Monthly Archives: September 2017

Are you ready for retirement? Where to start.

One of the key challenges for people approaching retirement is adequately preparing for it. The other big challenge is gaining greater confidence in how their finances might look once retired.

Getting the right advice helps enormously with this, and likewise beginning the planning process earlier rather than later will reap rewards.

What are the stats?

A recent survey conducted by Vanguard of more than 5,500 people aged 55-75, across Australia, US, UK and Canada, showed that many reported that they experienced an increased level of satisfaction with their financial position upon retirement.

One contributor to this result was the higher incidence of people within the first 10 years of retirement seeking financial advice, compared with those still up to 10 years away.

Even amongst those who had access to some form of financial advice during the lead up to retiring, some still experienced regret about how well they prepared.

 

People’s biggest regrets

The biggest regrets of recent retirees included:

  • Not saving enough
  • Not starting the planning process early enough
  • Not spending enough time planning for it
  • Not learning enough about superannuation – in Australia,
An-update-on-what-older-Australians-are-spending-their-money-on

An update on what older Australians are spending their money on

According to Australian Bureau of Statistics (ABS) figures, goods and services spending grew by 21 per cent in 2015-16 over the 2009-10 figure for households with a reference person between 55-64. In the same period, households headed by someone over 65 years of age saw a spending increase of 22 per cent.

So, what are they spending their money on?

The below infographic demonstrates some interesting findings from the ABS data as summarised by nestegg.com.au.

 

An-update-on-what-older-Australians-are-spending-their-money-on-infographic

 

Sharing-financial-wisdom-between-the-generations

Sharing financial wisdom between the generations

Money know-how can come from anyone, young or old. When it comes to financial wisdom, author and speaker Kylie Travers has taken her lead from the previous generation.

Get serious about saving

You can’t avoid it. To get on top of your finances you need to save and to save means you have to have financial discipline. Kylie was taught by her parents and grandparents that if you want to look forward to a better financial future, you need to take a serious approach to saving.

“My parents raised me to save money, set big goals, work hard and think about the future,” says Kylie. “They were both very open about money and my Dad gave me a copy of “The Richest Man in Babylon” by George S. Clason to read when I was just 12. So I learnt early about what you could do with money if you were prepared to save. My parents invested in shares and property and that helped me realise how much more freedom you have with other sources of income,

August-Financial-Marketing-Update-2017

Financial Market Update: A review of August’s performance

The Australian market had a fair month in August. Mark takes us through the performance across the board to prepare us for what’s to come.

Stockmarkets

The Australian market had a fair month in August, with the ASX 200 Accumulation Index posting a 0.71% return for the month, which annualises out to around 8.5% which is within a few points of our expected long term returns.  The commodities price was the action sector with Energy shares (+6.07%) delivered the biggest gains.

The rolling one year historic returns for the ASX200 Accumulation index is now 9.79%, rolling off some good periods in FY 2017 which saw a great return of 14.09%. Sentiment on Australia remains patchy. Banks, our largest sector have plenty of sceptics due to the high capital city house prices, and highly leveraged consumers.  Our other big sector being materials, seems captive to sentiment about what China will do next.

Looking globally, the MSCI World Index gained 0.85% in AUD terms during August,

Limited opportunity to avoid 'transfer balance cap' problems

Limited opportunity to avoid ‘transfer balance cap’ problems

As you know, the superannuation reform announced in the 2016 Federal Budget has been largely implemented. We have busy working with our clients to address all their concerns and working with them to ensure that no rock is left unturned when it comes to their personal circumstance. In regards to the $1.6 million transfer balance cap, there has been an update that we would like to share with you. There are some adverse tax consequences that need to be avoided.

 

The update on transfer balance cap

If the total value of a superannuation fund member’s pensions exceeded $1.6 million on 1 July 2017, they may face adverse tax consequences. However, there is a transitional provision that permits a minor excess over $1.6 million to be ignored, subject to certain conditions being met.

 

Basically, this will be satisfied if the value of their pension interests on 1 July 2017 exceeded $1.6 million by no more than $100,000 (i.e.,