Wealth Creation Blogs Worth Sharing.

In other posts I have hit on the importance of getting the most out of your superannuation fund returns. So how do you do it? There’s absolutely no shortage of managed funds, investment vehicles and investment styles available to superannuation investors in Australia. The choice can be quite overwhelming. For me it’s all about risk V's return.  You can chase speculative investments in the hope you can increase your returns. You may get lucky even if only in the short term. Reality is, speculating is not investing. It’s gambling with your capital and your future.  On the flipside, you can be completely risk adverse and invest all your superannuation in a cash account. Sure, it will always be there, but it won’t go up.  The spending power of your money will be eroded by inflation. There is also a huge opportunity cost of missing out on gains that can be safely achieved elsewhere.   So, we look at investment styl...

For those of you working in the resources industry, you would no doubt understand the potential downside is the punishing rosters and long periods away from home that can take a toll on family and personal life. Sure, the money is good for the most part, but it comes at a cost. Unfortunately, some marriages suffer irreparably and many find themselves having to “start over” after relationship breakdown or divorce.  It can be an extremely difficult time and apart from the emotional strain, there’s the stress of having to rebuild financially.  You may find yourself in a situation where you’re left with minimal assets and essentially must start over. In this situation, it’s critical to make sure you have your superannuation structured and invested correctly. If you’ve come through a divorce with your superannuation intact, it may end up being your biggest asset. You really need to get it working for you and you need to make sure your income is adequately insured....

It is a good question.  Perhaps you think about it every now and then?  Sit down with a qualified Financial Adviser and discuss your  current lifestyle needs and wants and maybe how you see your "retirement" lifestyle playing out. Even the smallest changes you make to your super now, will have an impact on your super nest egg.

I have a few posts and highlighted how superannuation is very much a long term investment. And that it is important to have your superannuation invested appropriate to your retirement “time horizon” and risk profile.  Understanding the numbers is important.   For instance, if you are just starting out in your career and have a relatively modest super balance of $20,000, even a solid annual return of 10% will only yield in increase of $2,000 in your balance.  By contrast, if you have a higher balance of say $100,000 then the same percentage return yields a $10,000 increase.   Obviously this isn’t a complicated concept.   However, it highlights the opportunity and importance of managing your super correctly from the very start. Get your super performing early so that the balance increases and percentage gains translate into strong dollar gains for you. Ok.   So you’ve decided you want to do something about it.   What’s the pro...

Since 1 July 2005, most employers have been required to give their employees a choice of fund for their superannuation guarantee contributions. Only if the employee fails to choose or chooses a fund which cannot be used by the employer, will the employer be able to choose the fund. You are stuck no more.    Since “Super Choice” was introduced, there is now a great deal of competition in the superannuation market given that employees can choose where to put their money. A competitive market is good for consumers with an almost limitless choice of highly developed options for employees to choose from. So, what does this mean for employers?   Many employers have identified Super Choice as an opportunity to offer their employees a more individualised option rather than then simply nominating an off the shelf industry fund. At Hindsight Wealth we offer this service to employers.   We come in, meet with each of your staff members privately, create a...

We’re now two months post June tax time and before we know it, we will be seeing Christmas decorations and gifts filling  retail stores as December and summer creep closer! One thing we can be sure of is that as our lives get busier  and busier, we tend to put some things on the back burner  that may not seem important to us at the time.  Unfortunately, superannuation and insurance too often seem to fall victim to this train of thought.  Perhaps you might still be in that “review” state of mind having just prepared all your tax documents?   Take the time to have a quick look at your latest super statement you would have received for tax purposes this year.   Did it perform well? Do you understand the insurances you’re paying for?  The last 12 months has been very good for local equity markets.   If your super fund hasn’t performed well, then it may be time to consider if the investment options you’ve chosen are suitable...