Wealth Creation Blogs Worth Sharing.

With costs of living on the rise and wage growth stagnating, it’s not hard to see why Australian households are increasingly feeling the pinch.    In fact, a recent Ubank survey revealed 59% of Aussies admit their current financial situation causes them stress or loss of sleep.    Even in the oft-labelled ‘Lucky Country’, this is a worrying statistic.   Financial stress can be constant and at its worst crippling, but with a bit of teamwork, solid communication, and a dash of discipline you can get your finances under control.  Communication Often what aggravates our financial stress isn’t just the lack of funds but the way it affects us interpersonally. In this sense, families, couples and friends all need to work out healthy ways to communicate about cash. People have varying attitudes towards their finances and sometimes differences in approach are hard to reconcile. A good approach, as in most things in life, is to communicate openly and ho...

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...

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 ...

There are a number of factors that determine the cost of an insurance policy. A cheap life insurance or income protection insurance policy doesn’t necessarily mean it’s an inferior one, and by the same token, the most expensive policy may not be the best to suit your needs.   The price of an insurance policy is generally a reflection of how the underwriter views the risk of you claiming on that policy. As each insurer will attribute their own measure of risk to each element of your lifestyle, personal habits and work situation, your overall risk profile can fluctuate between one insurer and another.  Assessing risk.  One insurer can decide you are a greater risk than others, which directly impacts the cost of your policy.  The underwriter determines your overall risk by examining a number of factors, such as your age, gender, medical history, current health status, whether you are a smoker or non-smoker, your occupation, and your recreational activities....

You've paid off your mortgage!  Now what? Paid off your mortgage?  Woo-hoo! Break out the champagne and celebrate the freedom you must now feel! But once the dizzy excitement has passed, what will you do next? Discharge or not? The first question is should you discharge your mortgage? You might be able to keep the loan facility open, with a zero balance, and retain the option to redraw on the loan account if you wish. This can be a handy way of meeting unforeseen expenses in the future, or opening up investment opportunities. If you decide to close your loan account check first if there are any costs involved. For example, you may lose an associated credit card. Or you may be up for substantial break fees if you’ve paid off a fixed rate mortgage early. One of the traditional delights of closing out a mortgage has been receiving your title deed. However, with many states moving to digital land titles settlement processes this will become an increasingly rare pleasure. If you...

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...

Last week I read an article titled “Why Aussies aren’t rushing to fill the thousands of vacant mining jobs.”   See the below article extract: “As the limping industry picks up again, and global companies including BHP, Rio Tinto and Fortescue start construction on new mines, a lot of Aussies who made those exact companies millions of dollars aren’t as ready to jump on a plane. Five years ago, Australia was in the middle of one of its biggest mining booms in history. Thousands of people became fly-in, fly-out (FIFO) workers, spending four weeks battling through 12- hour days and then jetting back home for a few days to see their families — before doing it all over again. The salary was great, often cracking more than $150,000, but the sacrifice was even greater. The FIFO profession earnt itself such a bad reputation that a number of Aussies who worked in the first boom have said there’s no way they’d go back again.” Obviously, this is not a new school of ...

The harsh reality of working in Australia’s resource industry is that it can be highly volatile. One minute you’re enjoying working in your dream job, the next minute you’re left scratching your head as to why you’re no longer required.  I’ve spoken with many people in our industry who have been impacted by this personally and whilst the majority saw it coming, it’s still a difficult situation to deal with. So, what can be done?   There are perhaps some things you can do in relation to your superannuation and insurance.  With any change in circumstance whether it be employment, starting a family, buying a house, you should review your superannuation and insurance needs.  For example, you’ve may have just left the mining industry, or have taken on a new role in the industry or with your current employer, it’s imperative that you review your personal insurances.  Chances are your salary has changed and from th...

I was in the field recently as SSE for a small exploration program. Our morning toolbox talk and risk assessment served as a reminder of just how many hazards we face when working in the resources industry.   It really can be dangerous at times. Of course, we put systems and controls in place to mitigate these risks, but the reality is, some risk still remains. Protect your most important asset – your income.   Your ability to earn an income is your most important asset because your lifestyle depends on it. However, if you had to stop work tomorrow because of an accident or illness, would you be able to continue to pay your bills and afford the lifestyle you currently enjoy? What are the chances?   More than 60% of Australians will be disabled for more than one month during their working life and more than 25% will be disabled for more than 3 months.   Income Protection cover available through Hindsight Wealth. Income ...

In the 2018/2019 budget (released in May this year) the government talks about tailoring insurance arrangements.  Basically, every time a person starts a job and opts to use the default, associated industry superannuation fund, they will likely have a group insurance policy (life insurance and/or tpd and/or income protection) automatically opened.  What this means is that for someone that has multiple jobs over their career they can end up with multiple insurance policies and paying multiple premiums from their super funds. So, the governments idea to hold fewer automatic insurance policies, will allow Australians to grow their balances faster and protect low balances from being eroded entirely. Make sense?  For the most part it seems like a good idea. A 20 something single worker with no debt and no family may not need $500,000 in default life insurance cover. It is an unnecessary cost to their superannuation fund. Some super funds have started to...