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!



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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.

Why Trying To Time The Share Market Can Be A Really Dumb Idea!!

Investing and financial advice is often about making sensible and informed decisions, and for most people it should not be about major speculation.

In recent months I have been amazed at the number of new client discussions I have had where their investments have been in cash. In some cases they have been invested in cash since the Global Financial Crisis when they sold out in a panic, and in other cases it has been for the last year or two because they were concerned share markets were about to correct.  In all cases they have missed out on a substantial return on their investments because they have taken an extreme position without advice.

I am certainly not saying that 2018 is not without significant share market risks but there is a lot of value to be gained through seeking assistance before you make decisions.  Once you have made an extreme investment decision and got it wrong, it is much harder to then decide what to do next.

It is very normal to be concerned or excited about investments from time to time and at those times there is always a question about how to manage the situation. Think carefully before you commit to a high risk binary solution: all in or all out.  It is often far better to modestly adjust the cash levels in your investments over time in consultation with your adviser, to sensibly manage the situation and to give you more options down the track.

If you are foolish enough to be in a set and forget investment and have accepted the default position on your level of risk, you may have made a poor choice. Your investment portfolio manager is certainly not going to consider your individual needs or concerns as they invest on behalf of thousands of other investors with a ten or twenty year investment horizon.  If you want a tailored outcome you need to be proactive and initiate sensible changes to your portfolio that are right for you.

At the end of the day, share markets are more a measure of fear and greed. When investors are fearful share markets tend to fall and when investors are greedy share markets tend to rise.  Unfortunately for many investors they tend to follow the herd and make decisions at the extremes in the investment cycle, and the outcome is not always ideal.

Hot Tip: Everyone’s financial situation is different so now might be a good time for you and your Financial Adviser to review and understand the risks you are taking with your investments.  In periods of share market volatility and uncertainty, nervousness can result in wealth passing from weak hands to strong hands so make sure you have a plan for how you will respond to a share market correction as it will come eventually.

We do not agree to help everyone but if you feel you need a second opinion on your superannuation and financial position, contact The Financial Advice Shop to see if we can add value.


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Don’t Let Your Future Retirement Concerns Become A Miserable Reality!!

Imagine a 30 year retirement where you couldn’t afford to enjoy yourself? No one would actively plan for this outcome but sadly it is a reality for a very large number of retirees. Don’t let this happen to you.

Relying on your employer’s superannuation contributions and holding your hand out at retirement for an Age Pension in the hope that this will make everything OK is a very poor choice. A far better outcome is to make smart investment decisions, save tax effectively through voluntary superannuation contributions in a low fee environment over many years and as a result make yourself 100% financially self sufficient in retirement. It really is time for everyone to start taking more responsibility for their retirement outcomes.

When it comes to achieving a comfortable retirement, making additional tax effective superannuation contributions over long periods of time is critical. The greater your retirement expectations, the more you need to do to ensure you achieve your goals. If you are planning to have less than $1,000,000 in investments (excluding the family home) at retirement you are probably setting your sights too low.

If you are starting to think about your retirement, or know you should be planning for your retirement, it is time to start taking action with a trusted financial planning advice discussion to “see what’s possible”.

HOT TIP: The need for honest, transparent and practical financial planning advice has never been greater, so contact The Financial Advice Shop without delay. To get things started, we offer a very cost effective Financial Advice Health Check discussion to ensure you can access our experience to understand all of your fees and future superannuation investment strategy options.


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Don’t Be An April Fool: There’s Only Three Months Until The End Of Financial Year And You Have Plenty Of Things To Think About!

So what are some of the things you might need to think about before the end of the financial year?

April is a great month to review your salary sacrifice contributions and make sure you are on track to maximise the opportunity in the current financial year. If you have not made any salary sacrifice contributions in the current financial year, you still have time to make a solid start.  If you have been salary sacrificing and could do more, now might be a good time to think about ramping it up.

When it comes to tax effective superannuation contributions, there are a number of very simple strategies involving a drawdown from other assets to help you tax effectively contribute more than you might otherwise be considering.

April is also a great month to be thinking about splitting superannuation with your partner. Reasons to split super can vary but common reasons include equalising super balances or an age difference that means one of you is much closer to retirement.  You have until the end of June this year to split 85% of last financial year’s concessional superannuation contributions.

There are also personal contributions for the Government co-contribution and spouse contributions for the spouse rebate that might be worthy of further consideration depending on your circumstances and eligibility.

If you have sold an investment property or another asset and have triggered a capital gain, don’t forget you may be able to use superannuation contributions to assist with managing any capitals gains tax liability. You still have plenty of time to seek advice and think, plan and act.

There might also be things to prepay or purchase to bring forward a tax deduction in the current financial year. Make sure you start the conversation with your tax adviser before it is too late.

If you are self employed, don’t leave it to the last minute to plan and make your superannuation contributions. If you are planning a superannuation contribution, make sure it is received in your superannuation account well before the end of June.  We’ve seen it far too often where a contribution is delayed by an electronic transfer and the contribution ends up counting towards next year’s contribution limit and that can really stuff things up.

If you are thinking about superannuation contributions, don’t forget to review your superannuation fund fees. Believe it or not, there are options available that are more cost effective than the industry funds but few advisers will present them to you.

Finally, the 2016 Budget will be handed down on 10 May and it is difficult to predict how it might affect future investment decisions. There is a case for superannuation investors to bring forward their investment decisions in the hope that they can lock in some existing entitlements.  Time will tell if this approach has merit.

HOT TIP: Don’t turn into an April fool because you are time poor, lazy or disorganised.  As a minimum, take a moment to get some sound advice and plan your course of action for the three remaining months in the current financial year!


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Superannuation Is Irresistible If You Combine Makeup, Features and Confidence!!

Superannuation for most people is an investment that is not really of interest to them until they are approaching retirement. Unfortunately, by then it is far too late!

The reasons for a lack of interest in superannuation are varied. It can be seen to be dull and boring, the Government keeps fiddling with the rules, it’s an investment that you cannot accessed as a lump sum until they reach preservation age and retire, and for some it is even seen as an extremely risky investment.  With this lack of interest comes a lack of focus to maximise final retirement benefits.

To be a successful investor you should take the time to study your superannuation fund choices, consider your contribution options, examine how to strip out excessive fees and commissions, and then make sure you invest cost effectively and confidently to achieve competitive long term returns with a level of risk you are comfortable with. Then, as you watch your investments grow over many years, it can be a beautiful thing so see it steadily become an important and significant retirement asset.

As current and future Australian Governments grapple with the issue of providing Commonwealth support in retirement, there is little doubt that future retirees will receive less in Age Pension entitlements than current retirees. The reason for this is simple: as the Australian population ages there is a shrinking percentage of working people who are paying taxes to support the retired population.

When it comes to superannuation, many women are at a significant disadvantage. Women often put family before career, have breaks in employment and are not always employed in roles that reflect their true capabilities.  Over a working life, the negative effects of a fragmented working career on superannuation balances for women can be very significant.

There are two clear options for everyone with superannuation: do something or do nothing. Anyone who chooses to do nothing is foolish and should brace themselves for the ultimate consequences of a poor standard of living in retirement.

For those who have the energy and motivation to do something positive and would like to be successful, it is time to take action! You have many choices at your fingertips and with careful research, sound financial advice and an appropriate action plan including regular additional superannuation contributions, you have a real chance of being successful.  Importantly, the sooner you start planning, the more likely you will be successful with your retirement planning.

What should you do next? It’s really simple: if you are serious about planning for a secure financial future, we are serious about assisting you to be successful so contact us today to see how we can help you understand things more clearly.


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Make 2016 The Year You Stop Making Other People Rich And Start Taking An Interest In Your Financial Advice Future!

If you studied your financial advice affairs very closely and knew what to look out for, you might be astounded at how many people and organisations silently benefit from your investments in ways you have not thought possible.

Every dollar that someone discretely takes from your superannuation as a fee, commission or other payment is a dollar less for you to spend in retirement. Additionally, you shouldn’t think you can rely on The Future Of Financial Advice (FOFA) Legislation to protect you because it almost certainly will not.

If this topic strikes a nerve with you then it’s time you stopped thinking about it and started doing something about it. If you suspect your fees are too high then it’s definitely time for you to do something about it.

What should you do next? It’s really simple: if you have a reasonable superannuation balance and wish to cost effectively invest with sound financial advice for a more secure financial future, contact us today to see how we can help you understand things more clearly.


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Your Annual Superannuation Statement Is In The Mail, So Now Is A Great Time To Investigate Fee Savings!!

We all know superannuation fees are far too high, particularly if you are a client of a bank or other large institution. Unfortunately, it is not always easy for investors to work out if they are getting a good deal.

You may have recently received your annual superannuation account statement in the mail or it will be arriving shortly. When it arrives, take a few moments to analyse it and then take some action to improve your financial future.

Your annual superannuation account statement will give you a starting balance, a closing balance, and also show your contributions, withdrawals and investment returns. The statement will also mention fees and a very important line item of “indirect fees” that need to be taken into account when determining your total portfolio costs.

At The Financial Advice Shop we recognise fees are a very important issue that is sometimes hard to understand. For many Australians, high fees erode their long term financial security. Where there are very high fees, there might even be commissions involved.

At The Financial Advice Shop we are committed to pushing down the cost of investing and receiving sound financial advice, and determined to give people a fair go. Therefore, for a limited time, if you send us a complete copy of your current annual superannuation/pension statement for an account with a balance above $300,000, we will analyse it and provide a free fee comparison with our standard offerings.

If you are serious about reviewing your superannuation/pension fees, we are serious about assisting you. The great thing about strategic financial advice and fee savings is that they could give you a greater chance of having more money to spend in retirement.

Carefully consider this: If we were able to reduce your superannuation investment costs and at the same time provide reliable financial advice and service, you should contact us!


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