Massey Financial Advice

The Modern Retirement Equation: Balancing Work, Wealth, and Wellbeing The concept of retirement is evolving, with a need to balance continued work, financial security, and personal wellbeing. Some benefits of working beyond traditional retirement age, such as financial stability and mental health, need to be balanced with challenges like ageism and health issues. The importance of financial planning and diversification is underscored, along with strategies for aligning lifestyle expectations with financial realities. Ultimately, the focus is on achieving a fulfilling retirement through adaptability, informed decision-making, and a holistic approach to work, wealth, and wellbeing. Read more at https://buff.ly/3BjFuWP If you would like to find out how retirement might work for you, book a free initial call https://buff.ly/3RaGqS4

Question: My friend told me the insurance policies in her super fund are much cheaper than the policies I got through my adviser. What are the differences between them that makes mine more expensive? Answer: Insurance through super funds, known as group cover, is often cheaper because it’s a one-size-fits-all product negotiated between the super fund and insurer. While this can save money upfront, it usually comes with less flexibility and more restrictive terms compared to insurance policies taken out direct with an insurer. Group policies can also be adjusted or cancelled by the super fund without your consent and claim processes may be more complex due to limited underwriting at the time of application. Retail insurance, on the other hand, is tailored to your needs, with features like locked-in terms and premiums and comprehensive underwriting upfront. This provides greater certainty at claim time and ensures the policy remains in place as long as premiums are paid. Additionally, group policies require the same duty to take reasonable care as retail policies, meaning non-disclosure of past medical conditions could still result in denied claims, even if unrelated to the condition. Insurance is about reducing risk, and retail policies often provide stronger protection. You should consult your financial adviser to ensure your cover suits your needs and to review premium costs regularly. If you would like to find out how this applies to your situation, book a free initial call https://buff.ly/3RaGqS4

Superannuation or Shelter? Rethinking the Path to Wealth and Stability The discussion centres on the tension between using superannuation savings for home purchases and ensuring long-term financial security. It highlights the risks of depleting retirement funds for short-term housing needs, potentially leaving individuals reliant on the Age Pension. The debate also touches on generational equity, noting that younger Australians face significant challenges in balancing home ownership and retirement savings. Strategies for financial resilience include enhanced financial education, policy innovation, and encouraging voluntary superannuation contributions. Read more at https://buff.ly/3BjFuWP

Question: What’s the difference between holding insurance inside and outside of super, and what should I consider? Answer: Holding insurance inside superannuation—such as life insurance, total and permanent disability (TPD), or income protection—can be convenient and make coverage affordable, as premiums are often deducted directly from your super balance rather than paid out of your own pocket. However, policies within super can have limited coverage options, and benefits may be taxed when paid out, especially if your beneficiaries are adult children or non-dependants. On the other hand, holding insurance outside of super can offer greater flexibility in terms of policy features and cover amounts. For example, standalone income protection outside of super typically provides more comprehensive coverage, including longer benefit periods and higher monthly payout caps. However, these premiums are paid from your after-tax income, which may make it more costly than insurance inside super. When deciding where to hold your insurance, consider your cash flow, the type of coverage you need, and tax implications. Your adviser can help you assess the best approach for your circumstances, balancing affordability with the level of protection you need. If you would like to find out more about how to adequately protect yourself with personal insurance, book a free initial call https://buff.ly/3RaGqS4

Asset Allocation and Advice: Securing Financial Health Through Upswings and Downturns Financial advisers play a critical role of in maintaining financial health through both market upswings and downturns. Strategic asset allocation, tailored to individual goals and risk tolerance, is essential for long-term portfolio performance. Advisers provide stability by helping investors stay disciplined and avoid reactive decisions during market volatility. Additionally, rebalancing strategies are crucial for capturing gains in prosperous times while managing risks. Read more at https://buff.ly/3V26nFk If you would like to find out how this applies to your investments, book a free initial call https://buff.ly/3RaGqS4

Question: I’m considering opening an investment account for my child. What should I be aware of? Answer: Opening an investment account for a child can be a great way to kickstart their financial future. Some options include investing in shares, managed funds, or exchange-traded funds (ETFs) in your child’s name or a trust account. However, there are a few considerations, such as tax implications. Investment earnings for minors are taxed at penalty tax rates of the highest marginal tax rate (47%) beyond the $416 income threshold, so you may want to hold investments in a parent’s name or use investment bonds which may be more tax efficient. You should also think about the time horizon for the investment. If the goal is to provide funds for education or a first home, choosing a diversified portfolio with a balance of growth and defensive assets might be appropriate. Investing for a child is a long-term strategy, so choosing the right vehicle and asset allocation can set them up well for the future. You should consult your financial adviser can guide you through the various options and help you select the best approach for your child based on your goals and tax considerations. If you would like to find out more, book a free initial call https://buff.ly/3RaGqS4

Economic Success or Social Strain? Unpacking Wealth Resilience and Social Impact in Modern Nations The interplay between economic growth and social cohesion presents a complex challenge for policymakers. While economic success can lead to increased prosperity and improved living standards, it may also exacerbate social inequalities and strains within communities. Addressing these disparities requires a balanced approach that promotes inclusive growth and social welfare initiatives. Ultimately, fostering a harmonious society while achieving economic objectives is essential for sustainable development and long-term stability. Read more at https://buff.ly/3V26nFk

Question: What’s the benefit of making extra contributions to my super, and how can I do it? Answer: Making extra contributions to your superannuation can be a tax-effective way to boost your retirement savings if your marginal tax rate is higher than 15%. By adding to your super, you’re taking advantage of compound growth, which helps grow your balance over time. One way to contribute is through salary sacrifice, where you direct a portion of your pre-tax salary to super, potentially reducing your taxable income. These contributions are taxed at 15% within super. You can also make after-tax (non-concessional) contributions from your savings, which aren’t taxed upon entry if you’re within the contribution cap. This option can be ideal if you have funds outside of super that you’d like to allocate toward retirement. Regularly contributing extra to your super can make a significant difference to your retirement lifestyle. As contributions caps apply, you should seek advice from your adviser can help you set a contribution strategy tailored to your retirement goals and tax situation. If you would like to find out whether extra contributions are right for you, book a free initial call https://buff.ly/3RaGqS4

Making the Right Choice: A Guide to Super Beneficiary Nominations for All Ages Beneficiary nominations for superannuation play a crucial role in ensuring that individuals' wishes are honoured regarding the distribution of their superannuation balance and associated death benefits. Various types of nominations exist, including binding, non-binding, and reversionary nominations, each catering to different personal and financial circumstances. Regularly reviewing and updating these nominations is essential, particularly after significant life changes, to maintain alignment with evolving family dynamics and financial situations. Seeking professional financial advice can further enhance decision-making, particularly in complex scenarios such as blended families or cross-jurisdictional concerns. Read more at https://buff.ly/3V26nFk If this applies to you, book a free initial call https://buff.ly/3RaGqS4

Question: I’ve been reviewing my finances and realised I haven’t updated my personal insurance in years. I currently receive ongoing financial advice for my superannuation, but I’ve never gotten financial advice around my insurances. What would a financial adviser consider when reviewing my insurance coverage? Answer: When reviewing your personal insurance, a financial adviser would consider a few key factors to ensure your coverage is still adequate and aligned with your current life situation. First, they would assess whether your life circumstances have changed since you last updated your policies. Major events like getting married, having children, buying a home, or changing jobs can all impact the amount and type of coverage you need. The adviser may advise you to adjust your life, income protection, or total and permanent disability (TPD) insurance accordingly. Next, they would evaluate the level of coverage you have and whether it still aligns with your financial needs. For example, if your debts or living expenses have increased, your adviser may determine that you may need more cover to ensure your family is protected. It’s also essential to check your policy exclusions and benefits to ensure you understand what’s covered and if it suits your current lifestyle and health situation. Your current adviser would likely review your insurance needs and recommend adjustments to your coverage, ensuring you’re adequately protected without paying for unnecessary cover. If they don’t provide insurance advice, they can probably refer you to an adviser that does. If you would like some help working out whether your personal insurance is right for you, book a free initial call https://buff.ly/3RaGqS4