The Value of Advice – Superannuation

In many cases, the end value of your Superannuation will far exceed that of your home.  A significant portion of your life’s earning’s are invested in a fund that  will see you through your retirement.  Superannuation is an area which is riddled with complexity, and too often, we see clients struggle to understand what’s at stake and how to select a fund that best suits their needs.

There is a lot of buzz surrounding the idea of opting into a Superannuation fund that focusses on reducing the costs of their products, like insurance for example.  But, like with all things, cutting costs comes at a price, and when informed, it is not a price most are willing to pay.  Constant improvements in technology are working to lower costs even more and, as a result, these funds become all-the-more attractive.

The importance of seeing benefits in your fund of choice on a daily basis are critical in assisting you to reap the long term benefits that come from such an investment.  If you are not seeing these benefits daily, there is a high chance that you are paying too much or too little for assets when withdrawing from or investing in your fund.

There are many questions you should ask before selecting you Superannuation fund.  These will form the basis of critical decisions that you make towards your future.  One of the first questions you should ask is, ‘When was the last time the significant assets of the fund were valued?’ These could be in the form of infrastructure projects or real estate.

You also ought to ask:
How transparent is the fund?
What is your risk profile, and does the chosen fund match your risk profile?
Does the fund offer the services that you require?
What type of insurance cover is offered, and what are the definitions that apply?
Does the insurance cover mental illness, such as depression?

Superannuation is a very complex area.  There are many things to consider and getting advice is pivotal in the decision making process.  If you have any concerns about whether or not you are getting the best value and cover from your superannuation fund, contact us and start the conversation today!

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 4

4 things that make retirement stressful (and how to get past them!)

Are you thinking about retirement? It’s no secret that most of us are so overwhelmed by the topic, that we’d sooner mow the lawns of every local park, than give it a moment’s thought! But, it doesn’t matter if it’s one, two, or 30 years away, the time to start planning for it is now. Funding your lifestyle through a long period without an income is integral to retirement planning.  Here are few of the questions that often serve as roadblocks, and how you should go about them!
 
How long do I need to prepare for?
The average Aussie male is expected to live to 81 and for female’s it’s 85. However, it is entirely possible that with a healthy lifestyle, you could live to 90 and beyond. We all know that our health is critically important, so understanding the relationship between how healthy we are, and what our life expectancy might be, directly ties into the equation of identifying how much Super you will need. So, if you’re a non-smoker who’s fond of kale smoothies and is regularly active, you’ll need to ensure that you account for a long future of R&R! 
 
How much do I need?
Luxury for some, might be modest for others. A comfortable lifestyle for one couple might mean $60,000, whereas another couple might need $150,000+ in order to live, what for them, is classed as a ‘comfortable’ lifestyle. Start by breaking down your desired lifestyle, thinking about the cost of everything from food and groceries, to travel (you’ve got to have fun, after all!), to the activities that you choose to undertake daily, weekly and monthly. By understanding the cost of your desired lifestyle, it makes understanding how much Super you’ll actually require a whole lot easier!
 
What about my family?
How much support do you want to provide your wider family? Do you aspire to help them with the mortgage, or possibly treat the grandchildren to a cruise throughout the idyllic South Pacific? How about the types of activities you’d like to be able to support your family with? Once again, this directly impacts how much Super and savings you’ll be needing in the future.
 
Will I claim the Age Pension?
If you’re considering supplementing your income with the basic Age Pension, it’s important to note what that means  for you. It represents just over $20,000 for a single person, and $33,000 for a couple per Annum (which is just 27% of the average Australian’s income).  It is important to keep in mind that your current investments, assets, and super balance may impact your Age Pension entitlement as well, so it is worth getting some advice on how this could impact you.
Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 4

 

Retirement is stressful; how much do you really need?

Are you thinking about retirement? It doesn’t matter if it’s one, two, five or 10 years away, the time to start planning for it is now. Addressing the issues associated with retirement, and funding your lifestyle through a long period without an income is integral to retirement planning.

What does your ideal lifestyle look like in retirement? Luxury for some, might be modest for others. A comfortable lifestyle for one couple might require $60,000, whereas another couple may require $150,000+ in order to live, what for them, is classed as a ‘comfortable’ lifestyle. Start by breaking down your desired lifestyle, thinking about the cost of everything from food and groceries, to travel, to the activities that you choose to undertake daily, weekly and monthly. By understanding the cost of your desired lifestyle, it makes understanding how much Super you’ll actually require a whole lot easier!

How does your health measure up? The average life expectancy for a 45 year old Australian today is 81 for males, and 85 for females. However, it is entirely possible that with a healthy lifestyle, you could live to 90 and beyond. We all know that our health is critically important, so understanding the relationship between how healthy we are, and what our life expectancy might be, directly ties into the equation of identifying how much Super you will need.

How much support do you want to provide your wider family? Do you aspire to help them with the mortgage, or possibly take the grandchildren for a cruise throughout the South Pacific? Consider the types of activities you’d like to be able to support your family with as, once again, this directly impacts how much Super and savings will be necessary for your desired future.

Are you thinking about supplementing your savings with the Age Pension? The basic Age Pension represents just over $20,000 for a single person, and $33,000 for a couple (just 27% of the average Australian’s income). It is important to keep in mind that your current investments, assets, and super balance may impact your Age Pension entitlement, so it is worth getting some advice on how this impacts you.

If you own a business, then the first thing you will need to prepare for is its sale. See our article from last month on business succession for more thoughts on how to make the most of this hard earned asset.

If you are looking for professional advice, free of commission and free of conflicts, please contact us, or give the team a call on 07 4783 5151.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 4

Studies indicate the associated health impacts of ignoring Financial Advice

Retirement should not be looked at from a pessimistic perspective; rather than simply signifying the end of your working life, it is the start of a new life. Financial advice is key to planning your future. The Canadian Financial Planning Standards Council (CFPSC) recently completed a wide ranging, longitudinal study which sought to understand the real value of financial advice. The results proved that the positive affects of advice were even greater than initially expected.

The surprise came in measuring well being; it was found that a comprehensive financial plan lead to higher satisfaction. The CFPSC measured emotional well being, financial well being, overall contentment and achievement of life objectives and in each case found that people with a comprehensive plan measured better. A client of a Financial Planner is more confident in their financial situation and the direction of their retirement planning. They also have a greater propensity to save.

This matches the findings of a Finnish survey which explored the impacts of stress on health. The survey not only found that stress can impact health, but also that financial stress had the greatest impact on a person’s health of any type of stress.

These findings align with our experience as Financial Planners. Our clients are more confident in their future and have the knowledge and tools at their disposal to make the decisions that are right for them after having worked with us. This results in a greater ability to deal with the challenges of retirement and living for, what could be, 30 years without an income like many of us will need to.

If you are looking for professional advice, free of commission and free of conflicts, please contact us, or give the team a call on 07 4783 5151.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466

A secure financial future: Do you wish to retire comfortably?

Do you stress about money, about not having enough in retirement? Do you worry that you won’t be able to enjoy your retirement, and the impact that has on your family? Many of us spend time stressing about our financial future, especially when it comes to considering our retirement and how long our financial resources may last.

However, that stress could be costing you. Stressing over your financial position may well be taking away the most important thing about your retirement, your health. A recent study has reinforced the fact that stress impacts your health in a variety of ways. The study, conducted by Finnish researchers (Source: http://www.rodalewellness.com/health/stress-health-problems), confirms that the health outcomes for those who are stressed, and in particular those who are stressed by their financial situation, are worse than for those who report lower levels and instances of stress.

Financial planning helps. One of the key values of financial planning advice is that it aides in eliminating stress. It takes away the unknowns that currently exist in your financial life. One of the rewarding elements of providing financial advice is seeing the stress relief from the client’s perspective.

The Canadian Financial Planning Standards Council commissioned a longitudinal study of 15,000 people and the findings highlighted that people who engage a Certified Financial Planner experienced significantly higher rates of financial and emotional well-being.

Reduce your stress levels; If retirement is something that is concerning you, engaging with our team today could be the best thing you do for your financial future and your health.

If you are looking for professional advice, free of commission and free of conflicts, please contact us, or give the team a call on 07 4783 5151.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No.

couple on the beach

Financial Planning Eliminates Stress

Oxford Dictionary defines stress as ‘a state of mental or emotional strain or tension resulting from adverse or demanding circumstances.’  It has been reported upon countless occasions that finances are the number one cause of stress on individuals.  In the U.S., survey results showed that 76% cited finances as one of their major concerns (source: https://www.apa.org/helpcenter/economic-stress.aspx).

In order to eliminate these stresses, there are many ways in which you can assess, understand and take control of your financial situation.  Financial planning provides guidance on the best actions you can implement immediately to better impact your financial situation.  

It is important to have a clear understanding of what is happening economically, but to not allow yourself to get caught up in it and panic unnecessarily.  Being aware of what is going on in the world of finance will assist you to make smart choices with your money and help to shape the way in which you plan your financial future.  

Recognise the ways in which you deal with financial stresses; the things that relieve your stresses can actually cost you, whether your relief is in the form of cigarettes, alcohol, emotional eating or even gambling.  

We offer comprehensive Financial Planning services.  Speak to one of our Advisors or contact us today for a stress-free future.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466