Welcome to the July edition of Financial Insights and Updates.
With more than $15 billion drained from super accounts in the space of a few short months, the powers that be are beginning to suspect there might be an issue with the Early Release from Super scheme. The Australian Taxation Office (ATO) has revealed it will investigate Australians who dipped into their nest egg despite not being eligible. Our article this month “COVID-19 early release of super - integrity and compliance” will provide you with information and examples from the ATO website.
Another article to pay attention to would be “When an SMSF (Self-Managed Super Fund) may be the wrong idea” which goes through the risks of having an SMSF so you can make informed decisions about the suitability of an SMSF for your circumstances.
As usual we have also prepared other articles on a variety of topics which I hope you will find interesting and informative.
In signing off, please remember that we are always available to answer any questions or queries you may have.
Warm regards,
The Team at Savanna Pride
COVID -19 early release super – integrity and compliance
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Is your Will still relevant?
Many of our best laid plans rarely follow through exactly as we might have hoped. However, it’s another story when it comes to planning for what happens after we’ve left this planet. Our ideas about who will benefit from our estate could potentially change often during our lifetime... Read More
When an SMSF may be the wrong idea
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How might divorce affect insurance cover?
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Building your ‘Family Future Fund’
How much does it cost to raise a child? Obviously the answer is highly dependent on individual circumstances. However, as a guide, a 2013 national study1 found that a typical middle income family would spend about $812,000 on raising two children from birth to age 24. At that time child-raising costs were increasing at around 9% per annum, so it’s a reasonable estimate that these days the cost of getting two kids to the point where they’re ready to leave home (that’s not to say that they will) is closer to $1.48 million! And that’s a middle of the road figure... Read More
The growing popularity of neobanks in Australia
Neobanks are becoming increasingly popular in Australia as people look for different avenues to manage their money. The recent banking royal commission has also seen people look for solutions outside the big banks for financial products.
What is a neobank?
Neobanks are digital banks. They don't have any bricks and mortar branches, and you interact with the bank almost entirely on your smartphone through the neobank's app... Read More
Investing in overseas shares
Like the idea of owning your own small part of some of the world’s largest and fastest growing companies? Maybe you want to tap into the growth potential of emerging economies, or get in early on the next big thing in technology. To achieve these investment goals you’ll need to look beyond Australia’s shores to access a wide range of investment opportunities that are simply not available on the local market... Read More
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Welcome to the June edition of Financial Insights and Updates.
GDP figures from the Bureau of Statistics show Australia's economy shrank 0.3 per cent in the March quarter, amid bushfires and the early stages of the coronavirus pandemic. This makes it certain that Australia will suffer its first recession in 29 years, as the full impact of coronavirus-related shutdowns occurred during the current June quarter. Economists widely define a recession as two consecutive quarters of GDP contraction, which are now certain to occur with forecasts for the June quarter set to be worse than the March quarter.
It’s not all doom and gloom though as this recession is not a typical recession and Australia is likely to be able to re-start the economy a bit faster than we did in 1991. Our video this month “My take on life in Australia during a recession” from Dr Shane Oliver will provide his viewpoint on this matter.
Our lead article this month “5 tips to survive a decline in income” will hopefully be useful for you if your household has experienced a drop in income either due to decrease in work hours, drop in business revenue or loss of job.
As usual we have also prepared other articles on a variety of topics which I hope you will find interesting and informative.
In signing off, please remember that we are always available to answer any questions or queries you may have.
Warm regards,
The Team at Savanna Pride
Feature Video: My take on life in Australia during a recession
(Please click on the image below to watch the video)
5 tips to survive a decline in income
Since precautionary measures were heightened to slow the spread of COVID-19, almost 1 million Australians have lost their jobs. According to the Australian Bureau of Statistics, Australia lost 7.5% of its jobs between 14 March and 18 April. If you're one of the many Australians who has lost their job, it's understandable that you may be feeling stressed about managing your finances... Read More
The foundations of successful investing
Establishing an investment portfolio can be likened to building a home. The most destructive, yet unpredictable, weakness to the structure of a home is the weather. Even in these most technically advanced days, we are still unable to accurately predict the weather... Read More
A different way to help the grandkids
Many grandparents want to give their grandchildren a head start in life, and a common way to do so is to help by paying some (or all) of their school fees. This can, of course, simply be done by making a contribution at the time the fees are payable. However, it’s not unusual for grandparents to plan ahead by setting funds aside in a specific account. That is one option, but there might be a better one... Read More
Sequencing risk explained
With the recent falls in domestic and global investment markets we are now starting to hear reports about people who are experiencing large and unexpected declines in the value of the underlying investment portfolio of their retirement income funds because they were not constructed to withstand episodes of short or long-term below average market returns... Read More
DIY insurance – is it right for you?
Research shows that Australians are underinsured which has led to the proliferation of television advertisements promoting personal insurance cover. Are these quick and easy plans suitable for your family... Read More
Superannuation… it’s not a case of “set and forget”
The government regularly reminds us that each Australian must take responsibility for funding their future. Regardless of when you will be able to access your super, or when you choose to stop working, you need to be aware of how your superannuation is being managed and if the final balance will be sufficient when you’re ready to retire… and for the years beyond... Read More
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Financial Insights & Updates - May 2020
Welcome to May edition of Financial Insights and Updates.
With unemployment hitting 6.2 per cent (594,000 jobs lost in April), someone you know may have been made redundant. Our article this month “What to do if your job is made redundant” will be a useful read. If you have unfortunately been made redundant, please do get in touch with us so we can look at how to help you manage your finances in these challenging times.
With June approaching, many are potentially looking at final things to do before the end of the financial year. The article “Hands up – who wants to save tax” will provide a tip to investors and business owners.
As usual we have also prepared other articles on a variety of topics which I hope you will find interesting and informative.
In signing off, please remember that we are always available to answer any questions or queries you may have.
Warm regards,
The Team at Savanna Pride
What to do if your job is made redundant
Being retrenched from your job can be hard to accept. It is the sudden shock that catches most people unaware but try not to take it personally. Redundancy is usually not about your personal performance; it’s the performance of your employer’s business, the industry sector in which you work, or even the global economy... Read More
Your health and wealth during the COVID-19 pandemic
There isn't a single person in the world who hasn't been impacted by COVID-19. As new case numbers start to slow in Australia, so too is our economy. This time presents new challenges as everyone gets used to a "new normal" and figures out the best way to weather the coming months. This article provides an overview... Read More
The long-term cost of taking $20,000 out of your super fund
If you have lost your job or are running out of money then accessing your super early may be tempting, but it’s important to understand the potential risks before you take that step. Here are three reasons you may want to think twice... Read More
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How to create savings while paying off debt
Over the past 30 years, Australians' household debt has increased. According to the Reserve Bank of Australia, our household debt-to-income ratio has risen from 70 percent in the early 1990s to around 190 percent today. With numbers like this, it's understandable that you might feel like you'll never get out of debt. Changing your thinking around your finances, however, and learning how to make sure your money is working for you will reap great rewards. Below, we've outlined a few ways you can create savings while paying off debt... Read More
Reviewing your insurance as you get older
So, you are seriously starting to think about your retirement. The kids are finally more independent, the mortgage is less than it was, and the super is more than it was.
You look at your monthly bank statements... Read More
Beat the scammers at their own game
We’ve all seen media reports about ordinary Australians losing their entire savings after responding to a phone, email or mail offer that was impossible to resist. While some people may be naïve, scammers are also getting smarter... Read More
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Welcome to the April edition of Financial Insights and Updates.
In the current all-time low interest rates environment, many people might be using this to review their home loans. Before you speak with your bank or mortgage broker, watch our video “Choosing a Home Loan” and read our article “Switching Home Loans” to get some basic information first.
Another interesting article this month is “Financial Basics Foundation – financial literacy for our children”, which talks about how secondary schools can access free teaching resources for our kids. It also provides a link to the foundation’s website for anyone to access the modules. This could be a good course for parents to go through with their children at home during this period of studying from home.
In signing off, Anzac Day 2020 will be unlike any other. For the first time in a century the streets will be empty; there will be no suburban dawn services, mid-morning marches or afternoon two-up matches.
Instead Australians are asked to unite and recognise past and current armed services personnel by standing in their driveways or living rooms at 6:00am for a dawn service with a difference. The RSL has also encouraged people to take part in a Community Ode by recording a video of themselves reciting The Ode and posting it to social media in the lead-up to ANZAC Day.
Please remember that we are always available to answer any questions or queries you may have.
Warm regards,
The Team at Savanna Pride
Feature Video: Choosing a Home Loan
(Please click on the image below to watch the video)
Switching home loans
Work out if you'll save money by switching to another mortgage
Refinancing your home loan to take advantage of a lower interest rate might save you money. Before you switch, make sure the benefits outweigh the costs... Read More
Financial Basics Foundation - financial literacy for our children
Financial literacy is a fundamental life tool. Teaching our kids about financial management from a young age should be a high priority as this is now recognised as an important stepping stone to financial success... Read More
Reducing the most important risk to business
Owners of very small businesses, also known as micro businesses, frequently fail to allow for the risks they face. The main reason most business owners would give for this oversight is they are just too busy working in the business to focus on what “might” happen... Read More
Salary sacrifice vs personal contributions to super
If you are an employee, there are two ways in which you can optimise the tax-effectiveness of your additional super contributions:
- Opt for a salary sacrifice arrangement or... Read More
Downsizing in retirement
Decide whether downsizing your home is right for you.
If you're thinking about selling your home and downsizing, consider the pros and cons. Check if selling your home affects your government benefits.. Read More
How the family home can affect aged care fees
Residential aged care is playing an increasing role in helping many older Australians enjoy comfortable and carefree lives. However, one of the tasks for anyone assisting an elderly relative with the move into aged care is to investigate the various fees and charges, some of which are subject to both assets and income means tests. As the family home is often the largest asset and can be a source of income if rented out, it’s particularly important to understand how it is treated in relation to these tests... Read More
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Financial Insights & Updates - March 2020
Welcome to the March edition of Financial Insights and Updates. 
Budgets are essential for tracking your financial health but mention the word 'budget' and most people would moan.
With the right tools and guidance however, creating and maintaining a budget can be easy and stress-free. Our video this month “Quick ways to start a budget” along with the article “How to do a budget” can help get you started. Remember that you can always give us a call if needed as we can work through your budget with you or provide you with budgeting tools.
As usual we have also prepared other articles on a variety of topics which I hope you will find interesting and informative.
In signing off, please remember that we are always available to answer any questions or queries you may have.
Warm regards,
The Team at Savanna Pride
Feature Video: Quick ways to start a budget
(Please click on the image below to watch the video)
How to do a budget
Easy steps to plan and manage how you spend your money
Having a budget helps you to feel in control of your money. You can put aside money for big bills when they arrive, and plan savings to achieve your money goals.
You don’t need an accountant or special software to set up your own budget. Start by looking at where you are right now and where you want to be... Read More
What would happen if you couldn't work?
If you were paid the average annual wage of $86,7411, you could potentially earn over $10,450,000 over a 40-year working life2. You would use this money for daily living, for holidays, to accumulate assets like a house and car and to save for your retirement. Being injured or taken ill, for only a short period, could severely affect or even cancel some of these plans... Read More
What is a Child Maintenance Trust?
When relationships break down, child maintenance payments are often made from post-tax money. If this is a position you are facing, perhaps you might be interested in learning about a Child Maintenance Trust... Read More
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3 things you may have forgotten to plan for in retirement
Retirement can be an exciting phase in your life. But all the recent changes to superannuation bring with them lifestyle and financial issues you need to be aware of as you plan your retirement... Read More
Wealth planning across the ages
For previous generations of Australians, retirement usually meant ceasing work and hoping to live long enough to qualify for the age pension. Apart from the family home and personal belongings there were usually no substantial assets to leave behind for children or other family members. Superannuation has changed all of that... Read More
Welcome to the January edition of Financial Insights and Updates.
Our first newsletter for 2020 contains a number of interesting and informative articles starting with an article about four financial resolutions to kick start the new year. The article "Is paying off your mortgage quicker really the best option" will give you plenty of food for thought amidst current low interest rates. We are also sharing an excellent article about five ways to benefit from the current record low interest rates.
If choosing to invest instead of paying off your mortgage, the quiz "How much do you know about investing?" can help strengthen your understanding of investing basics. Prior to actual purchase of investments, reading the article "Placing your family wealth in trust" can help determine how the investments should be held.
For those who are nearing retirement or are newly retired, you should consider reading our article "Retire at 65 but don't retire your money" to see why you should continue making your money work hard in order to address longevity risks.
Our final article this month talks about insurance cover for natural disasters. Seeing the bush fires that have blazed across the country, we felt it was a good reminder for everyone to review their understanding of storm, fire and flood insurances and adjust their cover as necessary.
We are pleased to report that a number of our clients have forwarded one or more of our articles to friends and family because what the article discussed contained information that was helpful in dealing with or understanding a range of financial issues and concerns, so please feel free to do the same.
In signing off, please remember that we are always available to answer any questions or queries you may have about what you have read.
Warm regards,
The Team at Savanna Pride
Four financial resolutions to kick start the new year
The dawn of a new year sees many people setting new year's resolutions such as losing some weight or giving up smoking.
Similarly, the beginning of a new year is the ideal time for setting financial goals... Read More
Is paying your mortgage off quicker really the best option?
Not so long ago one of the most effective, low risk wealth creation strategies was to use spare savings to pay down a mortgage, either directly or via the well-disciplined use of an offset account. If your mortgage interest was 8% per annum, that's the effective, after tax investment return this strategy this delivered, substantially reducing the term of the loan and delivery big savings on interest... Read More
5 ways to benefit from record low interest rates
Interest rates have never been lower, and it's possible they might fall even further. This creates opportunities for householders and businesses, so how can you best take advantage of low interest rates? Read More
How much do you know about investing?
Investing is normally a topic that conjures up images of pinstriped executives and sophisticated financial markets.
But in reality, the act of investing is... Read More
Placing your family wealth in trust
The basic function of a trust is to separate control and ownership. The result of using a trust is that assets are protected, and profits are distributed in the most tax-effective way. There is no 'one-size-fits-all' type of trust The trust you use depends on... Read More
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Retire at 65 but don't retire your money Australian retirees are facing a 'double-whammy' when it comes to funding their retirement. On the one hand we, as a nation, are enjoying longer and healthier lives. On the other hand, record low interest rates have slashed the returns on the traditional bedrocks of post-retirement investment portfolios such as term deposits, cash management accounts and annuities... Read More
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Welcome to the November edition of Financial Insights and Updates
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No one enters into a marriage expecting it to fail but when it happens, it has a shattering effect on all areas of a person's life, including their financial stability. Our video this month "Divorce and separation financial checklist" will provide you with a quick insight to the checklist that is available on the ASIC website that can help a person get through a divorce while keeping their finances in the best possible shape. Our article "Going solo in retirement"then explores the pros and cons, for a person facing retirement alone, for their lifestyle and finances. This is done based on Dianne Kemp’s situation, a 65-year-old retiree.
As usual we have also prepared other articles on a variety of topics which I hope you will find interesting and informative.
In signing off, please remember that we are always available to answer any questions or queries you may have.
Warm regards,
The Team at Savanna Pride
Feature Video: Divorce and separation financial checklist
(Please click on the image below to watch the video)
Going solo in retirement
With divorce rates rising among couples aged 55+, more people could find themselves going it alone in retirement. We explore the pros and cons for your lifestyle and finances and speak to Dianne Kemp about her experience of planning for retirement after divorce... Read More
Financial tips for single parents
Making ends meet can be difficult enough for two-parent families, but for single-parent families it can be even harder. With a few small steps you can be on the path to financial security.
For many single-parent families, the struggle-cycle is... Read More
Wealth protection through the ages
Insurance plays an important role in any wealth creation and management strategy. There is little point in accumulating wealth if you don’t protect it, or yourself, from unforeseen risks that can undermine the best made plans. Just as your wealth creation strategy needs to be... Read More
Lending money to friends or family - should you do it?
What would you do if a family member asked to borrow money – besides the less painful option of beating yourself over the head with a fence paling? You want to help, but you’re right to be wary.
It’s a difficult subject... Read More
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