Summer Savings l For An Endless Summer

2020, the year that was, then wasn’t, then was, then wasn’t again.  It is certainly a year to remember and to be forgotten.  Physically, emotionally, mentally and financially very testing for different reasons.  Bring on 2021!  We’ve pulled together some Summer Savings for an endless summer you really deserve!

One of the main things that I’ve been focusing on with my clients during the pandemic was budgeting.  Things became a lot tighter, and people had to really focus on what to spend and where.  Obviously, with the restrictions, it was a lot easier in some cases of where to cut expenses, but I don’t know about you, but we seemed to be getting packages delivered every few days!

BUDGETING

The important thing now that the restrictions are easing, and we return to some kind of (new) normal, is that we don’t go spending crazy!  It’s especially harder with Christmas around the corner.  We have to be mindful that we don’t undo any of the budgeting skills we’ve learnt by overspending, and accumulating a pile of credit card debt to start 2021.

According to the RBA in December 2018, spending on credit boomed to $30M.  If you calculate that on average, it is estimated that 27% of people will still be paying off this debt two years later, the interest accrued on this alone, is in excess of $100M.  This is why you can’t get too far ahead of yourselves, as you don’t want to ruin your summer, and the start of the year.

CREDIT CARDS

For those with credit cards, there is always the option of looking at those companies that let you roll over debt on to a 0% interest repayment for a period of time.  What you can do then, is every repayment you make, you are paying off 100% principal.  For example:

  • EDWINA had a $2,000 debt that was rolled over with a 0% interest rate for 18 months
  • Budgeting, she could pay $111 per month, and ensure that that debt was cleared entirely in that interest free period.

As a comparison;

  • PHOEBE had a $2,000 debt with a 17% interest rate
  • Budgeting, she could pay the minimum repayments on the debt and it would take 17 years to fully pay off that card.

This path is not trouble free though, because in some cases, any spending that occurs on these cards get placed behind the 0% interest rollover, meaning that you will not be paying off the debt that has high interested accrued on it.

SAVE SAVE SAVE!

A fun way to get the kids in to saving I’ve found useful is the Coke Bottle challenge.  Basically this is where you collect your $2 and keep them in a used (and cleaned) Coke bottle.  People have done the testing;

  • 600mL bottle you can get around $1,000 saved
  • 1.25L and 2L varieties, you can save $1,900 and almost $3,000 respectively

You can have them do it individually, or as a family and put it towards a holiday now that the pandemic is basically over!

Another one I like is where you start out by saving $1 in week one, $2 in week two, $3 in week three for example, for each week of the year.  By doing this, you will accumulate $1,378 over the year.  A fun way to do it is have a tally board off and cross off each donation.  That way you can spread out the weeks that you have to pay more in, as your budget dictates, especially as where you have November/December payments where money may be tighter due to upcoming Christmas.

UPDATE YOUR BENEFICIARIES!

Lastly, I’ve had a few cases recently where new clients have had no or invalid binding death nominations on their life insurances and superannuation funds.

Superannuation is a non-estate asset, so unless you have a beneficiary that is your Estate, your Will will not deal with your superannuation benefits.  This causes issues at time of claim, which is already a tough enough time for your loved ones, without delays and trouble with accessing funds at a time where it is urgent.  Take 5 minutes and check to make sure that you;

  • Have a beneficiary listed +
  • Make sure that it is a valid beneficiary

Give us a call to discuss whether or not the beneficiary is valid or not because your nominated superfund will not tell you if you have listed an invalid beneficiary.  Naming the incorrect person can be very costly!  Our team of experts can help you ensure you’re not making unknown costly decisions, get in touch now and we can help you with your Summer Savings for a stress-free endless summer you wont forget!

Have a great Christmas and a Happy New Year, and we’ll see you in a hopefully brighter and better 2021.

 

Steve Reynolds – Certified Financial Planner

BComm, Dip.FS(FP)

Spring Cleaning Your Finances

SPRING CLEANING YOUR FINANCES

Who doesn’t love spring? The days are longer, the weather is getting warmer, and flowers and trees are starting to blossom.  And, it is often a time to clean those things we don’t do regularly.  I am going to suggest it is also a great time to spring clean your finances!  Here’s how:

  • Take stock of your current position by completing a budget. There are many free apps available that link to your bank account and do all the hard work for you!  They automatically categorise your spending into different segments.  If you notice an error, it is easy to reassign the transaction to the correct category and your app will remember the next time.
  • De-clutter financial paperwork around the house. You only need to keep tax related documents for seven years.  You could even go one step further and save the remaining required documents electronically.
  • Review your life insurance policies! How much cover do you need?  Do you have enough?  Do you still have insurance cover inside super?  Many people inadvertently lost their insurances held inside inactive super funds or funds with smaller balances when some sweeping rules were introduced during the past couple of years.
  • Consolidate bank accounts. If you have multiple accounts, is there a specific purpose? If there is no valid reason, simply your affairs and potentially save on bank fees in the process.
  • Review current debts. Have you approached your lender for a better rate? If you have credit card debt, can you switch to an interest free one until you pay it off?

Canny Group have an army of financial advisers and we are more than happy to help you give your finances a spring clean!  All you need to do it get in touch.

 

Samantha Butcher – Financial Adviser

BComs Dip FS

Financial Health + Wellness – Does It Matter?

Many of us are aware of the importance of improving our physical and emotional health. We have heard it many times, that regular exercise and eating balanced and healthy meals can result in long term health benefits. But did you know there is a direct correlation between our physical well-being and financial health?  

What is financial health and why is it important to a happy and successful life?  

Financial health is a term used to describe the state and stability of an individual’s personal finances and financial affairsGood financial health is about taking control of your finances, having the financial freedom to make choices now, and in the future, and being ready to cope with unforeseen changes to your financial circumstances, such as job loss. It is important to review your financial health as poor financial health can lead to financial stress. Stress in itself is not necessarily harmful but when we experience prolonged financial stress, it can affect our physical and mental health.  Financial stress can create emotional exhaustion, anxiety, insomnia, depression, and can affect our relationships with family and friends.  

Understanding your financial situation is the first step to improving your financial health. Below are 6 strategies to improve your financial health. 

1. KNOW YOUR BUDGET

If you don’t already have one, create a budget to help you plan your expenses and identify areas where you can cut back on. For example, can you cancel memberships you no longer use? Work out what are your needs and wants and avoid buying under stress or impulse. Stick to your budget even though your income increases. Do an annual health check on utilities, insurance, phone bank charges, and mortgage to ensure you are not paying for expenses any more than you need to. 

2. SET SAVINGS GOALS

Once you have worked out your budget, work out a savings plan. Perhaps you are saving for a house deposit, new investment, or for a holiday. Saving for something takes time and its important to be realistic about how long it will take. But having a savings plan and sticking to it will help you reach your savings goal sooner. It will also give you a sense of achievement and satisfaction that you have worked hard for something without needing to borrow funds. Some people found setting up automatic transfers to a separate savings account which they could not easily access was helpful. 

3. HAVE AN EMERGENCY FUND

Do you have an emergency fund for that rainy day that you have set aside to access in the case of unexpected costs, such as a loss of employment, major repairs, or medical emergency? Generally, it is recommended to set aside 3 to 6 months’ worth of expenses for your emergency fund.  

4. PRIORITISE HIGHER INTEREST DEBT

 Credit cards and personal loans often have higher interest rates that are not tax-deductible and therefore considered bad debt. Focus on paying off these debts first or if possible, consider consolidating the debt to reduce what you pay in fees and interest. 

5. PAY MORE THAN THE MINIMUM

Your home loan is also another bad debt. Consider reviewing your home loan to ensure that you are getting the best deal on the market and look at whether you can increase your repayments on a weekly or fortnightly basis. By increasing your minimum repayments and making home loan repayments weekly or fortnightly rather than monthly you can significantly reduce the interest you are paying in the long run and repay your debt faster. 

6. SEEKING HELP

If you are feeling overwhelmed, remember it’s ok to ask for support. You may want to seek professional help from a Financial Planner or avail yourself of free financial counselling offered by community organisations, community legal centres, and some government agencies. 

 

Helen Yau – Manager + Financial Planner

CA, BCom, Dip Fp, SSA

Financial Mistakes To Avoid During A Crisis

Although none of us could anticipate the world going into lock down due to a pandemic, I cannot help but wonder how many of us were financially prepared for a crisis.  Prepared or not, I have witnessed some mistakes that people are making as a result of Covid-19.

1. MAKING EMOTIONAL FINANCIAL/INVESTMENT DECISIONS.

When the share market suffers sharp falls, it is a natural reaction for many to panic, or at least lose confidence in the market.  However, history shows that after every financial crisis, the market experiences a recovery.  It is important that you regularly review your investment strategy and stick with it for the long term, rather than make rash decisions as a result of market fluctuations.  When you sell assets during a downturn, you are essentially crystallising that loss.

2. ACCESSING YOUR SUPER EARLY DUE TO COVID-19

This measure was introduced to provide relief for those experiencing genuine hardship as a result of Coronavirus, but have you considered the long-term effects?  Depending on your age and current super balance, accessing the maximum $20,000 under the temporary Covid-19 early access to super could end up resulting in a loss of up to $100,000 by the time you retire.  Also, if the withdrawal results in your fund being left with $6,000 or less, this may result in a loss of insurance cover also.

3. NOT HAVING AN EMERGENCY FUND

Everyone will have a different amount they are comfortable with having access to any point in time for those unplanned expenses.  Ideally, you would have enough to cover between three and six months of non-discretionary expenses.

4. NOT HAVING A BUDGET

Having control over your expenses and having an understanding of where your money is going, will hold you in good stead at all times, but particularly during a financial crisis.  Knowing where you could save money during difficult times can help reduce the possibility of increasing household debt.

5. NOT HAVING A WILL

Over half of Australians do not have a will.  Passing away intestate creates havoc for your loved ones.  Establishing a will is a simple process and help to ensure your assets are distributed according to your wishes.

Our team at Canny Group are here to help you and support you with all financial aspects of your life.  Nobody was able to predict what a year 2020 would be, but what we are able to do now (if you haven’t already) is plan ahead and do it the right way.  Get in touch with our team to find out how we can help you set and achieve your financial goals.

 

Samantha Butcher – Financial Adviser

BComs Dip FS

Staying Motivated With Your Money

When it comes to our finances, it’s easy to lose sight of our goals and become demotivated when unexpected events derail our plans.  It’s especially difficult during times like these where there’s likely more uncertainty and concern for our financial futures than ever before. In this article, we’ll touch on four ways to stay motivated with your finances in these trying times.

1. REVISIT YOUR FINANCIAL GOALS

In order to improve any area of our life (including our finances), we need to have a strong ‘why’ associated with our goals to stay motivated.  When setting financial goals, it’s important that we understand and define the reason behind the goal and how it will positively influence our life.

For example, will becoming debt free mean that we’ll have more surplus income to save and invest for our future?  Does contributing more to superannuation now mean that we’ll be able to afford a more comfortable lifestyle in retirement?  It’s important to focus on these reasons and remind ourselves of why we set our financial goals in the first place, if we hope to stay motivated, especially during difficult times.

2. BREAK DOWN YOUR GOALS

We often overestimate what we can achieve in one year and underestimate what we can achieve in five years.  We set audacious, sometimes unrealistic goals that cause us to become demotivated when we fall short of achieving them.  We feel excited and motivated when we set our financial goals, only to lose sight of them when unexpected life events occur.  If you feel that the financial goals you have set for yourself no longer seem achievable, a useful strategy to consider is to break these goals down into smaller, more achievable goals.

For example, you may have set a goal to pay off $5,000 of credit card debt this year.  If this goal now seems unachievable, set a new goal to pay off $2,500 this year and contact your lender to assess your options and see if you can negotiate a lower interest rate.  By breaking down your goals in this way, you’ll continue to make progress towards your larger goals while accomplishing important milestones to help you stay motivated.

3. REMAIN OPTIMISTIC

When our financial plans don’t work out as we hoped they would, we can become demotivated and feel hopeless about our financial situation.  It’s easy to stay positive when things are going well, but it becomes more difficult to maintain the same outlook in the face of adversity.  That’s why it’s especially important to take the time to identify reasons to remain positive and optimistic during tough times.

Start by acknowledging all of the financial goals you’ve already accomplished.  It’s important to reflect on what you’ve already achieved and be proud of your accomplishments.  It’s also important to identify things in our life that we’re grateful for.  This doesn’t have to be related to our finances, but it’s essential for our motivation to find reasons to remain optimistic.  This will allow us to shift our focus away from the negative and towards the positive, providing us with a more optimistic outlook on our financial future as we strive to maintain motivation towards our goals.

4. SEEK ASSISTANCE

When our motivation is dwindling and we’re finding it difficult to remain positive about our financial situation, often the best thing we can do is to seek help.  You don’t have to go through tough times alone.  Financial support is available to help keep you on track during times like these.  Our team of Financial Advisers at Canny Group are here to help with any questions you may have about your financial situation, Centrelink entitlements or retirement planning.  You may also wish to speak to a Financial Information Service Officer at Services Australia for free confidential, financial information.

If you need any help or financial advice, please get in touch with us and we would be happy to assist you!

 

Chris Graham – Client Services

Super Women

RETIREMENT!  The very thought of it appeals to many hardworking persons.  They think about a time for doing the things that bring them pleasure, recreation and fun.  Sadly, many, in particularly women, will not have sufficient superannuation savings to fund the lifestyle they are hoping for in retirement.

On average, women retire with 39% less super than men and surprisingly an estimated 40% of older single retired women live in poverty in retirement.  This group of single retired women are the fastest growing cohort of homeless people in Australia.  What are the reasons for this?  Australia’s gender pay gap is currently 13.9% so on average, women earn less than men and since compulsory employer super is based on wages, women will have less in super in retirement.  Women are also more likely to take time off work for maternity leave and to care for their families.  As a result, a lower superannuation balance may mean a reliance on receiving a government pension.  For some, this may limit their independence and affect their quality of life.

Alan Lakein, a well-known author on personal time management said, “Planning is bringing the future into the present, so you can do something about it now.”

What little steps can you take now to prepare for the kind of retirement you want?

  1. CONSOLIDATION… Do you have multiple super funds?  If so, consolidating your super will likely reduce the management fees you are paying to different funds.
  2. INVESTMENT CHOICE IN SUPER… Most super funds allow you to choose from a range of investment options and asset classes.  These may include, growth, balanced, conservative and cash.  Do you know what investment options are available to you and have you reviewed how your super is invested?  Your investment choice will affect the earnings in your super and ultimately will impact the balance you have in super in retirement.
  3. INSURANCE IN SUPER… Most super funds offer life, total permanent and disability and income protection insurance for their members.  Premiums are deducted from your super to pay for your insurance cover.  Have you reviewed your level of insurance cover?  Do you know if you are over or under insured?  Do you know how much you are paying in insurance premiums for your cover?
  4. CONTRIBUTIONS… You can boost your super and get the power of compounding to work for you by making additional contributions.  If you make personal [after tax] contributions, you may be eligible for the super co-contribution and the low-income super tax offset of up to $500 each.  You can also salary sacrifice part of your salary and have it paid to your super fund.  By salary sacrificing to super, you may be able to reduce your tax because you are only paying 15% tax on your contributions you make rather than your marginal tax rate.  Salary sacrifice to super is considered employer contributions so its important to ensure that you don’t exceed the annual contribution cap of $25,000 for concessional contributions.  From 1 July 2019, if your super balance is less than $500,000 and your employer contributions have not exceeded $25,000 for the year, you are able to carry forward the unused part of the contribution cap for up to 5 years.  This may be a valuable opportunity for those who suddenly have a lump sum assessable income resulting from a disposal of a property.

If you would like to know more or come in for a free 30 minute appointment to speak to one of our team on how you can make the most of your superannuation, get in touch here!

 

Helen Yau – Manager + Financial Planner

CA, BCom, Dip Fp, SSA

Christmas + Gift Giving

Christmas is a weird and wonderful time of the year, filled with family, friends, good times, presents, and that confusion of what day of the week is it, and how many days of leave are left.  Not to mention the confusion of still writing 2019 down as a date, three weeks in to the new year.

Christmas can also be very stressful when it comes to the awful topic of money, and spending money.  For those that are running a tight ship, it’s a stressful time, because they might not be able to do everything they can or want to.  Then there are those people that won’t be able to achieve what they can or want to.

The age-old adage of Charity begins at home doesn’t hold true as much as it may have in the past.  There are a lot of people doing it tough, and they need a hand through times such as this.  There are many great ways in which this can be done, whether it’s buying extra presents to donate under wishing trees, making up hampers as a work place, and donating to families in need, or simply through a cash donation to one of the many charities that help families have a great Christmas as well.  I know this is something we do at the Canny Group, and something that I do personally as well.

One hangover that you don’t want to have to deal with after Christmas, is the debt that we tend to rack up from overspending.  It’s not just credit cards, it is zip pay and afterpay as well.  As of 30 June, there was almost a billion outstanding in afterpay, and 60% of that was attributed to people aged between 18-34, which is staggering.

In December last year, $30 million was borrowed in Credit Cards.  Want to hear something scary?  If you owe $2,000 on a credit card and make the minimum repayments, it takes 17 years to clear the debt!  I guess the moral of the story is to not overspend or start planning earlier.  I know that in my family, on one side we do Kris Kringle, that way everyone gets one good present, rather than lots of presents that end up being forgotten or put away to never see the light of day again. Try not to let this time of the year overwhelm you and have loads of fun!

See you in 2020!

 

Steve Reynolds – Certified Financial Planner

BComm, Dip.FS[FP]

Financial Plans Are COOL

IT IS PRETTY COOL TO HAVE AN ACTUAL FINANCIAL PLAN AND NOT JUST ‘ONE IN YOUR HEAD’

Whilst seeing a client, our discussion often turns to managing personal cash flow.  Some people are happy just living from pay-to-pay and don’t give much consideration to plans for the medium or long term.  Others haven’t really given the idea any thought but think it will all be “OK”.  However, more and more people are thinking about this, but don’t know where to start.

Financial management and retirement planning help people determine their personal saving targets, what they can afford to spend, and how best to arrange their financial affairs.  Retirement planning can quantify how much you need to have saved to retire.  When you are years away from retirement and your personal finances are ever-changing, this can seem like a challenging concept, but it is important to remember that a financial plan is a process, not a product.  It is something that requires discipline to start and at least annual maintenance and review.

A financial plan should include:

  • INVESTMENT PLANNING;
  • INSURANCE + RISK MANAGEMENT;
  • FINANCIAL MANAGEMENT;
  • RETIREMENT PLANNING;
  • TAX PLANNING; +
  • ESTATE PLANNING + LEGAL ASPECTS

Most people insure against at least some of the risks of financial loss due to death, medical issues and damage to property.  You could look at a well-structured and maintained financial plan as insuring against financial difficulty later in life.

Estate planning may also be an overlooked financial planning exercise.  The thing about estate planning is that it should go beyond simply preparing a will just to check off a box and say that it is done.  In a financial planning context, it is important to consider things like who your beneficiaries will be, joint asset ownership, income tax liabilities.  In the same way a married couple may plan for retirement together, it is important to consider what might happen if one spouse or the other died prematurely.  This may be as much a financial planning exercise as an estate law one.

Our financial planners – Samantha Butcher and Helen Yau can get you started on this journey and will assist and advise along the way.  Why don’t you call and make an appointment today, it’s that easy!

 

Amanda Wilkens – Director

B.Comm CPA

Advantages + Disadvantages of Investment Properties

Advantages + Disadvantages of Investment Properties

Purchasing an investment property can be a very exciting time and can help build your wealth over time.  However, before rushing out to buy an investment property, it is important you consider the pros and cons.

ADVANTAGES

  • Provision of rental income to help top of other income
  • Help reduce income tax if the property is negatively geared i.e. the rental income is less than the interest on the loan
  • Potential capital growth in value of the property
  • Can be less volatile than shares or other investment options

DISADVANTAGES

  • Lack of investment diversification
  • A lot of money is tied up in one asset that can take time to sell
  • Buying and selling costs can be high
  • Tenancy risk. There is a chance your investment property will have periods of time where it is not tenanted.
  • You are responsible for all ongoing maintenance
  • Capital gains tax will be payable if the property is sold at a profit
  • Interest rate risk – a rise in rates will result in higher loan repayments and a potential reduction in net income
  • A substantial amount of capital is required from the outset

As always, we encourage you to seek professional advice to ensure the decision is right for you.

 

Samantha Butcher – Financial Adviser

BComs Dip FS

Superannuation – Is It Still Worthwhile?

The constant changes to superannuation can be frustrating to many as they find it difficult to maintain their confidence in the superannuation industry.  Many have chosen to put the bare minimum into superannuation with their preference to build for their nest egg outside superannuation where they have full control and access without impact from the changes to superannuation.  However, is superannuation still a worthwhile consideration?

Currently, compared to other tax structures available, such as companies, trusts and partnerships, and personal tax, superannuation is still one the best tax structures available for many and should not be discounted.  All income in superannuation is taxed at a fixed rate of 15% and capital gains can be taxed as low as 10%.  If you commence receiving a pension for superannuation then all the income and capitals gains will be taxed at 0% up to the $1.6 million cap.

So are you taking full advantage of the changes to superannuation available to you?  Due to the many changes, it can be easy to overlook what you may be eligible for and what may impact you. Below are some things that may be relevant to you:

  • Tax Deduction for personal contributions – You may claim a tax deduction for personal contributions up to the concessional contributions cap of $25,000. Note, if you aged between 65-75 years you will need to meet a work test in order to claim a tax deduction.
  • Super Co-contribution – you may be eligible for a co-contribution of $500 if your total income is less than $37,697 and you make personal contribution of $1000 to your super. If your income exceeds $37,697 but is below $52,697, you will receive a reduced co-contribution.
  • Low Income Superannuation Tax Offset – a tax offset up a maximum of $500 is available to individuals with an adjusted taxable income of $37,000 or less. As long as your fund has received and reported a concessional contribution and you have lodged your tax return, the ATO will pay this directly to your superannuation account.
  • Low Income Spouse Tax Offset – a tax offset up to a maximum of $540 is available to individuals who make personal contributions to super on behalf of their spouse and their spouse’s income (including fringe benefits and reportable employer super contributions) is $37,000 or less. Where the spouse’s income is $40,000 or less but exceeds $37,000, a reduced tax offset is available.
  • Downsizer contributions – if you are aged 65 years or over and have sold your personal home, you may be eligible to make a downsizer contribution to your superannuation of up to $300,000 from the proceeds of selling your home.
  • Rolling 5 year concessional contributions – If you have a super balance of less than $500,000, you can make additional catch-up concessional contributions if you have not reached your concessional contributions cap in previous years. This applies from 1 July 2018.
  • Division 293 tax – high income earners pay an additional tax if their income exceeds $250,000. Income for the purposes of Division 293 tax includes taxable income, reportable fringe benefits, net financial investment/rental property loss, net amount of which family trust distribution tax has been paid, super lump taxed elements with zero tax rate.

If you have the long term goal to build for wealth and your retirement, superannuation should be considered as part of your financial plan.

If you would like further information on how to do this or would like to discuss a self-managed superannuation fund, please contact our team.

 

Helen Yau – Accountant Manager & Financial Planner

CA, BComm, Dip FP, SSA

Love + Insurance… Looking After The Ones You Love

When you think of love, it’s not common to think straight away of your insurance!  You think of family, friends, and good times.  However, should something happen to you, it is important that your loved ones be protected and looked out for.

In Australia, there is a massive underinsurance issue. Approximately 95% of Australians are underinsured.  Only a third of the working population (12.5M) have income protection, which means that there are around 8.3M workers that are not adequately insured if they were unable to work due to injury or illness.  Employees have sick leave, but self employed people don’t get that luxury meaning if they are sick and can’t work, they don’t get any income.  A survey by finder.com.au was undertaken and it’s results showed that 55% of the population couldn’t survive not working after a period of 3 months.  This is an average, because older people that are more financially sound have greater scope, whereas the younger population have lesser scope to cover that period of time.

If you think as an example that the average default superannuation cover provided by industry funds lies around the $200,000 mark, and the average sum insured deemed relevant by a 2015 Rice Warner study was $680,000, you can see that there is a massive shortfall.  In a family with a mortgage and children involved, only holding $200,000 of cover would leave them in a detrimental hole.

There are some myths around having insurance, and that I feel is partly the reason why people tend to avoid it:

1. Insurance policies are extremely costly – What people don’t understand is that more often than not, knowing someone that has insurance and is paying $x in premiums, has a completely different set of circumstances to you.  Whether this relates to age, sex, smoking status, occupation, income, or health situation.  All of these factors impact on what premiums will come out to be.  On top of this, people don’t realise that they necessarily have to fund the premiums from their personal cash flow, there are other alternatives to explore.

2. Insurance companies never pay out claims – This is a huge fallacy when it comes to insurance.  You really only ever hear about the non paid claims on A Current Affair or the ABC, not the hundreds of millions and even billions in insurance claims that companies pay out each and every year.  Each company releases these stats on a periodic basis and it is easily attainable.  The main reason that cover may not be paid out is due to non-disclosure.

3. It’ll never happen to me – Around 20% of Australian families will be hit by an unforeseen event that will leave them unable to work, whether it is the death of a parent, injury, accident or illness.  Everybody knows someone that has been affected by cancer, or had a friend, family member or colleague that has known someone that has tragically passed away, leaving behind a trail of destruction for their surviving family members.

Ensure that you look after your loved ones and review your insurances.  Whilst there is a strong case of under insurance in Australia, there are people that are over insured, and paying more than they need to.

Please get in touch with our team to review your situation, there is no cost associated with doing so, and we may be even able to save some money, or re-structure your situation.

 

Steve Reynolds – Certified Financial Planner

BComm, Dip.FS(FP)