While most of us are aware of the importance of making a Will, there are other estate issues that may not be so obvious and can have dramatic consequences on family security. It's not just the wealthy all families need to plan for financial, legal, medical and child care decision making to ensure their wishes are carried out accurately.

Estate planning may sound a little intimidating or irrelevant, but this umbrella term covers a range of essential financial and legal arrangements that any individual can and should make for the proper care of what they own and the people they love. It is integral to your future planning if you want future situations handled with minimal impact on family and in alignment to your wishes.

Your will is a starting point
Even with modest assets and property, there can be severe delays, disputes and upheaval if you were to suddenly pass away without a Will. A Will clearly specifies what you want to happen and who you want to benefit if you are no longer around. The absence of a Will leaves your family in the hands of an appointed administrator who may make decisions that are not consistent with your wishes and may result in unnecessary delays and costs in estate distribution. Once in place, it is essential that it is reviewed periodically to make sure it adapts to your changing circumstances.

How will medical decisions be made?
The reality of medical and health issues impairing decision making is a critical issue to deal with in an estate plan. A sudden accident can leave your family with massive decisions to make about treatment, accommodation and assets, so it is essential that they have some formal reference point to avoid undue stress.

It is not just the elderly who need to plan for this situation. Serious and chronic medical conditions can occur at any age and can dramatically and permanently affect your ability to manage your own health decisions or financial affairs.

Fortunately, there are ways to cope with this eventuality and relieve stress on your loved ones. An Enduring Power of Attorney gives a legal basis for passing your decision making authority to someone you trust if you are unable to make decisions for yourself on legal and financial matters.

Enduring Guardianship can also delegate your authority to someone you trust for making critical decisions on issues such as medical treatment and nursing home care, if you are not able to yourself. These tools are there for your benefit and to help you ensure your wishes are carried out effectively and responsibly to your satisfaction.

Providing for the care of children
No one would ever knowingly compromise the welfare of their children, but we can unwittingly leave things up in the air if we don't make formal plans to set out our wishes. An Enduring Guardianship lets you specify who you want to care for your children if you suddenly die or suffer a medical event that prevents you from providing care for them.

It is a simple step to take, but can make a huge difference to their future and the peace of mind that comes from knowing your children will be well looked after is well worth it.

Failing to attend to this valuable provision for their future may leave them exposed to the judgements of external authorities and may leave your family with the prospect of applying to a government tribunal in order to allocate guardianship responsibilities.

Ask for help to secure the future
Your adviser can be a valuable facilitator on these issues. They can refer and consult with other professionals to make sure your situation is well managed and your beneficiaries are left with security.

Disclaimer - Information current as at 28 April 2016 - This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should read the Product Disclosure Statement (PDS) before making a decision about a product.

 

 

When it comes to super savings, women in Australia are likely to have significantly less than men. The average Australian woman retires with around half the balance of the average man. This is because women (still!) earn less than men for equivalent jobs and they're more likely to have a career break to raise children. Combine this with a longer life expectancy and women are less likely to have enough for a comfortable retirement. Very few women think their super will be enough for retirement, and unfortunately many women don't know how much they'll need for a comfortable retirement or are leaving this issue to their partners.

Superannuation is one of the most important and efficient investments you can make. It is concessionally taxed, has flexibility with insurance and can provide added incentives when you contribute money.

Acknowledging that wages for women are still generally less than those of men and that women are more likely to take time away from paid employment to raise their families, growing superannuation can seem almost impossible.

However, none of the above will matter as retirement draws nearer. So, regardless of age or circumstances, women need to understand superannuation and start contributing as soon as possible.

Here are some tips that may help the process:

1. Have one Superannuation Fund
Many women have worked for a number of different employers and can end up with relatively small amounts in a number of Superannuation Funds. Multiple Super accounts usually equals multiple fees. Consolidating your superannuation into one account will make it easier for you to track your retirement savings.

2. Find any lost Superannuation
If you have changed jobs a few times, or had short term work contracts, you may have Super accounts that you have forgotten or didn't know about. You may have moved house and lost track of your superannuation. To search for lost Super visit www.unclaimedsuper.com.au or call the tax office on 13 10 20.

3. Use Salary Sacrifice into Superannuation
If you are currently working, you could talk to your employer about sacrificing some of your pre-tax income into Super. Salary sacrifice can have tax advantages as you may reduce the amount of income tax you pay. This is not for everyone so you should seek financial advice as to whether this would be beneficial to you.

4. Make Additional Contributions
If you have some spare cash, you may want to make after tax contributions to superannuation. Many of the superannuation funds have the option to set up a regular direct debit, Bpay or electronic funds transfer. Making additional contributions may give you access to the government co-contribution.

5. Government Co-Contribution
You may be eligible for a free boost to your superannuation. If you earn less than a specified amount and make a voluntary after-tax contribution to superannuation, the government could contribute up to $500 each financial year to your Super account. This is a great incentive and could give your superannuation a real boost. Of course, these figures may change with Government policy.  To ensure you understand the conditions, seek financial advice.
 

6. Super Splitting
You may be able to share part of the Super contributions you or your partner make each financial year. Most funds now have Super splitting available.

7. Tax Deductions
Are you self-employed? That is, do you earn less than 10% of your income from an employer? If so, you may be eligible to claim a tax deduction for any voluntary Super contributions you make. Be careful as contribution limits do apply.

8. Check your insurance
You may be surprised to find that you have Death and Total and Permanent Disability insurance through your superannuation fund. Some superannuation policies also offer Income Protection insurance. This is often a cost-effective way to structure your insurances. Insurance is a vital part of your financial security and you should make sure you have enough cover to protect you and your family. Again, this is not relevant for everyone so you should seek financial advice as to whether this would be beneficial to you.

9. Choose your Super Fund
Many of us do not make an active investment selection for our superannuation entitlements. Most people do have choice and you should make sure you are comfortable with how your retirement savings are invested. Do your research or seek advice.

10. Seek advice
There is a common theme. Research your fund and make informed choices when it comes to superannuation as this can make a real difference come retirement time. The internet has many great websites if you would like to do your own research.

Why not schedule a meeting with your financial adviser now?

 

Disclaimer
Information current as at 21 April 2016 - This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should read the Product Disclosure Statement (PDS) before making a decision about a product.

The role of parent is challenging in so many ways. We are all busy providing for our children's health, safety, growth and development. We make sure we protect our lives, our income and our major possessions.

There are other ways we can protect our children from some of the more unfortunate things that may happen. It's worth taking time to consider the option of Children's insurance and the need to appoint a guardian.

Many people do not regard Children's insurance as important as children are not generating income. However, the impact of illness, a major accident or the death of a child can have profound financial, as well as emotional impacts on parents and other members of the family. Children's Insurance can provide financial support should the unforeseen happen to your child and most importantly takes away the financial stress, to provide choices to aid in your child's recovery. It can also be used as a form of saving for higher education and as a way of ensuring your child's future insurability

This is a complex issue and not easily discussed in generalities. Your financial professional can help you determine whether life insurance for your child should be part of your overall financial plan.

The issue of appointing a Guardian is far more straightforward. The guardians' role is to ensure that the children are adequately housed, clothed and educated. Anyone who has young children should appoint a guardian to take care of them should you pass away prematurely.

You can do this by establishing an enduring guardianship. This enables you to appoint a substitute decision maker to make personal, health or lifestyle decisions in the event that you are unable to make your own decisions.

An enduring guardian can only be appointed while you have capacity. Capacity means that you have the ability to make decisions for yourself.

If you have not appointed an enduring guardian, anyone who has a genuine concern for your wellbeing can apply to a government tribunal to appoint a guardian. The tribunal will hold a guardianship hearing and where possible appoint a family member or friend as a guardian. This can be a stressful process for family members.

If there is no one suitable to be appointed as guardian or where there is significant conflict over who should be appointed as guardian, the tribunal can appoint a Public Guardian. The Public Guardian will then make decisions for you regarding matters such as accommodation, medical treatment and dental treatment.

Most people would prefer to choose their own decision-maker.  By choosing your own decision maker, you can select someone who knows you well and who can take into account your thoughts and opinions, both past and present.

This is an important part of your financial planning process. Why not consult your financial adviser and other appropriate professionals to ensure the future needs of you and your family are planned?

Disclaimer - Information current as at 14 April 2016 - This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should read the Product Disclosure Statement (PDS) before making a decision about a product.

 

Getting older is a fact of life and with any luck, we will all live to a ripe, happy and defiant old age, enjoying ourselves with loved ones, friends, children and grandchildren.

As much as we desire this for ourselves and our families, it is likely that there will be a need for some assistance at some point down the track. And, while many people say they would tell their families to put them in care 'when the time comes', the time to have the discussion about what they want is now sooner, rather than later. 

There are often signs that an ageing parent is having challenges with day-to-day life. Sometimes, through pride and because they don't want to be a burden, they will try to minimise these issues. Most people want to stay in their own homes for as long as possible. They may want control over what type of help will be put in place or be concerned that they will be pressured to move into a care facility. It's best to talk with your parents long before the signs start to show, so that they are part of the decision process rather than on the outer.

Some of the signs that your parent may need help include;

• Problems walking and frequent falls
• Poor judgment or forgetfulness, such as leaving the stove on, or leaving the house unlocked.
• Disinterest in personal grooming and infrequent bathing
• Difficulty preparing meals, lack of interest in food
• Mishandling finances, bills left unpaid
• Problems managing medications and scripts
• Difficulty getting to social events
• Increased confusion or memory loss
• They seem lonely or sad

You will need time to do research: When making your choice of living arrangements, it's important to know what services are provided and which are not. You need time to find the service most suited to your parents' needs.

Your financial adviser can assist you and your parents address many of the sometimes confusing and difficult questions, including

• What are the options and costs for aged care?
• What entitlements and subsidies are available for each option?
• Will age pension eligibility be affected?
• What can we afford?
• Should we sell the family home? How will this affect estate planning?

What are the options?
There are many care assistance and housing options available.  The choice will depend on a person's preferences, age, health, financial condition and the level of care needed.  The options range from home based services to full time, 24-hour care.

• Respite Care - home care, meals and transportation services - This style of service provides assistance to those who are still independent but may need some help with day to day house chores, meals or odd jobs around the house.  These services allow older people to remain in their own homes, or with family in shared living/granny flat arrangements, to maintain independence as long as possible.
   
• Adult congregate communities, Assisted Living Communities and Personal care homes - There are several types of retirement communities that provide living arrangements and services to meet the needs of both independent seniors and those who need assistance but are not quite ready for full time nursing home care.
   
• Aged Care Facilities - If the elderly person is not capable of independent living, an aged care facility may be the appropriate option. Aged care facilities offer a range of levels of care depending on the patient's needs.

The investments and on-going expenses associated with each of these options are different. Now may be a good time to consult with your financial adviser so that you are fully aware of your options when making decisions on this important and emotional topic. Getting the right advice in this area can have a huge financial impact on the end result.

Our financial advisers can provide comprehensive cash flow analysis based on possible accommodation fees, living costs, tax implications and the financial treatment of the family home. You will quickly know what you can afford and, importantly, the impact on your financial situation after the move into aged care.

If you think it's time to consider these options, please talk to us; we are always happy to help our clients make good decisions.

Why not schedule a meeting with your Financial Adviser now so that you and your parents are ready?

Disclaimer
Information current as at 7 April 2016 - This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should read the Product Disclosure Statement (PDS) before making a decision about a product.

 It is very easy to let emotion control our investment decisions when experiencing market volatility: especially when we are being bombarded with constant media coverage reporting gloomy performance and falling share prices.

Many people put off investing simply because they don't know when to start they are seeking "the best time". Others who are already in the market worry when the news is negative and are tempted to join in the panic and sell. Often, this is the worst thing to do!

There's a lot of evidence to suggest that "timing the market" has little to do with long term success. The key is to make decisions calmly and after seeking professional and reputable advice.

Here's some advice from the experts:

Keep a cool and informed head!
Question your decisions: Are you making a choice based on emotion or informed financial analysis? You should always be able to provide a sound justification for your decision.

Keep informed. Read a range of balanced economic analysis, such as that produced by reputable research houses or organisations such as the Reserve Bank of Australia. Learn to sort fact from sensationalist media articles. Your Financial Adviser is a good source of high quality financial information

Don't try to pick the best time to invest
Many people try to pick when is the best time to invest. They aim to invest when the market is low, hoping to get more for their investment dollars. They wait until the market falls, and then wait some more just in case it falls further. Unfortunately, markets are unpredictable, and waiting to invest may mean you miss out on periods of strong returns.

By abandoning your long-term investment plan when the market is falling, and then investing again when the market improves, you could miss the opportunity to purchase your investments at a lower price.

A more appropriate strategy is to invest as soon as you have the money available and keep it invested. This 'buy and hold' strategy means that you do not allow yourself to be influenced by the ups and downs of the markets. You just have to remember that it's your 'time in' the market that can make all the difference not your 'timing'.

Add to your investments regularly
Making regular contributions means you can grow your investments without worrying if it is the right time to invest. It allows you to ride out market changes and can help you build your wealth sooner, due to the power of compound interest (i.e. earning interest on your interest). Regular contributions into your investments mean that you automatically buy less when the markets are high and more when they are low, averaging out the amount you are paying for your investments. This is known as "dollar cost averaging" and works regardless of whether markets are going up or down.

Maintain a well-diversified portfolio
Diversification can assist in avoiding investment biases by helping you to see your portfolio as a whole, and part of a long term strategy. Investing through a managed fund can also help you avoid becoming attached to certain stocks and can be an effective way to diversify if you don't have a huge amount to invest.

Get professional advice
Professional financial advice is critical to investment success. Financial Advisers have access to a range of material not available to individual investors. When you are making investment decisions, your Financial Adviser can help by offering guidance and a balanced viewpoint

Start investing as soon as you can
As we've said, don't wait for the best time to invest start as soon as you can through a regular investment plan, or using any lump sums that you may receive. The sooner you start; the sooner you can commence growing your wealth.
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Disclaimer - Information current as at 31 March 2016 - This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should read the Product Disclosure Statement (PDS) before making a decision about a product.