Cashflow And Budgeting
You are likely at a stage in life where your capacity to save has increased. This could be due to a combination of expenses decreasing due to children leaving home, or hitting your salary peak.
This can be an exciting chance to capitalise on this surplus and save for the future – and that doesn’t have to mean that you can’t also spend now to invest in your current experience.
By planning out what you want to achieve, you can not only achieve purpose with your spending, but can also ensure you stay in control of your financial situation when the temptation to spend big grows.
With budgeting, the first step is always to map out your essential spending to see how much you have left for discretionary spending. Once you know exactly how much money you may have left to spend on things such as holidays or dining out, you have all the power and information to make critical decisions that align with not only your personal goals but your financial goals too.
The age pension (or service pension) was first introduced in 1909 and was designed to provide a safety net in case you outlived your own supply of money. Originally, the pension age was 65 for men and 60 for women, however life expectancy was only 56. Now, with life expectancy nearing 85, the age pension remains between 65-67 for most people.
The age pension is one part of what is often referred to as the ‘three-pillar’ retirement system:
- Basic income support (the age pension)
- Compulsory savings (the superannuation guarantee)
- Support from private savings (e.g. homeownership and volunteer superannuation contributions or other savings)
To apply for the age pension you are assessed on both your income and your assets.
Assets include: your super balance, bank accounts, shares, investment properties, household contents and vehicles, but it does not include your primary residence.
Income includes: your salary, pension income, income from rent, and deemed income which is the combination of all your financial assets (shares, bank account, super balances, pension balances etc) which is deemed to earn a certain rate of income regardless of the actual income earned from the investments.
We can help you navigate the process of applying for the age pension and assessing whether you will be eligible.
To invest without a strategy is basically just gambling.
We can help you figure out which investment strategy is best for you. Investment strategies need to be fluid to account for change, but they also need to be focused on an objective.
Talk to us about what your objectives are and we can work out the best strategy, or mix of strategies to help you achieve your goals.