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It’s been fairly challenging to put a deposit together. With house prices very high, it’s forcing homebuyers to come up with bigger deposit amounts. When the traditional savings vehicles of homebuyers – savings accounts and term deposits – offer only token rates of interest, aspiring homebuyers start to ask themselves what can they do to build their deposit more quickly? This is the situation that Simon and Heather find themselves in. They’ve made a solid start on saving for a…

When governments propose changes to laws, many people mistakenly believe that law is already in place however, the path from proposal to law is not as straight-forward as you might think. When an unpopular or contentious bill is announced, perhaps because of the attention it receives from the media, everyday Australians are sometimes led to believe the declaration heralds a done deal, but this is usually far from the truth. Here’s a good example As part of the 2014 Federal…

It is no secret that Australians love investing in property. And while property investing can be an exciting prospect, it is essential to consider the finer details before jumping in, especially any ongoing costs and expenses you’ll have to pay. Investment property tax deductions It is vital that you’re aware of what you can and cannot claim as a tax deduction as a landlord. For starters, did you know there is a difference between repairs and maintenance completed on the…

As we approach retirement some people start to panic a little wondering if they are truly looking forward to the time of their life when they no longer have to work. Is your retirement plan ready? All of a sudden something they have been pining for is becoming real! Instead of worrying, have a read of the following tips and if necessary, act now. After all, it’s your future – and it could be here sooner than you think. 1:…

As New Year resolution time rolls around spare a thought for your business, because every business can benefit from a few resolutions of its own. Here are a few ideas that any business can build some New Year resolutions around. Make sure you have an up to date business plan. Many business plans sit gathering dust on a shelf, or haven’t even been committed to paper. But a well thought out, written and effectively implemented business plan is an invaluable…

Just as the Grinch stole Christmas, excess spending can rob us all of yuletide happiness. Seasonal credit card splurges can create ballooning long term debt, while unnecessary consumption inevitably leads to a blow-out in rubbish bin waste. The Commonwealth Bank of Australia estimates $11 billion is spent on presents each year, including some 20 million unwanted gifts. At the same time, seasonal celebrations boost landfill rubbish by a massive 30 per cent. So, if you want to max out the…

Work-life balance. It’s something everyone seeks, but achieving it can seem an impossible task. Not only does the ideal balance vary from person to person, it can change frequently throughout life. If your wheel of life has developed a wobble, it might be time to do some repairs to regain stability for the journey ahead. What’s the problem? The source of your imbalance may be clear. Too many hours in the office; too long spent commuting; or maybe you need…

A financial advisor and planner, like me, are paid to worry. We are professional worriers not just your average amateur worriers. We have taken worrying to a new level and made it almost an art form. The amateur worrier spends too much time worrying about things that are likely to happen. The true professional worries about the unlikely events that can be really disruptive to our plans. It is the unexpected that can cause the most harm. The professional For…

With over 4.4 million Australians living with a disability, most families either have a family member with a disability or know of a family supporting a disabled loved one. Financial planning for a family member with a disability is a real challenge. In 2018, the Australian Bureau of Statistics found 4.5 per cent, or approximately 211,200 children, aged between 0 to 14 years, have a profound or severe disability, placing enormous stress on parents as they care for, and also financially…

Becoming a parent is an exciting time of adjustment and upheaval; how could such a little person create so many changes – and sleepless nights? But lack of sleep shouldn’t be caused by financial worries and reduced household income. With a little financial planning for parenthood, you will feel at peace in your new circumstances. Impact on finances When Judy a florist, and Gary an IT manager, decided to start a family, like everyone, they worried about the impact on their finances.  They…

Buying a new home is undoubtedly one of the most exciting times in our lives. But, on the other hand, a mortgage application can be a stressful process as you dive into a world of unknowns. Let’s look at five factors that may negatively affect your chance of being approved for a home loan. 1. Lying on your application Lying about your financial situation is a big no-no in the eyes of any bank. For example, not disclosing childcare costs…

Retirement can be an exciting phase in your life. But all the recent changes to superannuation bring with them lifestyle and financial issues you need to be aware of as you plan your retirement. Retirement means different things to different people. For some, it’s an opportunity to travel, to begin that project they’ve been putting off for years, or to just relax, spend time with the grandkids and dabble in their favourite hobbies. Retirement should be a time to relax…

In 2020 Australians reported over 7,000 investment scams to Scamwatch, well up on the 5,000 reported in 2019. Scamwatch recorded investment scam losses of $65.8 million, but add in notifications made to other government agencies and the major banks and reported losses across 2020 soared to $328 million. Due to embarrassment many losses go unreported so we may never know the full extent of the damage. So the need to protect yourself from being scammed should be on your priority.…

The Reserve Bank of Australia (RBA) and the major trading banks may play the most visible role in setting interest rates, but in many cases they are being reactive rather than proactive.  A wide range of external factors feed into their decision-making process, including in no small part, our collective behaviour as investors and savers, borrowers and consumers. Then there’s the rate of inflation and wages growth, foreign currency exchange, the economic health of our trading partners, and the interest…

Australians were introduced to credit cards way back in 1974. Since then, we have embraced the plastic-fantastic with much enthusiasm, and why not? Credit cards meant no waiting; purchases went home immediately and were paid-off in monthly instalments – what could be better? For some 40 years, no other credit facility came close to offering a viable alternative. New Credit Schemes But around 2015, the game changed with the introduction of Buy Now, Pay Later (BNPL) schemes. Platforms like ZipPay…

Resilience is the ability to quickly recover from setbacks, and while setbacks can come in many forms most of them will have a financial component. So what can you do to build financial resilience? Expect the unexpected Rarely do we get advance warning that something bad is about to happen to us, so the time to develop your resilience strategy is now. And while we don’t know the specifics, we can anticipate events that would throw our finances into disarray.…

More than $3.5 trillion dollars in inherited funds are expected to change hands within Australia during the next 20 years, with Australians enjoying one of the highest inheritance payout rates anywhere in the world. All thanks to managing wealth. According to investment bank HSBC’s Future of Retirement report, Australians pass on average $561,000 to their heirs, almost four times the global average of $148,000, with two in every three Australians planning to leave an inheritance. This payout rate is significantly…

The increase in home-based businesses has been monumental in the past decade with now almost one million Australians earning an income by working from home. The types of businesses that can be operated from home are only limited by imagination; just as the reasons for this growing trend are varied. Some people whose jobs are made redundant will be tempted to take the plunge into self-employment; others find it appropriate when children arrive; and there are those who do it…

Medical arrangements, Will, funeral preferences. None of us likes to consider our own mortality. For our older loved ones, it’s an even more confronting topic and difficult to discuss. When Lindsay became ill, his family’s priority was to support him through his treatment, and keep him positive and as comfortable as possible.  Typical of his generation, Lindsay had always been very private, never sharing personal information – not even with his nearest and dearest. After he passed away, it dawned…

As most long-term investors know, investment markets have their ups and downs. The downs are usually associated with periods of uncertainty, perhaps due to political or economic factors, or even natural disasters. Uncertainty leads to volatility – more extreme movements in asset prices – which can have a big impact on portfolio values. This can be of particular concern if you are preparing for retirement and preparing for your last payday. So what can you do about it?  If you…

Once upon a time, banks would lend would-be home owners a sum of money based on repayments being less than 30% of the borrower’s gross income. As interest rates fell in the early 90s and competition from non-bank lenders flourished, home loan providers relaxed this rule and increased the flexibility of loans generally. Many Australians are now paying dearly for ignoring a rule which was initially put in place to protect us and are now confronting mortgage stress. How to…

Buying a property is one of the biggest investments many people will make in their lives. When it comes to securing a mortgage, many buyers may be so focused on the immediate steps ahead that they don’t consider having the right protections in place first. Understanding the different insurance options to protect your mortgage is an important part of protecting yourself and your loan if you’re unable to meet repayments. What are the different insurances that can protect a home…

The newest generation of young investors were raised during the Age of Information.  Growing up alongside the internet, this generation has been exposed to more information and technological advancement than any generation before them.  Young investors have greater access to education around investing, more diverse opportunities for investing, as well as a rise in social media content creators creating communities around building wealth – making this topic much more popular among younger generations.   However, the world of investing can still…

With premiums often running to thousands of dollars per year, whether or not to take out private health insurance is a major financial decision. Here are some of the key issues you need to consider in making that decision. Why go private? There are two main types of private health insurance: hospital cover, and general treatment (or extras) cover. In some states you may also need to take out ambulance cover. Many common treatments, including physiotherapy, optical and dentistry, are…

Financial planning is, by its nature, forward-looking. What counts is where you are now and what you do in the coming months and years. That said, there’s good reason to pause and take a look over your shoulder to see how far you’ve come. Why? Because taking stock of what you have achieved so far can spur you on to even greater things in the future. Aside from congratulating yourself for having the sense to take advice and work to…

Technology is pervading almost every facet of our lives, including dating. There’s no doubt online dating has its advantages, but its growth has brought with it a dark side, an online dating scam. In 2021, 3.2 million Australians were using match-making apps; developers of these platforms raked in around $56 million. Little wonder crooks and scammers want a piece of the action – as Shayne found out. How they work At 24, tradie Shayne met the scammers’ demographic. After spotting…

When Jack and Sarah met through mutual friends, they hit it off immediately. Both had previously been married and, besides having a child each, found they had quite a lot in common. Dinner dates quickly morphed into family-style outings with their children, to the zoo or adventure theme parks, and soon the couple was talking about taking their relationship to the next level. According to the Australian Bureau of Statistics, in 2023 over 118,439 marriages took place in Australia. Many…

While it’s easy to be discouraged by superannuation and fear you will never have enough money saved to stop working, remember even a modest superannuation balance can make a big difference in retirement. For every $100,000 saved in superannuation, you can expect these funds to generate a return of 6%, or $6,000, a year. When this is paid out as a pension, it equates to $500 a month tax-free. Of course, this is doubled if both you and your partner…

Imagine that, without any effort on your part, enough money regularly pours into your bank account to meet (or exceed) all your living expenses. Suddenly, work becomes optional and a world of opportunities opens up. That’s the ultimate in passive income – all your financial needs met without lifting a finger.  The fast way The fast way to a life supported by passive income is to win the lottery or receive a large inheritance. Invested wisely, large lump sums can…

It’s hard to imagine taking out a home loan with an interest rate of 17% per annum or higher, yet that was the reality for homebuyers in the late 1980s and early 1990s. And back then it would have been just as hard to imagine home loan interest rates of less than 3% p.a. The point is, ultra-low interest rates are not the norm, and while it might be tempting to load up on debt when interest rates are very…

Payday lenders are flourishing and while their advertising makes it all sound so simple, there’s always a price. Here is a better solution to payday loans. Tara decided to replace her clapped-out car with a shiny new one. The repayments were affordable: $350 per fortnight over three years – easy! All was going well until a month arrived that had five weeks instead of four. Tara’s fortnightly repayment cycle fell on the fifth week meaning that her monthly salary had…

With an aging population, an increasing number of Australians are opting to live in retirement villages. While pitched at the ‘over-55s’, the average age of entry is 74, and average age of residents is 81. Depending on the retirement villages, attractions include having home maintenance issues taken care of, more social contact, access to recreational facilities and on call assistance in case of medical emergency. Moving to a retirement village can also free up capital to support living costs in…

What would you do if a family member asked to borrow money – besides the less painful option of beating yourself over the head with a fence paling? When it comes to lending money to family, you want to help, but you’re right to be wary. It’s a difficult subject that despite everyone’s best intentions, often ends in tears. You’ve worked hard, saved for retirement, paid off your home and raised your kids. You’re sitting on a nice little nest…

You’re probably already pretty impressed by what your smart phone can do, but have you thought of it as a wealth builder? Yes you can use it to create wealth. It’s all down to the apps you can install, and there’s an increasing range to help you manage your spending, supercharge savings, complete your tax returns and manage your investments – all at the tip of your fingers. Track your spending Most people approach the ‘b’ word – budgeting –…

Many people eagerly anticipate retirement life. Others view its approach with trepidation, worried over how they’ll fill their days.  Bob retired from work in his early sixties and, deciding he was way too young to retire from life, downsized his suburban home for a country lakeside retreat. He bought a little boat, adopted a shelter-dog and got busy.  The local volunteer fire service deemed him past firefighting age, so Bob helped by cleaning the station and equipment. During emergencies, he…

Economies tend to face headwinds every ten years as the business cycle moves from periods of growth to contraction. While recessions are challenging for small and medium businesses across Australia, it doesn’t mean there aren’t significant opportunities to strengthen your business and come out of challenging times stronger and more profitable. In this article, we’re sharing five ways you can recession proof your business.  How is Australia in a recession? Firstly, it’s important to understand what it means for a…

The world is constantly dangling temptations before our eyes, and it’s never been easier to buy stuff, even if we don’t have the money. The upshot is that we are all susceptible to making some basic financial errors. Individually, these money mistakes can be small. Added together, they can really hold us back from financial success.  Adding up the little things Take one simple example. It’s easy to spend $15 on lunch from a café. But make your own and…

Let’s talk about home equity but first, the big picture. Retirees feeling the pinch of higher living costs, are reluctantly making difficult decisions as they draw dangerously close to outliving their retirement savings. A 2021 report released by the Association of Superannuation Funds of Australia (ASFA) found that 90% of Australians who died aged over 80 years had no superannuation savings – an alarming statistic given that our average life expectancy is currently 83.6. For many retirees, the family home…

A growing number of Australians are choosing to return to study as a mature-age student. Perhaps caught in the hamster-wheel of mortgage and family, furthering their education wasn’t an option when they were younger. But that was then. Harriet had long fancied setting up a home-based book-keeping business. But being a single mum, raising her two daughters and working part-time in a clothing store, kept her too busy for anything else.  After her girls left home to begin their own…

Whether it’s doing up the bathroom or kitchen, or adding an entire new wing to the house, some focused planning will help your home renovation project run smoothly. Here are some renovation financial tips to help you get the biggest ‘bang’ for your renovation buck. 1. Budgeting and saving Renovating is a major expense so unless you’ve already saved up the necessary funds you will either need to prepare for increased loan repayments or get cracking on a savings plan. …

A Self-Managed Super Fund is among the fastest growing superannuation vehicles in Australia and they’re not just for older investors – investment-savvy Millennials are catching on. The Australian Taxation Office (ATO) reports that significant numbers of people below the age of 45 are investing through Self-managed Super Funds (SMSFs). The proportion of SMSF members in that cohort was around 13.5% over the twelve months to December 2022. Historically, SMSFs were considered the province of only the rich. However, as set-up fees and running costs decrease, younger people are viewing SMSFs…

Knowing how to reduce assets for aged care is an important financial consideration today. Residential aged care is playing an increasing role in helping many older Australians enjoy comfortable and carefree lives. However, one of the tasks for anyone assisting an elderly relative with the move into aged care is to investigate the various fees and charges, some of which are subject to both assets and income means tests. As the family home is often the largest asset and can…

How much does it cost to raise a child? Obviously the answer is highly dependent on individual circumstances. However, as a guide, a 2013 national study[1] found that a typical middle income family would spend about $812,000 on raising two children from birth to age 24. At that time child-raising costs were increasing at around 9% per annum, so it’s a reasonable estimate that these days the cost of getting two kids to the point where they’re ready to leave…

As any experienced investor knows, all investment markets have their ups and downs. Regardless of investor experience, turbulent times are a cause of anxiety, and that can lead to poor decision-making.  So if turbulent markets are inevitable, even if their timing is not predictable, how should your portfolio be positioned in anticipation of, and in response to market volatility? What’s your objective? First up, it’s important to go back to your investment objective. Is it to grow wealth over the medium…

The real power of investment comes from compounding returns – the process of putting your investment income straight back to work so it can earn more income. To help their investors reap the rewards of compounding, many companies offer dividend reinvestment plans (DRPs).  The potential benefits of a DRP Under a DRP, investors can choose to use some or all of their dividends to automatically purchase additional shares in the company. As a sweetener, investors avoid brokerage, and some companies…

If you’re working and haven’t yet reached the point of financial independence then income protection insurance should be on your radar. An income protection policy, can help you protect your greatest asset – the ability to earn an income. At the heart of an income protection policy, is the promise to pay the policy owner a regular benefit, usually 75% of their normal income, if they are unable to work due to accident or illness. Payments are made after an…

Over the past 30 years, Australians’ household debt has increased. According to the Reserve Bank of Australia, our household debt-to-income ratio has risen from 70 per cent in the early 1990s to around 190 per cent today. With numbers like this, it’s understandable that you might feel like you’ll never get out of debt. Changing your thinking around your finances, however, and learning how to make sure your money is working for you will reap great rewards. Below, we’ve outlined…

While millennials have for decades been treated like ‘the children of Neverland, who never grew up’, the reality of retirement planning is fast catching up with this generation, who are now young adults between the ages of 24 and 40. Like generations before them, they are now buying, or at least trying to buy, homes and starting families of their own. And with this, the stark reality is that their retirement is looming just around the corner in the early…

It’s a sad but unavoidable fact: one day we are all going to die. You will most likely have clear ideas as to how you would like your hard-earned wealth – your ‘estate’ – to be divided amongst your loved ones or other beneficiaries. However, estate planning is a complex area of law and basic mistakes can see Wills declared invalid, money ending up with unintended recipients, or benefits reduced by avoidable tax bills. So how can you avoid making…

Welcoming a new family member is exciting but with so many aspects of your life changing, when it comes to your finances some forward planning towards your baby budget can make the transition so much easier.  Fortunately, babies allow several months to prepare for their arrival and can be easy to get caught up in the excitement. When making preparations it’s important to have all of Bub’s needs ready; but is equally important for Mum and Dad to be financially…