A word from Matt and Robyn Cronin

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Many of you will be aware that Pat Cronin, the son of Matt and Robyn Cronin, was killed in April 2016 by a coward punch and since then Matt and his family have endured an arduous legal battle through the courts. Thankfully the process has come to a conclusion with the killer being sentenced in November. Here is a note from Matt and Robyn.

After waiting for almost 19 months following the death of Pat, we are thankful that the trial is finally over.

The sentence handed down to Pat’s killer was for 8 years with a minimum of 5 years and although it was in line with what the prosecution expected this hardly seems fair to us. In reality there was never going to be a sentence that was adequate as nothing was going to bring Pat back. Sadly, the laws that were introduced for Coward Punch attacks like Pat’s case let us all down with technicalities of the law proving to be unworkable – we have a personal crusade we wish to take up to ensure these laws are changed to provide greater protection and consequences.

Following the trial there has been wide media coverage of our story and just being able to finally talk publicly has helped us enormously as we set about the work we plan to do with the Pat Cronin Foundation. The foundation has allowed us to focus on making positive changes in an otherwise very negative situation.

The first intention of the Pat Cronin Foundation is to honour Pat and if you have seen the CCTV vision that has been released there is almost nothing that we need to do as Pat’s actions on the 16th of April 2016 clearly show the good nature and character that he truly was. Pat did nothing more than try to help his mates who were being attacked.

The second intention of the Pat Cronin Foundation is to End the Coward Punch and this will be achieved through our:

  • Education programs
  • Awareness programs, and
  • Research programs

If you would like to find out more about the Pat Cronin Foundation or if you would like to make a tax deductible donation or purchase some of our wonderful merchandise, please visit www.patcroninfoundation.org.au or our Facebook page https://www.facebook.com/patcroninfoundation/ – please like and share our page as this is our main form of communication.

We would like to thank everyone at Tailored Lifetime Solutions who have assisted you over the past 19 months and we would also like to thank everyone of you who has sent us so many kind messages of support and friendship – every message has helped us to get through this horrible ordeal. Finally we thank you all for remembering our beautiful son Pat.

Be Wise

Matt & Robyn

#PC12
#Endthecowardpunch

2017 in review

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2017 in review

As we head towards the end of 2017, it’s worth taking a look at how investment markets have fared over the year.

It turns out we’ve enjoyed a pretty good 12 months – especially if you haven’t had a significant chunk of your wealth tied up in cash.
The last 12 months have been steady on a number of financial fronts. Even the official cash rate has remained unchanged for the entire year, and that’s been a plus for local businesses. Reflecting this, Australian shares have performed well.

Double digit gains on shares

As I write in mid-November, the ASX 200 Total Returns Index has dished up gains of 11.27% for the year to date. This in turn has impacted our super savings – especially “balanced” funds, which typically have a solid investment in equities. According to research group SuperRatings, long term (7-year) returns for super funds continue to sit at around 8.2% annually. That’s good news for our nest eggs. All asset classes move in cycles, and reflecting the economic recovery that’s taking place in many developed nations, international shares have been a strong performer this year.

The MSCI World Index (excluding Australia) notched up gains of 18.9% for the year to date. Past returns are no guide for the future, but returns like this are a compelling case to add global equities to your portfolio. An international share fund – either listed or unlisted, offers an easy way to do this. Contact my office for more details on investing in global shares.

Key property markets are cooling

Despite the robust gains on equities, residential property has once again attracted plenty of media attention.
According to CoreLogic, values in Sydney have begun to cool, with annual price gains of 7.7% as at the end of October. Values in Melbourne, where the market is still rising, have soared 11.0%. But the real scene stealer has been Hobart, where property values have climbed 12.7% over the past 12 months.

For property investors, the slowing pace of capital growth especially in Sydney, reflects tighter credit policies among lenders. The shift to lower risk loans and stricter borrowing limits is not necessarily a bad thing. Coupled with rate premiums for interest-only borrowers, this is forcing many people to consider whether a rental property really suits their long term goals.

Planes, trains and automobiles deliver strong gains

One asset class that can that be easy to overlook is infrastructure. Yet things like toll roads, railways, airports and utilities can be a steady performer for investors.

The ASX Infrastructure Index has achieved gains of 12.79% for the year to date. As with international shares, you could invest directly in individual infrastructure companies but an easier way to get a slice of the action is by investing in an infrastructure fund. This also has the advantage of spreading your money across a broader range of underlying assets.
With returns on cash still looking very ho-hum, it could be worth looking beyond savings accounts (where you’ll be lucky to earn 3% before-tax), and think about where you could put at least part of your money to work in 2018 to earn a stronger return.

Contact us to take a closer look at the range of investment opportunities that can help you achieve your goals for 2018 and beyond.

© AMP Life Limited. This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.

Eight steps to improved cashflow… and lifestyle

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Eight steps to improve cash flow… and lifestyle

Imagine feeling on top of your finances. Knowing you’re in a position to enjoy your life today, while also saving for tomorrow.
If that sounds good to you, you’re not alone. In a recent survey, 54% Of Australians aged 55-64 strongly agreed they’d like that too1.

Yet, many of us don’t feel like we’re in that position. Financial stress is actually so common that 24% of Australian employees are affected by it2. And it can have an impact on all areas of life – psychological health, morale and the ability to fulfil day-to-day responsibilities.

A better cash flow could help

Your cashflow is the amount of money that’s coming in and going out of your bank account at any point in time. It’s not a measure of overall wealth, but whether there’s enough cash available to meet your expenses, with some left over. If your cashflow isn’t in check, you might find it difficult to pay your bills on time, or end up relying on credit.
Also, cashflow is almost always the starting point for building wealth.

So when it comes to finding ways to enjoy life and still grow your wealth, before you do anything else, it’s worth looking at how you’re spending your everyday money.

Eight steps to improved cashflow

Here’s what you can start doing today to help you feel on top of your finances.

Step one: Set some goals.

Work out what you’d like to achieve in life. It’s a good way to help shape how you spend your money in the long term. Also, research suggests that setting goals can help you become happier and more positive3 as well as eliminate some triggers of financial stress.

 Step two: Get a better understanding of your spending habits.

Take a step back and look at your money coming in and going out. This will help you become clear on where your sticking points are, like the common times you find yourself short.

Step three: Create a workable budget

Build a budget that fits your lifestyle and priorities. There are lots of budgeting tools online, or you could ask your adviser to help. Once you’ve crunched the numbers, you can then look at areas to make some savings.

Step four: Compare your providers

List your current providers for things like your home loan, bank accounts, credit cards, mobile phone, internet and utilities. Understand the costs, then look around for better deals. Comparing providers can often end up saving you money in the long run.

Step five: Review your insurances.

Now is the time to work out whether you have the right type and level of insurances, and how you can make savings. AMP’s insurance calculator can help you figure out how much cover you might need.

Step six: Get on top of your super

It’s important to think about super as soon as possible. Many Australians will be looking at a retirement of 30 years or more, and the Age Pension alone is unlikely to be enough4.

 Step seven. Embrace online services

This is where you can simplify the time it takes to look after your finances so you can get on with the rest of your life. There are a range things you can do:

  • Set up direct debits so your bills are paid on time
  • Switch to electronic communications (some providers actually charge for paper-based communications)
  • Download apps that can help you access your finances on the move
  • Check and update your details, so your providers don’t lose track of you
  • Set up a good online filing system, and make sure you back it up!

 Step eight. Talk to an expert

Asking friends and relatives for advice is great, but what works for one person may not work for someone else. Financial advisers are there to help you set up your money for growth in the long term, while also helping you meet the needs of today

Better cashflow, better lifestyle

By taking a fresh look at your cashflow, you’re likely to find new approaches to saving money and time.
With a clear picture of what’s happening with your money at any point in time, you’ll feel more confident about your finances overall. Able to enjoy life today, while still saving for tomorrow.

We’re here to help

Just give us a call today, and ask us how we can help you improve your cashflow, and build a plan to meet your financial goals.
If you like, we can also set up regular check-ins, to make sure you continue to head in the right direction.

Sources

  1. The Interpreters. AMP Segmentation and Goals research 2017. 1955 respondents.
  2. Financial wellness report. 2016. prepared by TNS for AMP Life Limited
  3. Positive psychology program, Goal setting can make you a happier person article, Oct 2015
  4. http://www.superannuation.asn.au/resources/retirement-standard

Avoid a nasty case of holiday debt lag

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Avoid a nasty case of holiday debt lag

Enjoy a well-earned vacation without bringing home a mountain of high interest debt.

I do love a catchy new phrase, and this one made me laugh. “Debt lag” is a new one for me. It seems that as Chrissy approaches we plan a holiday, but don’t quite get around to saving for it. So some 2 million of us turn to our credit cards on vacation, and cop a nasty case of debt lag!
Among the holidaymakers who return home with a maxed out credit card, half clear the slate within three months. But the remainder can take anywhere from six months to more than a year to pay off their holiday debt.

Vacations see card spending climb by $2,000

Taking a credit card on vacation can make a lot of sense. It’s a lot more secure than carrying wads of foreign currency, and it provides a handy back-up if you run low on the folding stuff. And let’s face it, that’s easily done. Vacations tend to encourage a sense of bonhomie, which can see us splurge on things we wouldn’t even think about buying at home. (A colleague of mine is still questioning the pineapple-shaped slippers she picked up in Hawaii.)
There’s no problem with a bit of overspending – if you can afford it. After all, holidays are meant to be enjoyed. But Australians rack up an average of $2,000 on their credit cards while on vacation, and unless you can pay off the balance immediately the outstanding interest charges won’t just take the shine of a trip’s happy memories, they could leave you cash-strapped well into 2018.

Plan, pay ahead and avoid tourist rip-offs

The key to avoid blowing your vacation budget is to plan how much you’ll spend and how you’ll pay for it all. Most holidaymakers set a travel budget but only around one in two stick to it. Doing plenty of online research can give you an idea of the sorts of costs you’re facing, and from here it’s easier to set daily spending limits. Where possible, aim to book and pay for accommodation, tours and even entry to attractions before you leave home so you’re not facing inflated tourist prices.

Bypass the gripe costs

Surprisingly, the most cited rip-offs mentioned by Australian travellers are not dodgy souvenirs that fall apart before you reach the airport. Rather, credit card and ATM fees plus mobile phone roaming charges are among the biggest gripes. Yet these are easy to control.
Read the fine print of your credit card and/or travel card to understand any fees you may be slugged with. This is an area where I can lend a hand as these documents can be hard to fathom. When it comes to phone charges, either purchase an add-on pack with your local Telco – it’s likely to be far less costly than pay-as-you-go roaming, or ditch your local SIM altogether. Picking up a prepaid SIM at your destination can be a low cost way to stay connected while you’re away.
For tailored advice drafting a holiday budget, please contact us or if you need support managing debt at any time, don’t hesitate to get in touch – the end of the year is always a good time to get on top of money matters.

 

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© AMP Life Limited. This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.

The disconnect between cards and cash

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The disconnect between cards and cash

With the festive season upon us, Australians are gearing up for the annual peak spending period, and the growth of digital payment options could be widening the gap between what we regard as our spending limit and the balance of our bank account.

Credit cards make spending (and overspending) very easy, and a new breed of “digital wallets” like Afterpay, zipPay and PayItLater are replacing traditional lay-by. The convenience of credit cards and digital wallets comes with a downside. Research shows a clear link between the way we pay for purchases and how much we spend.

An experiment by the Massachusetts Institute of Technology for instance, involved students bidding on tickets to a basketball game. Some were told they could only pay with cash, while other students were advised they would use a credit card to pay. Among the students using a card the average bid was $60 – more than double the $28 average among students paying with cash.

 

The pain of payment

There is a reason for this difference. It’s what psychologists call the “the pain of payment”. When we take a note out of our wallet, we feel a sense of loss. By contrast, when we use digital forms of payment we have no real sense of parting with hard currency. And that makes it easier to overspend.
On one hand, digital wallets don’t charge interest in the way credit cards do. But they do charge late payment fees. Afterpay for instance charges a $10 late payment fee with a further $7 fee if you still haven’t paid up within seven days.
On the face of it, these fees are low but they act in much the same way as card interest – being a charge on an outstanding balance. If you only owe a small sum, the fees can be the equivalent of a very high interest rate.

Keep it real – keep an eye on spending

With Australians expected to spend billions of dollars at the check-out this holiday season (last year we collectively parted with around $48 billion), it pays to be mindful that no matter how you pay for purchases, at some point the money comes out of your hip pocket.
That makes it critical to keep track of how much you’re spending, and ensure you have enough to meet regular bills – both now and in the New Year, when statements for Christmas purchases start to arrive.

The plus of putting off festive shopping

By the way, if you haven’t yet given a thought to festive shopping, don’t feel too guilty. A study by comparison site Finder found those who start buying gifts in October spend an average of $716 on presents compared to $343 among the chain draggers who leave gift buying until closer to Christmas Day.

Maybe allowing too much time to buy can encourage us to spend more, not less. For expert advice, managing your cash flow over the holiday season, or at any time of year, please contact us.

© AMP Life Limited. This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.

Online source: Produced by AMP Life Limited and published 23 October 2017

Print source: By AMP Life Limited, originally published on 23 October 2017