Growing your wealth What is gearing? In simple terms, gearing is borrowing money to invest. The investment could be in direct shares or managed investments, such as an equity trust, balanced fund or property. Gearing is, in essence, directed towards producing a larger investment return by using borrowed funds, often in addition to your own funds, so that financial goals can be achieved more quickly. Gearing can be used as part of the overall investment …
Managing your money What is a budget? A budget is a plan that works out how you will manage your income and expenses. Maintaining a budget is a powerful way to control your money. Do you need a budget? A budget allows you to see how much money is coming in and going out. It helps you ensure there is enough money to cover your expenses and is an effective way to make sure you …
Government support in retirement What is the Age Pension? The purpose of the Age Pension is to make sure you have enough income in retirement. It is a fortnightly payment made by the government to help you meet the cost of living, if your retirement savings are below a certain level…. Read More>>> Download the free PDF file
Five money habits for a happy financial year As you say goodbye to the 2015/16 financial year, it’s a good time to put new habits for success in place for the coming year. Here are our five tips to help you make a success of the coming year as you put your tax affairs in order and say goodbye to the 2015/16 financial year. 1. Set your goals Setting achievable goals and making a commitment …
Distributing your assets What is estate planning? Estate planning is about wealth succession – a way to help protect the wealth you have built over your lifetime, so that it is distributed according to your wishes following your death…. Read More>>> Download the free PDF file
Remember to factor in parental subsidies at tax time While you’re sorting your income and expenditure at tax time, make sure you know what you’re entitled to as a parent, carer or grandparent. When the cost of raising kids is ever-increasing, every little bit helps and a bigger tax return is generally welcome. These days just sending a child to school comes with mounting costs, regardless of the type of school they go to. It’s …
Maintaining your lifestyle What is retirement income? During your working life you receive regular income in the form of a salary or business income. In retirement, this regular income stops, so you need to draw on your savings to meet your lifestyle costs. You set up your savings so you still receive regular payments, just like a salary. This is called a ‘retirement income stream’. The type of income stream you can start at retirement …
What to consider when investing in a low return world Identifying market dislocations is something that requires investment expertise For some investors, volatility matters. When approaching retirement, volatility tends to matter more owing to sequencing risk. In the video below, we assess some considerations for investing in low return world. Share market volatility is expected to remain elevated Investment market volatility is essentially triggered by uncertainty around market fundamentals such as economic growth, earnings, dividends …
How do transition to retirement strategies work? A transition to retirement strategy could allow you to work less, or work the same hours and increase your superannuation, without reducing your take-home pay. Even if you’re nearing retirement age you mightn’t be looking to leave the workforce just yet. Maybe you want to save more money or perhaps you enjoy the interaction and mental stimulation. Whatever the reason, a transition to retirement (TTR) strategy could provide …
Act quickly before June 30 – to reap the benefits The recent Budget announcements could reduce your ability to contribute to super and its associated tax benefits. This time next year, new laws may have passed as a result of the recent Budget announcements. That means, super will more than likely be a different environment than it is today. The bottom line is you may not have the tax advantages or financial opportunities that are …
