Got more than one super fund? Read this.

Do you find it hard to keep track of your super funds? If you’ve changed employers and chances are that if you’re an adult you’ve had more than one job so far, you may not even know which funds you have. So if anyone in your life — or yourself — has more than one superannuation fund, it’s time to consolidate. And it doesn’t have to be hard or scary.

Why consolidate super?

Remember that the more superannuation you have stocked up; the more holidays you can have in retirement; the earlier you can retire! So what are the benefits of having only one superannuation fund? With one fund you’ll save on fees, reduce your paperwork (always a plus!) and it’ll be easier to track your path to financial freedom.

Which fund should you choose?

Before you choose a fund: do your research. Don’t just choose the fund with the highest balance as you may have a smaller fund that is better suited to you. Other things to consider include whether your chosen fund allows employer contribution and insurance.

Which factors should you weight up?

We help clients rollover superannuation into one fund, so if you’re after personalised advice; please call us to arrange a consultation. In general, the questions you should ask to determine which super fund you’ll choose are:

  • What are the fees? Which fund offers the lowest fees?
  • How diverse are your investment options?
  • Are there other benefits? Which benefits will make a difference to your life?
  • What’s the performance like for the fund? How do they stack up?
  • What’s the insurance associated with the fund?
  • What kind of service will you get?

Are you avoiding it?

The fear of paperwork can put people off making changes. Even if these changes will ultimately be for your greater good. Consolidating can actually be quite easy. Which is another reason why some people procrastinate. We tend to avoid those things that aren’t urgent, even if it’s important.

While consolidating your super probably isn’t on your urgent to-do list, it is important. It will make a difference to your future. So don’t hesitate. We’re here to support you make an impactful decision and roll the funds into one beautiful account that will blossom.

Can I afford to have a financial planner?

Money: it’s a word that triggers all sorts of emotions and reactions. Whether you’re worrying about your financial future or unsure about where your money is currently going, one thing is for certain: financial peace of mind benefits every area of your life.

While many people crave financial peace of mind, it can be hard to break free of our ingrained habits, beliefs or fears around finance. Without a clear picture, or the right information, we cannot even see what is possible.

Now you may be wondering if you’re in a position to afford a financial planner. But the real question you need to ask is: can I afford NOT to have one?

Without a clear plan (and picture), you are probably not in the best position to make excellent decisions. But when you have a clear financial picture (and plan) you feel empowered, in control and best yet: you’re set up to actually reach your goals.

At Financial Aspects, we know that finance is a personal issue: that’s why we offer personal care, attention and clear strategies that get you great results.

Here are just a few of the ways we can help you financially (along with the flow of benefits to other areas of your life):

  • Budgeting for couples. (We help you get on the same page to reduce stress and improve your relationship.)
  • Super strategies. (Discover new possibilities for your future to feel calm in the present.)
  • Budgeting for change. (If you’ve had a change in employment or have been made redundant we can guide you through this transition.)
  • Investment advice. (Avoid making bad decisions with our quality wealth creation strategies.)
  • Personal Insurance. (Protect your money and assets in a way that makes financial sense.)
  • Retirement planning. (Set yourself up to relax into a new phase of life.)

The many benefits of hiring a financial planner far outweigh the cost. Because we are a small, family-run, financial planning business we offer fair fees that are affordable. And because we genuinely care about helping people manage their finances, we keep investment costs as low as possible.

If you’d like to gain a sense of calm and control over your finances, we’re here to help. Simply call 03 5227 7777 or email contact@financialaspects.com.au to arrange a consultation.

How a Budget Can Bring Back that Loving Feeling

There’s an old saying: “When money troubles come through the door, love goes out the window.” This rings true for many couples who, no matter what their financial picture, experience conflict over finance – particularly spending. People don’t have to be on the poverty line to experience financial conflict, as generally speaking, the more we earn the more we tend to spend. Which explains why couples may be at odds — not about how much is coming in – but by how much is going out (and on what).

In relationships, it’s easy to lose that loving feeling when you’re at odds about your spending priorities.

If you’re unhappy about your partner’s spending habits, before you call a couple’s therapist you might want to consider calling a financial planner.
As a Certified Financial Planner, I’m a neutral party and an observer. I can see how different spending priorities create real tensions in otherwise happy relationships. I also know how to solve these problems with the magic of….budgeting.

What is budgeting?

Quite simply, budgeting is the process of working out what’s appropriate to spend money on so that saving is possible. While many people resist creating a budget because it’s “boring”, I like to think of a budget as a relationship miracle worker. With a clear budget, one that both parties agree on and which accommodate your individual as well as shared values and goals, couples can eliminate the blame game. Without a budget, it’s easy to get caught up in judgment over each other’s spending.

The beauty of a budget: understanding.

With the help of a Certified Financial Planner, you actually get the chance to articulate what really matters to each of you individually and to set some joint goals. For example, a husband may judge a wife for her passion for fashion, or a wife may resent her husband’s lavish lunch and latte habit while she’s taking a packed lunch to work each day. With space to see where money is currently being spent, couples can be supported to work out exactly where they want their money to go, without sacrificing all the things that make life enjoyable.

Get on the same page:

Since money is an emotive issue, it’s easy for couples to either avoid the topic, resent each other’s spending or openly argue: this isn’t good for anyone.

A financial planner, as a neutral third party, can help couples out of this tug of war to get on the same page. Budgeting isn’t boring; it could bring back that loving feeling. And it definitely minimise relationship tensions and stress.

4 Client Stories That You Could Relate To

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Client Stories

1. A client who was recently made redundant from Alcoa came to see me with a sizable redundancy package. Although he had no concerns specifically about whether he had enough money to live on, he was more concerned about how much tax he had to pay, how he was going to receive income now that he was no longer employed and what was the best way to structure his situation. We put strategies in place to save his beneficiaries nearly $90,000 upon his death and ensured that his funds were invested appropriately to provide him income for the long term, tax free.

2. I saw a couple recently who thought they were in need of a little tweaking to their financial situation to help them achieve their longer-term goals. To help these clients, I was able to find superannuation funds that resulted in savings of over $2,700 each year just on administration and investment fees. This will amount to a huge difference in their account balance up to their retirement. This is only part of the situation though. I was also able to review their various insurance policies, and help them to purchase policies with extra benefits over and above those they currently had, almost double their sums insured, and all that at a lesser cost than their current inferior solution gave them.

Next up for this couple is to implement a sensible budget, although I’m not allowed to call it a budget for them – I have to call it a spending plan ☺ This will ensure that they can make contributions to their super funds that will help to give their retirement savings a huge boost over the years leading up to their retirement. So all up this couple will have better insurances to ensure their wealth isn’t eroded by health issues or an untimely death, cheaper superannuation that will ensure their super is working harder for them, and not the provider, and a budgeting system that will allow them to enjoy their lifestyle whilst increasing their investments which will ultimately lead to a more comfortable retirement.

3. Another couple I saw were in the early stages of a somewhat forced retirement after a redundancy. The advice I gave will result in an extra $35,000 of Age Pension entitlements being payable to the couple once the older of the two reaches 65. This $35,000, which will be funded by the Government through Centrelink is an amount that they themselves do not have to self-fund. This means that their accumulated retirement savings will be able to last longer into their retired years.

4. Another strategy recently put in place for a client was to help alleviate a looming capital gains tax bill. The strategy for this client helped to offset tax of around $25,000, and in anyone’s language $25,000 in your pocket is better than $25,000 in the ATO’s pocket right?

Top 5 Financial Management Tips

financial statements and calculator

1. The first tip is not really about financial planning at all, but life in general – if you’re not an expert in a particular area, employ someone who is. I take my kids to the doctor if they’re sick, I call an electrician if my light switches are sparking, and I go to an accountant to get my tax done. Don’t dabble here and there, ask a professional’s opinion on how and where to invest for your particular goals.

2. Don’t wait for time to slip by – plan your future goals early to avoid long-term consequences.

3. Devise a budget and try to stick to it – I know budget is a dirty word to most people, but how easy is it to spend too much? Budgets don’t have to be restrictive, just sensible, and they can make a huge difference to your financial well-being.

4. Insure your wealth adequately, and don’t just accept that the cheapest product is your best option. Unfortunately, you get what you pay for in insurance products and quite often the people who think they can claim but can’t are those that took the cheapest cover. I hate paying my insurance premiums too, but I wouldn’t be without it for a second.

5. Pay off your credit card every month without fail. They have hideously high interest rates and can quickly get out of control. If you find yourself losing the handle on your cards, maybe it’s time to say goodbye to them.

Here’s a budgeting calculator to help you get started.

5 Most Popular Mistakes People Make With Their Finances

financial mistakes

1. Waiting until they retire before getting advice. Some simple strategies employed well in advance of retirement can make enormous differences to the wealth available to you at retirement.

2. Not sticking to some sort of budget – it doesn’t have to be some elaborate spreadsheet, it doesn’t even have to be restrictive. It just needs to ensure you don’t spend more than you earn, or more than you desire in order to achieve your other savings goals.

3. Credit cards -where would we be without them? Probably a lot better off financially! If you aren’t paying off your credit card every month, then maybe it’s time you switched to a debit card. Unfortunately, credit cards can lead to a spiralling debt problem really easily, and really quickly. Don’t leave that decision to change too late.

4. Taking out inadequate or cheap and nasty insurance policies, or maybe even policies that they’ve bought over the phone by a company they have finance with. Usually they’re expensive and are practically worthless. Insurance is a complex area and you need someone who is working for you to get the best product for your circumstances, not someone who is working for the insurance company.

5. Coasting through life with a “she’ll be right” attitude. Unfortunately sometimes we have to be proactive to get what we want or need. Obtaining financial advice early will help you set things in motion so your “she’ll be right” attitude is justified.

Start saving for your future today – this calculator will help.