence so they have the best chance for success.
But, lets be honest, life can be tough and doesn’t necessarily treat you with kindness. Some people are fighting every day in order to make a living… to survive.
You see, there’s always been the division of classes: Upper, Middle, Working and Lower class
The above-mentioned terminology is globally used and seems normal to society – But in all honesty, it’s a very warped view.
Also, people are assigned into groups based on their financial circumstances and are labelled as lower, middle or upper. Naturally, the higher you are ranked the more successful you are perceived to be.
But here’s the kicker….
It doesn’t matter what class you belong to —
you always want more… What you have is NEVER enough.
Yes, even those who are ranked in the upper class! They believe that if only they could attain that little bit more money, they’d finally feel happy and fulfilled. Really? It’s never going to be enough.
Why?
It’s simple. Our infinite desire to upgrade and “level up” inflates our self-worth, makes us feel smart and gives the perception to others that we are successful. We also now have plenty of super wealthy start-up entrepreneurs who are college drop outs. But, they’ve backed themselves and done amazingly well for themselves.
If it wasn’t for this emotional reassurance, many of us wouldn’t be in debt in the first place – credit cards wouldn’t exist and retail companies would go under. A lot of us pay for houses, cars, clothes, furniture, electronics, and vacations that we can’t really afford because we are always striving to accumulate more and more. More than we currently have… More than what others have.
Ultimately, we are playing a big game with our finances.
The goal? To accumulate as much money as possible. And then? At some point in the future — it’s game over.
Richard Ashcroft is right in saying,
“We are slaves to money, and then we die.”
Wow that was very dramatic!
Ok, so let’s reel it in a bit… We don’t have to eliminate money from our lives. Money isn’t evil. Money is just… money. It’s a tool. It’s what we make of it and do with it that counts!
When handled correctly, it can be used as a powerful tool. We just have to be in control of it and understand our emotions towards it.
Be real with yourself. Ask “where do I see myself in five years from today?“
Would you like to spend less time doing the things you dislike and spend more time on the things that provide value to your life? And, if that is even possible, how the hell are you going to get there?
Firstly, take the initial step of regaining control over your spending. Stop being an easy target to retail marketing! Then, go that step further and speak with a qualified profession to go through the best solutions tailored to your circumstances. If you’d like, contact your Robina based financial adviser Amanda Cassar now. Wealth Planning Partners are Gold Coast based financial advisers, here to assist with your planning needs.
Warren Buffet sums it up beautifully with his famous quote:
It all starts with you…
the best investment you can make – is in yourself!
by Amanda Cassar | Oct 27, 2020 | Money, Relationship
Gold Coast based financial adviser Amanda Cassar says ” advisers need skills to handle financial abuse.” Could you confidently recognise a warning sign of financial abuse?
Unfortunately, financial abuse is becoming increasingly more visible on a global scale. It does not discriminate. This type of abuse can occur irrespective of someone’s economic status, level of education, race, gender or ethnicity. It’s important advisors are armed with the particular skillset required to handle cases of financial abuse. Advisers need a different set of skills in their toolkit to handle the rising global cases of financial abuse.
My road to specialising in Financial Abuse
When writing her book, Financial Secrets Revealed, the intention was to explore relationships with money. Cassar wanted to determine whether the lessons we learn in childhood impact decisions we make as adults. Our relationship money can change later in life.
Tanya Targett was one of those interviewed for the book. Targett explained how she had walked into her marriage as a savvy media professional. She was an award-winning journalist, had money in the bank, a home and a trust account. Fast forward a few years, she left the marriage with her daughter. having stashed $20 gift cards to fund groceries. She had a stroke and emotional breakdown after crawling away from her marriage. Tanya was a victim of financial abuse.
But that interview set Cassar on a path of wanting to understand the intricacies of financial abuse. Just how prevalent is it in society and what are the different forms it can take? It was hard to believe as a financial adviser, she had never come across something like this. After a lot of research, it was very apparent advisers fell into two camps. They had either experienced financial abuse first hand with a client or they had had no exposure to it at all.
What is the trigger for financial abuse?
Often there isn’t one defining moment or trigger which leads to financial abuse. It’s more of a ‘frog in the pot’ situation. The pressure is turned up slowly over time and quite often it’s a build up of little moments. And, It is often accompanied by emotional abuse and even domestic violence.
Warning signs of financial abuse
Limiting a partner’s employment options or prohibiting them from progressing is a classic red flag. Some forbid work, or any kind of study or professional development. Targett stated her husband told her to give up the ‘nonsense’ of her successful media career and take a shelf packing job.
Other warning signs can include extreme monitoring of purchases. A spouse may demand to see a receipt for every cent their partner spends or will give a controlled allowance. They likely control and monitor all bank accounts as well. Basically, any severe forms of financial control should raise an immediate flag.
As advisors, one of the first time we ever encounter suspected financial abuse could be in a meeting with a prospect, or long-term client. What if one day, your elderly client walks into your office with their adult child who is requesting all funds be withdrawn. What would you do?
If we look at elder financial abuse, thefts of funds is a big warning sign. It can taking money from the bedside table or large withdrawals from bank accounts. “Inheritance impatience” is another warning sign. Adult children may justify, “well I’m going to get it anyway, I might as well take it now”.
Action steps advisors can take
First and foremost, make sure you are protected by taking down very thorough file notes. Sometimes, it may be nothing more than a gut feeling but over time, if you’ve built up a lot of gut feelings (and file notes), it could be time to have a conversation with the person or couple in which you suspect financial abuse. Or if you’re still unsure, contact a local hotline for direction.
Setting the expectation with couples you work with by explaining you like to work with couples who have a respectful relationship. Explain what a this looks like. A relationship where both parties have the opportunity to voice their opinion, get involved in decision making and have access accounts.
Getting your licensee involved and working closely with them if you have a case that needs to be referred. Hopefully your licensee has a professional standard team and a procedure in place to handle suspected financial abuse. If they don’t, tell them they need to write one. They should have policies and procedures in place to protect you and your business.
Having a list of people you can call. Keep a list of local shelters, the elder abuse hotline, organisations like WIRE in your local state or territory. While not all of these providers will be able to solve the problem, they can point you in the right direction.
It’s not easy calling out financial abuse
It takes a very brave person to call out suspected financial abuse. If you do have a hunch something is going on, you don’t have to deal with it all on your own. Get the right people involved to support you and the victim. Do you feel that you could easily spot and signs? And feel confident that you have the skills to assist?
Cassar believe it’s also very important to make sure your entire team is on board. Make them aware of the warning signs of financial abuse. Your team are often your frontline staff. Making sure they have the confidence to speak up if they suspect untoward activity. What would they do if an adult child popping by reception with a withdrawal form for their parent? They too can be the difference between stopping financial abuse, or unknowingly supporting it.
Finally, don’t think this only happens to certain demographics of people. So, celebrities and professionals are just as susceptible. See the examples of Britney Spears, Mickey Rooney and Tina Turner.
Because advisers are in a powerful but confronting position, they need to not just recognise financial abuse. And, advisers need skills to handle financial abuse. It’s a very delicate topic, but when approached with support and conviction, could save a marriage.
For advisers who would like to learn more about recognising the signs of financial abuse, Amanda has collaborated with Standards International. Together with this UK based firm they have brought the Financial Abuse Specialist accreditation to market.
by Amanda Cassar | Oct 26, 2020 | Australian Economy, Economy, Finances, Financial Stress, Money, Wealth
How do you save for a house after being hit by the fallout from COVID? Have you been struggling financially with the COVID-19 pandemic? Has the global pandemic affected your income? How’s you financial stress level, not only in your household, but your overall mental health? If so, how can you get back on track after being hit by CoVid?
The markets took a major hit but now it is starting to stabilise as restrictions loosen. It’s never been better timing to look at your financial position.
When is a good time to start saving for a house?
You might say… “But I’m late bloomer when it comes to finances?”
To everyone who is asking the same question, know that you’re not alone. How can you save for a house? We’ve had clients in their 30’s who’s been focusing on saving for home and to be honest, it’s been rough. We’ve heard stories of journey’s full of pitfalls, late-night tears and anxiety. Lamenting and wishing they’d saved more in earlier years.
Despite tumultuous changes in the market, it’s important to find balance. There’s been remarkable shifts not only how people view their personal finances but also how they view money. Have you heard of the ‘money mindset?’
This article isn’t written to make you feel bad about being a late bloomer. It happens, but this time in history is proving to be tricky to navigate when it comes to financial independence and security. Many have utilised this period of time to review their goals. Here’s some lessons learned when finding their feet and getting those house keys. It’s time to fight back after being hit by COVID.
What not to do!
DO NOT put investments on a credit card. In fact, if you can, avoid a credit card altogether, do it.
The idea of a credit card to spend on the things we can’t afford can be tempting. Making sure you understand the risks before you get a card is vital. But what happens when you’re trapped into paying one off? It makes sense that if what you earn goes onto paying off these high-interest rates you will sink deeper into debt regardless. The best thing to do is assess what you have and then see if you can afford paying this debt off even if you did have a home loan. If your priority is saving for a house, then the other items will seem less appealing.
What to do?
Pay off your debt slowly – even if it’s over time. JUST MAKE SURE IT GETS PAID!
Student loans, credit card debts, car loans seem pretty good at the time we borrow the money. But remember that after some time, they actually gain interest. Paying off debt before you buy a house is a little tricky, but not entirely impossible. Implementing automatic direct debit payments will help you pay it on time, every time. And you’ll avoid late fees. Paying off over time is fine, but making sure you do this as quickly as possible is priority! Ask if saving for a house if your biggest priority.
Learn Patience…
Everyone wants everything now but goals take time… be patient!
Our generation struggles with patience. They want everything right now, from iPhones to houses. We decide to risk all of it for what we want. Stop and think,” have I the income to support everything that is coming out of our bank account?” Asking yourself the question of not only “can I afford it” but “can I save 10% on top of” will allow you to stop and think before you buy and invest in something new. Ensuring you have clear goals for your financial plan will put your mind at ease. Taking these measures can assure ways to increase your finances and where to invest. Take time to contribute and invest in your superannuation fund and don’t spend so easily when you have the money available.
If you are going to buy a house, know all of the pros and cons.
Home loans and investment properties can be frustrating at first glance. You need to know how much you have saved for the portion of your investment as well as the 10-20% saved before you make the purchase. Savings, purchase costs and home loans can be a balancing act and it pays to speak to someone who understands not only the market but how much financially you may need to reach your goal.
Seek the advice of a qualified Financial Advisor
Finding a financial planner to work with is important. They not only help you with your financial mindset but also look at your roadmap of how, what, when, where and why on all areas of investment. And even right up to retirement. Understanding the broader picture will help to move forward and succeed with your specific goals.
Everyone has different journey’s and pathways to travel. But, if you can invest in the bigger things earlier whilst increasing your savings you will be better off further down the track. Is it time you started saving for house now?
So, if you are a ‘late bloomer’ it’s ok, we can help you plan for your future with a view to getting you where you need to be. To meet with your Gold Coast financial planners, Amanda Cassar and Mitch Cassar, reach out. To schedule an online appointment, click here.
by Amanda Cassar | Oct 22, 2020 | Finances, Money, Savings, Wealth
Are you teaching your kids how to manage their money? Teaching our children about money is vital. Do you know how to teach your kids to manage money?
When interviewing for her book “Financial Secrets Revealed,” Amanda Cassar found most of us haven’t been taught how to manage money by their parents. Are you self taught? And what do you intend to teach your kids about managing money? It’s a question worthy of thought.
Times have changed
So, with technology come change. Can you think of the last time your children purchased something using cash? Or saw you use cash? Apple, GooglePay and pay later schemes have given us multiple options to choose from. It has made handing over cash a thing of the past.
With contactless payments becoming increasingly popular, many parents are struggling to help children understand the real value of money.
How do you teach your kids to manage money?
So, start by setting an example and putting thoughtful consideration on what you do and say about money in your home. Amanda explains “our children are sponges, so we need to be careful about how we speak. Be mindful of the messages they receive about money”. Are you teaching your children to manage money? And manage it well.
And, how your children perceive managing money all depends on how and how often you talk about money. Do you give the perception that managing money is difficult? Do you make it private or secretive; easy or burdensome, or associated with negative emotion? Most people have heard the expressions “Money doesn’t grow on trees, it takes money to make money.” As parents are we building a scarcity mindset or one of abundance? Our choices and words matter.
Because, being transparent about finances can help turn negativity into less daunting subject. And, be sure to show how it can be successfully managed and have value.
Emotions and money
And, you can help your kids understand the emotion around money. Explain the psychological aspect of why they want to spend. Explain hurdles and obstacles they will face in life. Start with something as easy like getting caught up in FOMO (fear of missing out.) Understand the urge to spend to keep up with their friends. Keeping up with the latest trends or what everyone is buying to maintain their image is a trap. Ask for their perspective.
And know, these pressures can be really hard control emotionally. But, it’s important our children are given the tools to understand why they want to purchase something. And whether the item or memory will hold value for them.
And finally, teach your children to make smart, practical choices with how they spend their money. Show them how to implement a thought process when making purchases. Teach them to stop, pause and think about why they want to purchase an item. Ask the question “Is it worth exchanging this money for this item? Or should I save it and use it for something else?”
Learning to make conscious choices is a really important tool to help children value money, especially if they can’t count it in their hands like cash.
So, for more ideas or assistance, reach out to your Robina financial advisers, Amanda Cassar and Mitchell Cassar at Wealth Planning Partners on the Gold Coast.
by Amanda Cassar | Oct 12, 2020 | Finances, General, Insurance & Protection, Money
Get ready for storm season!
The Queensland Government want everyone to Get Ready for disaster season. Use the 3 Step “Get Ready” Plan.
Prepare your household this storm season by completing these 3 simple steps:
- Have a plan Firstly, ensure your family is equipped with an emergency and evacuation plan. Make sure everyone knows what to do in a disaster. Team-up with your neighbours for added assistance if required. The Queensland government have put together a Household Emergency and Evacuation Plan form.
- Pack Supplies Secondly, have an emergency kit ready to go. A stocked “Go Bag” will ensure you are ready for storm season. This provides easy access to essential items that will equip your household for at least 3 days of isolation. Your kit should be in a sturdy waterproof
storage container. Make sure it is stored in a safe, easily accessible place within your home. And, ensure it is childproof if necessary. Be sure to let everyone know the kit’s location and document it in your emergency plan.
Please click here for a list of what to include.
- Make sure you’re covered Finally, the importance of having home and contents insurance cover is paramount. Many have found out too late that they did not have adequate insurance cover. Queensland has been impacted by over 70 significant natural disasters since 2011!
And, Step 3 is to make sure your insurance is enough to cover the costs of rebuilding your home and or replacing your possessions. For instance, both home owners and renters should check policies to ensure they are fully aware of what is covered.
What to ask your Insurer…
So, in conclusion, some questions to ask your insurance provider are:
- What disasters does the policy cover?
- How do they define each disaster?
- How much will the policy cover?
- Does the policy provide enough insurance to cover the cost of rebuilding your house and any extra costs you might incur?
- Is your insurance adequate to cover the replacement of your possessions?
- Are your possessions covered for damage caused by potential local hazards, such as storm, cyclone, flood and bushfire?
- In what circumstances will the insurer reject the claim?
- Are you covered for the cost of temporary accommodation if your home is uninhabitable?
- Does pre-existing damage caused by a previous natural disaster or lack of home maintenance impact eligibility of insurance claim payouts?
For how to Get Ready for Storm Season, visit the Qld Government website.
As a result, you’ll be ready to go in the event of any disasters. Or get in touch with the Team at Wealth Planning Partners, your Gold Coast Advisers to find out more. And ask, what do you need to do to Get Ready for Storm Season? Don’t leave it too late.
