Identifying Your Goals and Simplifying Your Finances at Each Stage of Life

Identifying Your Goals and Simplifying Your Finances at Each Stage of Life

People often turn to a Financial Planner to simplify their finances and set achievable financial goals, providing greater confidence to plan for their future.

At PrimeWealth, our Senior Advisors can help you with areas such as Cash Flow Management, Savings Plan, Asset Protection, Superannuation, Tax Optimisation, Home Loan Repayments, Debt Management and Reduction, Insurance, Investments, and Retirement Planning.

Understandably, your financial goals will change over your lifespan. It would be best if you had a financial plan to suit the stage of life you are in. Here are some of the common needs of each life stage:

  • Young to Mid-Life
  • Mid-Life
  • Pre-Retirement
  • Retirement

1. Young to Mid-Life

In this life stage people are often motivated in establishing and building their careers and perhaps starting a family. You may be interested in:

  • Buying your first home
  • Travelling
  • Paying off your HECS
  • Getting Married
  • Family Planning
  • Organising Family Healthcare
  • Starting a Business

2. Mid-Life

This is known as the Consolidation Stage, achieving a comfortable lifestyle and working towards a long term future are usually the key priorities. You are likely to focus on:

  • Healthcare
  • Investments
  • Financing Home Renovations
  • Tax Optimisation
  • Debt Management
  • Inheritance
  • Retirement Planning
  • Long Term Care Planning
  • Income Protection

3. Pre-Retirement

With 20 or more years of retirement ahead of you, your priorities will depend on how well you have planned for your future. Your main concerns may be:

  • Asset Protection
  • Debt Elimination
  • Family Healthcare
  • Planning For Your Children’s Future
  • Retirement Planning
  • Wills and Trusts
  • Business Exit Strategy

4. Retirement

This is the time to indulge in hobbies or travel, enjoy your family, and make preparations to transfer your wealth. You may be thinking of:

  • Asset Protection
  • Healthcare
  • Aged Care Planning
  • Travelling
  • Buying a Boat
  • Inheritance Tax Mitigation
  • Preserving Your Capital
  • Gifting To Family
  • Estate Planning

At PrimeWealth, we are passionate about understanding where you are on your journey, being clear on your goals, partnering with you to create the right strategy, and keeping you on track with regular catchups along the way.

 

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Why people who set goals do better financially?

Why people who set goals do better financially?

As we move into the new financial year it is the perfect time to evaluate how you are tracking against the goals you set at the beginning of the year.

What were you saving for?

  • A holiday like 53% of Australians
  • Building your rainy day fund with 46% of Australians
  • Or with 40% of Australians saving to buy or renovate a home

How have you tracked with this goal? Are you any closer to having the financial structures and plans in place to achieve what you want in life? Or are you struggling?

You are not alone…

  • 41% of people incur unexpected expenses or change in financial circumstances
  • 27% experience a lack of willpower
  • 17% set an unachievable goal

So, what’s the trick?

It’s as simple as understanding the importance of goal setting. Without a goal, there’s nothing to work towards. Like a game of darts without a dartboard, where do you aim? The real question is where do you want to go, what’s your ‘why’?

By having a goal, research tells us you reap further benefits such as; increased performance, happiness, focus, energy, strength and success.

Long term goals allow you to understand your big picture, helps you to set small goals in order to reach that big goal. Short term goals set you up for success achieving regular wins and keeping you motivated giving you the ability to quickly know if you are on track or not.

So, set a goal, make your dartboard and let’s hit the bull’s eye!

If you don’t have any goals or are struggling to achieve the ones you previously set, let’s talk. At PrimeAdvisory our ‘why’ is to keep you on track!

References: ASIC MoneySmart

Source: https://www.moneysmart.gov.au/managing-your-money/saving/how-australians-save-money

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Tips for getting on track with your financial goals

Tips for getting on track with your financial goals

The end of the financial year is the cue for most of us to look at our financial position heading into tax time. Hopefully you’ve made progress towards your goals. But if you find that your expenses are trending higher than you’d like or—shock, horror!—higher than your income, this could be the perfect time for a fiscal makeover.

The starting point is gathering up as much information as possible, beginning with the household budget.

Take a budget snapshot

You can’t set realistic financial goals and savings targets without knowing how much money you have at your disposal. If you don’t already track your income and spending, then take an annual snapshot as you go through your records to prepare your annual tax return.

Deduct your total spending from total income and what’s left is what you have to work with. Any surplus could be used to kick start a regular savings plan. If you discover a budget black hole, identify areas where you are overspending and could cut back.

Pay yourself first

Did you manage to save anything this year or are you are constantly counting on this month’s income to pay last month’s bills? Do you spend first and hope to save what’s left?

Instead of making saving an afterthought, pay yourself first and allocate a percentage of your income to a regular savings plan. Setting up a weekly or monthly direct debit will remove temptation and encourage you to live within your means.

Review your mortgage

If you have a mortgage this is likely to be your biggest monthly expense so it’s a good idea to check your progress at least once a year. Why not use some of the savings you’ve identified and increase your repayments to save interest? If your mortgage has a redraw facility you could use this to create a cash buffer for emergencies. These are the type of strategies that PrimeWealth can help you with.

While you’re at it, go online and compare interest rates. If your rate is no longer competitive consider switching loans and enlist our help to negotiate a better deal.

Negotiate better deals

Your home loan is not the only expense worth haggling over. These days if you want to get the best deal on your electricity, phone, internet or insurance you need to ask. Before you do, ensure you understand what your current plan/policy covers and research what’s on offer elsewhere.

Make a practice of doing this once a year, when your plan or policy is due for renewal. The savings can be substantial and can be put to much better use reducing debt or growing your wealth.

Check your super

Do you know how much you have in super and how it’s invested? When you retire superannuation is likely to be your biggest asset outside the family home, yet almost one in four Australians don’t know which risk profile their super is invested in.* This can cost you thousands of dollars in retirement savings and takes only minutes to correct.

Instead, why not call your PrimeWealth Advisor and ask for your current balance and where it’s invested. As an example, a 25-year-old woman on $80,000 in a conservative option until she’s 70 could improve her retirement balance by $294,000 if she switched to a risk profile more in keeping with her age and circumstances. *

Protect your wealth

Reaching your life and financial goals is not just about growing your wealth but protecting it.

It’s important to review your insurance policies annually—or as your circumstances change—to make sure you and your family have adequate cover. Insurance can be a significant cost for families, but the income it provides when accidents or illness strike is worth every cent.

So why not go beyond the usual search for last-minute tax deductions this June to do a thorough review of your current position. Contact us if you would like us to help you make the most of the year ahead, give us a call.

*source: MLC Wealth Sentiment Survey, 5 April 2018

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Key Considerations For Grandparents Funding Private School Fees

Key Considerations For Grandparents Funding Private School Fees

As we roll into a new school year, it’s not uncommon for grandparents to contribute to their grandchildren’s private school education.

If you are supporting your family by helping fund a grandchild’s private education, before the first term’s school fees are due it’s important to receive professional advice on the best way to contribute towards private school fees. At PrimeWealth your advisor can offer specific guidance based on your unique circumstances, however here’s a quick checklist of the key considerations:

Do the maths

Make sure that you have accounted for all your living expenses allowing you to live comfortably without the need to draw on any retirement savings in a way that is unsustainable.

Plan ahead

This will avoid selling investments at a time that may not be optimal, it’s important to ensure that ample funds are accessible when you need them, including a buffer.

Understand the impact on Asset testing

If you are maintaining control of the funds set aside for fees, these will be considered as an asset by Centrelink and could impact any Age pension entitlements.

Understand the gifting rule

If you are transferring funds to one of your children or grandchildren, be aware that the Department of Human Services gifting rule currently allows for a gift up to $10,000 in one financial year and a maximum of $30,000 over five financial years without your pension entitlements being affected.

Taxation

Get advice on the best structure for investing any funds set aside for school fees. “Education Savings” products can be internally taxed at a corporate tax rate which could be more than holding an investment directly.

Estate Planning

If you are no longer around to manage any funds for education purposes, ensure that you have considered this in your estate planning.

Control

Ensuring you maintain control of funds until they are required means you keep the funds in any circumstance that you may not have prepared for such as a child not attending private school or university.

 

Please contact PrimeWealth for further support and advice, taking into account your unique circumstances and financial goals.

 

 

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How to improve your life NOW for a brighter future: 15 tips

How to improve your life NOW for a brighter future: 15 tips

by Julie Tassone

Are you in your twenties and wondering how to improve your life now so that the future is brighter?

One of the characteristics of the Y-generation and people born this millennium is that they like to ponder the future. The trouble is, good, honest guidance about this future can be in short supply.

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