Preparing your property and assets for a storm.

With the wintery weather upon us, it’s never been more important to make sure your home is protected from the elements. So what are the best ways to prepare your property and assets for increasingly stormy winters?


1. Perform maintenance regularly

Exposure to the elements can cause the condition of your property to deteriorate over time. Sun, wind, and rain can all cause extensive damage that, if left, can be very expensive to fix. This is why it’s vitally important to make and stick to a regular maintenance plan.

Having your home inspected periodically by a professional builder can be a great place to start, as they will be able to tell you how structurally sound your home currently is, and which areas may need attention. This is particularly important if your home was constructed before 1981 – properties built after this date were subject to new Australian Building Standards which include measures to prevent damage from storms and cyclones.


2. Be aware of the main danger zones

Certain areas of your home need special attention to make sure they’re storm ready. Some of the most common types of damage sustained by Australian homes during storms include:

  • Rotten timbers failing
  • Unreinforced masonry walls collapsing
  • Windows and doors being blown open or broken
  • Damage to the roof and attachments such as gutters, eaves and fascias
  • Structural damage to walls and ceilings

These areas of your home are all particularly vulnerable. Even if they’ve recently come through a storm apparently unscathed, they may be weakened and less able to withstand the next one, so it’s important to check them regularly and keep them well maintained.


3. Carry out proper roof maintenance

It’s important to check the condition of your roof at least once a year. Before the winter hits is a good time to do this. Getting inside the roof space enables you to check for damage before you actually get on the roof – if you can see any light coming through, this means there are holes or cracks which need repairing. This is also a good vantage point for making sure your roof timbers are in good order and showing no signs of rot, damp or termite damage.

Once you’re actually on the roof, you should replace any missing or broken tiles, and make sure no dirt has built up underneath the tiles, as this can prevent water from draining properly. You should also clear your gutters of any leaves and other blockages, to make sure water doesn’t overflow into your roof cavity.

Remember, working at height is dangerous – it’s advisable to consult a professional roofer.


4. Prepare your yard

Keeping your yard tidy is an essential part of storm preparation. Outdoor furniture and garden sheds should be properly secured to make sure they can’t be picked up by strong winds. Sports and play equipment and other heavy items should be put away and stored somewhere safe. It’s also a good idea to park your car in an area away from trees and power lines to minimise the risk of it getting damaged by anything falling on it.

Make sure your drains are clear to help prevent water pooling and flooding and trim any trees or overhanging branches that could possibly fall on your property during a storm – remember to check with the local council before you do this, as you may need permission. It’s advisable to have your trees inspected by a qualified tree surgeon, who will be able to identify hazards such as root damage.


5. Extra precautions

Some additional planning can help make your home extra-safe from storm damage:

  • Use masking tape on your windows to help prevent breakages.
  • Place sandbags over indoor drains in case of flooding – this will guard against sewage being washed into your home.
  • Unplug any electrical items and disconnect your TV aerial.
  • Make sure you have emergency supplies on hand in case your home loses power. These should include a supply of drinking water, fuel for the car and any essential medications you are taking.

Being prepared for storms is the best way to make sure your property can weather the weather, as and when it hits.

 

(Feedsy Exclusive);(Article source here)

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What is objective-based financial advice and why should you seek it?

Objective-based financial advice has become hugely popular over the last few years in Australia. How does it differ from more traditional financial advice and why should you be asking your adviser about it?


The difference between traditional and objective-based advice

Traditionally, financial advice has tended to be more general – the ways in which you’ve been advised to invest your money have been based on assessing risks to work out the chances of the best financial outcomes. However, this strategy doesn’t take into account your own personal needs and goals for the different stages of your life.

Objective-based advice requires your financial adviser to take a much more in-depth look at who you are, what stage in life you are at, and what your short, medium and long-term goals are. This enables them to draw up a financial strategy that’s individually tailored to you. The aim is to equip you to meet all your current and future financial commitments and achieve the lifestyle you aspire to by making the money you have now grow to provide you with the life you want in the future.


The benefits of objective-based advice

The main benefit of objective-based advice is that it doesn’t make generalisations – it actually looks at who you are. People’s financial goals are likely to be very different depending on their individual circumstances.

For example, a couple with no dependents are more likely to aspire to have a stable income in retirement, with enough left over for the things they enjoy, such as holidays. A couple with children are much more likely to want to leave something behind for their children to inherit, so they’ll be more concerned about putting money away. Objective-based advice will not treat these two couples the same way or use similar investment strategies for both of them, as they want very different outcomes.

The other main benefit of objective-based advice is that it enables you to build a much more trusting relationship with your financial adviser due to their better understanding of you. This makes it more likely that you will listen to their advice.


How can defining your objectives help you control your financial future?

Defining your goals is a vital part of planning for the future. Writing down a specific plan with a financial professional will help you to establish what your goals are, and give you a permanent written reminder of them. This gives you a focus and an understanding of the steps you have to take so that you can achieve the lifestyle you want.

This is likely to help you curb impulse spending, as reminding yourself of your goals is a powerful motivator. Once you have something tangible to work towards, you’ll be willing to forego other things in order to make your dreams happen. For example, you’ll probably be happy to live without an expensive holiday this year if it means you’ll be living in your dream home a couple of years down the line.

This is another reason why objective-based planning works – it takes into account your short- and medium-term goals as well as just those for the long term. Once you have defined your objectives, your financial adviser will draw up an investment plan designed to give you the returns that are most likely to help you achieve your immediate goals as well as your plans for the future. This means you’ll see results quickly, which will keep you motivated for the future.

In addition, having a clearly-defined plan will help you to keep your goals realistic. A lot of people become disheartened by having impossible dreams that they have no way of achieving. A good financial adviser will be encouraging but realistic about the goals you should be setting yourself, which will put you in greater control of your finances from the outset.


How often should you review your financial objectives?

There is no definite answer to this but it’s essential to review your objectives regularly, as they’re likely to change along with your circumstances at different stages of your life. However, you should avoid making unnecessary changes to your objectives – your plan should be a map that will ultimately take you where you want to go, without leading you off-course.

It’s advisable to review your plan at least once a year, and at any other time when things change in your life, such as getting married or starting a business. Major life events are likely to change your financial goals. It’s important to make sure you have a plan that continues to meet your needs as you journey through life.

 

Feedsy Exclusive; Article source here

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Super focused: Your annual super statement.

As a superannuation fund member, you’ll be receiving your annual statement soon from your super fund either electronically or through the mail.

Your statement is often a good touch point on how you’re progressing with your retirement nest egg. Regardless of your current stage of life, it’s important to review your statement, as superannuation plays a vital role in supporting you in retirement.

Before you file your statement away this year, take some time to consider the following.

Prior to receiving your statement, did you know your super balance?
An important part of goal-setting is knowing how you’re tracking and the information provided on your statement can help.

Interestingly, a recent study* found that 26% of Australians with superannuation did not know their superannuation balance whilst 42% had a rough idea and the remaining 32% knew exactly or almost exactly.

How close was your estimate?

Remember, superannuation is a form of saving. Just as you may know your ‘everyday’ and ‘saving’ bank account balances, it’s also important to take an interest in your superannuation balance.

 

Are you receiving the correct amount of Super Guarantee (SG) contributions from your employer?
Your superannuation balance grows from contributions and returns less tax and costs.

SG contributions are a type of concessional contribution.

SG contributions are compulsory contributions made by employers on behalf of eligible employees into their nominated superannuation account at least every three months. The current minimum SG contributions rate is 9.5% of a person’s ordinary time earnings (subject to a maximum contributions base).

It’s important to check whether your employer is contributing the correct amount into your superannuation account not only from an employee entitlement point of view, but also because these contributions will help you grow your retirement nest egg over time.

Your statement should list SG contributions in the transaction history.

 

Have you supplied your Tax File Number to your super fund?
Why is this important? If your super fund doesn’t have your Tax File Number then they are required to:

  • Tax concessional contributions at a higher rate than 15%. From 1 July 2017, the higher rate is 47%.

Your statement should list whether you have supplied your Tax File Number.

If you have not supplied your Tax File Number, your super fund will have information on how to update your member details.

In addition, if you provide your Tax File Number, your super fund may be able to claim additional tax from the three previous financial years back from the Australian Taxation Office and re-credit it into your superannuation account.

 

Did you receive statements from several different super funds?
If you have changed jobs over your working life, it’s possible that along the way you may have accumulated several different superannuation accounts.

Multiple superannuation accounts normally mean multiple sets of fees and costs, as well as differing asset allocations in some instances – all of which can affect your superannuation balance over time.

However, before you go rolling one superannuation account into another, in some instances it may make sense to retain multiple superannuation accounts – read our article, ‘Multiple super accounts and you’ for further information.

 

Did you discuss your statement with your spouse/partner?
Planning for retirement as a couple is a collective journey. Although, you may differ in some aspects (e.g. risk tolerances, money personalities etc.), you are a team, working towards the goal of accumulating wealth for retirement. And for most households, superannuation is the second largest asset held^.

Talking about your personal finances can be a truly beneficial discussion about where you are, where you would like to be and how you are going to get there. And remember, your financial adviser is here to help along the way.

 

Moving forward
Reviewing your statement is important.

Superannuation is a tax effective investment vehicle that will help you accumulate wealth during your working life to support your lifestyle in retirement.

Going through the five questions above and other important information in your statement (such as your investment mix, nominated beneficiaries, personal insurances and fees) is a good discipline and can help you better understand where you are at with your superannuation.

Please contact us if you have any questions regarding your statement or how you are tracking towards your financial goals and objectives.

*ASIC and EY Sweeny. Australian Financial Attitudes and Behaviour Tracker: Wave 4 (September 2015-February 2016). Retrieved from here.
^Australian Government, Australian Bureau of Statistics. Household income and wealth levels. Retrieved from here.

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Preparing your personal income tax return.

It’s the end of the financial year. That means you need to lodge your personal tax return. This can often be a complex process but it can be made much quicker and simpler if you make sure you have all the essential information ready to give to your accountant when you’re meeting to prepare your return. It will also ensure you only end up paying the amount of tax you actually owe. Here’s what you need to provide.

Essential information

Your accountant will need some basic personal information from you to begin with:

  • Proof of identification
  • Your bank account details, so you can have your refund deposited directly into your account
  • Your MyGov login, if you’ve previously used MyTax or e-tax
  • Your PAYG summary
  • Your Medicare card or number, if you want to pre-fill your medical expenses
  • If you have private health insurance, you will also need to provide your insurance statement.

Details of your income and expenditure

As well as your PAYG summary, your accountant will also need to see information about any other income you have. You will need to provide:

  • Payment summaries from any super funds you have
  • Receipts for gifts or donations you’ve received
  • Details of child support payments you’ve made
  • Details of your second job if you have one
  • Information on rental or holiday let properties you own
  • Information on any investments you’ve made
  • Details of any foreign income
  • The amount of interest your bank account has accumulated.

If you’re married, you will also have to give details of your spouse’s income and expenditure. This is because some tax obligations and benefits are assessed using the income of your family as a whole, rather than just your individual income – these include any tax offsets on medical expenses.

Claiming work-related expenses

Your accountant will need to see all invoices and receipts for work-related expenses you’re claiming. If you don’t provide receipts, the maximum amount you can claim is $300 – that’s why it’s vital that you keep all your receipts throughout the year and make sure your financial records are accurate and up-to-date.

To claim work-related expenses over $300, you’ll also need to supply other related information, such as credit card statements, BPay receipt numbers, your travel logbook and Home Office logbook.

If you own a rental property

If you own a rental property, you have to include this as an additional source of income. You will have to provide your accountant with the amount of rental income you’ve earned but you will also need to prove the expenditure – how much interest you’ve had to pay on money you borrowed to buy the property, and any other expenses you’ve had relating to the property, including capital works.

If your rental property is a holiday let, the rules are slightly different. You can only claim deductions for the period of time that it’s available for rent. If you’ve stayed there personally during this financial year or you’ve let friends or family stay there for free, you can’t claim for these periods.

Any expenses claimed for a property you own with your spouse must be split down the middle of both tax returns – you can only claim for the percentage of the property you own.

If you live or work overseas part of the time

Anyone living or working overseas for part of the year still has to file a tax return in Australia. You mustn’t forget to declare all income you receive from other countries. This can include:

  • Employment
  • Pensions and annuities
  • Capital gains on assets you hold overseas
  • Income from overseas investments
  • Income from a business based overseas.

Questions to ask your accountant

You should ask your accountant about any deductions you may be entitled to. These can include motoring expenses – if you use your car to travel between different workplaces or have to carry heavy objects in your car, you may be entitled to deductions. You can’t claim for driving to or from work, however.

If you work from home, you can claim deductions for home office equipment and services, such as IT-related expenses, stationery, and even a percentage of your phone and energy bills.

You may even be entitled to a deduction based on any money you’ve given to charity this year. It’s important to mention all these things and any other circumstances you feel will affect the amount of tax you should be paying to your accountant, so they can advise you.

Don’t forget…

The ATO is thorough and will spot any errors or omissions in your tax return. It’s vital that you use accurate, provable figures instead of guessing anything.

If you make a mistake, however, and realise after you’ve lodged your tax return, or if something changes such as receiving an updated payment summary when you have already sent your tax return in, you can ask for your income tax assessment to be amended.

The best way to ensure you’ve provided all the correct information and maximised your claims is to call your accountant. Accountants are tax professionals and will be able to make the tax process far more efficient and less stressful.

It’s also advisable to seek help and assistance from your Financial Adviser.
(Feedsy Exclusive)
(Article source here)

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Top 5 best personal budgeting tips, no matter what your income.

A new financial year is upon us. The best way to own it is to plan now! Here are five of the best tips for making a personal or family budget, and sticking to it. Smart budgeting allows you to have enough for the things you enjoy, no matter what your age or income.

1. Work out your income and expenditure

The best place to start when you’re creating a budget for yourself or your family is to work out what comes in against what goes out each month. Write a list of your sources of income – your salary, any additional income from investments such as rental property, and interest on your bank accounts. Your income has to be factual rather than speculative, though – even if you’re due a pay rise or inheritance, don’t include them if they haven’t already happened.

Then work out your monthly expenses. Regular outgoings will include your mortgage or rent, insurance and household bills. Estimate your other expenditures, such as grocery and clothes shopping, as best you can.

Once you’ve done this, you’ll be able to have a realistic idea of where you need to make savings. You should aim to:

Earn more than you spend
Be able to afford occasional indulgences such as holidays, tickets to concerts or sports events, and dinner with friends
Put some money away each month as savings and to cover the cost of emergencies.
2. Make some necessary changes

This is often the most difficult part. You need to take a look at your expenditure and work out how much of it that you actually need to spend. If you haven’t been to the gym for months, you should cancel your membership. If you spend a lot on clothes, could you save yourself money by shopping at factory outlets or online? Even the cost of buying your lunch each day could shock you into making sandwiches to take to work. Small savings add up into much larger amounts over time.

You can also make savings by spreading the cost of big events like Christmas over the whole year, keeping an eye out for presents whenever the sales are on. This will save you spending out drastically in December and running up a huge credit card bill in January to make up the shortfall.

Don’t aim to deny yourself all the things you enjoy; just be sensible about what you spend to avoid unnecessary waste.

 

3. Make sure you’re getting the best deals

If you want to stick to your budget, it’s important to continually shop around, instead of sticking with your current arrangements out of convenience or habit. Some of these changes are really easy to make – you can save a lot of money on your grocery bills, for example, by shopping at budget supermarkets like Aldi.

Visit price comparison sites to make sure you’re getting the best deals on your energy, insurance and other services such as mobile phone and broadband. Families can often save money by choosing a bundled package for their phone and internet services, as these often work out cheaper than individual contracts. You should also consider switching your bank account and credit card if you could get better interest rates elsewhere.

Remember, if you do find a better deal on any of the services you use, you’re perfectly within your rights to ask your current provider if they’re prepared to match or better it. Many of them will in order to keep your business.

 

4. Adopt a more energy efficient lifestyle

You can live a greener, more sustainable lifestyle by making a few simple changes. It won’t just save you money; you’ll also know you’re doing your bit to protect the planet!

If you’re buying any new appliances, make sure you go for the most energy-efficient models. This could save you hundreds of dollars each year in household bills. Also, make sure you switch off all your appliances when they’re not in use, rather than just leaving them on standby, to reduce unnecessary energy use.

Make the most of the rebates offered for energy efficiency schemes. These vary between states, so check what’s available where you live. Many states now offer rebates on initiatives such as water-saving appliances and rainwater tanks.

 

5. Consider using a budgeting app

There are now many apps available which enable you to budget easily using your smartphone. These can be helpful because they can show you where you stand with all your sources of income rather than just your bank account. You can also set spending limits. The app will track what you spend and alert you when you approach your limit. Budgeting apps can also be useful for setting yourself financial goals and monitoring your progress.

There are a wide variety of budgeting apps on the market now for all the most popular operating systems – it’s worth doing some research to find the one that’s right for you.

Remember, budgeting isn’t about denying ourselves the things that make our lives enjoyable. It’s simply about giving ourselves a fair deal. No matter what we earn or where we live, none of us should be paying over the odds for goods and services we can get for less somewhere else. And with a little planning, you can achieve the lifestyle you want, and have a little put aside for a rainy day.

 

Consulting your financial adviser and accountant is always a good idea too.

(Feedsy Exclusive)July 26, 2017
(Article source here)

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