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Did you know that when you die, your super isn’t automatically included in your estate or Will? For many people, superannuation is one of their biggest assets, so it’s important to make sure it goes to the right people – in the most tax-effective way.
The good news is that you can control who receives your super benefits by providing specific instructions to your super fund. It’s called nominating a beneficiary, and there are three main types:
Continue reading “Who will inherit my super?”
Key Points
In October, the Federal Government announced several important updates to the proposed Division 296 superannuation tax, which are designed to make the policy fairer and easier to administer.
These changes are not yet law, but they give a clearer picture of what may be introduced.
Giving your children an early inheritance, rather than waiting until you pass away, can help them during key stages of their lives.
Here are four examples of how you can enhance their financial security during your lifetime:
Market performance is unpredictable, and as you approach retirement, these fluctuations can have significant consequences. Careful planning and sound financial advice are essential during this critical period.
What Is Sequencing Risk?
The “retirement risk zone” refers to the 5-10 years around retirement when savings are most vulnerable to market downturns. Unlike younger investors, retirees may face compounding losses from early negative returns while drawing down their savings, known as sequence of returns risk.
How Sequencing Risk Impacts Retirement
For example, if you retire with $1 million and withdraw $40,000 annually, an initial 15% market drop followed by gains of 5%, 10%, and 20% over the next three years can still deplete your savings faster. Conversely, retiring in a bull market can offset withdrawals, preserving your balance.
Continue reading “Understanding Sequencing Risk: Protecting Your Retirement Savings”
Retirement marks a significant milestone in life—an eagerly anticipated period where we can finally unwind, pursue our passions, and cherish moments with loved ones. However, the journey to a comfortable retirement requires careful planning and consideration. Here are some steps you can take to ensure financial security in your golden years.
Continue readingAt the heart of any retirement plan lies a crucial question: How much do you need?
Labor’s third Budget, unveiled on May 14, prioritised alleviating the cost of living for Australians. Treasurer Jim Chalmers emphasised its responsibility in balancing household support with economic stability. Key highlights include:
Tax Cuts:
Divorce is a challenging journey, emotionally and financially. As you navigate through the upheaval of separation, one of the most critical aspects to address is your financial well-being. Rebuilding your financial foundation after divorce requires careful planning, organization, and a commitment to securing your future stability. Let’s explore some key steps and strategies to help you regain control of your finances post-divorce, drawing insights from expert advice.
Continue reading “Rebuilding Your Financial Foundation: Navigating Finances After Divorce”
If you are trying to manage your cashflow position and looking toward building and maintaining wealth, creating a budget is essential.
By sitting down and completing a budget, you create a snapshot overview of your personal financial position. In doing so, you give yourself the opportunity to gain a better understanding of the movement of your money – inflows and outflows. This information can help you work out how to achieve your financial goals and objectives, such as paying down debt or investing for the future.
The 50 / 30 / 20 budgeting rule
There are many ways to manage your budget. One popular tool is the 50 / 30 / 20 budgeting rule.
Essentially, this budgeting rule provides a rough guide as to how your money should be allocated towards your needs, wants and savings. For example:
Do you know what percentage you are currently allocating towards your needs, wants and savings?
The RBA has increased the official interest rate from 0.10% per annum to 2.60% per annum since May 2022. As lenders pass on the rate rises to mortgage holders, many families have been watching as their monthly loan repayments continue to increase month by month. For someone with a $750,000, 25-year loan before the RBA rate rises began in May, they’ll be paying over a $1,000 a month more in loan repayments as a result of the hikes.
By negotiating a lower interest rate with your current lender or switching to a new lender with a better rate, you could potentially save hundreds, if not thousands, of dollars a year in mortgage repayments.
Here are our top tips for negotiating a better home loan rate:
Continue reading “3 tips on negotiating your home loan interest rate”
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