Boosting Women’s Superannuation Is Extremely Easy But It May 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 and working less hours due to family commitments.

Any future initiatives by Government to boost women’s superannuation will be applauded but there are a few simple things that couples can already do every year to boost the superannuation balance of their spouse.

Salary sacrifice to superannuation is a very powerful tool that can be used to boost superannuation and a couple 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 consider a deductible super contribution.  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 a few conditions and the maximum that can be split is 85% of the previous year’s concessional superannuation contributions up to the cap.

Concessional superannuation contributions are 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 contributions to potentially qualify for the Government co-contribution to boost your superannuation balance further.

In summary, if you are looking at your superannuation contribution options, think holistically and make sure you consider if there are ways for you to tax effectively increase your current contributions and don’t forget to see if you can reduce your superannuation fees.

Unfortunately, superannuation is far more complicated that it needs to be so you will need to consider if you need advice.  This is a really big decision so give it plenty of thought before you choose a financial adviser.

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

www.financialadviceshop.com.au

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

Disclaimer: Do not trust what you read on the web.  Always seek professional advice before making investment decisions.

 

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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.

www.financialadviceshop.com.au

#financialadvice #retirementplanning #superannuation #financialadvicecanberra #retirementplanningcanberra #financialplanningcanberra #financialplannercanberra #superannuationadvicecanberra #financialadvisercanberra

To Reduce Fees On Your Superannuation And Improve Your Financial Situation It Is Never Too Late To Seek A Second Opinion!

It is a fact that over the last 5 years investment costs in superannuation have reduced considerably but for many investors those fee savings have not been passed on.  In some instances, the larger financial planning businesses have been moving clients into in-house superannuation products to protect their commissions and profits, and as a result fee savings are not passed on to investors.

In what has been an impulsive rush to Industry Funds, it should not be forgotten that all Industry Funds are not created equally and many very competitive retail options are now available.  If you investigate this issue thoroughly you will find that Industry Fund fees vary very significantly and it is surprising to many that the cost of pension accounts can be significantly higher than superannuation accounts.

It is also a fact that superannuation legislation has changed significantly over the last 5 years and many of the strategies of the past are not the right strategies for the future.

The best way to tackle these issues is to seek a second opinion from someone who has the knowledge and experience to understand all of the issues and guide you through them.  As part of that discussion you may well be provided with an insight into some financial planning strategies that could make a real difference and improve your financial situation.

With all of this complexity, isn’t it great to know that The Financial Advice Shop has expertise available to help you make sense of all this and can provide assistance where required.  If you, or someone you know, might benefit from a Financial Advice Health Check or a second opinion on your current superannuation and financial planning strategy, contact us without delay.

www.financialadviceshop.com.au

#financialadvice #retirementplanning #superannuation #financialadvicecanberra #retirementplanningcanberra #financialplanningcanberra #financialplannercanberra #superannuationadvicecanberra #financialadvisercanberra

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.

http://www.financialadviceshop.com.au

#retirementplanningcanberra #financialadvicecanberra #superannuationcanberra #retirementadvicecanberra

Are Australians Intending To Retire Later Because They Can’t Afford An Early Retirement?

It has been suggested in a recent Australian Bureau of Statistics survey that the proportion of Australians intending to retire later is increasing.

Some of the key survey findings include:

  1. 71% of people surveyed intend to retire at age 65 (up from 45% in 2005)
  2. 23% of over 45’s surveyed intend to retire at age 70 or over (up from 8% in 2005)
  3. 13% of women expect to rely on a partner’s income in retirement compared to only 3% of men

Do these findings suggest that everyone simply loves their job? Not necessarily, as the survey reveals that the major reason for working longer was ‘financial security’. This suggests to me that many people might retire earlier if they had the financial resources to do so.

The survey also revealed that for the majority (53%), superannuation was expected to provide the main source of their income in retirement.

Fortunately, when it comes to superannuation there are currently many things that can be done to improve long term financial security and the sooner actions are taken, the greater the opportunity for success.

HOT TIP: A successful retirement doesn’t just happen: you need to make it happen!

What should you do next? It’s really simple: if you are over 45 and serious about planning for a secure financial future, we are serious about assisting you to be successful.  Contact us today to see how we can help you understand things more clearly.

www.financialadviceshop.com.au

#superannuation #superannuationfees #superannuationadvice #retirement #womenssuper #retirementplanning #financialadvice #retirementadvice #earlyretirement

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

It is well known that women typically accumulate less superannuation than men over their working life due to many reasons including lower salaries and working less due to family commitments.

Any initiative by Government to boost women’s superannuation will be applauded but there is a simple thing that couples can do every year to boost the superannuation balance of their spouse.

Superannuation Legislation allows members to split concessional superannuation contributions with their spouse each year. The maximum that can be split is 85% of the previous year’s concessional superannuation contributions and there is a strict time limit to effect the contribution splitting.

Concessional superannuation contributions are employer and salary sacrifice contributions for those who are employed and deductible superannuation contributions for the self employed.

If you are concerned about your superannuation balance and have a working spouse, have a think about whether it makes sense to split superannuation contributions each year to boost your superannuation balance. Additionally, look into other contribution options such as spouse contributions and personal contributions to potentially qualify for the Government co-contribution to boost your superannuation balance.

Finally, if you are looking at your superannuation contribution options, think holistically and make sure you consider if there are ways for you to tax effectively increase your current contributions.

What should you do next? It’s really simple: make contact with us to see how we can help you.

www.financialadviceshop.com.au

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