8am-6pm

Monday to
Friday

L1, 6/8 Eddy St

Moonee Ponds
VIC, 3039

Office Ph:

8am-6pm

Monday to
Friday

L1, 6/8 Eddy St

Moonee Ponds
VIC, 3039

Office Ph:

Superannuation

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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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Intergenerational Wealth – October 2018 Market Wrap

October 2018 Market Wrap

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.

 Wall Street bulls keep charging

  • Global shares rose 0.8% on a hedged basis with the US market driving the biggest share of returns once again. The US market continues to deliver strong earnings supported by tax cuts.
  • Strong US share market performance remained even as the trade war ramped up with President Trump broadening his imposition of new tariffs, albeit initially at below 25% on China imports.
  • The slowing pace of Chinese credit growth, US dollar value strengthening, tighter US monetary policy and ongoing trade tensions continued to weigh on emerging markets which returned -0.6% in the month.
  • Australian growth and labour force data remained strong and the ASX 300 returned -1.2%. Resources had a particularly good run in September although Financials were lower, likely related to the continued fall-out from the Banking Royal Commission.
  • The US Federal Reserve continued to respond to US macroeconomic strength with a steady program of quarterly rate hikes. The range is now 2% to 2.25% with markets expecting another rise of 25 basis points in December.
  • In China, GDP growth was steady. Policymakers are playing a difficult balancing act given the large build up in debt and are now modestly erring on the side of growth rather than restraint.

Major asset class performance (%)

Asset classes 1 month 12 months 5 years (p.a.)
Australian Shares -1.2 14.0 8.2
Global Shares (hedged) 0.8 12.9 12.6
Global Shares (unhedged) 0.6 20.8 15.3
Global Emerging Markets (unhedged) -0.6 7.6 9.1
Global Small Companies (unhedged) -1.5 19.5 15.5
Global Listed Property -2.2 2.2 5.4
Cash 0.2 1.9 2.2
Australian Fixed Income -0.4 3.7 4.3
International Fixed Income -0.4 0.9 4.6
Source: JP Morgan & ANZ Wealth, 30 September 2018.Indices: Australian Shares – S&P / ASX 300 Accumulation, Global Shares (hedged/unhedged) – MSCI World ex Australia Net, Global Emerging Markets – MSCI Emerging Markets Net in AUD (unhedged), Global Small Companies (unhedged) – MSCI World Small Cap ex Australia, Global Listed Property – FTSE EPRA/NAREIT Developed Rental Index ex Australia (hedged), Cash – Bloomberg Bank Bill, Australian Fixed Income – Bloomberg AusBond Composite 0+ Yr Index, International Fixed Income – Barclays Global Aggregate Bond Index (hedged).

Please note: Past performance is not indicative of future performance.

Currency

Exchange rates At close on 30/09 % change

1 month

% change 12 months
AUD/USD 0.72 0.5 -7.8
AUD/euro 0.62 0.4 -6.1
AUD/yen 82.1 2.9 -6.8
Trade weighted index 62.2 0.0 -6.0
Source: Bloomberg & ANZ Wealth, 30 September 2018. All foreign exchange rates are rounded to two decimal places where appropriate.

Please note: Past performance is not indicative of future performance.

All the best,

Emilio and the team at Intergenerational Wealth

Disclaimer: This information is current as at 30 September 2018 but is subject to change. This information is provided by OnePath Funds Management Limited (OFM) ABN 21 003 002 800 AFSL 238342. OFM is a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522 but is not a bank. The information is general in nature and does not take into account a potential investor’s personal needs, objectives and financial circumstances. This information is not to be construed as investment or financial product advice, and should not be relied upon as a substitute for professional advice. Before acting on this information, potential investors should consider the appropriateness of the information, having regard to their objectives, financial situation and needs. Potential investors should read the relevant Product Disclosure Statement (PDS) available at onepath.com.au and consider whether the particular product is right for them. Although all the information in this document is obtained in good faith from sources believed to be reliable no representation of warranty, express or implied is made as to its accuracy or completeness. Whilst care has been taken in preparing this material, ANZ and its related entities do not warrant or represent that the information, opinions or conclusions contained in this document (“information”) are accurate. To the extent permitted by law, ANZ and its related entities do not accept any liability from the use of the information. Past performance is not indicative of future performance. The value of investments may rise or fall and the repayment of subscribed capital is not guaranteed. RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429 is a wholly owned subsidiary of IOOF Ltd ABN 21 087 649 625 AFS Licence No. 230522.

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Managing the cost of insurance

Managing the cost of insurance

Life insurance policies don’t have to cost an arm and a leg. Here are tips for making them more affordable.

Cost is a common reason people cite for not having adequate life insurance cover or for cancelling their insurance policies. But you can manage your insurance premiums to ensure you and your loved ones are sufficiently covered.

Choosing a payment structure

Choosing stepped premiums in the first few years of your life insurance policy may help you keep the cost of cover low in the beginning. Stepped premiums allow you to start paying your insurance at a lower rate, which then rises as you grow older. Your insurer calculates your premiums on each policy anniversary based on your age.

As your capacity to pay improves, you may consider shifting to level premiums. The level payment structure may offer a good long-term option because the insurer calculates premiums based on your age when you first take out the level premiums.

Getting cover through super

Another way to manage insurance affordability is to take out cover through your superannuation fund. This can lower the cost of some insurance policies as premiums may be paid using concessionally taxed contributions to your super. The premium rates may also be cheaper because super funds bulk buy insurance policies.

However, super funds may give you limited cover – both in terms of the types of policy and the level of coverage they provide.  Seek guidance from your adviser on how to ensure you have enough cover.

Keeping income protection cover affordable

When it comes to income protection insurance, there are a few ways you can manage the cost of your policy, including choosing a longer waiting period. The longer you wait before receiving benefits after being unable to work due to illness or injury, the lower your premiums.

You can also choose between indemnity and agreed value policies for your income protection insurance. Under an indemnity policy, your insurer bases the monthly benefit you would be paid on your income at the time you make a claim. For an agreed value policy, the benefit is based on your income when you apply for coverage. Opting for indemnity cover may help you keep the costs down because premiums are generally lower than for agreed value cover. But indemnity policies may vary among providers so it’s important to speak to your adviser about which cover suits you.

Income protection premiums are usually tax deductible if you fund your cover outside super, helping make this policy affordable. If your policy provides both income and capital benefits, only the premiums attributable to the income benefit are deductible.  Premiums paid through your super are generally tax deductible to the super fund.

Seeking help

Clearly, there’s a lot to consider. Seeking advice from a professional financial adviser could help you review your options and manage the costs of your life insurance without sacrificing the adequacy of your cover. Together, you could develop strategies to make insurance affordable while ensuring you and your loved ones have sufficient protection.

 

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 – September 2018 Market Wrap

September 2018 Market Wrap

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.

Wall Street leads shares higher

  • Global shares rose 1.5% and 4.1% in hedged and unhedged terms respectively. Developed markets remained solid, while emerging market shares remain under downward pressure.
  • Global share returns were pushed higher by strong returns to US shares. The S&P 500 rose 3% supported by strong earnings.
  • Meanwhile major bourses in Europe fell as political risks in Italy and trade war concerns dominated sentiment.
  • Trade tensions and the strong US dollar continued to weigh on emerging markets. The MSCI Emerging Markets index was flat.
  • Despite the leadership spill locally, Australian shares performed strongly with the market supported by a solid reporting season and signs that the RBA will be on hold for some time.
  • US Fed Chairman Powell indicated that considerable uncertainty is attached to the underlying economic drivers. The Fed will watch the data flow and are not necessarily set on a pre-determined tightening path. Markets expect another rate rise in September.
  • In Europe, the Bank of England voted unanimously to raise rates by 25 basis points to 0.75% as employment is at a record high and real wages are picking up.

Major asset class performance (%)

Asset classes 1 month 12 months 5 years (p.a.)
Australian Shares 1.4 15.5 8.9
Global Shares (hedged) 1.5 14.7 13.3
Global Shares (unhedged) 4.1 24.3 15.1
Global Emerging Markets (unhedged) 0.0 8.9 9.5
Global Small Companies (unhedged) 5.1 27.7 16.3
Global Listed Property 1.8 7.5 11.0
Cash 0.2 1.9 2.2
Australian Fixed Income 0.8 3.8 4.5
International Fixed Income 0.3 0.8 4.9
Source: JP Morgan & ANZ Wealth, 31 August 2018.Indices: Australian Shares – S&P / ASX 300 Accumulation, Global Shares (hedged/unhedged) – MSCI World ex Australia Net, Global Emerging Markets – MSCI Emerging Markets Net in AUD (unhedged), Global Small Companies (unhedged) – MSCI World Small Cap ex Australia, Global Listed Property – FTSE EPRA/NAREIT Developed Rental Index ex Australia (hedged), Cash – Bloomberg Bank Bill, Australian Fixed Income – Bloomberg AusBond Composite 0+ Yr Index, International Fixed Income – Barclays Global Aggregate Bond Index (hedged).

Please note: Past performance is not indicative of future performance.

Currency

Exchange rates At close on 31/8 % change

1 month

% change 12 months
AUD/USD 0.72 -3.2 -9.5
AUD/euro 0.62 -2.4 -7.1
AUD/yen 79.8 -3.9 -8.7
Trade weighted index 62.2 -2.1 -6.2
Source: Bloomberg & ANZ Wealth, 31 August 2018. All foreign exchange rates are rounded to two decimal places where appropriate.

Please note: Past performance is not indicative of future performance.

All the best,

Emilio and the team at Intergenerational Wealth

Disclaimer:

This information is current as at 31 August 2018 but is subject to change. This information is issued by OnePath Funds Management Limited (OFM) ABN 21 003 002 800 AFSL 238342. OFM is a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522 but is not a bank. The information is general in nature and does not take into account a potential investor’s personal needs, objectives and financial circumstances. This information is not to be construed as investment or financial product advice, and should not be relied upon as a substitute for professional advice. Before acting on this information, potential investors should consider the appropriateness of the information, having regard to their objectives, financial situation and needs. Potential investors should read the relevant Product Disclosure Statement (PDS) available at onepath.com.au and consider whether the particular product is right for them. Although all the information in this document is obtained in good faith from sources believed to be reliable no representation of warranty, express or implied is made as to its accuracy or completeness. Whilst care has been taken in preparing this material, ANZ and its related entities do not warrant or represent that the information, opinions or conclusions contained in this document (“information”) are accurate. To the extent permitted by law, ANZ and its related entities do not accept any liability from the use of the information. Past performance is not indicative of future performance. The value of investments may rise or fall and the repayment of subscribed capital is not guaranteed. RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429.

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Intergenerational Wealth – June 2017 Newsletter

June 2017

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 watch out for tax scams and provide you with information on it pays to contribute to your partner’s super and the door is closing on super’s current caps.

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 warm and we hope you enjoy the read.

Intergenerational Wealth – June 2017 Newsletter

All the best,
Emilio and the team at Intergenerational Wealth

 

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Intergenerational Wealth – May 2017 Newsletter

May 2017

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 Safeguard your ability to pay off your home loan and provide you
with information on Five tax deductions to know about, and Five, four, three… it’s not too
late to get more in super.

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 warm and we hope you enjoy the read.

Intergenerational Wealth – May 2017 Newsletter

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

 

Tanya Harber No Comments

Intergenerational Wealth – April 2017 Newsletter

April 2017

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 The future of money and provide you with information on Beware SMSF property spruikers and A digital life after death.

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 Autumn weather ahead and we hope you enjoy the read.

Intergenerational Wealth – April 2017 Newsletter

All the best,

Emilio and the team at Intergenerational Wealth

Tanya Harber No Comments

Intergenerational Wealth – March 2017 Newsletter

March 2017

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 Estate planning and why you need a super plan and provide you with information on Give your career a health check and The door is closing on super’s current caps.

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 warm weather and we hope you enjoy the read.

Intergenerational Wealth – March 2017 Newsletter

All the best,

Emilio and the team at Intergenerational Wealth

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