These longer articles are designed to be used as a special newsletter edition that covers just one important topic. They are intentionally more in-depth to demonstrate your expertise in a particular area.
This article follows on from the earlier “super through the ages” series. With more Australians working (and living) for longer, it outlines ways to make the most of the final years in the workforce to boost super.
For most Australians, their 60s is the decade that marks retirement. For some this means a graceful slide into a fulfilling life of leisure, enjoying the fruits of a lifetime of hard work. However, for many it means a substantial drop in income and living standards. So how can you make the most of the last few years of work before taking that big step into retirement?
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This article focuses on buying an established business (as opposed to starting one) later in life and provides a no-nonsense list of questions potential/early retirees should address if considering this option. It addresses using superannuation to purchase a business, with a focus on seeking professional guidance throughout the process.
The word “retirement” conjures up many images. While most baby boomers might be dreaming of more time on the golf course or booking a cruise, you might be thinking about buying a business. Crazy? Maybe not.
If you’re close to reaching your preservation age you will soon have access to your superannuation. An increasing number of people at this stage are taking control of their finances and buying themselves a new later-life career in the form of an established business.
Perhaps you’ve been retrenched and finding it difficult to land a new job. Or maybe, after a short period of retirement, you’re re-invigorated and ready to start afresh.
This article tells a story that, sadly, is more common for many Australian families than it should be – the long-term after effects of underinsurance. It not only details the financial consequences but the impacts on the health and social welfare of those left behind when the key breadwinner dies. Figures and statistics substantiate this unnecessary pattern.
Paul Taylor was a fit and active 45-year-old who drowned while swimming in surf on a family holiday. Witnessing this tragic event unfold from the beach were Paul’s wife, Sue, their 15-year-old daughter Sophie and 12-year-old son Zac.
Relatives and friends were a great support during the following days, but soon after the funeral, and still in a state of profound grief, Sue had to assess the state of the family finances. Until that time she wasn’t aware that the Taylors were amongst the 95% of Australian families that did not have adequate levels of life insurance.
The last article in the series of super through the generations explains what to do to improve super balances in potentially the last decade before having to rely on it. It covers salary sacrificing, TTR, investment focus and insurance, and a recommendation to seek professional advice soon.
If 50 really is the new 40, then life has just begun. The kids are gaining independence or may have left home, and the mortgage could be a thing of the past. Bliss. But galloping towards you is… retirement!
How are you tracking?
According to the Association of Superannuation Funds of Australia (ASFA), a ‘comfortable’ retirement today costs close to $.......... per year for a couple. If you and your partner are planning to retire at 55, to afford this retirement lifestyle and secure your future, at least into your mid-eighties, you should be looking at having around $... million in super. Over time, inflation will push these figures higher. Leave retirement to age 65 and a couple will need around $.......... a year from a nest egg of about $... million .
Find those numbers a bit daunting? Here are some ways to boost your retirement savings.
This third article in the 4-part series on superannuation through the generations calculates how much will be needed for retirement in 20 years, how to increase the balance, salary sacrifice vs paying off mortgage, government contributions, and insurance through super.
Typically your forties is a time of established careers, teenage kids and a mortgage that is no longer daunting. There are still plenty of demands on the budget, but by this age there’s a good chance there’s some spare cash that can be put to good use. As you pass the halfway mark of your working life, it’s time to give retirement planning a bit more attention.
This is the second article in the 4-part series on superannuation through the generations. It covers super for the short and long term, options to increase the balance, how much might be needed to retire on in 30 years’ time and ways to achieve it, and insurance through super.
If you are in your thirties, chances are life revolves around children and a mortgage. As much as we love our kids, the fact is they cost quite a lot. As for the mortgage, this is the age during which repayments are generally at their highest, relative to income. And on top of that, one parent is often not working, or working only part time. Even if children aren’t a factor, career building is paramount during this decade.
Are you really expected to think about super at a time like this?
Well, yes, there are a few things you need to pay attention to.
This article is the first of a 4-part series on superannuation through the generations. It explains where super comes from, how it grows, how much might be needed to retire on in 40 years’ time and ways to achieve it.
Superannuation is for the oldies, right? In some ways that’s true, but even in your twenties there are good reasons to take a bit more interest in your super. The average 25-year-old has around $10,000 in super, but the decisions you make now, even with relatively small sums of money, could earn you hundreds of thousands of extra dollars over your working life.
Are you getting any?
Falling in love is a magical and wondrous experience, but once the heart flutters have settled a little and two people move towards a more serious relationship, various challenges may need to be addressed. Many of these challenges can be easily resolved when we’re young and carefree, but what happens when Cupid appears – or reappears - later in life?
Unlike earlier relationships, when love blossoms late in life careers have slowed down or ceased, the children have left home, and health and fitness may not be what it had been, meaning that a ‘lifetime’ of togetherness may not be as long as first anticipated.
From a less romantic perspective, the financial implications of beginning a relationship at this time of life are serious and need to be considered carefully.
Just as your wealth creation strategy needs to be reviewed on a regular basis, so too does your wealth protection plan. Every stage of life brings exciting challenges along with different types of risk.
Let’s look at the most common scenarios. You may see yourself in some of these stories.
So how do you get this free money? This is how…
This article covers the areas that most people don’t consider when deciding to move overseas permanently or for a long period of time. It covers taxation, superannuation, insurance, estate planning, and Centrelink benefits.
Many Aussies dream of living in different countries at some point during their life. For some this remains just a dream but for hundreds of thousands of Australian residents who move away permanently from our shores, it is a reality. Whether it’s a long-term career move to New York or retiring in an island paradise, the decision to permanently leave Australia is one that requires sound financial planning.
In addition to learning as much as you can about your new home, there are many areas you must address before you leave Australia and some that need ongoing attention after you have settled abroad. These include taxation and superannuation, regardless of whether you are working overseas or retiring. There are also things like insurance cover and updating your will that must be taken into account.
Here are just some of the important points to include in your plans.
Smart business owners plan ahead for even the most unexpected threats but as times change, these threats come in different forms. We’ve highlighted a few in this article with suggestions on how to deal with them before they affect your hard-earned freedom.
Lifestyle is a personal choice. The big question is: How much do you need to save while you’re working to pay your preferred retirement lifestyle?
A clever article providing a detailed description of the main forms of insurance – income protection, life, TPD, trauma and general insurance. Insurance inside super is also covered. It uses a baseball analogy to explain the benefits of each. Excellent to use as a special feature on insurance.
Most people either cringe or yawn when the word insurance is mentioned but regardless of whether you find it scary or boring, managing risk is a necessity in the world in which we now live. Let’s cover all of the bases to help make your home run as easy as possible.
First Base – Income Protection
Alright, now take the romance out of it and look at the reality – the business of farming is tough!
It’s a business of extremes – extreme highs countered by extreme lows. It’s a business of cycles charted by the seasons - years of abundance interrupted by the unavoidable threat of drought, flood, fire or other natural disaster our great continent is famous for.
The hard truth is that it’s estimated the average farming business faces crop failure or significant stock loss roughly one year out of every six.
Research by worldwide organisations including the United Nations and European Union shows disturbing trends such as these:
A detailed discussion of strategies including salary packaging, CGT, and deductions that can be used to minimise personal taxation. This can be used as an excellent double-spread feature article.
His words might have been recorded over 200 years ago, but Benjamin Franklin’s famous uttering “in this world nothing can be said to be certain, except death and taxes” remains as true today as it was in 1789. The one thing that has constantly changed is tax law, and although death is impossible to avoid, with the many options available to us, taxation doesn’t need to inflict too much pain.
Here is a list of tips to help you minimise the amount of tax you pay.
Your home may be your pride and joy, an asset with a big emotional attachment, but it is also usually the biggest financial commitment you will ever make. It therefore makes sound financial sense to insure your home appropriately. Whether you are reviewing your current cover or insuring a new home, here are some tips to help you make the right decisions.
But what do we want more of? Time on the golf course? Unrushed holidays in exotic locations? Those are just the basics, however if retirement is looming have you thought about what actually will happen when you stop working? Will you have those choices?
This feature article explains how estate beneficiaries can reduce potential CGT liabilities on the gifts they receive. It briefly explains the differences on how valuations are based on certain items. It uses some small case studies to better explain this complicated topic.
When you receive money or a gift from a family member’s or friend’s estate, the last thing you probably think about is tax and insurance. However, you can circumvent future difficulties or financial loss if you attend to a few practical financial issues as soon as possible.
Let’s start with CGT
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