Does your new job offer income protection insurance? Do you have enough life insurance in your super account? Insurance isn't just about cars and houses; you may also need to insure your ability to work.

How long would you be able to sustain your lifestyle and pay your bills if you didn't have a regular income? Income protection insurance gives you peace of mind that you can receive a monthly benefit if you are injured or too sick to work.

Insurance is an important element of any sound financial plan. Speak to Southern Advisory about your options today.

Sources:
www.bt.com.au
www.amp.com.au

If you've changed jobs, done casual or part-time work, moved house or changed your name, then you could be one of the many Australians who have some lost or ATO-held super waiting to be found.

Your super account will generally be considered 'lost' if:

• No contributions or rollovers have been added to your super account in the last year and either your super fund never had an address for you, or mail sent to you by your super fund has been returned unclaimed,
• or for employer default super plans, no contributions or rollovers have been added to your super account in the last five years.

If your super account is considered lost it could be transferred to the ATO if:

• your account balance is less than $2000, or
• your super fund is unable to identify you as the owner of the account based on the information reasonably available to them.

Your super could also be transferred to the ATO in certain other circumstances.

How can you find it?
Have your tax file number handy and use the ATO SuperSeeker service.

Source: www.bt.com.au

Firstly, we would like to thank you for being a valued client of Southern Advisory.  If your circumstances change please be sure to update us so that your financial plan stays relevant and your family is protected.

Being a small business, it is important that we offer the best possible service to our clients. If you have had a positive experience or if there is something that you think we could improve please let us know so that we can better help our clients in the future.
 
A large part of our sustainability at Southern Advisory relies on a regular stream of word of mouth referrals. This is often a brother, sister, cousin or friend that may be in a similar position as you were before we completed your financial plan. 

Southern Advisory is running a Client Referral Promotion offering a $200 Coles/Myer Gift Voucher to any client who refers someone to our business in the next few months.

To register for the program please email the following details to [email protected]:

• Client name
• Referral name
• Referral contact details
• Relationship to the client (e.g. relative, friend etc)

Thank you for your support and if you have any questions please feel free to contact us on 02 9524 6711.

As people’s circumstances change so can their work choices, you may change from full time to part time or move from a salaried position to being self-employed. Of course, not every move is planned – illness and redundancy can take you on a whole new trajectory.

Planned or not, a job change or an unexpected loss can be financially risky unless you are prepared.

For example, if you are facing a pay cut, you need to know that your new salary will still be enough to meet any debt obligations – such as a mortgage – and your overall lifestyle needs. If it does not, then you may need to revise your budget and expectations.

If your setback is only temporary and you are likely to be earning more down the track, then have a plan in place to do something beneficial with any wage increase. If you did not need the extra money when you were earning less, it might be useful to talk to a financial adviser about where to invest any extra pay to help meet your longer-term goals.

Promotions may generally be accompanied by weightier increased salaries; they can also mean more stress and travel, which may take its toll on your health and ability to stay in the position as long as you had planned.

Generally paid by a company are hidden costs like travel time or parking and they can quickly detract from the prospect of more money. A high salary almost certainly means paying more tax and putting more money into superannuation – two areas where specialist knowledge can make a substantial difference to long-term goals.

Professional advisers can also help with decisions such as whether to spend a bonus on a holiday, reduce the mortgage or put the money into superannuation.

Depending on how long you have been working, superannuation may well be your biggest financial asset. Just knowing how much you have put away and whether it is being invested with your retirement time-frame in mind, could make a difference to how long you continue in the workforce.

Working with a planner from Southern Advisory early – perhaps even before a change becomes inevitable – can help work establish long-term goals and how best to achieve them.

However help is at hand and with professional advice you don’t have to go through it alone. To help get you started, here are six key strategies to consider:

1.     If you will be unemployed, use your existing savings, holiday pay, long service leave and tax-free redundancy payment to meet your living expenses;

2.     Any taxable portion of your redundancy payment (employment termination payment) must be taken as cash. After allowing for the tax payable, you may be able to use this to pay off some of your mortgage or other debts to reduce your living expenses;

3.     Centrelink allowances generally have a one week waiting period before benefits may be paid. There is also a liquid assets waiting period of up to 13 weeks, and an income maintenance period if you have received leave or redundancy payments from an employer. These can apply concurrently and extend the period before you are able to receive Centrelink allowances. So, you need to make sure you have arranged your redundancy lump sum payments to provide for your general living expenses;

4.     Your superannuation generally can’t be withdrawn until you reach your preservation age (55 to 65 depending on the year you were born), and have met a condition of release such as retirement. You may be able to retain your super in your current fund or roll it over to another fund. Take care that you do not lose valuable cost effective insurance through your super, by not fully understanding your investment options. Investment choices appropriate to your needs are also important to grow your wealth in super. Money held in super (accumulation phase) is not generally assessed for Centrelink allowances until you reach age pension age;

5.     If you’re eligible for retirement you may be able to use your super to commence a retirement pension. This may impact your Centrelink payments;

6.     Once you’re back in the workforce you might consider using any excess redundancy payments (after allowing for tax) to pay off debt, or to contribute to super as a non-concessional contribution - you may even be eligible for the government co-contribution scheme.

Making the right decisions when faced with redundancy can make a difference to your financial future, so speak to Southern Advisory about your options today.

Source: www.amp.com.au

Changing direction

For many people, job change is often a significant and sometimes un-expected event. And there is a good chance most people will face this challenge more than once during their working life. Today’s school leavers will most likely work until age 75 and have at least a dozen employers and five careers in that time.

The reasons for changing jobs and employers will be many and varied including career advancement, relocation, better opportunities and a chance to boost your net wealth. Or you may decide to start your own business and work for yourself.

For someone leaving their usual workplace, maintaining business connections and networks will be extremely important. As well, there may be questions like “how long can I afford to look for work” or “what is the long term impact on my savings if I go part time”.

For others there may be the initial shock of believing you are no longer required. Plus there is the challenge of seeking a new job and working with new people.

Getting practical support can alleviate many of these concerns. Working with a financial advisor to clarify issues such as salary structures, superannuation or redundancy payments, you can find a way forward that fits best with your plans.

The complexity of change

Despite the excitement and challenges of new opportunities that might be around the corner there is still a host of personal, lifestyle and financial issues to consider.

Legislation and tax issues around redundancy and superannuation are notoriously complex and the approach you take might impact the benefits you receive and your long term lifestyle and wealth creation plans.

If you have a family to consider then there will be a range of questions around budgeting for major expenses like education, salary packaging opportunities and life and other insurance cover.

If you are nearing the end of your working life the focus may be on estate planning, the adequacy of your retirement savings and strategies around your transition to retirement. You can work through these issues with a financial advisor to create a plan which works for you and your family.

To ensure you achieve the best outcomes, the advisors at Southern Advisory work with other professionals including accountants, lawyers, and recruitment and career specialists when their services are required.

A well-executed job change with good financial advice should ensure that your lifestyle goals and financial objectives are not compromised but strengthened and enhanced.

Southern Advisory can offer long-term guidance or targeted advice when you need help to manage specific events in your life. Our Advisors works through the details with you to create a plan, including your:

•             Goals and aspirations

•             Income and spending

•             Superannuation and tax

•             Investments and major assets.

Contact Us today to arrange an appointment to discuss our specific situation.

James was 50 when his job as a school principal ended after 20 years.

“It was clear I needed to change jobs, so it was a mutual decision with my employer that I move on. My redundancy was negotiated, but it was still quite an adjustment,” says James.

“Realising that what you have been doing is no longer required really makes an impact on you. It is a very confusing time and you begin to doubt your worth. Fortunately, I had a good support network among family and friends. That encouraged me to seek financial advice and career counseling,” he says.

While he could have looked for another principal’s position, James saw his redundancy as an opportunity to change careers completely.

Aside from his teacher training, James had worked as a consultant in education and completed a Masters degree. He had a reputation among his peers for good leadership and communication skills.

James decided that he would be happier and healthier if, instead of just changing jobs, he began working for himself.

After discussing his financial position with an adviser, he identified benefits in using his termination payments to pay off his mortgage, boost his retirement savings and set himself up for the next phase in his life.

The adviser also helped establish a budget based on his new cash flow and reassessed his insurance needs, including income protection. He was referred to an accountant for tax advice on setting up a business.

“Once your world is pulled apart you go through a grieving process and you are in shock. The first thing you need to get is some advice from a credible planning service,” says James.

Source: www.amp.com.au