What better year to have your financial health in tip top shape than the one requiring 20/20 vision!
The start of any year is always a good time to assess your financial situation and make sure you are on track to achieving your dreams, but the start of a decade is even more significant.
Firstly, look at your current position. After all, if you don’t know where you are, how can you know what you need to do to achieve your financial goals?
Assess your income and outgoings and see how you can create a budget, to increase your savings and reduce your debt.
It’s not just about cutting back on spending. You can also make savings without feeling any pain. For instance, instead of foregoing small pleasures, instead look at negotiating a better deal on your household bills.
So shop around for a better priced insurance policy; check your current internet provider’s offering; and seek a cheaper deal with your electricity and gas provider or on your mortgage.
Has your variable home loan come down in line with the general fall in interest rates and others on the market? See if your bank can match that better rate. If not, you may wish to consider changing lenders but make sure the costs of switching don’t negate the benefits.
On the other side of the ledger, you should also consider strategies to help build your wealth. For example, why not put a little extra into your super for your retirement? You can make concessional contributions of up to $25,000 a year. If your employer’s compulsory Superannuation Guarantee contributions fall below this level, consider salary sacrificing or making a personal deductible contribution to top up your super balance. Concessional contributions only attract 15 per cent tax on your pre-tax income versus your personal tax rate. That means you keep $85 of every $100 invested.
If you didn’t reach your concessional contributions cap last year, and your super balance was less than $500,000 at 30 June 2019, you can contribute that shortfall this year or carry it forward for up to five subsequent years.i
And if you are aged 65 to 74 and no longer working full time, you may still be able to make a voluntary contribution to super this year, provided you pass the work test. You need to have worked at least 40 hours over 30 consecutive days in the year you make the contribution.iiAn exemption may apply for 12 months if you satisfied the work test in the previous financial year and your super balance is less than $300,000.
On the subject of super, why not take a look at your investment mix. Make sure it’s working for you in the current interest rate and investment environment while still meeting your risk profile.
And most importantly, consolidate your super. While some people have more than one fund to access better insurance or other benefits, for others, having multiple accounts means you could be paying extra fees without any added benefits. You might find this has been done for you, as since July 2019 the Australian Taxation Office has acquired inactive low balance super accounts with the intention of consolidating them into another existing account. But this only occurs if the balance is less than $6000.iii
You might also look at other avenues to save money. Perhaps consider depositing a percentage of your salary into a savings account to provide a buffer should some emergency occur.
The start of a new year is also a good time to check your Will is in order. Have your circumstances changed in the last 12 months? If so, you really need to update your Will to reflect your new lifestyle.
The new year, whether financial or calendar, always offers a good opportunity to assess where you are in building your financial wealth and making sure you are financially fit.
Why not call us to discuss how you can make the 2020s a decade with a perfect vision.
This weeks podcast goes down an avenue we hold to and ensure this is one of the reasons we feel so against industry funds as they “compare the pair” and only basing this on the return, not the underlying assets and the exposure to risk by the fund.
Tony and Jamie discuss the definition of liquidity and why it has been so important in a portfolio.
Liquidity risk is not felt until markets are under pressure and failing, If illiquid assets represent a large proportion of a portfolio, there is a risk that clients may not be able to access their money when they want it. Tony gives an example of this and more through this podcast.
If breaking New Year’s resolutions is as much a tradition as the act of making them, you’re not alone – about one-third of New Year’s resolutions don’t even make it past the first month.i So why not try something different this year?
The main reason resolutions fail is because they’re often formed without a strategy. A strategy has clear directions, timelines and consideration of resources needed, which is why they are much more likely to be acted upon.
If you’ve already set resolutions for 2020, it’s time to develop a strategy to achieve them. Equally, if you’ve avoided making resolutions, now is a great time to think about what you want to achieve over the coming months and develop a road map.
Welcoming all listeners back for another year.
Our first podcast is with Caroline Bakker, a Life Coach from Amazon Warrior. We thought it would be fitting to start the New Year with a conversation around habits and the steps taken to form and maintain these habits throughout the year. Caroline goes through her process of setting goals and ensuring, regardless of her situation, that she maintains focus on the steps that are required in achieving her major goals.
Even with hiccups hurdles and health complications, Caroline has been able to establish consistency in her life with progressing to where she would like to be. We are happy to bring a positive to start the New Year and think our listeners will get something out of this episode.
You can find more of Caroline at her Instagram, Facebook and her Website | email@example.com
03 9111 2675 | firstname.lastname@example.org
We just wanted to say thank you to all our clients and our listeners. This has been a new experience and we hope that you have found value in these weekly podcasts. We look forward to bringing you new engaging podcast next year. From all of us here, we hope you have a happy and safe festive season.
This week’s podcast is related to a previous podcast, one of our most popular, Journeys with Leo Momesso. Leo shared his entrepreneurial journey and the effects it had on him and his little daughter. Clara discusses this time even though very young, the experience it had on her and how it shaped her ambition towards her professional life. Clara also enlightens Tony & Jamie on the intricate details of the influencing lifestyle, her current endeavours with involvement with a start-up (Girls Trade), Miss World Australia and two part-time jobs at Augustus Gelatery & Wyndham Partners Lawyers.
Links to Clara Instagram, email and Girls Trade website linked below. Instagram – Clara Momesso | email@example.com | Girls Trade Website
03 9111 2675 | Kofkin Bond & Co
It was a year of extremes, with shares hitting record highs and interest rates at historic lows. Yet, all in all, 2019 delivered far better returns than Australian investors dared hope for at the start of the year.
The total return from Australian shares (prices and dividend income) was 24 per cent in the year to December.i When you add in positive returns from bonds and a rebound in residential property, Australians with a diversified investment portfolio had plenty to smile about.
Humming along in the background, Australia entered a record-breaking 29th year of economic expansion although growth tapered off as global pressures mounted.
This week’s podcast goes on a bit of a history lesson. Tony enlightens listeners on the disruptions to industry and how they have revolutionised the world and the benefits to society it is shown. The topic also shifts towards the difference in pay compared to different workers within an organisation.
Investing your money is all about trying to grow your wealth over a while. ETFs are one way to do this over the long term and they can provide benefits like diversification, exposure to a range of companies in one investment and generally lower costs. Like all financial investments, ETFs come with a level of risk. We outline some benefits and risks for you to think about.
Foreign tax residents will no longer be able to access the main residence CGT exemption, unless a specific life event such as death, a terminal medical condition or divorce occurs.
There will be a vast number of Australian expats who get caught up in these changes simply because they were not aware and were operating under the belief that the existing six-year temporary absence rule was still in effect
Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019 has been passed by the Senate today and now awaits royal assent.
They will either have to decide to sell their property before the 30th of June 2020 to retain either a full or partial entitlement to the Main Residence Exemption or to retain the property until they return to Australia and elect to become a resident for tax purposes.