Money Magnetic Tip 1 – Unexpected Bills

When things break down it’s not uncommon for unexpected bills to result. Depreciation is a physical/financial expression of entropy, the tendency of matter to break down or wear out.1 If you manage to put half of this extra amount of unexpected bills into savings you will see those same bills drop. This is the Universe’s…

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Good Retirement Advice

Good retirement advice helps our clients reach their retirement goals. Firstly, concerns around having enough money to fund a desired retirement lifestyle is our biggest conversation with our clients. Similarly, eligibility for the aged pension, downsizing, and aged care planning are other aspects covered in good retirement advice and a good retirement plan. For that…

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Credit Score

How Important Is Your Credit Score? There are few common misconceptions regarding your credit report and overall credit score.     The Myths and Facts About Your Credit Score   Myth 1: A credit score is more important than the credit report. Fact: Knowing the difference between a credit report and a credit score is…

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Business Loan

Time to apply for a business loan?   The thought of applying for a business loan could make many feel anxious. But it doesn’t have to. A well-rounded application will always get you much further – If you’d like to know what you can do to avoid an unpleasant rejection, here are a few things…

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Law of Compounding

The Law of Compounding applies to everyone… and is always working.

 

“The Law of Compounding interest is the
eighth wonder of the world. He who
understands it, earns it…
he who doesn’t… pays it.”
Albert Einstein

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70:30 Money Management Rule

The 70:30 money management rule goes back to the Ancient City of Babylon some 5,000 years ago. Back then was one of the richest cities in the world. The 70:30 money management rule basically said that for all money flowing into your household 70% would be allocated to your lifestyle/ living expenses, with the remaining…

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Age Pension / Superannuation / Retirement

FOUR new Government measures proposed to address Age Pension / Superannuation / Retirement due to longer life expectancies. One of the focuses of these changes is helping retirees prepare financially for a longer and more secure life. It is in response to increasing life expectancies for Age Pension / Superannuation / Retirement. As a result, the…

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Business Finance Adelaide

Business finance in Adelaide has helped thousands of self employed and small to medium sized businesses successfully diversify with simple and smart business loans. There is an alternative lending market opportunity in Australia, and FMG Wealth Strategists is here to help.   Business Finance Options Australia’s 2.2 million small businesses are the lifeblood of our…

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Succession Planning for Business

What 6 key aspects do you need to know about succession planning for your business? Succession planning describes the process of a business owner transitioning out of their business. Having a plan is essential to ensure the right option is chosen. Along with ensuring the relevant steps are taken to achieve your desirable outcome. There are…

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Cashflow and Debt Solution

Our Cashflow and Debt Solution NOW Makes it Easier For You Managing your money has now been made easier with our Cashflow and Debt Solution program. Your personal Cashflow and Debt Solution ‘made easy‘ program is here. In this program we are going to show you how to make the best choices you can with the…

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Investing – Active v Passive

Active investing is generally more expensive and passive investing may appear more simple but investors should consider their goals before deciding. The discussion around index investment strategies or active and passive investment strategies is more complex and investors should consider their long-term goals when deciding which path to take rather than matters of ease and…

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What’s your Wealth Imprint (Thermostat)?

So the biggest question is, what’s your wealth imprint (thermostat)? And how does it affect your ability to accumulate the amount of wealth you want to achieve during your lifetime?

“Why is it that we constantly see the majority of lottery winners and recipients of inheritances end up where they started some 18mths to 2 years later and in some cases worse off? You see we all have something called a Wealth Imprint. Or in simple terms a ‘Wealth Thermostat’. Our wealth imprint tolerance oscillates at approximately 10% above and below this individual imprint line.

 

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Planting your Wealth Tree – Part 2

This month the focus of Planting your Wealth Tree Part 2 is eliminating your long term money worries and further generating that ‘feeling’ of financial security. Hopefully by now you have set up your ‘90 Day Reserve’ account that we discussed last month and started your direct debits to start building your ‘cushion’. Just to…

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Long Term Investing update

Credit Suisse has released their annual investment returns yearbook which is always a good reminder of the benefits in taking sensible long term views on investing. The one thing that always strikes me when I read this report is how well Australia fares in terms of long term performance of our share market, which as…

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Listed Property for both Australia and Globally top of the asset classes

According to Vanguard’s 2016 Index Chart Australian Listed Property recorded a 24.60% return just in front of Global Listed Property with 20.40% return this last financial year.

In fact Listed Property Asset Classes for both Australia and Globally have recorded double-digit growth over the last 2 years. In the last 5 years only US and International Shares together with Listed Property achieved double-digit growth looking at the Vanguard Index Chart below.

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Wealth Protection Case Study 4 – Treat Beneficiaries Equitably

If you have a family, a family business, and have beneficiaries.. you should consider using Life Insurance as part of your broader succession planning.

What are the benefits?

By using this strategy, you could:

  • provide additional funds to equalize your estate in the event of your death, and
  • ensure your beneficiaries receive sufficient assets to achieve your estate planning objectives.

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Centrelink Strategies Checklist for Pensioners

With the looming Pension changes coming 1st Jan 2017 we have prepared a 10 point checklist for EXTRA Centrelink benefits OR at worst make sure you know your downside.

Don’t think Centrelink will be ringing you to say “Hey we could pay you more” and don’t wait until October for them to call you with how these changes will affect you…

Check off each of these 10 points to make sure you are not one of the 326,000 retirees who will be affected by these changes. It is predicted many will loose up to 50% of their pension or more and others will have their pension slashed.

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Wealth Protection Case Study 3 – Protecting your assets

If you’ve used debt to start-up or grow your business, it is wise to ensure you and other key people have suitable insurance cover.

Adam, aged 40, is married to Kylie, aged 35. They have a young family and own a home worth $600,000.

Adam wants to expand his dry-cleaning business and to do this he’ll need to raise some capital. After assessing his options, he borrows $200,000 from a bank and, as part of the loan agreement, he signs a guarantee using the family home as security.

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Wealth Protection Case Study 2 – Protect your income

Why protect your income?

If an injury or illness forced you to take time off work, could you still keep up with your bills? Imagine what your life would be like if you hadn’t taken the time to ‘protect your income’ and your family’s financial security, in the event of unexpected sickness or injury.

 

What does income protection insurance cover you for?

To protect your income, cover is generally available for up to 75% of your monthly income. It provides an affordable level of financial protection in the event of sickness or injury. Most importantly, it provides enough financial support for you to return to work.

Some providers also allow you to receive up to 30% off in your premiums if you’re in good health and meet qualification tests.

 

FMG Wealth Strategists - Protect Your Income - Financial Planning Adelaide _ Income Protection

 

EXAMPLE
Harriett is a self-employed architect and receives an income from her business of $120,000 pa. She owns a home worth $500,000 and has a mortgage of $350,000. If she is unable to work due to illness or injury. She wants to be able to protect your income and meet her living expenses and mortgage repayments. Without having to eat into her limited savings.

 

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