Wealth Creation Blogs Worth Sharing.

Ask most 30-year old’s who their financial planner is and the typical response might be ‘huh?’ After all, financial advisers are for older people with plenty of money to invest, aren’t they? Well, yes, people nearing or in retirement will benefit from sound advice. But so will younger people. With the benefit of having time on their side, and with some help from an adviser, a 30-something can easily establish a wealth creation plan that can deliver a big payoff in the future. Harness compound interest It’s been called the most powerful force in the universe, and compounding returns – earning interest on your interest – can deliver dramatic results. Imagine that, at age 30, you commence a simple savings plan. You contribute $2,000 each year to an investment that delivers an after-tax return of 6% pa. After 30 years you will have contributed a total of $60,000, but your investment will be worth $158,116. The magic of compound interest will have delivered you an effortles...

Being retrenched from your job can be hard to accept. It is the sudden shock that catches most people but try not to take it personally. Redundancy is usually not about your personal performance; it’s the performance of your employer’s business, the industry sector in which you work, or even the global economy. Dealing with the key considerations below can help you take back control of your life and career. Take control Redundancy payment :  Genuine redundancy payments are given special tax treatment, including a tax-free amount related to years of service. Your lump sum payment might be your last pay packet for a while, so draw up a budget. This will help you identify areas where you can economise until you find a new job. Your financial adviser can help you work out the best use for any lump sum you receive. Mortgage :  If you have a home loan, contact your lender immediately. You may be able to adjust payments while you are out of the workforce. Centrelink :...

If you’re a contractor or maybe even a consultant to the resource industry, then you’re part of the “gig economy”. Perhaps, gone is the job for life, or even a job in the normal, employed meaning of the word. For you, work consists of short-term contracts or a series of one-off jobs. “Gigs” as the band down at the pub might put it. For some, gig work is a liberating choice that allows you to work your own hours, holiday when you like and work wherever you wish. For others it’s a necessity in a weak job market where under-employment and age discrimination is rife, and more companies choose to outsource specific tasks. A study found that 4.1 million Australians had freelanced in 2014/15, and it’s a trend more likely to grow than diminish. So if you’re a “gig worker” what can you do to make the most of your situation? It’s business If you’re happy picking up the odd jobs that fall into your lap for a little extra money, that’s fine. But if you are looking to earn a ...

I had the good fortune to share the mic with Sean Lavin and his Beneath the Surface podcast this week. Beneath the Surface: a podcast created to capture the stories of the people who make up the   global mining and related industries. Andrew O’Brien joins me for episode 6 of Beneath the Surface.  Andrew is a very unique character in the mining game - he’s a geologist, holds a site senior executive (SSE) ticket and is a certified financial advisor.  In this episode, Andrew and I talk all things finance in the mining industry. We discuss general financial education, tackle stereotypes and even dive head-first into the recent Royal Commission into misconduct in the banking, superannuation and financial services industry.   On top of all this, Andrew shares the biggest financial mistake that he sees miners make, and provides some fantastic advice to avoid the trap. I really enjoyed speaking to Andrew and am grateful for the knowledge and insights he share...

A common misconception about income protection insurance is that it’s only for high-earners, but this isn’t the case. In reality, no one can afford to be without this safety net, regardless of the amount of income you earn.   The only things certain in life are death and taxes—or so the famous saying goes. Thankfully, income protection insurance can add a positive guarantee to that list by safeguarding your quality of life, should an unexpected setback strike.  You can’t predict the future, but you can plan for it Nobody wants to consider an accident or illness impacting their health suddenly, but it’s a very real possibility. As well as changing your lifestyle, an unexpected illness could mean you need to take extended leave from work. It’s estimated that over 400,000 Australians suffer a heart attack sometime in their lives. i Then there’s over 800,000 people of working age with disability, who were not working in 2015 alone. ii  It’s tempting to think t...

Workers Compensation will cover you for some things, but have you also considered Income Protection to ensure you are covered when you need it most?   Whether you're a white-collar worker hammering away at your keyboard from 9 to 5, or a tradie getting your hands dirty day-in and day-out, you run the risk of getting sick or injured at work.  That's why every Australian workplace has health and safety obligations: they must provide safe work premises, assess risk and have workers compensation insurance.  What workers compensation covers. As outlined on Fair Work Ombudsman , workers compensation may be paid out if you are injured at work or if you become sick due to your work.  Payments could cover your wages while you can't work, your medical expenses, rehabilitation costs or a lump sum payment if you become permanently disabled or pass away.  It's also important to note that in order to receive workers compensation you must prove that your in...