Wealth Creation Blogs Worth Sharing.

The last few weeks have been extraordinary to say the least. We’re battling a world wide health crisis and we face uncertainty in many aspects of our lives.  It’s true that there are simply some things beyond our control and we will more than likely see many changes to our everyday lives for the remainder of 2020 and beyond. So, what can be done?  On the other side of this, many people will be left with dramatic financial stress, whether it be periods of unemployment, depleted cash reserves or battered superannuation balances.  And for many, timing will be an issue. Those who were weeks ago contemplating retirement may now need to change their plans. And those that are still accumulating for retirement have more than likely just seen their investments and superannuation return to levels of 5 or 6 years ago. Essentially the clock has be wound back in one way or another.  It may well be a good time to take stock and lay some foundations for when thing...

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 ...

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...

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...

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...

Working in the resources industry can be tough.  Remote locations, long hours and time away from family and friends can take its toll. The experience can of course be rewarding, particularly when it comes to income and the ability to plan for the future. However, it’s easy to become distracted especially when it comes to investing. Whether it be buying your first home, or in investment property, starting a share portfolio or investing your super, we are all at the mercy of the markets.  Property markets  down south are enduring a bit of a downturn at the moment, interest rates are low so money in the bank isn’t earning much and share markets around the world have been up and down. The fact is, markets are unpredictable. Just look at commodities.  Some of the biggest companies in the world have trouble predicting coal, iron ore and oil prices. Trying to predict the ups and downs is often impossible. The key is to remove emotion from your decisi...

Most of us are starting to think about getting back into work mode – or perhaps you are back at work already. Don’t worry, this is not going to be one of those “let’s look back over the last 12 months” chats where we remember which celebrities are no longer or who won major sporting events. What should you expect from the next 12 months? Well, nobody knows.  However, there is one certainty.  Markets will go up and markets will go down.   Consider this.  The Australian equities market is still approximately 18% below where it was 11 years ago so there’s plenty of upside just to get back to where it was.  In terms of your superannuation, you need to consider your time horizon, i.e . how long will it be invested for before you can access it. For a 35-year-old, they face another 30 years before they can access their super at age 65. Not only that, once they do retire at 65, they’re not going to take their super and spend it in one go....