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Category : Financial Planning

Dementia: How to future-proof your finances

  • Willard Lloyd
  • September 3, 2019

Dementia: How to future-proof your finances

As life expectancies increase, dementia will become an ever-more important issue. The good news is that it is normally a condition that progresses slowly, thus giving families plenty of time to prepare for it. Don’t fall for the myth that your spouse or next of kin can make financial decisions on your behalf in the absence of an enduring power of attorney. Don’t fall for the myth that your spouse or next of kin can make financial decisions on your behalf in the absence of an enduring power of attorney. The bad news is that there is no current cure and that many people move to avoidance, instead of preparation, and thereby leave themselves at risk of huge financial problems down the track. It is critically important to have an enduring power of attorney (EPA) in place long before it appears to be needed. The person giving the EPA must have the capacity to do so.

How defensive stocks ride out rate volatility

Glenn Freeman  |  03 May 2019

 

Utilities and infrastructure companies are usually described as a “defensive” asset class because they deal in long-term contracts that help them ride out volatility – a factor that also affects their reaction to interest rate movements.

And like property trusts, utilities and infrastructure companies also have bond-like characteristics: they may not grow very quickly, but they provide a reliable income stream over the longer term.

Comfort for Australian Expats after decision from Full Federal Court.

  • Willard Lloyd
  • March 7, 2019

Australian expatriates have been offered some relief after a Full Federal Court decision against the ATO in a tax residency case clarified the definition of “permanent place of abode”.
Harding v Commissioner of Taxation, ruling that the taxpayer’s “temporary” apartment qualified as a “permanent place of abode” under the tax residency test and was not liable for tax in Australia.

Australians working overseas in the USA – What they need to plan for 

Whether it be a job opportunity or change of scenery, any Australian looking to gain employment overseas should seek strategic financial advice before their departure in order to understand, and potentially avoid, any lasting financial impact that may be difficult to unwind as a result of different rules and regulations impacting their status. 

Be in Control of your Financial Well-being- Is Money Holding back your Happiness?

The Commonwealth Bank and the Melbourne Institute: Applied Economic and Social Research at the University of Melbourne, released a new benchmark measure of financial wellbeing of it stating weighing on the minds of a large number of Australians is their challenges of managing personal finances and putting enough money aside to ensure their financial futures. 

What is the CBA-MI financial scale? 

The scale combines banking data and peoples’ perceptions about financial outcomes.  The unique concentration of the individuals perception with the banking data reveals the barriers, drivers and behaviours that are linked to positive financial well being across both ‘self-reported and ‘observed’ scales. 

Payday Loans – The crack-cocaine of lending.

Attractive advertising, paired with an individual desperation, is what helps to fuel the seduction of Payday (short-term) loans, and they are quickly becoming a menace to our society; more often than not leading people into a worse financial situation than where they began. 

Payday loans in Australia are part of the small loans market.  Statistics show that many people who apply for such a loan are already in financial hardship. They may have even already tried to apply for a small personal loan through a banking institution and been denied a loan.  The national consumer credit protection act mandates that all lenders ensure that the person applying for a loan can afford to repay the loan without substantial financial hardship.  Payday companies are not required to make such assurances for their clients and have made access to small loans of under $2000 increasingly easier with their online presence.

Couples and the “F” word – Let’s make it less taboo

It turns out it is not just a taboo amongst Australians.  It has been revealed that people would rather speak about religion, politics and even sex, than they would about their finances, especially when talking to family and friends. 

Talking finances is seen as something the majority of Australians are uneasy with, a staggering 50% will never discuss their finances with family or friends, while a further 14% still consider the topic taboo.  Why do we find it so difficult to mention the ‘F’ word? Perhaps because money symbolizes different things to different people; power, control, security or ego. 

Money is seen as an emotive topic, more so than religion or politics.  Many people view their financial situation as a reflection of their personal success.   

Choosing Your Retirement Lifestyle

Choosing retirement and the perception of a person’s lifestyle, either currently or how one wants it to develop over time, is subjective – luxury living for one person is a modest existence for another. In this article, we offer guidance on the amount of money you may require for retirement to cover your basic living costs and support your desired style of living.
 
Choosing a retirement lifestyle shouldn’t be any different to how you maintain your current lifestyle — you live the life you can afford. Living within your means today and thinking about what life after retirement will look like, helps to set you up for a comfortable future.
 
So, the big question is: how much money is enough for your retirement? Have you worked out the amount of superannuation, and other savings, you will require to finance your retirement?
Is $1 million enough to retire on? Although $1 million may sound a large sum, according to John Piggott, director of the Australian Institute for Population Ageing Research at the University of New South Wales, agrees: “$1 million will not do all that much for you. It will give you a very low [salary] replacement rate.”

Importance of Superannuation and Financial Advice

With little doubt, Superannuation (AKA Super) is likely going to be a persons longest-term investment and, therefore, deserves to be considered with a greater depth than perhaps their other financial investments.  There is no better time than now to engage in a conversation with a Kofkin Bond and Co financial adviser to ensure your Super is in order.

Super is not a short-term discussion

In the course of an average life, they may have many long and short-term savings and investment objectives. Saving for a holiday or a used car in your younger days may take a year or two, Whereas saving for a home deposit may take a little longer, and even then it may take thirty years, or more, to pay it off.

financial potential

When It Comes to Reaching your Financial Potential: What does it really mean?

Less is more. More is less. Reaching your financial potential is all about balance, perspective, knowledge, values, and how you define what is most important to your happiness. For some, the idea of ‘success’ holds a level of allure and enticement that will motivate their actions to make more money and surround themselves with the trappings of wealth. For others, the idea of financial success means ‘less’; less debt, less stress, fewer possessions, fewer complications. Whether you consider yourself a ‘more’ or ‘less’ person, it’s all perspective and the level of energy you are willing to invest, in order for your values and financial dreams to be met. (If only it were that simple to remove outside factors and influences.)

Unfortunately, we can often fall victim to enticements, temptations and sometimes guilt or judgment from family, friends and, colleagues. There is then the constant array of online marketing that seeks to aid our deviation from our financial goals.