WEALTH PROTECTION

You never know what life is going to throw at you but one thing you do want to know is that you’ve got things covered. Because no two people have exactly the same insurance needs, we can recommend a range of Risk Insurance products that can be tailored to suit your personal situation.

Financial protection – Give yourself and your family peace of mind by choosing an insurance that pays a lump sum if you’re unable to ever work again due to illness, injury or death

Insurance that protects your income – Income Protection works by paying you a monthly benefit while you are too sick or injured to go to work. This is usually called Temporary Salary Continuance when offered within superannuation.

SUPERANNUATION

Retirement may seem like a long way off but putting money into super now is still a tax effective way to invest your money. That’s because some types of contributions you make, and the investment earnings on those contributions, are taxed at concessional rates.

Not only is super a tax effective way of saving and investing, but you can benefit from the effects of compounding returns.

Common questions to consider

Some questions you may wish to consider include:

  • When should I start contributing?
  • Should I salary sacrifice?
  • Are there benefits if I contribute for my spouse?
  • Are there benefits in consolidating my super funds?
  • How can I check whether I have any lost super?
  • When should I think about topping up my superannuation?
  • Can I take advantage of the Government’s co-contributions?

How we can help

We can:

  • Review the performance of your current super fund in relation to your goals including how close you are to retirement.
  • Make recommendations about your super arrangements, based on your goals and circumstances.
  • Recommend alternative fund providers – superannuation products.
  • Review any insurance opportunities including buying insurance through your superannuation fund.

Debt Management

Debt is not a dirty word! It can actually help you – if it’s the right kind of debt.

Things to consider

On one hand, there is good debt where you borrow to invest and your investment grows in value or earns money. Good debt actually works for you. On the other hand there is bad debt where you borrow for a car, boat or use a credit card to buy items that depreciate in value and don’t earn you any money. You loose twice here – the capital value and the interest you’ve paid.

That’s why before you start accumulating assets, it’s important to check what you owe – how much, in what form and at what interest rate. Then you can see whether you can arrange your debt more efficiently.

How we can help

We can:

  • Review and analyse your current spending patterns.
  • Review your financial commitments and debts.
  • Identify your opportunities to save money.
  • Construct a budget with you.
  • Help you consolidate your debt effectively.
  • Recommend savings or investment products to achieve your goals.
  • Review, recommend and arrange appropriate insurance.
  • Look at ways of turning bad debt into good debt.

Redundancy Advice

Where there were once jobs for life, it’s now a fact that the average person will face redundancy 3 times during their career. Along with looking for a new job or perhaps starting your own business or deciding to retire early, what do you do with the lump sum payout you receive?

Common questions to consider

Some questions you may wish to consider include:

  • What are the elements of my redundancy payment?
  • What is considered an ETP?
  • What tax concession do you receive on your ETP?
  • How is the ETP paid?
  • How do I make sure I get the most out of my payment?
  • What do I do with my super?
  • I’ve decided I want to roll over my ETP. What do I do?
  • Am I entitled to Centrelink benefits?
  • What if I want to use redundancy as an opportunity to retire early?
  • Do I need to review my insurance arrangements?
  • How we can help

We can:

  • Review your payout calculation.
  • Identify the tax concession components and the tax-free or tax reduced amounts – the Eligible Termination Payment components. Review your goals and identify options for how to use the money.
  • Calculate how much you can rollover into superannuation to minimise the total tax you pay.
  • Review any insurance you have through superannuation and advise if you can continue insurance cover even though you’ve left the fund.
  • Review any new insurance requirements that are necessary.
  • Estimate how long you can live on your payout based on current expenditure and plans.
  • Establish a budget to live on your payout and any other income.
  • Develop options to achieve a life change in the timeframe you want.

Lending Solutions

Attaining wealth through home and investment property ownership has become a dominant theme in Australian society.

Debt, once frowned upon by many, has been embraced by a new generation as a means to real home ownership and or wealth creation.

The structure and management of such debt is an imperative for the average Australian given today’s record levels of consumer lending. At Explore Wealth Management we can assist in finding the right home loan for you whilst ensuring the structure best suits your financial goals.

How we can help

  • Assist in finding the home loan with banking solutions that best suits your financial goals and objectives
  • Calculate all fees and charges applicable on the home loan and or property purchase
  • Work out your borrowing capacity, based on current earnings and your individual financial position.
  • Complete all appropriate paperwork, and collect documentation for submission to the bank in order to obtain the loan approval.
  • Arrange for advice on life cover and income protection to ensure stability of your financial position in the event of death or disability.
  • Explore Wealth Management offer you the service of an Accredited Mortgage Consultant who, with access to a wide variety of products, is able to present recommendations based on your personal circumstances.

Borrowing to Invest

For many, once the family home is paid off – or a reasonable amount of it – they start to look at other ways of building wealth. Often their first thought is an investment property.

Common questions to consider

Some questions you may wish to consider include:

  • Is it better to put all my spare money into paying off my mortgage or should I consider other investments?
  • Am I better to invest my extra money in property or shares?
  • Are there tax advantages to owning an investment property?
  • Do I have to pay tax on an investment property?
  • Are there other ways I can invest in property, apart from directly buying a property myself?
  • Am I better off investing directly in property or managed funds?

How we can help

We can:

  • Identify options to fund an investment property.
  • Look at realistic amounts you can borrow based on your current financial commitments and plans.
  • Set a budget to cover your mortgage commitments.
  • Review, recommend and organise appropriate insurance.
  • Recommend if you need to create or review your Will.

Retirement Planning

Here we look at how you can maximise your income in retirement, whether you’re:

  • a long way off retirement
  • close to retirement; or
  • already retired.

Retirement still more than 10 years away

Retirement can seem irrelevant when you’re in your 30s or 40s. There are so many other things to do with your money – going overseas, getting a house, raising a family, or just having fun.

However, according to research by the Investment and Financial Services Association (IFSA)1, the Age Pension won’t be nearly enough to fund the lifestyle we’d like when we’re no longer working. So the best thing to do is to start saving now.

Common questions to consider

Some questions you may wish to consider:

  • How much do I need to retire on?
  • What is the best way of funding my retirement?
  • Is retirement too far off to start worrying now?
  • What should my employer be contributing towards my superannuation?
  • Is the Super Guarantee contribution enough to fund my retirement?
  • What is salary sacrifice?
  • Why are women recommended to make higher extra super contributions than men?
  • How do I know which fund to put my superannuation in?
  • My super is sitting in a few different funds. Is it worth moving it?

How we can help

We can:

  • Review your financial situation.
  • Help set short and long term financial goals.
  • Look at how much money you will need in retirement based on the lifestyle you outline.
  • Identify your income and commitments.
  • Work with you to develop a new budget and investment plan to achieve your short-term goals and recommend strategies to accumulate the amount you need to meet your retirement plans.
  • Review and recommend appropriate insurance.
  • Recommend if you need to create or update a will.

Retiring within the next 5 – 10 years

The combined effect of earlier retirement and living longer means that many Australians will spend more than a quarter of their life in retirement. While this sounds like good news, it does emphasise the importance of planning carefully – and well in advance – for your retirement.

Common questions to consider

Some questions you may wish to consider include:

  • How much do I need to retire on?
  • When can I access my super?
  • What are my options when I retire?
  • Will I pay tax on my super if I take a lump sum?
  • Is there any benefit in taking my superannuation as an income stream?
  • Am I eligible for the Age Pension?
  • How does the Income Test affect eligibility for the Age Pension?
  • How does the Assets Test affect eligibility for the Age Pension?
  • What is deeming?
  • Why are income streams treated differently?
  • What are the different types of income streams?

How we can help

We can:

  • Establish when you want to retire and look at how much you need, or work out when you can retire based on your plans.
  • Establish a plan to accumulate enough retirement savings within your timeframe.
  • Review and recommend retirement income products so you can manage your money in retirement and make sure you can maximise any entitlements to social security benefits.
  • Review and update your insurance arrangements to make sure you aren’t under insured.
  • Advise whether you need to talk to a solicitor to create a comprehensive will or update your current will.

Already retired

If you’ve already reached retirement age, you may feel you’re not yet ready to give up work altogether. If you’re eligible for the Age Pension, the government offers incentives for working people to defer claiming it.

On the other hand, if you’ve independently funded your retirement, you may benefit from keeping track of, or restructuring, your finances so you maximise any government entitlement.

Common questions to consider

Some questions you may wish to consider include:

  • I’ve already retired. Isn’t it just about living off what I’ve managed to save now?
  • I have been retired for two years. Isn’t it too late to change my financial arrangements?
  • What is the Pension Bonus Scheme?
  • What are the eligibility requirements for the Pension Bonus Scheme?
  • How much is the Pension Bonus Scheme and when is it paid?
  • Apart from social security benefits, are we eligible for anything else now we’ve retired?
  • Now we’ve retired should we move house?

How we can help

We can:

  • Periodically review your investments and retirement income.
  • Provide regular updates about social security changes that might affect you.
Debt is not a dirty word! It can actually help you – if it’s the right kind of debt.