You want your children to have the best education possible, yet school and university expenses and fees can be costly. The money you spend on your kids' education could be one of your family's biggest expenses.

Starting to save early will help your children have a high-quality learning experience.

Work out how much money you need

How much money you need will depend on whether you want your children to go to public or private schools and whether they plan to go to university or college.

For example, if you send two kids to a private high school which costs an average of $20,000 a year for each child, by the time they both graduate you will have spent $240,000 on school fees. And that's not counting extras such as school uniforms, trips and sporting clinics.

Public schools are much cheaper but there are still extra tuition fees, textbooks, uniforms and school camps to pay for.

The cost of going to university or college can also vary. If your child is eligible for HECS-HELP (a government loan available to tertiary students) they can choose to defer payment of university fees. Even if they don't pay fees upfront, your child will have to pay for books and materials, union and sports fees and transport costs. Contact the university or college and find out how much each of these things will cost each semester, so you have an idea of how much money you will need to save. For more information about university fees and payment options see studying.

The earlier you start saving for your children's education, the better. Education costs are usually a long-term goal that can take more than 5 years to achieve.

Smart tip

Never feel pressured to sign up to an education fund. If you are approached by a promoter you should ask for time to carefully read the documents, including the PDS.

Contact Us to discuss ways to help you reach your goals, you could put your savings into:

• Shares
• Managed funds
• Term deposits
• Savings accounts
• Education funds

It’s imperative to get advice before you decide to put your money into any of the saving options above and you should always consider your other financial obligations. For example, you might be better paying off your mortgage or paying down your debts first.

Education funds

Education funds are special funds to help save for children's education. If you are considering an education fund you should check the following to make sure these funds fit your long term financial plan.

Here are some questions to ask before you invest in an education fund.

What fees will be charged?

• Contributions
  

How much do you need to invest and how often do you need to contribute? Can other people, such as grandparents, also contribute?

• Investment options 
  

What investment options are available, and do the suggested timeframes for these options meet the timing of your children's education needs?

• Fund purchases 
  

What can you use the savings for, for example can you use them for primary, high school or tertiary studies?  Do they cover expenses such as clothing, laptops and excursions?

• Access to funds 
  

What criteria need to be met before you can access your funds?

What happens if your circumstances change, and you can no longer contribute to the fund - do you lose all that you have invested? How difficult it is to withdraw your money if your children's priorities change? For example, what happens if your children decide they don't want to do tertiary studies?

Southern Advisory can help you compare the features of an education fund with other investments such as term deposits and managed funds. In particular we can help you compare:

• Product fees, features and benefits
  

• How the fund is taxed compared to how other investments are taxed
  

• Saver Plus – A program to help families on low incomes develop a savings habit and improve financial skills. Saver Plus can help you set a savings goal and help you reach it. When you reach your goal, your savings are matched, dollar for dollar, up to $500.

Need assistance?

Education is important but expensive. There are many things you can do now to help secure your children's educational future. If you need help with a financial plan to save for your children's education, contact a Planner at Southern Advisory on 02 9524 6711 or [email protected]

Source: www.moneysmart.gov.au

Having a baby is one of the most exciting times in your life. While nothing can quite prepare you for the changes about to happen, one area that you can get a handle on is your finances.








Budget for your new family

Your household income will drop if you take time off work to have and look after your baby. You will also need to budget for new expenses for your baby.

To start a budget, take a snapshot of your current income and expenses. If you don't know where your money goes, try tracking your spending for a period of two weeks. You will need to add the expenses you'll have once the baby arrives (nappies, baby food, clothes, nursery equipment etc) as well as the reduced income you will receive if you or your partner take time off work.

Government help

Ask your employer about your paid leave entitlements like maternity leave, annual leave, long service leave or unpaid leave. You may also be eligible for the government's Parental Leave Pay. This scheme gives you additional paid parental leave on top of any leave you take from your employer.

You could be eligible for a Baby Bonus, also known as a Maternity Payment, from Centrelink. You cannot get both Parental Leave Pay and the Baby Bonus for the same child. Most eligible families will be better off receiving Parental Leave Pay.

Depending on your income and assets, you may also be entitled to other benefits such as the Family Tax Benefit, Child Care Benefit, Parenting Payment, Rent Assistance or a Health Care Card. Try to incorporate these benefits into your budget. You can phone the Department of Human Services on 13 61 50 for an estimate of payments for your family.

After you give birth, the hospital will give you a package that contains the government assistance claim forms you will need to fill out.

Baby expenses

When you do your budget you should focus on essential items like nursery furniture (cot and high chairs), pram, baby food, disposable nappies, clothes, and child care if necessary.

Friends and family with children will be able to tell you what things are essential or what are just 'nice-to-have'. Parenting books or magazines often have lists of things you will need. You can then prioritise the items and focus on the things you can afford.

To keep costs under control, think about buying second-hand goods or even hire items you may only require for a short period of time like a bassinette. Check online, at specialist second-hand baby stores, garage sales and charity shops. Find out the retail price of new items so that you get a good deal. Family and friends might also have hand-me-downs they can give you.

Smart tip

Child care will be one of your biggest expenses if you or your partner returns to work.

You should update your budget with the increases to your income and childcare expenses before you go back to work. Then you can properly assess if returning to work will cover your childcare costs.

Contact the Department of Human Services to see if you're eligible for the Child Care Benefit or Rebate to help you pay for child care.

Child care options:

• Partners, relatives or friends - A great option if you are lucky enough to have this support;

• Childcare centre or family day care - Costs, conditions and waiting periods vary. Contact several to compare them and see where places are available. Your local council may also have information;

• Workplace childcare - Some companies offer onsite child care;

• Nannies - For some people, a nanny is a viable option. The Family Assistance Office can assess if you are entitled to Government assistance for in-home child care.

Saving early helps

Start saving as early as you can - even small amounts will help. Living on credit cards or from one payday to the next is stressful, especially if you have children.

You could start by saving all or part of the Baby Bonus. Putting money aside will help cover large bills and unexpected costs.

Protecting your family

Superannuation and insurance

When you stop working, your employer's super contributions also stop. If you have a partner, they can help make sure your super does not fall behind by making super contributions for you. This can have tax benefits. You could also be eligible for a government co-contribution. Find out about super co-contributions by Contacting Us

Also check on your life insurance cover. If you hold life or disability insurance cover through your super fund, check if it continues when your employer stops making super contributions.

Make sure you have insurance that will give your family security if you can no longer financially support them. You might also want to update your super and life insurance beneficiaries.

Your partner could also consider income protection insurance. Once you have a new addition to your family, having a regular income will become even more important.

Your child's legal protection

Do you have a will?  Think about asking someone to be the guardian of your child if you and your partner should die, and name this person in your will.

The way you spend money will change when you have children. Getting your finances under control will give you peace of mind and allow you to relax and enjoy being a parent. If you have any questions about this article or wish to discuss your situation in further detail, contact one of our Planners at Southern Advisory on 02 9524 6711 or [email protected]

Source: www.moneysmart.com.au

Show me the money!!

Most retirees get income from at least a couple of sources. In addition to super, your retirement income may come from many other sources and each source has its pros and cons.





Your Income Sources

Your retirement income can come from many sources including:

• Income from super
• Investments outside super
• Part-time employment
• Social security - for example, the age pension
• Home equity release - like reverse mortgages or home reversion schemes
• Selling the family home

Making the most of your Income

These income sources can be combined so your money lasts longer and you have a more comfortable retirement. It's worth remembering that one income source can have an impact on another. For example, if you decide to sell the family home, your age pension may be reduced or cut off.

Depending on your circumstances, we suggest you contact one of our Planners at Southern Advisory to maximise your retirement income. For instance, if you have a substantial amount of super and want to invest some of it, we can help with investment options and tax advice. Don't take out your super before getting financial advice because there are tax implications.

Expect the Unexpected

There are many uncertainties that even the best calculations can't predict, including a change to tax laws, market crises, unexpected illness or a move to a new home.

Set aside some money for emergencies and unexpected events when considering what combination of income sources will be most suitable for your needs.

Learn as much as you can about your income options before you make any decisions. By developing a flexible financial plan that uses a combination of income sources, you can make sure your retirement is comfortable. Planning ahead is more likely to give you a secure future than buying lottery tickets.

Source: www.moneysmart.gov.au

If you’ve always dreamed of a simpler life, away from the hustle and bustle of the city, retirement may present the perfect opportunity to start a new chapter of your life — closer to nature and far from the stress of urban living.

But a successful sea or treechange takes careful planning. Here are some issues to consider and some tips for making your move a success.

Why change?

A move to the seaside or country town can deliver more than just natural beauty. There’s also the community spirit a small town can bring – a sense of connectedness that can be increasingly hard to find in the city.

And selling up can also be a good way to raise funds for retirement. According to research by Investment Trends1, 31% of retirees have downsized to help pay for their retirement. 

The downside of downsizing

Before deciding on whether to make the move you’ll need to consider:

• The impact of leaving your family home and potentially losing touch with your friends and community;
• Whether the new town caters for your interest and needs; 
• Possible adjustment needed to settle into your new lifestyle;
• Costs of moving such as stamp duty, moving costs;
• Any financial implications especially if you’re receiving the age pension as your eligibility could be impacted.

Three tips for a successful sea or treechange

1. Be clear about what you’re looking for
2. Test the water and spend some time there at different times of the year
3. Get involved in the community 

But remember, pension rules are complex and everyone’s situation is different. So before making any decisions that could affect your retirement funds, speak with Southern Advisory to understand how they could affect you. 

Source: www.colonialfirststate.com.au

A gradual move to retirement...

There are many reasons why people continue to work past age 55. Some need the money. Others enjoy the mental stimulation and social interaction that a job offers. Some will reduce their working hours as a way to slowly ease into retirement.



The Australian Government has made it possible for you to keep working while drawing down some of your super benefits. The policy, called transition to retirement, allows you to supplement your salary and maintain a comfortable lifestyle. You can also use the policy to save tax and boost your super before you retire.

Making the transition to retirement

There are two ways to use a 'transition to retirement' (TTR) pension:

• Keep working full-time and boost super
• Reduce work hours and soften the drop in income

Once you hit preservation age (55 for many people), you can draw down a pension from your super even if you are still working.

If you are under age 65 and still working, you can withdraw between 4% and 10% of your super account balance each financial year. You cannot withdraw money as a lump sum.

Not all super funds offer a pension option, so you may need to change funds if you want to take your money out as a pension. Before you do, Contact Us to discuss your options.

Boost your super savings

Your super balance will keep growing as your employer continues to make contributions into your super account.

If you choose to salary sacrifice some of your pre-tax income into your super, you can further boost your super savings. This is because your salary sacrifice contributions are taxed at a lower rate when they go into your super.

Pay less tax

You will enjoy generous tax concessions for both retirement income streams and super contributions. And when you turn 60, you won't pay any tax on your pension income.

Before you set up a transition to retirement pension, you need to consider if this type of income stream is right for you and how it fits with your work and super plans.

What is your priority?

Do you want to cut back on work, earn more income or add more money to your super? Your answer will determine the approach you take.

How much income do you need?

Take into account all your income sources to work out how much money you should draw down from your super. Often people find their income needs reduce as they get closer to retirement and they can afford to salary sacrifice into super without having to replace the lost income.

Will the super pension affect social security entitlements?

Speak to a Financial Planner at Southern Advisory as there may be implications for you or your partner's age pension and other entitlements.

How tax-effective is the arrangement?

This depends on many factors, so find out the tax implications for your situation by Contacting Us.

How will the super affect my life insurance?

If you have life insurance with your super fund, check with the fund if there are any implications. In some cases, your life cover could reduce or even cease.

Transition to retirement is a flexible option that allows you to work longer and retire later and rewards you for staying in the workforce. As it can be complex, we strongly suggest you discuss your options with your super fund and speak with Southern Advisory to find out what strategy is right for you.

Source: www.moneysmart.gov.au