Dare to discover a brighter financial future
With life being so busy it can be very easy to ignore your long-term financial plans, but we can’t stress enough, planning conversations today should be done early to create room for your future dreams.
So how can you make the most out of your personal or business situation?
‘Dare to dream’ and plan for the future – here are a few things to consider.
Women
Australian women are currently retiring with an average superannuation balance less than half of men’s. It’s often only the issue of inequality of pay between men and women that is in the spotlight, but the long-term effects of a pay divide translate into lower savings when it comes time for women to retire, and the results can be devastating.
We should pledge for parity and focus squarely on closing the gap between men and women, and consider our retirement and superannuation savings to be a priority. A low superannuation balance and reliance on the aged pension could see many older women in Australia living in poverty and we would like to see a change with women taking control of their finances.
Seeking expert financial advice now to plan on boosting your funds could make an enormous difference to the lives of many Australian women.
Lower Interest Rates
With interest rates expected to stay low for some time, having an appropriate plan in place as early as possible is a good idea for all pre-retirees.
This allows you to concentrate on the things you can control – such as increasing your contributions to super, paying off your mortgage or reducing your spending – all of which can help make a big difference to your income and expenses in retirement.
You may also need to adjust how you view risk, through increasing your allocation to growth assets, in order to give yourself a chance to generate enough income for a comfortable retirement. As always though, it must fit within your comfort zone.
Taking Care of Business
When you consider the pressures and demands of running a successful small business today, it’s no surprise that many become overwhelmed when they spendwhat little spare time they have looking at the financial planning side of their business.
Looking down the barrel of 2017, it really is an excellent time to consider working with a financial adviser to review your business’ financial plan. Here are two important areas to get you started:
‘Key Person Insurance’- many businesses have an owner or key employee on whom the ongoing success of the business strongly depends. Key person insurance is similar to personal life insurance, the only difference being that it is the business that takes out the policy and pays the premiums, not the individual.
If those within your business are covered by this policy and one dies or becomes disabled unexpectedly, your business will receive a lump sum payment that it can use as working capital, to help find a replacement or pay down any debts.
‘Business expense insurance’ This helps to protect your business by ensuring it receives an ongoing benefit for the period that you, or your key employees, may not be working, giving them time to focus on getting better and returning to work when they are ready.
The money received from business expenses insurance can be used to cover the ongoing people costs associated with running your business, like salaries and overtime. It can also be used to pay for regular operating expenses like rent, utilities, and your business lease agreement.
Whether it is personal or business, Liberum Financial can help design a financial plan that suits your circumstances. Contact us today on 3233 6470.
The information provided is general in nature and does not take into account your particular investment objectives, financial situation or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Liberum Financial and its advisers are Authorised Representatives of Fortnum Private Wealth Pty Ltd ABN 54 139 889 535 AFSL 357306 Australia Credit Licence No 357306 trading as Fortnum Financial Advisers.
The information (including taxation) contained within this document does not consider your personal circumstances and is of a general nature only – unless otherwise stated. Liberum Financial strongly suggests that you should not act on it without first obtaining professional advice specific to your circumstances.
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