Super in your 30s. It’s important to squeeze it in.

If you are in your thirties, chances are life revolves around children and a mortgage. As much as we love our kids, the fact is they cost quite a lot. As for the mortgage, this is the age during which repayments are generally at their highest, relative to income. And on top of that, one parent is often not working, or working only part time. Even if children aren’t a factor, career building is paramount during this decade.

Are you really expected to think about super at a time like this? Well, yes, there are a few things you need to pay attention to.

Super in your 20s. Boring? Doesn’t have to be!

Superannuation is for the oldies, right? In some ways that’s true, but even in your twenties, there are good reasons to take a bit more interest in your super. The average 25-year-old has around $10,000 in super, but the decisions you make now, even with relatively small sums of money, could earn you hundreds of thousands of extra dollars over your working life.

Insurance priorities for all ages – Life Stage: Early Career

Reviewing Your Financial Plan

Are your family, friends or adult children part of the large percentage of Australians who are under-insured? Here’s a simple guide to stage-of-life insurance priorities.

 

Research indicates that the majority of Australians are under-insured. Rice Warner’s recent report,1  for instance, said the median level of life insurance for working-age Australians covered only 42% of the financial needs (to maintain their standard of living) of remaining family members.

The first call for insurance advice should be a financial adviser. Here are the areas they are likely to cover.

This is a wonderfully busy and social period, but if you’re unable to work for two or three months, perhaps due to an injury on the ski slopes or an illness, how will you pay the rent or save for a house deposit?

Income protection is essential, plus a choice of TPD or Trauma insurance (explained below) is also recommended. A financial adviser can help figure out exact levels of cover required.

Income protection – covers up to 75% of current income, subject to a waiting period. Premiums may be tax deductible.

Total & permanent disability (TPD) – if you are permanently disabled and cannot work again the insurer pays a pre-agreed lump sum.

Trauma insurance – if you are diagnosed with a particular life-threatening illness covered by the policy, the insurer pays a lump sum.

NEXT WEEK: Family with young children

1 http://ricewarner.com/rice-warners-latest-underinsurance-research-report/


Disclaimer: Information in this article is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document.

This document contains general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision.

0 comments on “Tips for Life | Week 1”

Tips for Life | Week 1

Investments

We are delighted to introduce Tips for Life – Insight Today, Your Dream Lifestyle Tomorrow.

This week we are focussing on those of you Under 40.

Here are some life strategy tips:

  • Increase your personal super contributions
  • Seek a government co-contribution
  • Check your LISC eligibility
  • Sacrifice a little salary
  • Gather all of your investment and work-related expenses
  • Plan the use of your tax refund

So we’ve covered the financial planning strategies to focus on but what about non-financial ‘Tips for Life for Under 40s’?  We would love to know what yours are!

Next week will be looking at tips for those of you that are 40 to 49.

0 comments on “It’s what you know…”

It’s what you know…

A lifetime of sensible investment experience could mean you have the opportunity to change a younger person’s life for the better.

Helping Young PeopleAccording to Ph.D. research by clinical psychologist Dr Meg Jay, the person you develop into during your 20s is the one you will be the rest of your life. Jay’s 2012 book ‘The Defining Decade’ says that in terms of good and bad financial traits, the habits you set in your 20s will build an everlasting foundation.

Helping to positively influence a younger person financially could be the gift that keeps on giving, as long as the advice you are offering is welcome and correct. We can’t help with making sure the advice is welcome, but we can suggest a few useful topics.

What not to do  –  Investment advice and strategies are always best left to the professionals. The performance of asset classes and industries changes as time goes on. New regulations, tax laws and other legislation can drastically alter the performance of a financial instrument.

Be penny-wise from day one  –  Teaching younger people to be wise with their pay packets is a good start. Time is on their side in terms of compound interest. If they can truly understand this then they will benefit throughout their lives.

Don’t leak dollars  –  In ages past the big expenses were the ones to be wary of, but these days marketers and retailers are far more savvy at removing money from our accounts in a much less noticeable fashion. Teach younger generations to budget, and to look out for their funds being eaten away by subscription providers such as digital music services, pay TV providers, mobile phone deals and pay-as-you-go software services etc.

Use technology  –  Younger people live in a world saturated by technology and this can be a good thing. A seemingly endless list of apps is available to help save, invest, seek loans, figure out retirement savings plans, and calculate superannuation payments – all of which may assist in making sound financial decisions.

Gender specifics  –  It is always worth having a conversation with young women around the gender-specific challenges they could face when it comes to superannuation, and discussing how they might prepare financially, well in advance, for periods out of the workforce raising the family.

Do something  –  Empower young people to make choices and start something for their financial futures. Doing something is infinitely better than doing nothing. Even if they make mistakes, the lessons they learn early on will offer powerful insight and knowledge later in their lives.

Speak to us for more information or if you would like to understand more.

DISCLAIMERS:

General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.

Insight Financial Partners Pty Ltd ABN: 73 101 279 663 is an Authorised Representative of Count. ‘Count’ and Count Wealth Accountants® are trading names of Count Financial Limited ABN 19 001 974 625 Australian Financial Services Licence Holder Number 227232 a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Professional Member of the Financial Planning Association of Australia Limited. Head Office: Commonwealth Bank Place, 11 Harbour Street, Sydney 2000 | 1300 650 432  www.count.com.au.
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