Archive for the ‘Regional Endeavours’ Category

New year, new start

Monday, March 13th, 2017

how to make New Year’s resolutions that stick

How many of last year’s New Year’s resolutions did you keep? If you can’t even remember them all a year later, let alone whether you stuck to them, you’re not alone. One survey found that 58% of Aussies break their resolutions within the year. And 15% of those do so because they forgot what they promised they’d do in the first place.i

That doesn’t mean that you can’t set and achieve things you actually want. You just have to be smart about the way you do it.

Turn visions in to goals

When someone asks you to picture your ideal lifestyle, what you see in your head is actually a collection of dozens of different goals. It’s important to break it down and articulate those goals if you want your vision to become a reality.

This is easier than it sounds. Just say you want to ‘enjoy life more’. To make a start on this, you could write down a list of social activities and hobbies you love doing or would really like to try. Then turn each one in to a task that fits with your schedule and can be planned ahead of time, like ‘Make a date with a friend twice a week’ or ‘Book in for an evening class every month’. If your schedule is jam packed, set corresponding time management goals like ‘Leave work on time at least 3 out of 5 days’.

Tell people

Think of your friends and family as your cheerleaders and supporters in reaching your goals. If you tell them what you’re aiming for and why, they’ll be better able to help you. They might even be able to join you on your way. For example, if you decide you want to lose weight and get fitter, ask around for a gym buddy or someone to join you on walks. Or if you’re ready to make a change in your career, start putting the word out amongst your network, that you’re open to new opportunities.

Give yourself (the right amount of) time

Yearly goals, especially ongoing ones, can be hard to keep track of. Try to work out a reasonable time frame for your goal. Some small things might be quicker, and feel less significant – but you can always build on your results. And some things just take time. For example, you’re unlikely to save up for a new car or lose 20 kilos in a month. But you might lose two kilos, or save X-percent of the amount you need. Consultant Todd Herman reckons the ideal time frame for the brain to plan around is 90 days, and that it’s better to do a series of goals ‘sprints’ rather than one long marathon.

Keep track of your progress

If you’re the kind of person who uses to-do lists – on paper, in an app, or in project management software – you’ll know how satisfying it is to tick something off. If you’re not in the habit of keeping lists, now is the time to start. Your list shouldn’t just be one point – your resolution with a check box next to it. Break it down in to smaller milestones. Say you’ve resolved to improve your diet – set yourself little achievements like ‘went a whole week without eating favourite junk food’. To make it fun, try a smart phone game like Habitica.ii

Don’t wait ‘til December 31st

It might be a New Year tradition, but you don’t have to wait for one particular time of year to set goals and resolve to change your life. With the right attitude and a bit of planning, you can start working your way towards a goal any time.

Speaking of this, we’re here to help you set and achieve your money-related goals. Don’t wait for an annual appointment to chat; drop us a line any time, we’d love to hear from you!

i. finder.com.au, Be a geek and live in Tasmania: How to win at New Year’s resolutions

ii. Habitica

General Advice Warning This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Michael J Berinson Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances. Although we consider the sources for this material reliable, no warranty is given and no liability is accepted for any statement or opinion or for any error or omission.

Getting By If Your Income Stops

Monday, January 9th, 2017

getting-by-if-your-income-stops

Ask yourself this. Would you still be able to pay for your everyday living expenses if you weren’t able to work? A serious injury or illness could put you out of work for months. If you don’t have any other way of earning an income, this could put you and your family under a lot of financial stress.

Your salary may stop but the bills won’t

Without a salary, you may not be able to stay on top of everyday living expenses like mortgage or rental payments, groceries, electricity and petrol.

Not having enough money to pay your bills places an enormous amount of stress on you and your family. Without any other way of earning an income, you may need to fall back on government benefits through Centrelink. While this may provide just enough to get you by, your financial situation will be very strained. And financial pressures are the last thing you need, when you’re trying to recover from an injury or illness.

Protect your income

You can avoid the risk of not having enough money to live on, by having income insurance, also known as income protection. This insurance, replaces your income for a certain period, if you can’t work due to temporary disability or illness.

You may be able to receive up to 75% of your taxable income, plus the 9% superannuation guarantee. This benefit will continue to be paid, until your benefit period expires, or you are able to return to work.

Tax benefits

Income protection insurance premiums are usually 100% tax deductible. This means that if your marginal tax rate is 30%, your overall income will reduce by $31.50, for every $100 that you pay in premium.

For peace of mind, why not book a time to come in and have an obligation free discussion with Michael. This will cost you nothing to start with, as your first meeting with us is absolutely free. 

Protecting Your Family Through Your Super

Monday, January 9th, 2017

protecting-your-family-through-your-super_1

If you are looking for a way to protect your family without breaking the budget, life insurance through super could be a good place to start.

When you’re already inundated with bills and expenses, taking out life insurance might seem like an unnecessary luxury. But there is a way you may be able to give your family vital protection, without dipping into the household budget, and that’s by taking advantage of insurance through superannuation.

If you’re an employee, you probably have some automatic death and total and permanent disability (TPD) cover in your superannuation already.

The benefit of this arrangement, is that it allows you to use your pre-tax income (e.g. your employer’s Superannuation Guarantee contributions) to pay your premiums. It’s also easy, as your insurance premiums can just be deducted from your super, rather than having to come out of your household budget.

The problem with having this automatic protection is that it can lull people into a false sense of security. The insurance that is provided by employers, is generally a minimum level of cover based on your age and/or income. It doesn’t take into account things like your debts levels and dependents – which are two of the main reasons this cover is required.

Do you need to increase your level of cover?

If you have a mortgage and/or dependent children, you may need to increase your level of death and TPD cover in super to clear your debts ,and provide an adequate level of ongoing income for your family.

There are also types of insurance that generally are not available in super, or may not be provided automatically, so relying solely on cover inside super could mean you’re missing out on the important protection those policies provide.

Trauma insurance is one type of cover not generally available inside super. It is designed to pay you a benefit, if you are diagnosed with a serious illness like cancer – with the money often used to pay out-of-pocket medical expenses, and possibly help a spouse take time off work to provide care.

Income protection is another common example. This is a type of policy that typically replaces up to 75% of your income if you can’t work due to sickness or injury. And while some employers offer income protection (or ‘group salary continuance’ insurance) to their employees in super, it often isn’t provided automatically.

Know where you stand

With something as important as your family’s lifestyle at stake, you need to be aware of exactly what you are covered for – taking into account any life insurance policies you already hold inside or outside super.

Most importantly, you need to think about how your insurance would be used if you became seriously ill, or were unable to provide for your family. That includes ensuring your benefit can be passed on to your family in the most tax-effective way.

To find out if you could be using your super to protect your family more cost-effectively, speak to us. It’s easy, as your first meeting with Michael is absolutely free.

Give yourself more flexibility in the lead up to retirement

Thursday, November 10th, 2016

take-control-your-retirement

Nowadays, we’re living for years longer than ever before. 60 is no longer old age! So it makes sense that you want the flexibility to approach retirement in a way that suits you. A transition to retirement strategy enables you to access part of your super while you are still working and has a number of benefits.

Boost your super and supplement your income

There are two main benefits of a transition to retirement strategy:

Maximising your super – You can continue to work while drawing an income from an account-based pension. By doing this you can salary sacrifice as much of your pre-tax salary to super as possible while receiving an income from your pension. This allows you to increase your retirement savings without reducing your income. This can also be extremely tax-effective because pension payments are generally taxed at a lower rate than your salary.

Supplementing your income – If you want to move into part-time work before you retire but don’t want your income to drop you can use your pension to supplement your salary.

Ease yourself into retirement

You can choose different transition to retirement strategies depending on what is most important to you. If you believe you have enough retirement savings you could still benefit from a transition to retirement strategy. For example, if you wanted to renovate your home before retirement you could keep working full-time and use the extra income from your transition to retirement pension to pay for the work. That way you get your home improvements done before retirement without taking on any debt.

Are you eligible?

You can take advantage of a transition to retirement strategy if you meet the following conditions:

You are aged between 56 and 65 years of age
You are still working
You transfer some, or all, of your super account to a transition to retirement pension

Important considerations for high income earners

It you earn a high income it’s important to consider the concessional contributions cap before deciding to salary sacrifice as part of a transition to retirement strategy. If you exceed the concessional contributions cap, which is currently $35,000 for the 2015-2016 financial year, you may be taxed an extra 31.5% tax on any contributions above the cap.

Set it up right from the start

Transition to retirement strategies can provide significant tax savings and benefits, but they can be complicated. For this reason we strongly recommend that you talk to us in the lead up to retirement, so that the strategy you put in place is right for your personal situation. Come in and have a free, no obligation initial chat, and then take it from there. 

Protecting Your Family Through Your Super

Wednesday, November 2nd, 2016

shutterstock_96964106

When you’re already inundated with bills and expenses, taking out life insurance might seem like an unnecessary luxury. But there is a way you may be able to give your family vital protection without dipping into the household budget, and that’s by taking advantage of insurance through superannuation.

If you’re an employee, you probably have some automatic death and total and permanent disability (TPD) cover in your superannuation already.

The benefit of this arrangement is that it allows you to use your pre-tax income (e.g. your employer’s Superannuation Guarantee contributions) to pay your premiums. It’s also easy, as your insurance premiums can just be deducted from your super, rather than having to come out of your household budget.

The problem with having this automatic protection is that it can lull people into a false sense of security. The insurance that is provided by employers is generally a minimum level of cover based on your age and/or income. It doesn’t take into account things like your debts levels and dependents – which are two of the main reasons this cover is required.

Do you need to increase your level of cover?

If you have a mortgage and/or dependent children, you may need to increase your level of death and TPD cover in super to clear your debts and provide an adequate level of ongoing income for your family.

There are also types of insurance that generally are not available in super, or may not be provided automatically, so relying solely on cover inside super could mean you’re missing out on the important protection those policies provide.

Trauma insurance is one type of cover not generally available inside super. It is designed to pay you a benefit if you are diagnosed with a serious illness like cancer – with the money often used to pay out-of-pocket medical expenses and possibly help a spouse take time off work to provide care.

Income protection is another common example. This is a type of policy that typically replaces up to 75% of your income if you can’t work due to sickness or injury. And while some employers offer income protection (or ‘group salary continuance’ insurance) to their employees in super, it often isn’t provided automatically.

Know where you stand

With something as important as your family’s lifestyle at stake, you need to be aware of exactly what you are covered for – taking into account any life insurance policies you already hold inside or outside super.

Most importantly, you need to think about how your insurance would be used if you became seriously ill or were unable to provide for your family. That includes ensuring your benefit can be passed on to your family in the most tax-effective way.

To find out if you could be using your super to protect your family more cost-effectively, speak to us. We would love to have the opportunity to assist more people to achieve their financial goals, have peace of mind and still maintain the Lifestyle they enjoy along the way. Come in and have a cup of coffee with Michael and see how he can best assist you – no cost at all for your initial meeting.