With Interest Rates Heading To Hysterical Lows, Do You Know Someone Who Is Starting To Wonder If They Will Survive Retirement?

People often ask “how much money will I need in superannuation for my retirement”.  The answer, as you would expect, needs to be considered very carefully as there are many personal factors and variables to take into account.

A hypothetical place to start the planning process is to aim to own your home, be debt free and have superannuation investments that exceed the current maximum amounts for a part Age Pension: $863,500 for a couple or $574,500 if you are single.

If you have the good fortune to have an entitlement to a Defined Benefit Superannuation pension, it is an extraordinary advantage but it is not always enough in its own right.

If you would like to model your situation to see what income might be possible in retirement, visit ASIC’s Money Smart website and put your assumptions into one of their calculators:

https://www.moneysmart.gov.au/superannuation-and-retirement/income-sources-in-retirement

We know from experience that to have the best chance of enjoying retirement you cannot afford to make mistakes along the way.  In a world of falling interest rates, if you are intending to rely on cash returns to sustain you through a long and enjoyable retirement, you may well need to think very carefully about your strategy.

HOT TIP:  In a constantly changing world, the need for sound financial advice has never been greater so perhaps it’s time to seize the moment and seek an independent review of your current situation with a trust professional to “See What’s Possible!”

Disclaimer: The information in this post is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. No representation is given, warranty made or responsibility taken about the accuracy, timeliness or completeness of the information and it must not be acted on. Because of this, we recommend you consider, with the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Past performance is not a reliable indicator of future returns.

http://www.financialadviceshop.com.au

#retirementplanning #retirementincome #financialadvicecanberra

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When It Comes To Your Mortgage, The Landscape Is Very Competitive But You May Not Have The Best Deal?

It is absolutely astonishing that so many people have a mortgage and they have not recently tested their bank to make sure there isn’t a better deal available.

Even if you have no plans to make a switch with your mortgage, why not contact your bank, tell them you are thinking of switching to another bank, and let them know that you would like to give them the opportunity to provide you with a better deal and a lower interest rate.

If you have no idea how much difference a reduction in interest rate can make on your mortgage, check out the following link for a range or mortgage calculators from ASIC.  A lower interest rate, additional repayments and perhaps even the well disciplined use of an offset account has the potential to make a very big difference to your future wealth and financial security.

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/mortgage-calculators

Your current bank is unlikely to tap you on the shoulder to let you know they can offer you a better deal so you need to be proactive, take control and act in your best interests.  A phone call to your bank has the potential to be one of the smartest things you could ever do.

Disclaimer: The information in this post is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. No representation is given, warranty made or responsibility taken about the accuracy, timeliness or completeness of the information and it must not be acted on. Because of this, we recommend you consider, with the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Past performance is not a reliable indicator of future returns.

http://www.financialadviceshop.com.au

Ever Wished You Could Get A Glimpse Of Your Future To See How Well You Will Survive Retirement?

Recently released Life Expectancy Tables dated 30 October 2018 from the Australian Bureau of Statistics (ABS) paint a thought provoking picture for many Australians.  For those who do not plan diligently for their retirement, their only hope might be that they do not live so long that they run out of money!

As summary of some key points from the 2018 ABS information are as follows:

Age 45: Males can expect to live on average for just under 37 years and females just over 40 years

Age 50: Males can expect to live on average for just over 32 years and females just under 36 years

Age 55:  Males can expect to live on average for just under 28 years and females just over 31 years

Age 60: Males can expect to live on average for just over 23 years and females just under 27 years

Age 65: Males can expect to live on average for just over 19 years and females just over 22 years

Spend a few moments thinking about how much income you might need in retirement. Then have a think about how much superannuation you might need to survive retirement and how much you need to save to achieve it. Finally, click on the following link to run some numbers that are specific to you and make sure you think about investment fees as they can make a huge difference to your retirement outcome.  For many, this task will prove useful and may hopefully spur you into action!

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/super-and-retirement-calculators

www.financialadviceshop.com.au

#retirementplanning #financialadvice #financialadvicecanberra #retirementplanningcanberra

Disclaimer: The information in this post is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. No representation is given, warranty made or responsibility taken about the accuracy, timeliness or completeness of the information and it must not be acted on. Because of this, we recommend you consider, with the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Past performance is not a reliable indicator of future returns.

Asgard® has recently introduced a new superannuation product that may be a game changer for many Asgard® investors.

It is a shame Asgard® will not actively tap existing investors on the shoulder to let them know there may be cheaper superannuation options now available.

If you are an Asgard® investor with a large superannuation investment balance, there has never been a better time to talk to an expert on whether your fees and commissions can be reduced. You may not even need to change your account number to reduce your fees and commissions!

www.financialadviceshop.com.au

Disclaimer: The information in this post is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. No representation is given, warranty made or responsibility taken about the accuracy, timeliness or completeness of the information and it must not be acted on. Because of this, we recommend you consider, with the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Past performance is not a reliable indicator of future returns.

#asgard #asgardfees #asgardcommissions

Is There A Realistic Pathway To $1.6m In Superannuation For Everyone?

From a purely academic perspective, achieving $1.6m in superannuation or something close to it, primarily depends on a range of factors including but not limited to contributions, earnings (net of fees) and the timeline to retirement.

The mistake many make is that they do not start taking action on their superannuation contributions or retirement planning until it is far too late.  Don’t let this happen to you!

To benefit from what Albert Einstein referred to as the eighth wonder of the world (compound interest), there is a need to start saving as early as possible and with additional tax effective contributions earning solid and consistent long term net returns.  You must definitely not make the mistake of starting too late with additional contributions or having poor net returns over the life of your investments.

The Australian Securities & Investment Commission (ASIC) publish a very useful calculator where you can play around with some scenarios associated with saving in superannuation for retirement and also funding a pension from your superannuation in retirement.  The calculators will hopefully shock you and spur you into action!

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/super-and-retirement-calculators

While there are some who suggest the current 9.5% Superannuation Guarantee is enough, we strongly disagree.  By simply relying on a handout from your employer as part of your total employment package you really are just setting yourself up for an underwhelming experience in retirement.

Retirement planning and superannuation are no different to many other important things in life: your personal contribution and efforts often determine in a very significant way the level of success.  If you do not make a meaningful contribution to the important things in life the outcomes will often be disappointing.

HOT TIP: Seize the moment, take control and make sure you have a goal for your superannuation and retirement.

www.financialadviceshop.com.au

#retirementgoals #superannuationsavings #netsuperannuationreturns #superannuationfees #superannuationgoals #financialadvicecanberra #financialadvisercanberra #financialplannercanberra

Disclaimer: The information in this post is of a general nature only and has been provided without taking account of your objectives, financial situation or needs.  No representation is given, warranty made or responsibility taken about the accuracy, timeliness or completeness of the information. Because of this, we recommend you consider, with the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances.

Boosting Women’s Superannuation Is Extremely Easy But It Might Require Some Pillow Talk!!

It is a well known fact that women often accumulate less superannuation than men over their working life due to many reasons including lower salaries, working less and making a greater contribution to family commitments.

Any future initiatives by Government to boost women’s superannuation will be applauded but there are already a number of simple things that couples can do every year to boost the superannuation balance of their spouse.  With the ever evolving superannuation caps, it might even be a smart idea for couples to try and keep their superannuation balances relatively equal in case superannuation Legislation changes for the worse in the future?

Salary sacrifice to superannuation is a very powerful tool that can be used to boost superannuation and couple’s can determine who is best placed to initially implement this strategy. A change in Legislation last year introduced an opportunity for anyone who is eligible to contribute to superannuation to also consider a deductible super contribution but there are limits. This might initially benefit the higher income earner in the relationship but wait: there’s more!

After making salary sacrifice or deductible superannuation contributions, Superannuation Legislation allows members to consider splitting concessional superannuation contributions with their spouse in the following financial year.  There are some conditions and the maximum’s that can be split based on the previous year’s concessional superannuation contributions and caps.

Concessional superannuation contributions include superannuation guarantee, salary sacrifice and deductible contributions.

If you or your spouse are concerned about your superannuation balance, have a think about whether it makes sense to contribute and split concessional superannuation contributions each year to boost and equalise superannuation balances. Additionally, for low income earners, look into and consider other contribution options such as spouse contributions, and personal non concessional contributions to potentially qualify for rebates and the Government co-contribution to boost your superannuation balance further.

In summary, if you are looking at your superannuation contribution options, think holistically about your situation with your spouse and/or partner.  Make sure you consider if there are ways for you to tax effectively increase your superannuation contributions and don’t forget to review your asset allocation to ensure it reflects your risk profile.  While you are at it, make sure you investigate opportunities to reduce your superannuation fees.

Unfortunately, superannuation is far more complicated that it needs to be so you will need to do some research and consider if you need advice.  This is a really big decision so give it plenty of thought before you choose a financial adviser and it might be a smart decision to get a second opinion before you implement anything.

What should you do next? As its your superannuation that is intended for your retirement, a good place to start is for you to get involved early and take an interest.

www.financialadviceshop.com.au

#womenssuper #womenssuperannuation #financialadvicecanberra #financialadvisercanberra #financialplannercanberra #financialadvicedickson #financialadviserdickson #financialplannerdickson

Disclaimer: The information in this post is of a general nature only and has been provided without taking account of your objectives, financial situation or needs.  No representation is given, warranty made or responsibility taken about the accuracy, timeliness or completeness of the information. Because of this, we recommend you consider, with the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances.

The Final Report From The Royal Commission Into Misconduct In The Banking, Superannuation And Financial Services Industry Has Finally Been Publicly Released!

The Government is indicating it will commit to take action on all of the 76 recommendation.

https://financialservices.royalcommission.gov.au/Pages/reports.aspx

At The Financial Advice Shop we have reviewed the recommendations and concluded it really is business as usual for us and our clients, as most of the industry sensitive and more controversial recommendations are already our standard policy.

When it comes to Financial Advice, The Financial Advice Shop is a leading force.

Would you be better off partnering with The Financial Advice Shop?

http://www.financialadviceshop.com.au

#royalcommission #royalcommissionrecommendations #financialadvicecanberra

Disclaimer: The information in this post is of a general nature only and has been provided without taking account of your objectives, financial situation or needs.  No representation is given, warranty made or responsibility taken about the accuracy, timeliness or completeness of the information. Because of this, we recommend you consider, with the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances.