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.

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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.

Not All Industry Super Funds Are Super!

Don’t be fooled by the Industry Fund sales and marketing machine into believing that all Industry Super funds are created equally.  They most certainly are not!

 

It is a very big job to analyse them all and we have not done that but we have looked at a number of them for the most expensive ones we could find in both super and pension.

 

We have decided not to name the most expensive industry super and industry pension accounts we found, but you can be assured they are very expensive by our standards.

 

For a “Balanced” fund with $50,000 invested as per their published PDS’s, from a total cost perspective the most expensive industry account we found for either super or pension was $1,115 p.a. (2.23% p.a.) which seems very expensive to us!!  The Industry Super funds might boast about admin fees of around $1.50 per week but their admin fees for pension accounts can be much higher and when combined with the underlying investment fees for some Industry Funds, the total costs can be very high indeed.

 

HOT TIP:  As the heading suggests, don’t be fooled by industry fund sales and marketing into thinking that all Industry Funds are created equally.  The need for honest and practical financial advice has never been greater, so if you are over 50, contact The Financial Advice Shop without delay to see if we can assist with a cost effective Financial Advice Health Check to ensure you better understand all of your future superannuation contribution and investment options.

 

ABOUT THE FINANCIAL ADVICE SHOP:  We are a leading, independent and experienced provider of strategic financial planning solutions for the over 50’s with a specific focus on cost effective investment options.

 

www.financialadviceshop.com.au

 

Disclaimer:  information current at time of publication but is subject to change without notice so accuracy is not guaranteed.

#industrysuper #industrysuperfund #industrysuperfundfees #superannuationfees

Are You Being Ripped Off With High Superannuation And Investment Fees?

There has never been a better time to review your superannuation investments and consider options to reduce costs. If you do not take action, you can be 100% sure that no one else will and you should not feel secure simply because you are using an industry super fund.  You should also not underestimate the negative effect high fees could have on your financial security.

In recent years, superannuation and investment costs have been steadily falling but unfortunately those costs are often not passed on to investors and often increase when members retire. There are a variety of reasons why so many investors are not benefiting from lower superannuation and investment costs, some of which relate to conflicted financial adviser remuneration and commissions that are paid from inflated fees.  If you have been invested in a financial superannuation or investment product for a number of years, it is time for a review!

None of the superannuation or investment recommendations from The Financial Advice Shop have hidden fees or commissions so you can be confident they are extremely cost effective and represent excellent value for money. Our superannuation and investment offering is very unique and it is a fact that we regularly save many new clients thousands, and in some cases tens of thousands, of dollars in ongoing fees every year.

While you are thinking about fees, make sure you also think about your strategy and the risk in your investments! We know from experience that it is extremely rare that improvements and refinements to existing strategies will not yield improved results.

HOT TIP: The need for honest and practical financial advice has never been greater, so contact The Financial Advice Shop without delay to see if we can assist with a cost effective Financial Advice Health Check to ensure you understand all of your fees and future superannuation investment options.

www.financialadviceshop.com.au

#superannuationfees #superannuation #financialadvicecanberra #superannuationcosts #financialplannercanberra #financialplanningcanberra #retirementplanningcanberra

Many Argue That Investing In A Financial Index Is A Really Stupid Idea?

At The Financial Advice Shop we have carefully considered the reasons for and against investing in a Financial Index and have formed very strong views on many of the relevant issues. Some of our conclusions will surprise you.

A Financial Index is defined as a stock index or stock market index that is a measurement of the value of a section of the stock market. A Financial Index is computed from the prices of a selected range of stocks.

If you are concerned about high fees, poor service, in-house products, conflicts of interest or any other financial planning issues, always get a second opinion from a third party expert before you make changes. If you have a gut feeling that something is wrong or that someone is doing a sales job on you, you are probably right.

While you are thinking about your superannuation investments, give some thought to your long term strategy, particularly since a range of 2016 Budget superannuation changes are now in play. Having an appropriate financial planning strategy is often far more important than simply thinking about your investments in isolation, so take the time to put the two together via a second opinion for the best chance of an optimal outcome.

With investment recommendations that have no hidden fees and commissions, The Financial Advice Shop is confident our financial advice packages represent excellent value for money. That is why we are able to regularly save many new clients thousands of dollars in ongoing fees every year!

HOT TIP: The need for honest, transparent and practical financial 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 to ensure you can access our experience to understand all of your fees and future superannuation investment strategy options.

www.financialadviceshop.com.au

#financialindex #financialindexcanberra #financialindexfees #financialadvicecanbera #financialadvice #retirementadvice #superannuationadvice #superannuation #superannuationfees

Is Your Superannuation Account Paying Commissions You Never Even Knew Existed?

You will be sadly mistaken if you thought that the Future Of Financial Advice (FOFA) Legislation would stop financial advisers from receiving commissions from your superannuation account.

Under current FOFA Legislation, if commissions or other forms of hidden remuneration were being paid to a financial adviser prior to 1 July 2013 they can continue to be paid forever! You may have ceased doing business with your original financial adviser many years ago but they may still be receiving commissions or other forms of payments from your superannuation account.

Fortunately, when it comes to superannuation commissions, there are some actions you can consider taking to improve the situation. Don’t make the mistake of thinking this issue does not apply to you: it is an issue that potentially affects millions of superannuation accounts.

Firstly, contact your superannuation account provider and ask if anyone is receiving fees, commissions or volume bonus payments from your superannuation account. If a financial adviser that you do not want is attached to your account, discuss the process and implications for having them removed and organising for any fees, commissions or volume bonus payments to be rebated back to you.

Secondly, if you feel you need advice or a second opinion on your options, do some research and arrange an appointment with your chosen financial adviser to discuss your financial advice requirements, needs and concerns.

Thirdly, if a financial adviser is attached to your superannuation account who receives commissions and you want to retain their services, contact the adviser to negotiate new ongoing service arrangements on a fee for service basis.

It is important to note that cancelling financial adviser arrangements that commenced pre 1 July 2013 and establishing new arrangements with your financial adviser now will give you additional Legislated benefits. Importantly, those additional benefits include providing agreed services to you for the agreed fee and making contact with you every two years to renew the agreement.

Taking action might even prompt your financial adviser to recommend a cheaper superannuation account as the changes above should prohibit them from receiving commissions and other forms of hidden remuneration from the original fund.

If you have been involved with a financial adviser that uses an in-house superannuation account, it is probably time to seriously review your options as it might be costing you dearly and the solutions to stopping hidden fees are not as simple as they should be. The disclosure obligations for in-house superannuation accounts are also less than satisfactory.

At The Financial Advice Shop we offer a cost effective Financial Advice Health Check to assess your situation and it might assist you to check if your superannuation fees are too high because of hidden fees, commissions or other payments. We understand the industry extremely well, so for more information or to understand your options more clearly, contact us without delay.

www.financialadviceshop.com.au

#commissions #superannuationfees #superannuationcommissions #superannuation

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