The changing space of the public servant's "safe" superannuation funds

Most Government employees that I work with are employed by the State Government as teachers and nurses. These clients will often report to me that their Superannuation accounts are "incredibly safe" because it is Government superannuation. Unfortunately, this misnomer is no longer correct. Yes, if you have a Defined Benefit, then your superannuation is underwritten by the state, and in Queensland it is in strong position (check out the actuarial report here), but if you are in an Accumulation account, then you are in the same boat as the rest of us. Sure, you still get 12.5% in contributions, as opposed to the measly 9.5% the rest of us get, but that is your only advantage as you are in the same system as those working in private enterprise, and are subject to the same market movements and vagaries of trustee decisions.

Sorry...what? I am a nurse at the base hospital, and you're telling me that my super is no different? That it isn't safer? Yes, that is exactly what I am saying. You, as a Government employee, used to live with this security blanket that your superannuation would be as "safe as houses". The reality is that this no longer exists. That secure system has been dismantled because it was costing too much money, so from now on in, you had better pay attention, otherwise, you may find that your "safe house" was actually located in a town like Moranbah.

So, now that you know, what do you do? Well, option one, which I don't recommend, is that you can put your head in the sand, and keep parroting that "it is the best super out there", because Joan in accounts said so, and she has been with the Government for 40 years (and, by the way, probably has a Defined Benefit account), or, you can start to educate yourself on what you actually have.

In educating yourself, look for the the things that matter. The things that matter are, your risk profile, the asset allocation you are in, the investment choice that is available, diversity of investment managers, how the managers invest your money, the liquidity of the assets, the transparency of the fund, the ease of access to reporting, the insurance cover. What about the return, I hear you ask. Well, if you get these right, then the return will follow. It's when Lehmen Brothers 2 hits that you be thankful that you looked at your superannuation fund with more scrutiny than Joan suggested.

If you do all of this, and you're satisfied that you are still in a good spot, then happy days! If not, then please get yourself to a Financial Planner, and go over it with them. Still doubting? Well, I'll need to pull out the conspiracy theory that I've heard bandied around the employee campfire more than once, the Government never changes things unless there is an advantage to one thing...the Government.

Find Erin* at Achieveit Financial Planning, or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687

This is general information only and does not consider your personal circumstances. You should not act on any recommendation without obtaining professional advice specific to your circumstances. We recommend you speak to a financial adviser before acting on any of the information you read on this website.

How to eat an elephant, and live the life you want

How do you set goals so that you are living the life you want? It can seem overwhelming and difficult, so many people put it into the too hard basket. Four years ago, I separated from my husband and became a single Mum. Three years ago, I decided to take control of my life and consciously move towards my "ideal" life. Taking into account that there is always room for improvement, I am happy to say that I am 90% of the way there. How did I do it? It was surprisingly simple once I had made the decision that I wanted to be happy living my life.

Step 1: What does your ideal life look like?

Take a good hard look at your life. Now think about the life you want to live. I am not talking about the glitzy jets, and owning more Rolex than you have arms. I am talking about connecting with your friends, volunteering, pursuing that hobby, enjoying time with your special someone, building your career (or perhaps an Empire...notice the capital "E"?). If I told you that it would all be over tomorrow, what would your life's regret be?

For example, after separating and moving back into town, I was renting a cheap two bedroom unit, with no backyard and mold in the laundry. I had no friends, as I had lived out west on a farm for the last six years, and had gradually lost touch, or outgrown, what friends I did have. I was in a three day a week job that had no scope to improve my skills, and it didn't provide me with the work/life balance, or the satisfaction, that I craved. It was all in all a pretty dismal existence.

What I wanted was a life that would allow me time with my daughter, work satisfaction, and enough money to purchase somewhere for the two of us to live, save for my little one's schooling, and still being able to have ice-cream when we go to the park. I wanted friends that I could spend time with, with similar interests, who are good humans. Mentally, and physically, I wanted to be fit, and strong, so that my daughter has a good role model, and a healthy Mum.

Step 2: Identify the obstacles to being your ideal you

Now, grab a piece of paper, and a pen, and write down everything that you think could be holding you back. Is it your age? Is it your income? Is it time? Concentrate on why you don't do the things that you want to do, rather than why you are doing what you currently do.

My obstacles were a lack of income, social networks, and profile in town. Never one to sit around and feel miserable, I decided that things needed to change.

Step 3: Plan to change each obstacle, one at a time

The list becomes a blueprint for your goals list. Each thing that is holding back is something that needs to be changed. Too old too start again - change your perspective to "I'm running out of time to start again". Can you increase your skill level, reputation, or employment to earn more? Working smarter applies for those of us who need more time in our lives.

Put a time line on each obstacle so that you can track your progress. Acknowledge that they won't all be able to be changed at once. For example, you may want a career change, but you have a young family and so you can't afford the pay cut. Is it possible to study, and save, until the children are older and then switch careers with minimum fuss?

The first thing I did was increase my income by delivering pamphlets around town on my days off. This achieved two things; it meant I could save a deposit for my unit, and it also increased my fitness without me having to pay for a gym membership. Sure, it wasn't necessarily the funnest thing in the world, pushing a pram with a toddler around a hilly suburb, but it kicked two goals at once.

Secondly, I networked like a Queen Bee. This let me meet people, raise my profile, and eventually led to the friends I have now. I also revived old networks that I had before moving out to the Farm, and put a plan in place to up-skill by studying at night time. All of this led me to the position that I have now, which at four days a week, allows me the work/life balance that I need as a single Mum, remunerates me well enough that I could drop the pamphlet delivery, pay a mortgage, save for education costs, get a gym membership, and most importantly provides me with the job satisfaction that I crave.

By taking one realistic bite at a time, and putting a plan in place, you have something to aim for, and more importantly, you are always moving forward towards that ideal you.

Find Erin* at Achieveit Financial Planning, or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687

This is general information only and does not consider your personal circumstances. You should not act on any recommendation without obtaining professional advice specific to your circumstances. We recommend you speak to a financial adviser before acting on any of the information you read on this website.

Planning for the single ladies

Over the last couple of years, I have noticed an increased trend of single women who have never partnered and are nearing retirement, or who have no prospect of partnering and are in late accumulation phase. This may not have been a conscious decision on the ladies part, but rather a consequence of the changing times. With women more active in the workforce, and career satisfaction at stake, the goal of marriage and children seems to have taken a back seat to the long hours, and further education that many women now prioritise.

The single ladies who come to see me have two overriding goals, long term financial security, and maintenance of lifestyle. Remembering that these ladies are in perpetual SINK (Single Income, No Kids) phase, the problem that they face is how to have your cake and eat it too?

The first thing to determine is what is financial security to each individual client? Financial security for myself is to have a buffer in the bank, no lifestyle debt, a paid down mortgage, a healthy superannuation, and an investment account on the side. For another individual, it may be being able to pay the rent, the bills, and maintain cash flow. Identifying what financial security means helps establish goals for the client to strive for, while framing each individual goal in the context of the big picture.

Once each stepping stone goal is established towards financial security, it is important that there be a reward. This could be as simple as a dinner out with friends, or as encouraging as a card in the mail. Singles don't have a partner to celebrate the small milestones, so it is important to provide positive reinforcement, as well as that pat on the back.

In my experience, financial security cannot be seen to come at the cost of lifestyle, with this client demographic. It may be a challenge for planners as they need to be able to articulate how the goals work with lifestyle needs, and that they don't take away from the client's lifestyle wants. Going over needs vs. wants, and getting the client to own the process of prioritisation is key to the success of the strategy.

So, next time a single lady comes through the door, remember that they are not just looking for a strategy, they are looking for a sounding board and a lifestyle plan. Taking on a client in this cohort will mean that you may need to reassure them that they are making the right decisions, however, the advantage is that you won't need to help them negotiate with another person like you do with the marrieds.

Find Erin* at Achieveit Financial Planning, or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687

This is general information only and does not consider your personal circumstances. You should not act on any recommendation without obtaining professional advice specific to your circumstances. We recommend you speak to a financial adviser before acting on any of the information you read on this website.

The indifference of housing the olds (the latest in Aged Care debate)

Partially because of all of the media coverage regarding Aveo, and partially to satisfy my Office Manager, so she will stop clogging up my inbox with articles, I have decided to weigh in on the current debate surrounding Aged Care. After all, how could I possibly resist this soapbox moment?

Now, firstly, I have the greatest respect for the Elderly. My motivation to become an Aged Care specialist goes back to the start of my career where I observed a shocking amount of apathy, and sometimes downright abuse, towards this incredibly vulnerable group of people. Never one to let an injustice go by, I developed a close working relationship with the Office of Public Guardian, and reported many breaches made by Power of Attorneys, much to the dismay of my then manager.

Right now, everyone is in up in arms over the Deferred Management Fee model that was used by Aveo. The lawyers have an opinion, the politicians have an opinion, the share holders have an opinion, and the media is pointing the spotlight. It seems that everyone has an opinion, and is happy to point their finger, but why now? After all, Aveo has been around for 25 years, and there are many other providers out there using the same fee model.

Personally, I believe that this is a result of not just people living longer, but also being more able for longer. When these residents need to step up their care and move, they realise exactly what a deferred model means. Previously, this would have been masked by natural attrition. The provider would have claimed the deferred fee from the Estate rather than trying to claim it from a person, which is much more difficult.

Here's the million dollar question though. Why did the resident sign the agreement in the first place? The lawyers would say that the contracts are complex and draconian. One would generally suppose that if a middling person did not follow the words on the page then they wouldn't have signed without further advice. The politicians would probably say that it was shoddy business practices, that whole over promising, under delivering thing that happens. Once again, this indicates to me that the resident has been left to their own devices to make their decision. The shareholders would claim that the fee model is to blame, but of course, it worked well over the last 25 years, so why would you throw the baby out with the bathwater? Oh that's right, because now somebody actually cares, and got the media involved.

Elderly people are in a period of cognitive decline. There is no escaping this fact. And yet, we, as a society, have expected them to read a complex contract, and make an informed decision with information provided to them by the seller. That is akin to taking the word of a Real Estate agent that you don't need to get a valuation or pest inspection...it's all good...just sign here. No one in their right mind would do that!

So, rather than pointing the finger at a legal (which is not the same as moral, or ethical) business model, perhaps we should take the time to reflect on where the support network for the residents was when they signed that complex bit of paper. As a society, we need to hold up that mirror and admit that we have failed to protect those needing protecting.

We can change the legislation, and increase the regulation of this industry, but at the end of the day, a caring, and close, support network is what will protect the elderly. As individuals, we need to acknowledge that our parents, and grandparents, are growing increasingly frail, so don't put your head in the sand; ask them if they need help and be involved in their lives. And for goodness sake, if you don't understand it, get advice!

Find Erin* at Achieveit Financial Planning, or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687

This is general information only and does not consider your personal circumstances. You should not act on any recommendation without obtaining professional advice specific to your circumstances. We recommend you speak to a financial adviser before acting on any of the information you read on this website.

House of cards (no, not the show)

Imagine this...you are at a BBQ at a mate's place. You are sitting in your camping chair sipping your sav blanc from your plastic glass (or standing around the BBQ, drinking a cold tinnie in a semi-witty, slightly obscene stubbie cooler, if you're a bloke). The kids are splashing around in the pool, with the occasional growl from the token responsible adult, and the scent of insect repellent is heavy in the air. The conversation started out light, with everyone being friendly over the cob loaf dip (which is divine by the way...look it up if you've never had it), but as the esky starts to empty, the conversation becomes a bit more predictable.

In much the same way that Financial Planners are guaranteed to ask each other "How's business?" at conference (answer: "busy...so, so busy. You?"), there is that individual that attends BBQs and redirects the conversation to investing. Once tall poppy has the undivided attention of the group, he starts (or perhaps a she?) to pat himself on the back about how clever he is to have built himself a multi-million dollar property portfolio. Then he unloads the kicker...he pays no tax! "No tax?!?" you ask in wonderment..."but how?"

Welcome to the world of the heavily negatively geared. Negative gearing is where you pay out more in tax deductible interest and expenses on an asset than you earn in income. Once the calling card of property investing spruikers, it is becoming increasingly dangerous territory. It has been flagged by both sides of Government as an issue, and coupled with Capital Gains Tax discounts, has not been helping housing affordability, or the Government coffers. This can all be overlooked when the share market is booming, Government debt is low, and upward social mobility is strong...like in 2008. Fast forward through the GFC, higher Government debt, and a housing crisis, and all of a sudden, there is a problem.

The real problem is that there are many Mums and Dads out there that have been sucked into the vortex of negative gearing through the conversation with either tall poppy's at BBQs, or property spruikers, that should not be in this space. They are on either average, or sometimes below average, incomes. They live off their credit cards because all of their cash flow is taken up by paying interest on their interest only loans, and then pay out their credit card when they receive their bumper tax return. This means that the Government cannot change it's negative gearing policy without having significant impact on the many of these "House of Cards" empires around Australia, which will not make for happy opinion polls or focus groups.

What has happened is that APRA (the Australian Prudential Regulation Authority) has changed it's stance on investment lending. APRA now requires the banks to limit their interest only lending to 30% of all of their lending. They also require that the banks "manage" lending to investors so they remain below a previously advised benchmark of 10% growth.

What does this mean? At a base level, the banks are now limited to how much lending they can have on their books for investment lending, so they only want the cream of the crop. To get this they have increased their Loan to Value Ratio (LVR), in one case to 50%, which will mean that new entrants will need a deposit of 50% to purchase an investment property.

The real concern is that in order to maximise their 10% growth, the Banks will also need to shift some of their interest only book to principal and interest. This will free up their 30% limit to attract new business. Transitioning the current lending book from interest only to principal and interest will force those with a House of Cards to either sell their properties as their repayments become more onerous, or increase the rent, which is a risky strategy at the best of times.

So, if you are unsure of how all of these changes will impact your property empire, please pick up the phone and check with your lender. And if you didn't like their answer, then make an appointment with a financial planner (cough, cough) so that you can plan your exit strategy, and how to continue building your wealth, before you are forced to fire sale with all the other Mums and Dads out there.

Further information regarding the APRA changes can be found here.

Find Erin* at Achieveit Financial Planning, or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687

This is general information only and does not consider your personal circumstances. You should not act on any recommendation without obtaining professional advice specific to your circumstances. We recommend you speak to a financial adviser before acting on any of the information you read on this website.

Starting again...(takes a deep breath)

Alright, my divorced brethren...gather around. It's time to talk about starting again. Now, I know you're skittish, I know you've been through some pretty rough times, and that you're a bit shy on the idea of commitment. Especially after you've met someone who may *crosses fingers* have potential. So...what now?

Well, lets break this down a bit. This article assumes that you have identified a potential "candidate", and that they feel the same way. This is not a dating guide, but more of a discussion on the practicalities of partnering up post-divorce. Once the dust settles, and you have healed your lacerated heart, you come to the realisation that this time around, you actually have more to lose. You are no longer the dewy eyed naivete of your youth, but you also don't want to end up bitter and twisted.

I am here to reassure you that this time, it can be different. For starters, you are older, and (hopefully) wiser. You've taken the time to reflect, and your communication skills are surely much better than they were ten years ago. So, let's start the conversation about finances early on. This is not being callous, it is being honest. It is sharing ideas about what your expectations are going forward. After all, as put best by William Shakespeare, expectations are the root of all heartache, so lets manage them.

Firstly, be honest with your level of debt. You owe yourself this. If you are honest, then hopefully they will be as well. You need to know what you are getting into, and so do they. It might not be a deal breaker, it might just extend the timeline until co-habitation, or perhaps it might mean that you don't share finances...ever. You need to trust me on this; nothing will kill a relationship quicker than financial stress.

Talk about your children. What are your hopes and dreams for them. Is private schooling important to you? If so, is your ex-partner willing to contribute. What about your new partner's children? Is it important for everyone to go to the same school? What about funding University expenses, how long should they live at home for, child support etc? And importantly, do you want more?

His house or hers? Where will you live? Keep in mind that, in most cases, you are trying to merge two families, with their own habits and traditions, into one. Is there enough room for everyone to have their own space, or would you prefer to continue to run two, separate, households?

Expenses and income. This one is tricky. I have seen many different methods of working this out, and, in my experience, the first thing to do is work out what you consider "household" expenses. For example, electricity is an obvious household expense, but what about the mortgage? If it is owned by one partner, then perhaps not, as they will benefit from the capital gain. But if you purchase the property together, then yes, it would be considered a household expense.

Now that you have the expenses sorted (isn't budgeting fun!), you need to work out your post-tax income. If you are sharing the child expenses, then add in any child support being received, as well as any social security benefits. If one partner is paying child support, then this amount should be taken off their net pay. Now, you can work out the proportion of expenses to be paid, based on the proportion of income you bring in.

Example:

Adam and Betty are considering co-habitation. They have worked out their joint household expenses will be $1,000 per week. Adam earns $100,000 pa, and Betty earns $50,000 pa, as well as receiving $5,200 pa in child support. Betty will lose her social security benefits once they move in together, so this is not counted.

This will put the net household income at $119,711, with Adam earning 61% ($73,368 after tax), and Betty earning 39% ($46,343 after tax, including child support). This means that Adam's contribution to their joint "household" account at $610 per week, and Betty's at $390.

Using a proportional system will mean that both partner's will maintain some financial independence to pursue their own financial and lifestyle goals. In this case, Adam and Betty both retain approx. 56% of their income - Adam at $800 per week, and Betty at $501 per week. If the household expenses were divided 50:50, then Adam would be left with 64% of his income ($910 per week), but poor old Betty would only have 44% of her income ($391 per week). Great for Adam, but not exactly the best way to start a partnership.

This exercise is a great way to determine what your future life together would look like. There is nothing like trying to put a hypothetical household budget together to determine if your lifestyle expectations are compatible.

Now, that we've done the fun part, lets make it legal, people! No, I'm not advocating remarriage. I am insisting that once you are happy with the who has what, and who contributes to what, get yourselves down to a legal professional so that you formalise who gets what. Talking about the unspeakable (that it might not work), is easier when everything is still rainbows and butterflies, than if it actually happens.

And that folks, is why the second time around can be different. You've both been through it once, neither wants to go through it again, and having the conversation too early has much more appeal than having it too late.

Find Erin* at Achieveit Financial Planning, or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687

This is general information only and does not consider your personal circumstances. You should not act on any recommendation without obtaining professional advice specific to your circumstances. We recommend you speak to a financial adviser before acting on any of the information you read on this website.

The importance of being skeptical

In the past fortnight, I have had three conversations with three different individuals that highlight the need for people to proactively "fact check" the information they are basing their financial decisions on.

The first conversation follows a common theme that pops up every few years or so. I was at lunch with an acquaintance, and no, not one that I was actively prospecting, when the subject of Self-Managed Superannuation came up. My lunch partner queried whether or not it is true that you can access your superannuation earlier if your transfer it to a SMSF. I cannot stress enough that the answer is no. Absolutely not. If anyone comes to you with a way to access your superannuation early, then it is a scam. Superannuation is superannuation, and subject to the same laws and regulations no matter if it is industry, a master trust, wrap account, or self-managed. As the Trustee of the SMSF, you are physically able to withdraw the funds, but, as we should all realise by now, just because you can do something, does not make it legal.

What if one goes to a financial planning professional, and rather than provide advice, they provide you with product options? I would probably recommend that you seek a second opinion. Part of the "know your client" process is finding out about the client's goals. This may be limited to superannuation, insurance, or be part of a broader life strategy. Either way, you are paying a professional to devise a strategy that will get you as close as possible to your goals, or, if that is not possible, they should be helping you to prioritise which goal is the most important. It is not up to you, as the client, to research options to decide which suits you the best.

When you receive a Statement of Advice (SoA) from a Financial Planner, and that SoA recommends a replacement product, please, please, read the the Replacement Product section. This part of the SoA outlines any increase in fees, premiums, and changes to any terms of the product that may be detrimental to you. The number of times that people have agreed to insurance policies that provide less cover, with higher premiums, and exclusions to boot is terrifying (obviously, not recommended by myself). Ask the question, "Why change?". I love it when clients ask me this question, because it means that they want to understand, and I love educating the client. It is very awkward to tell a new client that their previous adviser has given sub-par advice, and that they have agreed to it. We don't like to it, and clients definitely don't like to hear it.

So, the moral of the story is to listen to your professionals, but always question them.

Find Erin* at Achieveit Financial Planning, or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687

This is general information only and does not consider your personal circumstances. You should not act on any recommendation without obtaining professional advice specific to your circumstances. We recommend you speak to a financial adviser before acting on any of the information you read on this website.

Insurance: Is the claims process really that simple?

There has been a lot of media activity around the process of claiming on personal insurances (Life/TPD/Trauma/IP). For most financial advisers, I doubt that any of these issues are new. The use of Independent Medical Examiners (IME), cherry picking medical evidence to decline claims, getting off on a technicality, I am sure that these have all been raised by clients as they sit across from their adviser. The client might not know about all of these techniques, but what they want to know, and usually ask you, is will the recommended company actually payout when they say they will?

After all, it's not much good to our client if we recommend a company that will leave them ricocheting from one IME to another when they are already financially and emotionally vulnerable. Nor is it a good look for the adviser if they need to recommend that the client gets legal advice. So, how do we, as advisers come to choose one insurance company over the other? I know that the ease of claims is one of the criteria that we use at Achieveit Financial Planning when determining which company to use. That's not to say that the insurance companies are always going to pay out, but that their claims process is clear, timely, and, most important of all, has consistency. That is, that the insurer won't insist on the use of an IME for one thing, but not the other. That the insurer communicates well with the adviser. That the insurer keeps with the "spirit" of their contract, rather than latching onto a technicality so that they don't need to pay up.

Now, the information that I would be most keen to see is whether or not having an adviser on the client's side makes a difference regarding the outcome, or the treatment, of the claim. The reason I am curious about this is that I recently assisted a pro-bono client with a TPD claim. The forms were not simple, as the client has developed a condition that makes their skin photosensitive, rather than a cut and dry back injury. The cover was held through an employer super, which transferred to a personal super mid-claim. It was stressful for the client, who was already struggling with the idea of not working, and I highly doubt that the claim would have been successful without my involvement. Somebody who knew what the insurance company was looking for was needed to navigate the pitfalls that are "standard" TPD claim forms, as well as the reluctance of the employer to make a judgement call on a medical issue, or the Doctor to make a judgement call on the client's ability to perform the duties set out by the employer.

Overall, I found that the claims process for this client, using an insurer that I had no sway with, was not that easy. Every time I touched the file, I wished that the client was with one of the companies that I frequently recommend. How easy would it have been to be able to call the BDM and get the inside run on the claim? BDMs may get a bad rap on occasion, but having gone through this process without one was a learning curve.

So, if this claim, which ran for four months, was a struggle for me, and I know the system, then I have to conclude that no, the claims process for the average person is really not that simple.

Find Erin* at Achieveit Financial Planning, or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687

This is general information only and does not consider your personal circumstances. You should not act on any recommendation without obtaining professional advice specific to your circumstances. We recommend you speak to a financial adviser before acting on any of the information you read on this website.

Is super really the be all and end all?

Personally, for myself, the answer is yes, because every few years politicians seem to either try to make superannuation easier for the everyday person, or more complex to drive a further wedge between the role of the accountant and financial planner.  So, as a financial planner, these constant changes mean that I will not be lacking in work for the next 30 odd years, and so superannuation is the be all and end all for funding my career.

However, as a layperson, the answer will often depend on your age.  For those less than 10 years out from retirement, the focus shifts heavily from assets outside of superannuation to getting those assets inside superannuation.  There are two reasons for this.  The first is that, in general, accessibility to the funds is less of a problem as the client is more or less setup and their expenses (aka...children) have decreased.  The second is that we can be about 80% sure that the powers that be won't be changing the rules too drastically, and that any changes that are made, we should be able to cope with.

What I find interesting is that there seems to be a lot of hand wringing and teeth gnashing that younger people, those with more than 10 years until retirement, don't want to contribute more to superannuation than the stock standard 9.5%.  My question is, why should they?

I spend a considerable amount of time with my younger clients emphasising and encouraging them to forward plan their budget so that as their income increases, their expenditure stays the same and they can build for their future.  This often requires a steady hand, with deliberate and well thought out decisions using stable, legislated tax systems.

So, rather than more changes to help the Government balance their books (much like the ones coming in on July 1, 2017), the politicians could provide some consistency and surety in the superannuation system, rather than gimmicks one year and austerity the next.  Perhaps then, we could attract the economy's younger cohort to the superannuation party.

Find Erin* at Achieveit Financial Planning or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687.

This is general information only and does not consider your personal circumstances.  You should not act on any recommendation without obtaining professional advice specific to your circumstances.  We recommend you speak to a financial adviser before acting on any of the information you read on this website.

Home care services, now the client's choice

The little understood stepping stone to Aged Care, Home Care Services, seem to be something that many older Australians have, but very few understand.  At this point in time, the client's Home Care Service contract, which provides personal services, support services, and clinical care, is held by the provider. 

This means that if you are in want of Home Care Services, then you need to go on a provider's waiting list, and if you are currently receiving home care, it is nearly impossible to resolve any service issues that you may have by changing providers.  This is all changing, as of the 27th of February 2017.

By the end of February, a new client will go into a national queue that is administered by My Aged Care, and will allow those clients who are a higher priority to be fast tracked.  Once you reach the top of the list, you are given the details of your Home Care package, as well as a unique referral code.  This gives provider choice to the client, as they have 56 days from the date of their assignment letter, to enter an agreement with a provider.

Another positive step that the Government is taking is by removing the "Band" system when determining Home Care package eligibility.  This will allow the ACAT assessors to do their jobs more efficiently by allocating the specific level of care, based on the individual's needs.

A concern that I have, as an industry observer living close to rural areas, is that the national queue system is designed to allocate on a first in basis.  Will this necessarily work in those smaller, far flung communities that don't necessarily have multiple providers to choose from?  If there is only a single provider in the area, are they reliant on the processing speed of My Aged Care, and how will this threaten the provider's financial viability?

Shifting the monopoly of services away from the providers and into the hands of the client makes sense.  If the client does not find the service satisfactory, which is, in my experience, a surprisingly common complaint, then they can move.  However, as we in Australia have seen with the Pink Batts scandal, introducing competition into Government funded areas does not always go to plan. 

As a society, we seem to be very pro-active in establishing safe environments for our young because they are vulnerable, but do not seem to extend the same care to our elderly, who are also vulnerable. I am hopeful that My Aged Care are all over the potential pitfall of maverick operators, because even in highly regulated, spot lighted industries such as Child Care, we still seem to have the occasional scandal erupt with providers not meeting quality care standards.

Find Erin* at Achieveit Financial Planning or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687.

This is general information only and does not consider your personal circumstances.  You should not act on any recommendation without obtaining professional advice specific to your circumstances.  We recommend you speak to a financial adviser before acting on any of the information you read on this website.

How much do you value the ability to make your own life choices?

The Christmas period is a time when families gather together for extended periods of time. It is a busy time for everyone and will often lead to January being a busy time in the Aged Care sector as the family realise that Mum, or Dad, is no longer as spritely as they once were.

It can be confronting for family members and terrifying for those who are suddenly being badgered by concerned relatives. As a family member, it is important to keep in mind that when you are discussing Aged Care options, you are actually asking for someone to leave behind their everyday comforts, sell their memories and move into an unknown situation.  The conversation should be treated with the same sensitivity that you would afford your children if you were moving, mid-term, to a different country.

The important thing to emphasise is that by having this conversation earlier, rather than later, you are allowing your parent to have input into their own life decisions. Nobody wants to face their own, or their loved ones, decline but, eventually, we will all end up here.  Planning for the inevitable provides the priceless gift of choice.  There are many options available, and choosing the right strategy as our loved ones get older will provide a rewarding lifestyle choice for your parent, and peace of mind for the family.

Find Erin* at Achieveit Financial Planning or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687.

This is general information only and does not consider your personal circumstances.  You should not act on any recommendation without obtaining professional advice specific to your circumstances.  We recommend you speak to a financial adviser before acting on any of the information you read on this website.

2016 - Invigorating or disappointing?

Yes! Work is back.  Hopefully everyone is feeling rested and ready to hit the ground running?  Personally, I couldn't wait to get back into the office, as evidenced by a few sneaky emails that I sent off over our "stand down" period.

We've all had the chance to reconnect with our loved ones, sleep in a little bit, and reflect on how our year went.  Reading the newsfeeds, it seems that the end of 2016 was overwhelmingly about reflection at all levels.  And with reflection comes comparison.  Are we in a better place than this time last year?  Did we tick off all of our goals that we wanted to achieve?  Are we moving forward in life?

Most clients that I see have a few goals that they want to achieve (holiday, new car, education for the children etc.) during the year.  What many don't realise is that the reason that they haven't managed to take their family to Hawaii, is that there is a tendency to treat each year on its own, a finite timeline, rather than as a continuum.  Decisions are made to meet the wants and needs for this year, not building on the positive results of last year, or taking into account the unmet goals from the year before.

This can lead to frustration as life is never as simple as getting from point A to point B; there is always something that comes up (braces, anyone?) that will change the path that you had committed yourself to mentally.  Look at what you did achieve, even faced with adversity.  So, we didn't manage to go to Hawaii for a family holiday, but wasn't Straddie amazing this year?  Reflect on what made it difficult to meet your wants and needs and strategise on how it can be avoided in the future.

Build on everything that you achieved in 2016, no matter how small it was, and look forward with a positive attitude.  Every year is just an extension of the last, and sometimes you need to take a couple of steps back to really start moving forward.

Find Erin* at Achieveit Financial Planning or call for an appointment on 07 4638 5011.

*Authorised Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687.

This is general information only and does not consider your personal circumstances.  You should not act on any recommendation without obtaining professional advice specific to your circumstances.  We recommend you speak to a financial adviser before acting on any of the information you read on this website.