It’s a good idea to regularly revisit your personal insurance to make sure it’s giving you the level and type of cover you need at your specific stage of life. Here are some things worth considering to make sure you and your family are protected.

Recent research shows that Australians are largely underinsured, with the median level of life cover meeting only 61% of basic needs.[1] Part of the problem may be that we tend to ‘set and forget’ our insurance – even as our circumstances and responsibilities evolve throughout our lives.

That’s why it’s so important to regularly review your cover to make sure it’s working to protect your lifestyle, loved ones and financial goals. Here’s what to consider as you move through different life stages.

Young and single

While you may not be thinking about life insurance when you’re young and healthy, there are still the risks of injury and illness. What’s more, an extended period without an income can do serious damage to your finances. So, if you’re away from the office for longer than your sick leave allows, you’re going to need a safety net.

Which insurance is for you?

• income protection
• trauma insurance
• TPD (Total and Permanent Disablement) insurance

Young couple

Consider how your lifestyle would change if you were left without an income – for example, you might not be able to save for a house deposit or keep up with your mortgage. And if you were off work for some months, you’d still need to keep up with regular living expenses and loan repayments, ideally without eating into your savings.

Which insurance is for you?

• income protection
• trauma insurance
• TPD
• death or accidental death insurance

Family with kids

Once you have kids relying on you, your financial responsibilities increase. Your income is a vital asset: you need it to manage debt, stay on top of bills, pay your children’s school fees and keep up with other necessary expenses. That’s why it’s worth taking the time to get your insurance sorted – so you can make sure your family’s lifestyle is protected.

Which insurance is for you?

• death or accidental death insurance
• trauma insurance
• income protection
• TPD

Mature and independent

If you’re single and enjoying life, your income is key to the lifestyle you cherish – so it makes sense to protect it with a financial buffer. That way you’ll be covered against accidents or illnesses that could take you out of the workforce for a while. Or, if you’re raising children, you’ll also want a financial safety net that ensures they’ll be taken care of, even if something happens to you.

Which insurance is for you?

• death or accidental death insurance
• trauma insurance
• income protection
• TPD

Retired

With your children grown up and independent, your financial responsibilities have started to ease – but that doesn’t mean you should forget about insurance. Because you’ve spent so many years building up a nest egg for your retirement, it’s important to protect it. A serious medical event could still impact your finances, so get the right cover in place to ensure your ongoing financial wellbeing.

Which insurance is for you?

• death or accidental death insurance
• trauma insurance

Need more guidance?

Remember, your financial adviser can help you make sure you have the right level of insurance cover. They’ll work with you to understand your situation and recommend insurance solutions to better protect your financial future.

General information only: The information in this message is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. It should not be construed as financial, taxation or legal advice. Before acting on the basis of this information, you should consider its appropriateness to your own objectives, financial situation and needs. Individual advice can be provided by contacting our office at admin@completefinsol.com or by phone (08) 9330 8886.

 

[1] Rice Warner: Australia’s relentless underinsurance gap, September 2016.

In an increasingly digital world, the value of money can be a difficult concept for children to grasp. Here are some tips for helping your kids and grandkids become wealthy and wise.

When you were young, do you remember standing next to mum or dad at the corner shop and watching them count out notes and coins to pay for the bread and milk? This was a valuable lesson about the purpose and value of money.

Fast forward to today – few corner shops exist and the days of counting change are almost over. When our children see us pay for something at the shopping centre, it’s likely to be with a piece of plastic – or even by mobile phone.

That’s why it’s now more crucial than ever to consciously teach your children and grandchildren about money: how to spend it and how to save it. Here are five ways to do it.

1 Help them budget and save
Many children believe parents have an endless supply of money – which is why it’s so important to talk to kids about money from an early age. You can start by discussing your own household budget and explaining how you manage costs like weekly grocery shopping and phone bills. If there’s something your child wants, like a new soccer ball or item of clothing, work out a budget so they can save up and buy it. Then reward them by taking them shopping.

2 Give them pocket money
Pocket money is one of the simplest and most powerful ways to teach children the value of cash – which is why it should be earned rather than given freely. Whether it’s payment for completing chores or a reward for behaving well, children will understand very quickly that money has value. You can also separate their pocket money into portions for spending and saving, so they’ll learn how to put money aside for the future.

3 Set up a bank account
By setting up a bank account for your child, you can teach them the basics of everyday banking. It’s worth discussing the statements with them when they arrive – not only so you can explain what each part means, but also so you can check their progress towards their savings goals and praise them as they reach each milestone. You might even open a separate savings account to help making saving fun and easy.

4 Make money fun
Learning about money doesn’t have to be another chore: there are plenty of games you can use to teach kids financial literacy. From a young age, you can play-act spending situations with your kids, like pretending to ‘shop’ with their toys or using food items in the kitchen. As your children get older, these games can become more advanced. In fact, one of the best ways may be through playing Monopoly – which you can use to teach more complex concepts like rent and taxes.

5 Surf the net
The internet is a treasure trove of information on all things financial. Here are some of our favourites:

• MoneySmart – packed with online resources and activities for children of different ages
• CommBank Youth App – teaches real-life money skills to under 14s
• Kidspot – a popular online parenting magazine with games and ideas for finance education
• Bankaroo – a fun virtual bank for kids to learn about saving, spending and budgeting.

Talk to us
To explore the financial strategies available to help your children or grandchildren, speak with your financial adviser.

 

IMPORTANT INFORMATION
This document contains general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a Financial Adviser before making a financial decision. This document has been prepared by Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138, (Financial Wisdom) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Financial Wisdom Advisers are authorised representatives of Financial Wisdom. Information in this document is based on current regulatory requirements and laws, as at 30 November 2017, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Financial Wisdom, its related entities, agents and employees for any loss arising from reliance on this document. This document has been prepared by Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138, (Financial Wisdom) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Mark Giles of Complete Financial Solutions (WA) – Financial Planning (ABN26 050 157 938) is an authorised representative of Financial Wisdom Limited (ABN) 70 006 646 108 AFSL 231138). Information in this document 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 Financial Wisdom, 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. Taxation considerations are general and based on present taxation laws and their interpretation and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.

So, you’re one year out from retirement – congratulations! Here are five steps you can take now to ensure you’re ready.

The last year before retirement can be filled with excitement and expectation, and often a few nerves. While leaving the workforce for good may be a dream come true, it can also feel a little daunting.

According to Professor Lynne Parkinson, gerontologist and Editor-in-Chief of the Australasian Journal on Ageing, “Days are very long when you don’t work, so you don’t want to have nothing to do,” Parkinson says. “A successful retirement usually means you’re busier than ever.”

To start retirement confidently, it’s a good idea to use the final 12 months of work to make a detailed plan of what you might do in retirement – to ensure you stay mentally, physically and socially active on a daily basis.

“If a retiree has interests that can fill their day, that is what matters,” Lynne said. “A happy retirement means staying connected and active by having a plan.” Here’s how to do it in 5 simple steps.

1. Set your retirement goals
While one retiree wants to expand their social circle, another might want to nurture current friendships. Some might want to head overseas while others will be keen to stay as close as possible to their grandchildren.

“Success is about discovering what you want to do as an individual,” Lynne said. “For example, if you’re shy you can focus on an interest close to home such as gardening.”

The bottom line is – don’t make a plan around what others expect, but instead make it absolutely unique to you.

2. Expand your hobbies
What’s the one thing you’ve never had enough time to do but you’ve always been passionate about? It might be a hobby like golf, fishing or cooking – or maybe you want to discover more about your family tree.

Or perhaps, you wish to give back to the community through volunteer work or advocating for an environmental or social cause.

“There is plentiful evidence that if you’re an active, healthy person, then volunteering is very good for you,” Lynne said.

3. Make travel plans
Retirement is a wonderful opportunity to get out and explore the world. By planning ahead, you can look forward to new adventures.

“A lot of people travel once they retire – it’s the Australian dream,” Lynne said.

And the best part is, it doesn’t need to be expensive. There are plenty of options to suit your retirement budget.

“You can buy a little van and take a trip around Australia, if that’s what makes you happy,” Lynne commented.

4. Learn something new
“As you get older you tend to sleep less, so there are more hours to fill,” Lynne observed.

After leaving work, you may find yourself with endless time up your sleeve. So why not make the most of it by gaining new skills and knowledge?

Whether it’s an informal language course or a part-time series leading to a new qualification, there are plenty of choices available at local community colleges or with a private teacher.

5. Make a strong financial plan
Your financial adviser can help prepare you financially for your move to retirement – from understanding your superannuation options to making the most of your Centrelink benefits.

They can also help you work out a retirement budget that enables you to reach your lifestyle goals and enjoy the retirement you deserve. And, with the 12-month countdown to retirement ticking, now is the perfect time to start planning.

 

IMPORTANT INFORMATION
This document contains general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a Financial Adviser before making a financial decision. This document has been prepared by Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138, (Financial Wisdom) a wholly-owned, nonguaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Financial Wisdom Advisers are authorised representatives of Financial Wisdom. Information in this document is based on current regulatory requirements and laws, as at 10 December 2017, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Financial Wisdom, its related entities, agents and employees for any loss arising from reliance on this document.

This document has been prepared by Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138, (Financial Wisdom) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Mark Giles of Complete Financial Solutions (WA) – Financial Planning (ABN26 050 157 938) is an authorised representative of Financial Wisdom Limited (ABN) 70 006 646 108 AFSL 231138). Information in this document 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 Financial Wisdom, 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. Taxation considerations are general and based on present taxation laws and their interpretation and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.

Many aspects of financial success are about putting good habits in place early and avoiding traps that can damage your dollar value. Here are our top five traps to avoid.

1. Make minimum repayments
Whether we’re talking about high-interest debt such as credit cards or longer-term investment debt such as mortgages, making the minimum repayment is good, but not always great. On credit card debt you can end up paying interest of 20% or more, potentially adding thousands of dollars annually to your repayments. Even small increases in your regular mortgage repayments can cut years off the loan and save tens of thousands of dollars in interest along the way.

2. Leak money to businesses
Many businesses are now moving to a subscription or regular repayment model, whether it is for software, TV services or holiday packages, because it seems cheaper and causes less financial pain in the short term. Those businesses become wealthy over time and you do not. Being aware of these regular outgoings, living a leaner lifestyle and plugging these financial leaks can be the equivalent of adding several percentage points to your investment interest.

3. Spend your redraw/equity
Paying extra into your mortgage is an exceptionally good habit. Constantly redrawing the available funds, or borrowing on the equity for non-investment purposes, is not. Keeping all of your savings within your mortgage, or in an offset account, will likely save a considerable amount of interest over time. But be sure to set yourself a budget or savings goal to reap the full benefit of your discipline.

4. Lack familiarity with your finances
We are all guilty at some stage of being less familiar than we should be with the investment mix of our super fund, or the interest rate on our mortgage. But checking in with your finances on a regular basis – monthly, bi-annually or yearly – is a simple way to check things are moving in the right direction and to take action if they are not. This process should always involve all stakeholders, particularly both members of a couple.

5. Prioritise spending rather than investing
All great plans begin with a goal. Wealth planning usually begins with a retirement lifestyle goal. A strategy is then set to achieve that goal – perhaps the diversified investment of $100 every week for the next 20 years – and that becomes the absolute priority. Households often prioritise and plan for holidays, new cars, furniture updates and wide-screen TVs. The fact that a plan is in place means they will likely have those things. But such purchases should only be allowed after the real priority has been taken care of.

 

IMPORTANT INFORMATION
This document contains general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a Financial Adviser before making a financial decision. This document has been prepared by Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138, (Financial Wisdom) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Financial Wisdom Advisers are authorised representatives of Financial Wisdom. Information in this document is based on current regulatory requirements and laws, as at 17 January 2018, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Financial Wisdom, its related entities, agents and employees for any loss arising from reliance on this document. This document has been prepared by Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138, (Financial Wisdom) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Mark Giles of Complete Financial Solutions (WA) – Financial Planning (ABN26 050 157 938) is an authorised representative of Financial Wisdom Limited (ABN) 70 006 646 108 AFSL 231138). Information in this document 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 Financial Wisdom, 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. Taxation considerations are general and based on present taxation laws and their interpretation and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.

If you’re a parent concerned about the spending habits of your son or daughter, you’re not alone. Here are some simple suggestions to help your loved ones take back control and stay out of debt.

When you’re young and living life to the full, it can be tempting to see your credit card as a bottomless well of money. And faced with higher living costs than previous generations – not to mention the lure of online shopping – many young people find themselves spending beyond their means on a regular basis.

This can leave them spiralling into debt before they even hit the age of 30. And once they’re caught in this trap, they might get stuck paying interest upon interest without even chipping away at the original debt.

But with some simple changes in their spending and saving habits, young people can move closer towards a debt-free future. Here are some top tips for the millennials in your life so they can avoid the debt spiral.

Tip 1. Spend wisely
It may sound obvious, but the easiest way to stay out of debt is to avoid spending beyond your means in the first place. For many people, the biggest threat is the impulse purchases they make on their credit cards.

Getting this habit under control can take some discipline. Your child might learn to avoid temptation if they leave their credit cards at home and only spend the cash they have on them when they go out.

Tip 2. Make a repayment plan
The more credit cards your kids have, the more they could end up paying in fees and interest. Instead, they might be better off consolidating their debts onto a single low-interest card so it’s easier to focus on paying it off.

The quickest way for credit card debt to get out of hand is by missing the repayments. That’s why it’s worth encouraging your kids to pay off their balance every month – or at the very least, to make sure they meet the minimum payment amount.

Tip 3. Draw up a budget
Young people (or anyone, really) can also avoid a debt spiral if they look closely at their regular income and expenses then make a realistic budget they can stick to. By adding up their outgoing costs, including things like rent, bills and student fees, they’ll know exactly how much they have left over each week or month to spend on themselves.

Writing down expenses is also a useful way to work out where the money is going – and finding ways to make small cutbacks. For example, buying a $4 takeaway coffee each day might not seem like much of a luxury, but it quickly adds up to more than a $1400-a-year habit.

Tip 4. Put money aside
For some people, the slide into debt can begin when unexpected costs crop up – like car repairs or medical expenses. Even if your child is managing their finances okay on a day-to-day basis, they should also try to have enough money set aside to cope with an emergency.

It’s never too early for your loved ones to put together a regular savings plan, so they’ll have extra funds they can tap into – just in case.

Tip 5. Talk about money issues
It can be tough to get your kids to open up about their financial situation, but it’s even harder watching them slide further into debt. Remember, money matters are often highly personal, so it’s important to approach the debt topic with sensitivity. If your child is having trouble managing their money, the best thing you can do is help them find a solution.

As a parent, your first instinct might be to step in and offer financial support – but this may not always be in your child’s best interests. Instead, you can always ask your financial adviser which course of action to take and their advice on helping your kids pay off their debts, including sticking to a budget and start saving for the future.

 

IMPORTANT INFORMATION
This document contains general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a Financial Adviser before making a financial decision. This document has been prepared by Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138, (Financial Wisdom) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Financial Wisdom advisers are authorised representatives of Financial Wisdom. Information in this document is based on current regulatory requirements and laws, as at 8 February 2017which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Financial Wisdom, its related entities, agents and employees for any loss arising from reliance on this document. Financial Wisdom is registered with the Tax Practitioners Board as a Registered Tax (Financial) Adviser. However your authorised representative may not be a Registered Tax Agent, consequently tax considerations are general in nature and do not include an assessment of your overall tax position. You should seek tax advice from a Registered Tax Agent. This document has been prepared by Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138, (Financial Wisdom) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Mark Giles of Complete Financial Solutions (WA) – Financial Planning (ABN26 050 157 938) is an authorised representative of Financial Wisdom Limited (ABN) 70 006 646 108 AFSL 231138). Information in this document 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 Financial Wisdom, 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. Taxation considerations are general and based on present taxation laws and their interpretation and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.