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...

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 ...

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...

According to the ATO, there are almost twice as many active life insurance policies than there are working-aged Australians, but that does not mean Australians are adequately insured.  We look at how many Australians have life insurance, the reasons for under-insurance and explore what adequate insurance looks like.  At a glance There are almost 22 million active life insurance policies in Australia, a recent federal parliamentary report found . Y et there are just 12.5 million working-aged Australians (aged 15-64), according to figures published by the Australian Institute of Health and Welfare. Based on the numbers, it would seem Australians were more than adequately insured.  Only half of Australians hold life insurance However, as part of commissioned research in 2015, respondents told TAL that despite the significant number of active life insurance policies, only 52% of them hold some form of life insurance. The study also found only 30%-37% o...

Even if you exercise a few times a week, sleep well, and eat healthily, it doesn’t mean you don’t need a health check. Despite our best intentions, things don’t always go to plan – like an unexpected health issue or emergency.   Whether you’re single or have a family, if you want to live a long and healthy life, the important thing to take care of is you. If something were to happen, it should be dealt with quickly and properly to avoid unnecessary extended time off which could affect your personal and professional life, and overall quality of life.  If you’re in your 30s or 40s, some health checks to consider include blood pressure, cholesterol, testicle checks (men), breast self-checks (women), Type 2 Diabetes Risk Assessment, mammogram (women) and Cardiovascular Risk Assessment.  If you’re in your 50s or 60s, you’ll need to do the same checks as in your 40s, plus a bowel cancer screening, prostate cancer screening (men), Osteoporosis Risk Assessment, as we...

Odds are it’s been a while since you looked over your health insurance cover. It’s understandable - there are over 40,000 products in the market and premiums regularly go up. It can seem confusing and expensive, but there are still plenty of reasons to review it more regularly. First, reviewing your cover ensures you’re paying for the right things. Like your finances, your health changes as life changes and your health insurance should reflect it. If you review your health cover every year, you’ll have a greater understanding of its benefits, as well as making sure it’s keeping up with your changing needs. In addition to ensuring you’ve got the right cover for your situation, reviewing your cover may also save you money by making sure you’re only paying for what’s important to you. And it’s a valuable exercise to review your Health and suite of Life Insurance Products all together. If you do decide to switch, find an option that gives you confidence that you’re covered ...

One of the biggest misconceptions around life insurance is that it's solely designed to provide a payout if you die. But life insurance is relevant at all stages of life.   From your fancy-free 20s through your working life and into retirement, you will have different goals and priorities worth protecting.  Here we look at the types of cover you should consider at each age and stage.  20-30 years.   Partying, travelling, studying, working – for many, the first decade of adulthood means plenty of fun and not a whole lot of responsibility. As a result, you're more likely to test your limits on the sports field, on the slopes, or in the sea.  At this age it may not seem like you've got a lot to lose, but what about the loans you've taken out? That credit card bill you've racked up? The career you've been building? The mortgage you've just taken out with your fiancé?  Life Insurance protects the future you're building, your partner and your fa...