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Superannuation Secure Your Future with Smart Contributions

🌟 Superannuation Alert: Secure Your Future with Smart Contributions! 🌟

When it comes to securing your financial future, your superannuation is your secret weapon. Don’t just set it and forget it – regularly review and optimise your contributions for a comfortable retirement. Here’s your guide to financial freedom:

🔍 1. Understand Your Super Fund: Get to know the ins and outs of your super fund – performance, fees, and investment options. Knowledge is power!

💰 2. Review Your Contribution Rate: Check if your contribution rate aligns with your retirement goals. Even a small increase can make a big difference in the long run.

📊3. Max Out Employer Contributions: Your employer might match your contributions – free money towards your retirement. Don’t miss out!

📉 4. Explore Salary Sacrifice: Boost your retirement savings and potentially reduce taxable income by exploring salary sacrifice options.

🔄 5. Consolidate Multiple Accounts: Streamline and simplify – consolidate multiple super accounts for clearer financial management.

📊 6. Diversify Your Investments: Mitigate risk and maximise returns by reviewing and diversifying your superannuation investments.

📣 7. Stay Informed About Changes: Superannuation rules can change. Stay in the know and adapt your strategy accordingly.

🔄 8. Regularly Review Your Super Plan: Your financial goals evolve – make sure your super plan evolves with them. Regular reviews keep you on track.

Your superannuation is a powerful tool for a secure financial future. Take charge by reviewing and optimising your contributions. Stay informed, make strategic decisions, and enjoy the peace of mind that comes with a path to a comfortable retirement. Your future self will thank you!

#SuperannuationSmart #RetirementPlanning #FinancialFreedom #InvestWisely 🚀💰

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Optimise Your Finances By Planning Around Your Pay Cycle

🌟 Optimise Your Finances By Planning Around Your Pay Cycle! 🌟

Ever felt like your money slips through your fingers? The key to financial control is syncing your budget with your paydays! 💸 Follow these steps to master the art of aligning your finances with your income:

📅 Step 1: Know Your Pay Cycle Identify when those paycheques hit your account. Weekly, fortnightly, or monthly – know your rhythm!

💡 Step 2: Fix the Essentials List your unmovable monthly costs like rent, utilities, and insurance. Assign them to pay periods to make sure they’re covered! 🏡💡

💰 Step 3: Tackle Variable Expenses Budget for the fun stuff! Allocate money for groceries, dining out, and entertainment. Adjust your spending based on your payday frequency. 🍔🎉

🚑 Step 4: Emergency Fund Always be ready for surprises. Save a little from each paycheque for that unexpected expense. It’s your financial safety net!

📈 Step 5: Savings and Investments Set aside a portion of your income for savings and investments. Whether it’s a dream holiday or building wealth, make it a part of your plan! 💰🌐

🔄 Step 6: Regular Reviews Don’t set it and forget it! Regularly review your budget, adapt to changes, and stay on top of your financial game. 🔄💪

🔍 Conclusion: Aligning your budget with your pay cycle brings peace of mind. Say goodbye to financial stress, stay on top of bills, and make progress towards your goals. Master your pay cycle, allocate smartly, and watch your financial future flourish! 🚀💼

#FinancialFreedom #BudgetingTips #SmartSpending #MoneyMatters

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New Year New Job 2024 Financial Tips

🌟 New Year, New Job! 🌟 What are your resolutions for 2024? Here are five financial tips to kickstart your year on a strong note:
1️⃣ Plan around your pay cycle: Create a budget that aligns with your paydays for better financial control.
2️⃣ Superannuation: Ensure your future is secure by reviewing and optimizing your superannuation contributions.
3️⃣ Check your insurance: Evaluate your insurance coverage to make sure you’re adequately protected in all aspects of life.
4️⃣ Don’t waste pay increase: If you’re getting a pay boost, use it wisely – consider saving, investing, or paying off debts.
5️⃣ Seek professional advice: Connect with financial experts to get personalized guidance tailored to your goals.
Here’s to a prosperous and financially savvy 2024!
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Market movements and review video – December 2023

Stay up to date with what’s happened in markets and the Australian economy over the past month.

Consumer prices eased by more than expected in October. The news that inflation may have been tamed means interest rate rises may be behind us, for now.

Even the Organization for Economic Cooperation and Development (OECD) is optimistic about our economic recovery, predicting rate cuts from late 2024.

The ASX200 regained most of its October losses through November. Hopes the US may be ceasing its interest rate hikes impacted investor sentiment, as did the better than expected inflation figures locally.

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How to give back

Australia is a giving country, but we often give in kind rather than financially.

Whenever there is a disaster here or overseas, Australians rush to donate their time, household goods and cash. However, we still lag New Zealand, the US, Canada and the United Kingdom when it comes to giving money.

According to Philanthropy Australia, our total financial giving as a percentage of Gross Domestic Product is just 0.81 per cent, compared with 0.96 per cent for the UK, 1 per cent for Canada, 1.84 per cent for New Zealand and 2.1 per cent for the US.i

Only 53 per cent of Australians with an income of more than $1 million give to charity and receive a tax deduction. In the United States that figure is 90 per cent. So, Australians have some catching up to do.ii

Currently the number of Australians making tax deductible contributions is at its lowest levels since the 1970s.iii Despite this, the Australian Tax Office reports that deductible donations claimed by individuals rose from $0.74 billion in 1999-2000 to $3.85 billion in 2019-20.iv

Given that an estimated $2.6 trillion will pass between generations over the next 20 years, the opportunities for increasing our financial giving abound. Philanthropy Australia wants to double structured giving from $2.5 billion in 2020 to $5 billion by 2030.v

The five main reasons people like to give are that they want to make a difference, they want to give back to the community, they like the personal satisfaction it gives them, they have philosophical beliefs, or they just want to set an example.

Many ways to give

There are many ways of being philanthropic from the $2 donation to someone who knocks on your front door, to regular donations of five or six figures plus.

In between, people give direct donations to charities, not-for-profit organisations and community groups, participate in crowd funding and giving circles and/or volunteer.

Giving circles are more prevalent in the US but they are growing in Australia. Basically, people with shared values come together to pool their money for a particular cause.

Structured giving

Donating large sums of money regularly is known as structured giving.

You can choose a number of ways to establish a structured giving plan including through a public or private ancillary fund (PAF), a private testamentary charitable trust or giving circles.

Whichever way you choose, there are attractive tax incentives to encourage the practice.

The type of vehicle will depend on:

  • the timeframe of your giving
  • the level of engagement you want
  • whether you want to raise donations from the public
  • whether you want to give in your lifetime or as a bequest
  • whether you want to involve your family to create a family legacy.

Private ancillary fund

A private ancillary fund is a standalone charitable trust for business, families and individuals. It requires a corporate trustee and a specific investment strategy. Once you have donated, contributions are irrevocable and cannot be returned. To be tax deductible, the cause you are supporting must be a body identified as a Deductible Gift Recipient by the Australian Tax Office.

The benefits of a PAF are that contributions are fully deductible, and the deductions can be spread over five years. The assets of the fund are exempt from income tax.

The minimum initial contribution to a PAF is at least $20,000. The costs of setting up a PAF are minimal and ongoing costs are usually about 1-2 per cent of the value of the fund.

Each year you must distribute 5 per cent of the net value of the fund to the designated charity.vi

Testamentary charitable trust

An alternative to a PAF is a testamentary charitable trust, which usually comes into being after the death of the founder. The governing document is either a trust deed or the founder’s Will.

With a testamentary charitable trust, trustees control all the governance, compliance, investment and giving strategies of the trust. The assets of the trust are income tax exempt. The minimum initial contribution for such a fund is usually $500,000 to $2 million.vii

Philanthropy through structured giving still has a long way to go in Australia. The latest figures for total giving in Australia is $13.1 billion, of which $2.4 billion is structured giving. Currently the number of structured giving entities stands at just over 5400.viii

As the baby boomers pass on their wealth to their families, there is a wide opening for some of this money to find their way into charities and causes through structured giving.

If you want to know more about structured giving and what is the right vehicle for you to help the Australian community at large, then give us a call to discuss.

How Australians give

How Australians give

How Australians give

 

Value of non-structured and structured giving in Australia, 2018-19ix

i, ii, iv https://www.philanthropy.org.au/wp-content/uploads/2022/11/7480-PHA-Giving-Trends-and-Opportunities-2023-1.2.pdf
iii 
https://www.socialventures.com.au/sva-quarterly/insights-to-grow-philanthropic-giving-for-not-for-profits/
https://www.philanthropy.org.au/our-impact/a-blueprint-to-grow-structured-giving/
vi, vii 
https://www.philanthropy.org.au/guidance-and-tools/ways-to-give/choosing-the-right-philanthropic-structure/
viii 
A Blueprint to Grow Structured Giving 2021 – Philanthropy Australia
ix 
Insights to grow philanthropic giving for not-for-profits – Social Ventures Australia

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Aged care challenges in the home

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We welcome Evan Gilhome

“Welcome to the TEAM!”

Evan has more than 18 years of experience in financial services. Focused on investment product distribution and leading national sales teams, over the years Evan has built a strong reputation as a retirement income specialist.

Evan holds a Bachelor of Economics & Finance, a Masters in Applied Finance from Macquarie University and is currently completing his Graduate Diploma of Financial Planning.

With a passion and desire to help Australians with their financial goals, Evan made the life changing decision in 2023 to transition into advice. He is thrilled to join Intergenerational Wealth, learn from the team whilst also bringing a unique perspective from his diverse range of experience.

On a personal level, Evan and his wife Nikki have two beautiful children that mean the world to them. Evan is an avid fan of all sports, especially AFL and he loves spending his weekends hanging out with family and friends.

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A positive property outlook for some

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Should I buy insurance through my super?

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Teaching children healthy money habits