Getting organised

There are small things you can do today to deliver big benefits tomorrow. To get you thinking, we’ve put together some great ideas to motivate you, save you money and boost your super.

Why it pays to start saving now

When it comes to planning for long-term goals, like retirement, unfortunately many people put off doing something now. However, if you’re prepared to start investing early, time can be a powerful ally.

This is because year after year, the money you invest has the potential to earn more money. And if you re-invest earnings, you’ll have even more in the future. This is known as compounding and it’s what Albert Einstein called the eighth wonder of the world.

For example, if you invested $50,000 today, earned 7% per annum and re-invested your earnings, in 20 years you’d have around $200,000 (before tax). But, if you waited ten years before making the same investment, in 20 years from now, you’d only have around $100,000.

That’s an extra $100,000, or double the amount, simply by investing ten years earlier.

Superannuation is purpose-built for compounding, because by its very nature you’re unable to access your investment earnings until later in life. This means any earnings are automatically reinvested year after year.

To maximise the results, you may want to gradually increase your contributions now, to capture the compounding effect over time.

Your Wealth Matters can help you by taking you through other strategies where you can make a small change today, to result in a big difference down the track.

Reduce your super fees

How many different superannuation statements did you receive this year? If you ended up with several envelopes piling up at home you may be paying more than your fair share of fees, eating into your retirement savings.

If this sounds like you, you’re not alone. It’s estimated that one in two Australians aren’t making the most of their hard-earned retirement savings due to holding multiple super accounts.

According to a CHOICE research report¹, multiple super accounts are costing Australians $1 billion a year in wasted fees.

This is because depending on the type of fund your super is held in, you may be paying between $30 and $340 in fees per account¹.

Your Wealth Matters can help you consolidate your super accounts. We can also help you find your lost super.

To find out other simple tips to make the most of your money, please contact us.

Use super to save on insurance

If insurance is low on your shopping list, don’t worry you’re not the only one.

Many people give personal insurance a low priority because we don’t think we need it. However, strangely, we insure our cars or our homes without a second thought!

Well the good news is that personal insurance can be very tax effective.

Your Wealth Matters can make sure you can take care of your loved ones, and make sure that if something does happen to you, their future is secure.

What types of insurance are available through super?

Life and Total and Permanent Disability (TPD) insurance pays a lump sum and goes a long way to looking after those you’d leave behind if you died or were seriously injured. It works by paying out a lump sum in the event of your death or serious injury to help care for your loved ones or pay medical bills.

Income Protection insurance is designed to provide you with a monthly income protection benefit of up to 75% of your earnings in the event you are unable to work due to sickness or injury.
Tax-effective insurance

By having your insurance through your super fund, you’re likely to find your premiums cost less as tax concessions apply.

To find out other simple tips to make the most of your money, please contact Your Wealth Matters, Financial Planners in Mount Gambier on 08 87250607.

¹The Super Secret Report, CHOICE, November 2006.

We all have different ideas of what the second half of our lives looks like and that’s why planning for your retirement is so important.

Why is retirement planning important?

 We are living longer and for most of us compulsory superannuation payments or the Age Pension alone won’t be enough to help us achieve the retirement lifestyle we’re dreaming about.

Putting a long-term financial plan in place will provide you with the comfort of knowing that you can do all those things that you dreamed of and that your financial future is under control.

 How we can help

 Your Wealth Matters Financial Advisers can help you work out how much money you have now, how much you might have in the future and where it is coming from.

We will help you:

• Identify your retirement goals
• Review your income and cashflow requirements
• Identify what assets (house, savings, investments) you have and how much they are worth
• Assess how much super you have and when you can access it
• Find ways to grow your retirement income
• Put plans in place to make your money last in retirement
• Determine when you can apply for the age pension and whether you are likely to be eligible.
• Review your estate planning

How much money do I need to retire comfortably?

This is the magic question and how much money you need in your retirement nest egg will depend entirely on how you want to live in retirement.

According to the Association of Superannuation Funds of Australia’s Retirement Standard 2015, to have a ‘comfortable’ retirement, single people will need $545,000 in retirement savings, and couples will need $640,000.

The Standard is updated four times a year to take into consideration the rising price of items like food and utility bills, as well as changing lifestyle expectations and spending habits.

The Standard includes the cost of things such as health, communication, clothing, travel and household goods.

To see the latest Standard click here

Please contact one of our qualified Financial Advisers at Your Wealth Matters on 08 87250607 to discuss your retirement planning needs.

Protecting what’s important

Whether you’re a young single or managing a busy family, having the right insurance provides great peace of mind.

Whatever you’re trying to protect in life, there’s an insurance solution to match. And so whether you need to protect your income and lifestyle, family home, children’s future or livelihood to run your own business – Your Wealth Matters can help.

Life’s big moments and insurance

If you’re about to walk down the aisle or give birth, chances are insurance isn’t top of mind.

But big life changes can provide the right time to talk about protecting your future lifestyle.

You may already have insurance through your super or personal policies, but in most cases this isn’t going to be enough. What’s more, there may be smarter ways to protect you and your family now your life circumstances have changed.

What many don’t realise is that you are your biggest asset, and yet generally this is the most uninsured asset.

In addition to protecting your family from the impact of losing you with things like Life and TPD insurance, your income is a critical asset to protect. And yet many Australians insure their car or home before they protect their earning potential with Income Protection insurance.

And while no one likes to dwell on the negative, insurance could protect your family’s financial well being if something happened to you.

The best news is it doesn’t have to be difficult or impact your current lifestyle.

Simply contact Your Wealth Matters, or call 08 87250607 to find out how you can help take care of your family’s future.