Is your insurance cover going up?

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With the effect of the current environment and a number of other factors, we have recently been notified that some insurance premiums will increase by up to 100%. So if it has been a while since you have had your insurance reviewed, this should be the incentive to ensure your insurance cover is still suitable for your your situation. At Tailored Lifetime Solutions, we pride ourselves on being experts in insurance. We work to find the most cost-effective cover that meets your insurance needs.

Insurance might not always be top of mind, but it’s important to review your policies regularly to make sure you’ve got the right cover

Whatever your mix of cover — life, total and permanent disability, income protection and trauma — insurance can be an important part of protecting yourself and your family, now and into the future.

Thanks to the ability to pay for insurance through super, an estimated 94 per cent of working Australians have some level of life cover1. So it’s a good idea to review your insurance regularly to make sure you have the right type of cover—and enough of it.

You probably don’t think about your insurance regularly, but there are certain times when you should consider updating your policies to make sure they still reflect your lifestyle and insurance needs.

When and why you should review your insurance

Insurance works best when you have the right level of protection for your situation and as your life changes, so might your insurance needs. You should consider reviewing your cover whenever your situation changes, like:

  • taking on a mortgage to buy a property
  • having children
  • getting married
  • upsizing or downsizing your home
  • getting a pay rise or take a pay cut
  • starting a business
  • experiencing a change in your health or lifestyle
  • paying off your mortgage
  • stopping supporting financially dependent children
  • joining a new super fund that may provide automatic insurance cover
  • retiring.

These milestones mark important times to review your insurance, including the amount of cover you have and whether your beneficiaries (those who will receive your insurance in the event of your death) are up to date.

How to review your insurance

Insurance is flexible and can be changed to align to your needs. Below is a step-by-step guide to reviewing what you have.

Step 1: Read your insurance contract

Refer to your product disclosure statement (PDS) and read it to fully understand what you’re covered for (death, disability or injury for instance) and compare this against what you’d ideally like to be covered for.

Step 2: Check the insurance policy expiry date

Check if your insurance policy has an expiry date, and if so, make note of when it is so you’re not caught off guard. It can be a good idea to set yourself a reminder a month or two before it’s due so you can contact your insurance provider ahead of time.

Step 3: Know your beneficiaries

An insurance beneficiary is the person, or people, who will receive your insurance payout in the event of your death. It’s important to make sure your beneficiaries are up to date so your money ends up in the right hands.

Step 4: Check if you have enough insurance

To help you work out the right level of insurance cover consider the following questions.

  1. How much money would your family have if you were to pass away or become disabled? Consider the amount of money you have in super, savings, shares and other assets, and existing insurance policies as a starting point.
  2. How much money would your family need if you were to pass away or become disabled? Consider the size of your mortgage and any other debts you have, as well as other costs such as childcare, education and day-to-day expenses you may be covering.

The difference between these figures should provide some guidance on the amount of insurance cover you may want to have. However, you might need to compromise between what you’d like and can afford. Our AMP Insurance needs calculator can help you crunch the numbers, and you can always ask an expert for further insurance advice.

Step 5: See if you have any other insurance policies

Like many Australians, you may have insurance through super. So, it’s a good idea to check this against other policies you might have outside super.

Then compare your cover, check whether you have any insurance double ups – if you have more than one super account with the same type of insurance, you may be paying for more insurance than you need.

Something to note on your TSC insurance, you’ll most likely only be able to claim up to 75% of your pre-disability income, regardless of whether you have TSC cover within multiple super accounts.

Step 6: Compare insurance providers

If you’re not sure whether you’re getting the best deal, you might want to compare providers. Remember, there are other considerations to take into account aside from reduced premiums, such as what level of cover you get, any exclusions (like the treatment of pre-existing medical conditions) and waiting periods.

Also keep in mind if you do cancel your insurance, you might lose access to features and benefits, and you might not be able to sign back up at the same rate or with the same level of ease.

It’s also important to disclose your situation to your insurer honestly, or the policy might be invalid if you do need to make a claim.

Step 7: Reduce or manage your insurance premiums

If affordability is a major concern, speak to your super provider or insurer depending on what type of insurance you hold, to find out how you can manage your premiums without losing your policy. You might be able to:

  • reduce the amount you’re insured for
  • change how often you make a payment (If you don’t hold insurance inside super)
  • adjust your waiting and benefit periods.

Changing your insurance policy can be complicated, so we are here to help,If you would like to review your cover, call us on (03) 9851 0300.

Simple strategies to paying your home loan off faster

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With interest rates being at record lows, you now have the best chance of making a real dent in your home loan. A small change in how you repay your home loan can make a big difference over time. By following these simple suggestions from our lending specialist Warren Richards, it is possible to reduce your debt more rapidly than ever. If you like to eliminate your debt as quickly as possible, then give Warren a call on (03) 9851 0300.

  • Consider paying more than the minimum

When interest rates fall it may mean it’s much easier for you to get ahead if you decide to keep paying your current repayment amount, rather than reducing to the minimum required repayment.

  • Take a closer look at your current home loan, and find out how well it compares

Rates and loan features are often described on lenders websites, so this is a good place to start researching for the right loan. Just remember that rates change on loans and fees apply, so an interest rate is not the only measure of good value or suitability of a home loan.

Lenders are legally required to include a comparison rate when advertising their loan interest rate. It is made available to help borrowers identify the true cost of a loan and compare the costs of different loans.

  • Is your home loan still right for you?

Do you remember what your life was like when you took out your home loan? Were you just starting out buying your first home? Or maybe you had just upgraded or even downsized. Whatever your situation, your current home loan may not be keeping up with the way your life and circumstances have changed. There may be features you don’t use with your current loan that you’re paying for, or new features available that may be right for you.

  • Consolidating your loans

Over time, it’s easy to accumulate smaller debts here and there. They may not seem significant. But having many smaller debts could mean you’re paying a higher interest rate and multiple sets of fees. Consolidating your debts into one loan can help give you a clearer picture of what you owe and potentially save you money too. Make a list of your other loans and credit cards, their interest rates and how much they cost you. Speak to your financial adviser about consolidating your loans to potentially save you money. 

A small change in how you repay your home loan can make a big difference over time. Here are some ideas to help you get started. If you think the time is right to review your current arrangements, please phone our Lending Specialist – Warren Richards, on 9851 0300”

Dave’s Corner

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The economic hangover of COVID-19: how long will it last?

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As the Australian economy begins to emerge from hibernation, the question of what the recovery will look like – and how long it will take – is being hotly debated.
AMP Capital chief economist Dr Shane Oliver says that although economic activity is unlikely to return to pre-COVID-19 (coronavirus) levels until late in 2021, just a few months ago we were questioning whether the shutdowns would stop the spread of the virus and, if not, whether there would be a recovery at all.

Below he shares his predictions for some of Australia’s key economic measures and the risks to watch out for on the road back.

Economic growth
As measured by gross domestic product (GDP), economic growth in Australia has contracted and I expect and predict a very large hit to GDP – down about 10% – in the three months to June, with April’s retail sales figures recording the worst fall ever due to the COVID-19 restrictions and closures during this time.
The good news is that the shutdowns have been much shorter than the six months initially forecast by the Prime Minister, and now that they’re beginning to ease restrictions, GDP should recover from June onwards.

But the recovery won’t be fast – rather than a sharp rebound (or ‘V’ shaped recovery) I expect and project more of a ‘U’ shaped recovery – because while some parts of the economy will recover quickly, others will take longer. This is the sort of recovery that was experienced around the world following the global financial crisis.

And globally, the fall in GDP is likely to be the biggest since the Great Depression of the 1930s. The blue line below, which tracks business confidence, shows how big the fall in global GDP could be, although it also shows that business confidence is beginning to pick up.

Inflation and interest rates
Inflation – which is currently around 1.9% in Australia – is expected to will remain low, which should make it easy for the Reserve Bank of Australia to keep interest rates low. I think interest rates will remain at their current levels of around 0.25% for at least the next three years, which is good news for people with mortgages, and also for the economy, as people with home loans are one of the groups that spend the most.

Unemployment
If the Australian Government hadn’t introduced the JobKeeper assistance scheme, the unemployment rate in Australia today would probably be close to 15%. But thanks to this assistance it’s only 6% currently and I think it’s possible it may not even reach 8%, providing the economic recovery continues.
The share market
At the peak of the crisis, the Australian share market fell by almost 37%, but since then it’s recovered up by around 29%. And although dividend yields have been cut, they’re still more attractive than bank deposits due to low interest rates. It’s difficult to predict where the share market will go in the short term – more falls could occur as the market responds to bad news such as a drop in company profits. But over 12 to 24 months, share markets should rise.

House prices
There’s been a significant fall in the number of houses for sale and thanks to that we haven’t seen much of a fall in prices yet, but house prices are likely to fall if people are forced to sell as unemployment rises and as immigration falls. Sydney and Melbourne could also suffer from a lack of immigration-driven demand. I think prices on average could drop by about 10% which would take them to their mid-2019 levels. However, low interest rates continue to benefit the housing market.

The budget deficit
To support our economy, I think the Australian Government had to provide stimulus, and has done so in a way that’s affordable. Despite the assistance packages released by our government, the level of public debt in Australia is quite small compared to other economies, as shown in the chart below.

Risks to look out for
Despite a fairly positive outlook, there are some risks on the horizon including:

• A second wave of infections
A second wave of infections could lead to a second wave of shutdowns, which would slow the economic recovery.
• The end of government stimulus
In late September when the JobKeeper assistance payments end and the JobSeeker payment for those looking for work is halved back to its pre-COVID-19 level, unemployment, bankruptcies and business closures could all rise, which would have impacts on consumer spending, house prices, economic growth and the share market.
• US/China tensions
COVID-19 has re-ignited tensions between the US and China and I expect this will continue in the run up to the US election in November. History tells us that US presidents don’t get re-elected when unemployment is rising or when the economy is in recession, so President Trump is trying to shift blame to China for political gain, which could drive volatility in investment markets. Australia’s current trade tensions with China are also a risk, but as long as they don’t escalate, we are still well placed to benefit from the Chinese economic recovery.
To sum it all up, while it will take a little while – and a little luck – I think the Australian economy is in a stronger position for a faster recovery than many other countries, mainly thanks to our good health outcomes and the strength of our government assistance.

The Australian dollar
I think we saw the low point for the Australian dollar against the US dollar at around 55c in March and it will probably move slowly higher as our economy recovers as it is expected to recover faster than the US economy.

6 Easy and Safe Exercises to do in isolation from www.nursenextdoor.com

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Are you looking for some safe and easy exercised to do whilst you are at home, then www.nursenextdoor.com have released six easy and safe exercises for you to do.

Have you been thinking that you need to exercise more but you don’t know where to start?

Participating in regular physical activity will help you:

– maintain your muscle mass

– increase your bone density

– improve your balance, posture and flexibility

– have better control of chronic disease symptoms

– decrease pain and depression

– prevent falls

Safe Exercises for Seniors

The Center for Disease Control and Prevention (CDC) states 28% of the population over the age of 50 are physically inactive. This is a sad fact considering that 4 out of 5 of the most limiting chronic health conditions could be managed or prevented with physical activity.

As you age your heart muscles and arteries can become stiffer. The ligaments surrounding your joints becomes less elastic leading to increased pain and stiffness. Your body also metabolizes food slower which can lead to weight gain.

Throughout the world, the World Health Organization, has linked 3.2 million deaths to not enough physical activity. The Centers for Disease Control and Prevention (CDC) reports that falls are the number one cause of fatal and non-fatal injuries in the United States for people who are over the age of 65 years.

Not only does exercise help you feel better, but you may also look better and can enjoy a higher quality of life. Exercise helps you continue to do many of the things you love and need to do.

Many seniors are afraid to exercise at home because they are worried they may injure themselves; that is a valid concern.

Exercise is meant to improve your health, not cause you to get hurt. As always, check with your physician before starting any new exercise programs.

Helpful Tip: If you are worried about your safety while trying new exercises, seek a healthcare/fitness professional ahead of time. You both can have fun learning new exercises and you will know somebody is there to help you if you need it.

Nurse Next Door has curated a list of exercises that may be beneficial for seniors. These six user-friendly exercises for seniors to do at home and will focus on the core areas of (click to scroll):

  • Strength
  • Balance
  • Flexibility

Exercises for Strength

Strength training is not just for bodybuilders! Stronger muscles help you to continue to do all the things you need to do in a day from walking up stairs to getting out of a chair.

Dean Maddalone, a certified strength and conditioning specialist states that you can lose 3-8% of your muscle mass each decade. Strength training increases bone density by 1-3% and reduces your risk of death from heart disease by 41%.

Chair Squats

Pretending that you are about to sit down in a chair can strengthen your entire lower body.

  1. Stand in front of a chair with your feet as far apart as your hips.
  2. Bend your knees while keeping your shoulders and chest upright.
  3. Lower your bottom so you sit down.
  4. Then push your body back up to return to a standing position.

Looking for more easily accessible exercises you can do by just having a chair at home? Check out 21 more chair exercises here!

Wall Push-Ups

These push-ups can provide strengthening for your entire upper body with a focus on your arms and chest. But you don’t have to get down on the floor and worry about being stuck there!

  1. Stand in front of a sturdy wall, up to two feet away but as close as you need to.
  2. Place your hands up against the wall directly in front of your shoulders.
  3. Keep your body straight and bend your elbows to lean in towards the wall.
  4. Stop with your face close to the wall and then straighten your arms to push your body away from the wall.

Exercises for Balance

Falls are one of the leading causes of visits to the emergency room. About 30% of people over the age of 65 will fall each year. Often a fall can result in fractures and declining health. Balance helps you to keep yourself on your feet and recover from those accidental upsets.

Single Foot Stand

This exercise is similar to standing like a flamingo but less dangerous.

  1. Stand behind a steady, unmoveable chair and hold onto the back.
  2. Pick up your left foot and balance on your right foot as long as is comfortable.
  3. Place your left foot down and then lift up your right foot and balance on your left foot

You are aiming to be able to stand on one foot without holding the chair for up to a minute.

Tippy Toe Lifts

You can pretend to be a ballerina while strengthening your legs and improving your balance with this exercise.

  1. Stand beside or behind a chair or counter and place your hands on the surface for support.
  2. Push yourself up onto your tippy toes as high as is comfortable and then return back to a flat foot. Repeat.
exercises for seniors

Exercises for Flexibility

Tight and sore muscles make it difficult to do things that were once simple such as pulling up your socks or reaching for something high up. Improving your flexibility helps you maintain good posture and move more freely and easily.

A study published in the International Journal of Physical Therapy found that after 10 weeks of stretching 2-3 times a week, older adults had better spinal mobility, an increased ability to flex their hips and a more steady gait.

Don’t forget that stretching for flexibility should be slow and controlled. Warm up your muscles first by walking and moving. Hold a stretch for up to 30 seconds while you breathe deeply in and out.

Wall Snow Angels

Do you remember plopping down on your back in a patch of freshly fallen snow, sliding your arms and legs up and down to form a perfect “snow angel”?

This exercise helps to open up your chest and to decrease that tightness in the middle of your back that develops as a result of looking down. But you don’t have to fall on your back in the snow to do this “wall angel”!

  1. Stand about 3 inches away from the wall and place your head and lower back flat against the wall.
  2. Put your hands at your sides with the palms out and the backs of against the wall.
  3. Keeping your arms touching the wall, raise them up above your head (or as high as is comfortable).

Repeat a couple times to make some beautiful imaginary wings for your angel.

The Head Turn

One of the simplest and easiest stretches to do! This exercise involves a movement you do whenever you shake your head “no”.

  1. Stand or sit with your back straight and your shoulders relaxed.
  2. Turn your head slowly to the right until you feel a light stretch.
  3. Hold that position and then turn slowly to the left.

This exercise helps to keep your neck mobile, that’s important for driving and being aware of your surroundings!

Easy and Safe Exercises for Seniors

Ever wondered the true cost of your loan?

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A comparison rate indicates the true cost of a loan

If you have ever looked for a loan you would most likely come across a little known and sometimes hard to find, term called the comparison rate. The comparison rate is there to allow you to compare the true cost of your loan. For example, a loan may have an advertised rate of 2.85%, but when you add up the associated fees and charges, the real rate of the loan may be over 4.0%

A comparison rate is designed to help you understand the overall cost of a loan based on several relevant factors, rather than just the interest rate. Each comparison rate accounts for the:

  • amount of the loan
  • loan term
  • repayment frequency
  • interest rate
  • fees and charges

Why pay attention to comparison rates?

The loan with the lowest interest rate isn’t always the cheapest option. When researching products offered by different providers, you can use the respective comparison rates as a more accurate indication of loan cost than you would otherwise get by only comparing interest rates. This can help you decide which option might suit your needs.

For instance, a loan with a low interest rate but high fees and charges may have a higher comparison rate than a loan with a higher interest rate but low fees and charges. Note that comparison rates only apply to loans with a fixed term, not lines of credit such as flexi loans, as there are too many variables.

Things to keep in mind

Remember that when you look at comparison rates, the loan amounts and terms don’t cover all possible situations – so they may not be an accurate reflection of your particular loan. The amounts that a comparison rate is based on will be in the fine print.

While comparison rates can be a good starting point, they’re not the only thing to consider when shopping around for a personal loan. It’s also important to compare the other features of the loan to see if it works for you.

If you are looking to purchase a property or refinance an existing loan, give our mortgage broking team a call. We have access to over 25 different lenders and aim to match you with the most appropriate loan to suit your needs.

What is Estate Planning

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Your estate plan is more than a will. It also details how you want your assets to be protected while you’re alive and what happens to them after you die. For more information on estate planning, please go to https://www.amp.com.au/personal/hub/m… Transcript Nobody lives forever, and if they do, they’re keeping pretty quiet about it. It seems the best we can do at the moment is reverse the seven signs of aging. So, ahead of the inevitable, how do you make sure you protect yourself and your assets? Estate planning involves formalising how you want to be looked after both medically and financially, when something happens to you, or when you’re unable to make decisions for yourself. And, how you want your assets to be protected while you’re alive and distributed after you die. It can involve wills, trusts, superannuation, life insurance, powers of attorney and property ownership. Appropriate estate planning can minimise family disputes over assets and make difficult decisions easier. It can help to reduce tax paid by inheritors, and make your intents clear about the distribution of your assets. Online will kits are available … online… however, engaging a solicitor or estate planning lawyer can help immensely, especially in more complex situations. If an estate plan is on the cards, it’s important to keep it up to date with changes or when a situation evolves…and ensure you regularly review nominated beneficiaries so that the way you intend to distribute your assets is clear. Consider speaking to a financial adviser and a solicitor who can help set up and maintain a solid estate plan. Having an up to date estate plan can help make sure everything’s taken care of when the time comes.

5 expert tips for working from home in a crowded house during the Coronavirus pandemic

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With much of the globe self-isolating, many people must suddenly manage the complexities of working from home while sharing a crowded space.

Kitchens, dining rooms and other spaces have become offices for remote work with computers, cords and paperwork spilling into what was, until very recently, private space. For people with children, these spaces are also the daycare and an impromptu home-school with everyone trying to remain productive in the middle of the chaos of competing demands.

The term “remote work” means different things to different people. Many think of it as working away from a central office or school by connecting through communication technologies, such as email, intranets and video conferencing. Academia has yet to establish a common definition for this type of work that is accepted by all. In this article, I’m using the term as it is currently being used by the public in reference to working from home.

As a teacher with a doctoral degree in business that focused on remote work, I have a unique vantage point for this emerging situation of working from home in a house full of people, of all ages. In order to be effective and minimize stress, I recommend taking time to create a structure that everyone agrees to.

Here are five ways to organize the home-work environment for a more successful transition.

Create workstations
Assigning a workstation to each person gives everyone a sense that they belong in the newly shared space, while setting boundaries for personal space.

The workstations should make sense for the work being done. If the work is loud and disruptive, like video conferences or multimedia streams, assign that work to a room with a door. For quiet work that requires concentration, ear plugs or headphones with white noise may be needed.

Taking a few moments to set up space for success will save the whole household from feeling frazzled.

Designate a work-free zone
If you have a home with a separate room for relaxing, such as a family room or den, consider making it a work-free zone.

In smaller places, this can be the bedrooms or even designated areas, such as a table with games and puzzles, or a corner with books and drawing materials. This can be especially helpful when there are children on the scene.

With daycares and schools closed, parents are scrambling to find ways to get work done and care for their kids.
Designating a space that is not for work is part of creating healthy work-life boundaries for psychological wellness.

Take scheduled breaks
The most common misconception about remote work is that it enables slackers. In fact, slacking is often more about personality and fit than the work context.

Successful remote workers are driven by the outcomes they are trying to deliver, and research shows they are not always exemplars of work-life balance.

Taking scheduled breaks not only keeps your mind fresh, but it also signals to others that wellness is important. If you are in self-isolation with children, your behaviour is teaching them what work-life looks like, so be sure to infuse a priority for wellness by modelling it yourself.

Integrate physical and creative activities
As adults, we know that it is important to make time for exercising and engaging our minds. Children have such activities scheduled into their school day, through recess, gym and creative subjects like art and music.

Running outside can help meet exercise needs and maintain your new social distancing routine. Hiking, walking and cross-country skiing are other activities where you can remain two metres away from others.
If you are self-isolating, it is essential to schedule physical and creative activity into each day — for everyone. If the weather allows, get outside, or plan to do indoor physical activities like yoga, dance games and interactive video games. Make it timed. Make it fun. The important thing is to schedule it.

It is also important to schedule time for creative activities. Consider how you can add the arts to the schedule, and remember: if it makes noise or a mess don’t schedule it for children when you don’t have the capacity to manage it, or it might not be the positive experience you are trying to create.

Establish a firm quitting time
A set quitting time helps us feel we have psychological control over our work. It also establishes boundaries and a sense of routine.

Children who are accustomed to timed periods, bells for breaks and a set time to go home still require structure and routine to make them feel safe, especially during these uncertain times. For children and adults, setting a timer and establishing the norm that work-time has a beginning and an end can signal familiar norms of the workplace and school, and lead to more effective behaviours for sharing space together.

Everyone feels the stress of uncertainty; everyone wants life to feel as normal as possible.

Protecting your family from an inheritance nightmare

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Estate planning is a topic that many people would rather not talk about too often, but it’s an important part of the entire financial planning process for anyone with responsibilities, whether they are family or business responsibilities.
With the current rate of divorce and people living longer, the number of blended families in Australia is increasing and family life is becoming increasingly complex. The need for comprehensive estate planning has never been more apparent.
For many people these days, it means considering all possible scenarios and implications when mapping out how they wish to have their estate – that is, all of their assets and money – managed after they die.
It isn’t easy making difficult decisions about loved ones, and it’s even tougher for those in de facto relationships and second or subsequent marriages, where there are children from previous relationships. The difficulty in choosing beneficiaries and amounts to be bequeathed means that many couples choose not to make a decision at all.

While estate planning laws vary in every state, wills are typically rendered invalid by marriage and may become partially invalid by divorce. So, it’s particularly important for everyone to make a new will after marrying or divorcing.

Following are just some of the estate planning issues you should consider, in consultation with your solicitor and financial planner:

Keep your will up to date – If you already have a will, you should update it when your financial or relationship circumstances change. While remarriage may revoke an existing will, divorce may not.

Provide for dependants in your will – If dependants do not have specified entitlements set out in a will, they may have to make a claim for entitlement through the courts, at expense of the estate.

Nominate guardians for your children – If you have children under the age of 18, appointing a guardian for them in your will may help avoid disputes between family members by making your intentions clear. However, it is not binding as the Family Court can override your choice of guardian and appoint a different guardian where it considers this to be in the child’s best interests.

Careful planning to minimise tax – The executor of a will may decide to sell the estate assets rather than pass them directly onto the beneficiaries. In this case, capital gains tax may be incurred, reducing the money the beneficiaries receive.

Bequeathing assets not owned – People need to understand what they can and can’t bequeath. Assets owned by joint tenants, trusts or companies can’t be included in a will.

Don’t assume superannuation will bypass the estate – Large super funds may automatically pay superannuation benefits to a deceased person’s estate. Having the funds included as part of the estate increases the risk of money falling into the wrong hands if the estate is challenged. To ensure superannuation benefits are paid directly to a beneficiary and not included as part of their estate, a person needs to provide a valid binding death benefit nomination directly to their super fund.

Testamentary Trust – To provide additional protection of your assets, a Testamentary Trust might be an option. Put simply, this is a trust established by a will.

Rather than assets being distributed upon death, some or all of the assets would remain in this trust for the benefit of a specific group of beneficiaries named in the will. There may also be tax advantages in having a testamentary trust due to the flexibility available to ensure that more income is distributed to ‘dependent’ children.

Let’s say a father leaves a sum of money to his son or daughter, who later separates from their spouse, the Family Court in a divorce settlement may rule that the spouse is entitled to a proportion of the inheritance. However, this risk could be reduced if the assets had been left to the children in a trust.

Be clear and concise – Ambiguity in a will can lead to unnecessary disputes over meaning, and the wishes of the deceased person may not be carried out as intended.
While the saying ‘you can’t rule from the grave’ carries some truth, planning for what will happen after you die will ensure your hard earned assets are protected and your wishes carried out.

While only a qualified practitioner can legally draw up a will, a financial planner can help you navigate your way through the complexities of estate planning and provide a framework for ensuring all considerations are covered when mapping out your final wishes.

This editorial contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider you financial situation and needs before making any decisions based on this information.

Planning to avoid financial mistakes

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Selling shares when prices have tumbled or buying a house at the height of a property boom only to dispose of it when the market falls are among the financial set-backs that can happen to anyone on the road to retirement.

Everyone makes mistakes during their investment lifetime; the trick is to avoid them when you can and learn from the ones you can’t.

Have a plan
Failing to plan for retirement and build up savings is one of the most common mistakes. Having adequate retirement funds can be undermined by unrealistic expectations about future lifestyle and the savings needed to fund it.

Many retirees are unable to access the age pension because they are asset rich despite being income poor. Putting well thought out investment plans in place to boost your retirement income well before you reach retirement age is the best strategy to overcome such a problem.

It’s probably no surprise you are more likely to achieve your financial goals if you have a plan. In the construction of a financial plan you should take account of your risk tolerance, your financial commitments and financial and lifestyle goals. This will give you the confidence to know you can get to your desired destination. A comprehensive plan should also take account of tax, cash flow, superannuation, insurance needs and estate planning issues.

Stay calm
Impulsive decision-making at the first sign of trouble can undermine your investment goals. If a quality share investment or rental property suddenly falls in price due to a market correction, it is often not the best time to offload. As one once put it, “Don’t just do something, sit there”.

Staying the course and letting time work its magic will often leave you in a stronger position.
Equally, investment inertia can be problematic. Strong or poor performance can lead to your investment portfolio moving outside your required risk tolerance over time. Regular reviews to rebalance investments back to your target asset allocation will more likely bear fruit in the long term.

Spend less than you earn
Drawing up a budget is vital if you want to discipline yourself to spend less than you earn. Failing to budget makes it difficult to keep track of spending and set aside regular savings to fund a comfortable retirement.

Bank transaction accounts are ideal for daily spending money but not investment money. In order to beat inflation and produce the returns you need to fund your financial goals over time, you need to build a diversified investment portfolio to match your capital requirements.

Spreading money across the major asset classes of cash, fixed interest, shares and property helps minimise risk. It also helps produce consistent returns from a combination of income and capital growth over the long run. The precise combination of assets is dependent on your risk profile. Your adviser should undertake comprehensive research and implement proven portfolio construction principles.

It’s never too late
It’s never too late to start planning for retirement. Paying off the mortgage is often considered the first step to wealth creation so increase repayments where possible to speed up the process. Once you have built up equity in your home other investment options can be investigated concurrently.

Topping up your super through salary sacrifice is one such option, provided you stay within your annual contribution limits. Your employer pays a proportion of your pre-tax salary into your super fund, reducing tax and boosting your savings at the same time.

Review regularly
Financial planning is a dynamic process. Regularly reviewing your investments, refraining from knee-jerk reactions, understanding market volatility and staying the course can lay the foundations for a prosperous retirement.

This editorial contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider you financial situation and needs before making any decisions based on this information.