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Acquisition of RI Melton

Acquisition of RI Melton

We are excited to announce the acquisition of RI Melton. If you are in the area feel free to join us for a coffee at 85 Unitt Street Melton. We will be retaining all the friendly staff in Julie McCallum a certified financial planner who has been advising for 25 years, Danni Lowry who has been a Paraplanner/adviser for 17 years and Kristen Baker who has been in financial services for 8 years. They bring a wealth of knowledge and experience to IG Wealth. Welcome on board ladies we look forward to working with you.

Melton: 85 Unitt St, Melton VIC 3337

Head Office: L1 8/6 Eddy St, Moonee Ponds VIC 3039

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Smart ways to handle finances in a relationship

Smart ways to handle finances in a relationship

Staying on top of finances can help couples achieve their shared goals.

Whether they’re saving for a house or a holiday or seeking to grow or preserve their family wealth, setting up and sticking to a budget can help couples attain their common goals. By handling money well, they can avoid disagreements that could put a strain on their relationship.

So how can people in a relationship keep their finances healthy? Here are some practical tips.

Sit down and talk

Money can be a sensitive topic in relationships – and for this reason, many couples avoid discussing it. But it’s vital to talk about your finances and how to manage them, to avoid potential conflict. It’s particularly important to be upfront about your:

  • financial situation
  • financial goals
  • concerns about the future.

The American Psychological Association also suggests discussing your beliefs about money early in the relationship.1 This will help you to better understand each other and set the stage for healthy conversations.

Set goals as a couple

Couples often have different financial priorities – one may want to spend on experiences such as overseas travel, while the other may prefer stability by building long-term investments. But this doesn’t mean you can’t set common goals and work together to save for them.

Keeping an open line of communication about your financial aspirations could help you adjust your priorities and plans, and keep on track to achieving your shared goals.

Assign responsibilities

Divvying up the responsibilities for paying for your expenses and building your savings may help ensure you and your partner are on the same page when it comes to financial matters. You may opt to split those responsibilities equally or put one person in charge of most of them. Whatever you choose to do, it’s important that both partners are happy with the decision.

Create a budget

Having a budget helps you achieve your financial goals by setting limits on what you spend. A budget usually tracks your spending on a weekly or monthly basis. However, if this is too restrictive, you may simply agree on a plan for spending – and saving – your money.

Build your retirement funds together

If you are married or in a de facto relationship, you may want to ensure that your partner is nominated as a beneficiary on your superannuation accounts and insurance policies. You may also want to consider helping each other build your retirement funds. If your partner is not working or earns a low income, you might explore making a one-off contribution to their super or arranging to have some of your contributions put into their super account.

But before you decide to make any such arrangements, it is wise to get professional advice on how they work. Your financial adviser can talk you through the rules of spouse contributions and contribution splitting, and the eligibility requirements for receiving a tax offset.

1 The American Psychological Association, ‘Happy couples: How to avoid money arguments’. Available at http://www.apa.org/helpcenter/money-conflict.aspx.
This editorial and the information within, including tax, does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information please contact our office to opt out. The views expressed in this publication are solely those of the author; they are not reflective or indicative of Licensee’s position, and are not to be attributed to the Licensee. They cannot be reproduced in any form without the express written consent of the author. RI Advice Group Pty Limited ABN 23 001 774 125, AFSL 238429.
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Saving for retirement when you have dependants

Saving for retirement when you have dependants

 Supporting your dependants doesn’t have to come at the expense of building your retirement nest egg.

Preparing for retirement can be difficult for parents who have dependent children to support. They may find themselves torn between saving for retirement and setting aside money for their children’s education or other needs. Even adult children ask their parents for financial help; one survey found that more than half of Australians aged 18 to 35 borrow regularly from their parents, including to get help with big purchases or university fees.[1]

However, you don’t have to sacrifice building a retirement fund while supporting your children. There are ways to build a sufficient nest egg while helping or providing for your dependants.

Saving for your golden years

Forced saving can be your good ally in building your retirement fund. Voluntary contributions to your superannuation through salary sacrifice may help boost your nest egg. It may also help you reduce the amount of income tax you pay. Including your employer’s super guarantee contribution, you can make concessional super contributions of up to $25,000 each financial year. The government will tax your salary-sacrificed contributions at 15 per cent, which could be much lower than your marginal tax rate.

It may also be worth looking at how and where your super fund invests your money. Choosing a different investment option or type of risk may help you earn better returns and grow your super.

Super can be a difficult subject to get your head around. It may help to speak to your adviser about how you can boost your super by making voluntary contributions or changing your investment option or level of risk. Your adviser can also take you through the tax implications of voluntarily contributing to your super.

Outside of super, there are options that may help you save for retirement, such as buying an investment bond or investing in a managed fund. You should seek advice before you decide if these options might work for you.

Protecting your income

While building your fund for old age and supporting your dependants, it’s important to make sure you are protected against the risk of losing your current income. A sudden illness or injury can keep you from working and earning the income you need to provide for your dependants and save for your retirement. Taking out income protection insurance is a wise precaution against such illness or injury. If something happens, this policy may provide you a monthly income to support you and your family during your recovery and help you stay on track with your financial commitments.

It is also critical to ensure your dependants are looked after if you die or become seriously ill or disabled. A life insurance policy may pay a specified amount to your beneficiaries when you die, offering a financial buffer even though you’re no longer around to provide for them. You may want to consider adding total and permanent disability cover to your life insurance in case you’re unable to work due to a permanent disability. The policy may provide a lump sum to help you defray the costs of rehabilitation and cover your family’s living expenses if you became totally and permanently disabled.

Adding trauma insurance to your life cover can also protect you and your dependants from financial hardship if you are diagnosed with an illness or injury that is covered by the policy. Trauma cover may provide a lump sum benefit or equivalent instalments to help you pay for medical and living expenses while you recover.

Get professional advice

Making financial decisions for your retirement while supporting or providing for your dependants can be tough. But you don’t have to do it alone. Your adviser can help you assess your current situation and develop a strategy to support your dependants while building a nest egg for a comfortable retirement.

                                    

This editorial and the information within, including tax, does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information please contact our office to opt out. The views expressed in this publication are solely those of the author; they are not reflective or indicative of Licensee’s position, and are not to be attributed to the Licensee. They cannot be reproduced in any form without the express written consent of the author. RI Advice Group Pty Limited ABN 23 001 774 125, AFSL 238429.

[1] Canstar, ‘50% of Gen Y Relying on the Bank of Mum & Dad’. Available at: https://www.canstar.com.au/youth-banking/50-gen-y-relying-bank-mum-dad/.

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Intergenerational Wealth – November 2016 Newsletter

Welcome to the latest edition of our client newsletter.

Our articles cover a range of topics which we hope you will find interesting. We aim to keep you informed of changes as they happen, but we also want to provide ideas to help you live the life you want – now and in the future. In this edition we discuss Is you insurance overdue, and provide you with information on Be a senior entrepreneur on your own terms and Put your backyard to work.

If you would like to discuss any of the issues raised in this newsletter, please don’t hesitate to contact us. In the meantime enjoy the beautiful Spring weather ahead and we hope you enjoy the read.

All the best, Emilio and the team at Intergenerational Wealth.

intergenerational-wealth-november-2016-newsletter

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Intergenerational Wealth – October 2016 Newsletter

Intergenerational Wealth – October 2016 Newsletter

Welcome to the latest edition of our client newsletter, Our articles cover a range of topics which we hope you will find interesting. We aim to keep you informed of changes as they happen, but we also want to provide ideas to help you live the life you want – now and in the future. In this edition we discuss Government pulls back on proposed changes to super and provide you with information on do parents make good employees and is your insurance overdue. If you would like to discuss any of the issues raised in this newsletter, please don’t hesitate to contact us. In the meantime stay safe and we hope you enjoy the read. All the best, Emilio and the team at Intergenerational Wealth

intergenerational-wealth-october-2016-newsletter