Lenders use your credit score (or credit rating) to decide whether to give you credit or lend you money. Knowing this can help you negotiate better deals, or understand why a lender rejected you.

Your credit score is based on personal and financial information about you that’s kept in your credit report.

You can access your credit score and credit report for free.

If you want to fix something in your credit report, see credit repair.

Get your credit score and report for free

If you’ve ever applied for credit or a loan, there will be a credit report about you.

You have a right to get a copy of your credit report for free every 3 months. It’s worth getting a copy at least once a year.

Your credit report also includes a credit rating. This is the ‘band’ your credit score sits in (for example, low, fair, good, very good, excellent).

Usually, you can access your report online within a day or two. Or you could have to wait up to 10 days to get your report by email or mail.

Contact these credit reporting agencies for your free credit report:

• Experian 1300 783 684

• illion 132 333

• Equifax 138 332

Since different agencies can hold different information, you may have a credit report with more than one agency.

Some credit reporting agencies may provide your credit score for free — check with them directly.

Alternatively, you can get your credit score for free from an online credit score provider, such as Credit Simple, Finder or Canstar. This usually only takes a few minutes.

Typically, you agree to their privacy policy when you sign up, which lets them use your personal information for marketing. You can opt out of this after you sign up.

Avoid any provider that asks you to pay or give them your credit card details.

How your credit score is calculated

Your credit score is calculated based on what’s in your credit report. For example:

• the amount of money you’ve borrowed

• the number of credit applications you’ve made

• whether you pay on time

Depending on the credit reporting agency, your score will be between zero and either 1,000 or 1,200.

A higher score means the lender will consider you less risky. This could mean getting a better deal and saving money.

A lower score will affect your ability to get a loan or credit. See how to improve your credit score.

What’s in a credit report

As well as personal information — like your name, date of birth, address and driver’s licence number — your credit report will include all of the following information.

We often don’t like to think of our mortality, but it’s a fact of life. The best way to take care of your business, family and loved ones in the event that you are no longer here is by putting in place a solid plan, writes Melisa Sloan, author of Legacy, and an Estate Planning Lawyer.

So whilst it can be a confronting thought, by taking the time to put a plan in place ensures that you can leave the legacy that you intended.

Let’s take a look at 5 things to consider when planning your estate

Set up a Will if you want control of your estate 

Your Will is an important part of the estate planning process and allows you to appoint an executor who will administer and distribute your estate in accordance with the instructions contained in your Will. Additionally, it allows you to appoint a guardian, who you wish to care for and raise your minor children. Both these roles are important roles and conversely, the people you appoint to these roles should be people that you trust implicitly.

Your Will is deemed particularly significant in that it stipulates how the assets of your estate are to be distributed upon your death. It is therefore extremely important that you provide clear instructions in respect to the distribution. If you are leaving specific items to certain beneficiaries, it is prudent to definitively identify each item.

It is also important to consider how each beneficiary is to receive their inheritance, whether personally in their own name, or in a protected structure such as a Testamentary Trust.

Memorandum of Wishes

There may be additional wishes that you would like to stipulate in your estate plan that are not included in your Will. A memorandum of wishes allows you to leave definitive instructions in respect to how you would like your minor children raised or how their inheritance should be invested. Such wishes can provide your executor or your children’s guardian with invaluable guidance.

Superannuation

People are often surprised to hear that superannuation is separate to your Will. Your superannuation is held in trust for you by the trustee of your superannuation fund.

It is therefore imperative that you provide the trustee of your superannuation fund with a death nomination providing a direction stipulating where you would like your superannuation to be paid at the time of your death. The most common nominations are Binding Death Nominations and Non-Lapsing Binding Death Nominations. 

Life Insurance

Life insurance can be a very powerful tool in taking care of families and loved ones left behind, and as such insurance is an aspect that is increasingly becoming of value when putting an estate plan in place.

Life insurance put in place in the event of your death can be useful in providing for your family when you are no longer here. One motivating factor for many people putting life insurance in place is to cover their children’s future education costs, mortgages, debts and living costs. When looking at these liabilities and expenses it is ideal to look at them from a perspective that if you were not here tomorrow, how much insurance would you need to cover these debts and other costs?

Insurance is an integral consideration when putting your Estate Plan in place. At the very least a review of your current insurance will reinforce what you currently have in place, and such a review could be the catalyst for determining whether the level of insurance that you have is sufficient or whether additional insurance is required.

Power of Attorney

Putting in place Power of Attorney documents allows you to appoint someone to make financial, legal, guardianship and medical decisions on your behalf if you become incapacitated and could no longer make your own decisions.

If you do not have Power of Attorney documents in place, someone would need to make application to the relevant state authority to be appointed your guardian and administrator. The person appointed may not be the person who you would have chosen to make these important decisions on your behalf. It is therefore imperative that Power of Attorneys are an integral part of your estate plan.

By putting your estate plan in place you will be leaving a beautiful Legacy for your family and loved ones, and it will also give you comforting peace of mind to know that all is in place.

Talk to us if you’d like more information about Estate Planning. Call us on Phone: 07 5641 4134.

Source: Flying Solo September 2021

This article by Melisa Sloan is reproduced with the permission of Flying Solo – Australia’s micro business community. Find out more and join over 100K others https://www.flyingsolo.com.au/join.

Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) ac www.flyingsolo.com.au

It seems like headlines these days keep announcing markets have hit yet another all-time high. And while it’s worth celebrating good days like this, not every day is going to be the same.

When it comes to investing, the biggest elephant in the room is the word “uncertainty.” No one can say for certain what the markets will do, and there’s no crystal ball that’ll show you the outcome of any situation.

Instead, investors fare best when they focus on the factors they can control.

Here’s 3 things you can do to help maintain perspective through market uncertainty.

1. Consider the market information you receive
(and act on)

Start by evaluating the information you regularly get and how it impacts your day-to-day decisions. Most information today, even those from what we consider to be a “trusted source,” is shared with some kind of intention.

Think about the spheres of influence within your life. Beyond family, friends, and coworkers, you likely have other information sources such as social media, emails, or news stories. Everyone’s inner circle may be different, but even your friends’ spiciest takes can be less chaotic than headline articles you see lining your feed. So how do you decide what’s worth listening to and what’s worth acting on?

First, you’ll want to approach the information you’re getting with purpose. Don’t be afraid to ask yourself some tough questions like:

• What’s the intent of this information?

• Is this information meant to inform me or to evoke a reaction?

• Does this information change my outlook on what’s happening in the markets?

Second, try seeking out a new perspective. Maybe this means speaking with us on Phone: 07 5641 4134 or someone else you trust. Avoid those with a perpetual “sky is falling” mindset. Talking with someone who has your best interests in mind can help you reframe what’s happening in the economy and why it should matter to you.

2. Make it your goal to invest with purpose

Goal-based planning is the bedrock of Vanguard’s investment philosophy, so when you’re uncertain, remember your overall game plan. What’s your goal? The answer shouldn’t be something quantifiable, such as “Get a 10% return each year.” Sure, there might be years in which you accomplish that, but there will also be years where that won’t happen. That kind of thinking is bound to disappoint, and when your expectations aren’t met, it can be tempting to seek change by tinkering with your portfolio.

The most important way to avoid falling into this trap is to invest with purpose. Are you investing for a specific short- or long-term goal? If so, how’s this portfolio going to support you in attaining that goal? Is it enough? If it is, there’s no need to obsess over rates of return at the end of each year, and there’s no need keep chasing after more.

Maintaining diversification in your portfolio can be a difficult process. For instance, there may be parts of your portfolio that might not grow at different points during the month or even the year. If the equity component of your portfolio is growing at a rate of 11% but your fixed income is only growing by 3%, you might be tempted to leave bonds altogether. Resist the temptation. A portfolio with purpose focuses on asset allocation to provide steady long-term return and dampen the impact of unexpected volatility. It also focuses on asset location to reduce tax burden and help you keep more of your return. Most importantly, a portfolio with purpose is built around you and your needs.

3. Take it easy on yourself when losses happen

Rather than charging in like an angry bull at the sight of red in your portfolio, take a step back and breathe. Maybe you’ve missed out on an investment opportunity or your portfolio’s value dropped as a result of a market swoon. Keep in mind that these losses happen. Don’t be too hard on yourself. Instead, use these moments as opportunities to look at the big picture.

Between 1980 and 2019, for example, there were 8 bear markets for shares (declines of 20% or more, lasting at least 2 months) and 13 corrections (declines of at least 10%).* Unless you sell during a downturn, the number of shares you own stays the same. And if you reinvest your funds’ income and capital gains distributions, the shares you own continue to increase over time. In the event of market recovery, having more shares can help revitalize your portfolio more quickly.

It’s often been said that history has a funny way of repeating itself. And there’s a lot of history in the investment world that you can learn from, and be ready for what happens next time around.

Speak to us for more information regarding markets and investing, phone Phone: 07 5641 4134.

* Source: Vanguard calculations, based on the performance of the MSCI World Index from January 1, 1980, through December 31, 1987, and the MSCI AC World Index thereafter. Both indexes are denominated in U.S. dollars. Our count of corrections excludes those that turned into bear markets. We count corrections that occur after a bear market has recovered from its trough, even if stock prices haven’t yet reached their previous peak.

Source: Vanguard September 2021

Reproduced with permission of Vanguard Investments Australia Ltd

Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours and your clients’ circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our PDS or Prospectus online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.

© 2021 Vanguard Investments Australia Ltd. All rights reserved.

Important:
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

As a small business, you have access to a range of concessions that could help your cash flow.

Here’s some news and details about available concessions for you to consider.

Lower company tax rates have changed.

If you’re a base rate entity, your company tax rate is 26% in the 2020–21 income year.

The small business income tax offset has increased.

If you’re a small business sole trader or have a share of net small business income from a partnership or trust, you can claim the small business income tax offset. It’s 13% in the 2020–21 income year, up to $1,000, if your turnover is under $5 million.

Deductions for professional expenses for start-ups are available.

You may be able to immediately deduct start-up costs such as professional, legal and accounting advice and government fees and charges.

There are simplified trading stock rules. If the estimated difference between your 2020–21 opening and closing trading stock is $5,000 or less, you don’t need to do a stocktake. Just report the same amount for your opening and closing stock in your tax return.

You may also be able to claim immediate deductions for prepaid expenses.

Remember, we can help you with your tax. Call us on Phone: 07 5641 4134.

Source: ATO Small Business Newsroom August 2021
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/Newsroom/smallbusiness/General/Know-what-concessions-you-may-be-eligible-for-/.

Important:
This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. 

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

An account-based pension offers regular, flexible and tax-effective income from your superannuation.

You can get one when you reach ‘preservation age’ (between 55 and 60). It lasts as long as your super money does, but is not a guaranteed income for life.

How an account-based pension works

An account-based pension (or allocated pension) is a regular income stream bought with money from your super when you retire.

Typically, you get to choose:

• how much you want to transfer to the ‘pension phase’ (subject to the balance transfer cap)

• the size and frequency of your payments (within the minimum or maximum allowed)

• how you want your super invested (through your fund)

Preservation age

You can get your super when you retire and reach your preservation age. This is between 55 and 60, depending on when you were born.

Minimum amount of money to withdraw

To help manage the affects of COVID-19, the Government is temporarily reducing superannuation minimum drawdown rates for account based pensions by 50 per cent. This will reduce the need for retirees to sell investment assets to fund minimum drawdown requirements.

Contact us to discuss how these changes will affect your payments. 

For the 2019-20, 2020-21 and the 2021-22 financial years the minimum drawdown is: 

Frequency of payments

You can arrange for monthly, quarterly, half-yearly or annual payments. Payments continue until the account balance runs out or you take what’s left as a lump sum.

How long your pension lasts

How long your account-based pension lasts depends on:

• the amount of super you transfer to your pension account

• how much you take in payments each year

• super investment earnings

• how much you pay in fees

Getting the Age Pension

Your eligibility for the Age Pension depends on your age, assets and income. Your account-based pension forms part of the income and assets test to assess your eligibility.

Your account-based pension after you die

Money left in your super account when you die will go to your beneficiary or your estate.

• If you nominated a ‘reversionary beneficiary’ — they continue to get your pension payments until the account runs out. If they’re a child, they’ll get pension payments until age 25, then the balance as a lump sum.

• If you nominated a spouse or dependant as beneficiary — they can take your death benefit payment as a pension or lump sum. A non-dependant beneficiary can take your benefit payment as a lump sum.

Pros and cons of an account-based pension

Consider the pros and cons to decide if an account-based pension is right for you.

Pros

• Flexible pension payments — you can choose a payment arrangement to suit you (within the minimum or maximum allowed).

• Add to Age Pension — if you’re eligible, you may be able to use your account-based pension payments to top up your income.

• Tax-effective — you don’t pay tax on pension payments from age 60. If you’re age 55 to 59, the taxable part of your pension is taxed at your marginal tax rate, less a 15% tax offset.

• Lump sum — you can withdraw all or some of your money at any time.

• Investment earnings are tax-free — you can choose how your fund invests your money, and returns are added to your account.

• Estate planning — there may be money left for your beneficiary when you die.

Cons

• Impact on Age Pension – your account-based pension forms part of the income and assets tests, so it may affect your eligibility.

• Investment earnings may go down in value — depending on market performance.

• Longevity risk – there’s no guarantee your super balance will last as long as you do.

For more information on account-based pensions, speak to us on Phone: 07 5641 4134.

Source: moneysmart.gov.au
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/retirement-income/account-based-pensions

Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.

Important
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The target mix of your investment portfolio should be built on your goals, time horizon and risk tolerance. But goals can change, and market fluctuations can cause your asset allocation to shift, so it’s important to monitor your portfolio on a regular basis and make adjustments as needed to ensure you are not taking on more risk than you are comfortable with.

This process is called portfolio rebalancing.

When should investors rebalance?

Most rebalancing strategies consider two types of triggers: time, threshold, or a blend of both.

With a time trigger, the portfolio is rebalanced on a predetermined schedule such as quarterly, semi-annually or annually (but not daily or weekly).

With a threshold trigger, the portfolio is rebalanced only when its asset allocation has drifted from the target by a predetermined percentage, such as 5 or 10 per cent.

How can investors rebalance?

1. Reinvest dividends
Direct dividends and/or capital gains distributions from the asset sector that exceeds its target into one that is underweight.

2. Make additional contributions
Add funds to the asset sector that falls below its target percentage.

3. Transfer funds between asset classes
Shift money out of the asset class that exceeds its target into the other investments.

When you rebalance you need to consider the costs and tax implications. In most cases you will have brokerage costs and, with some managed funds, an entry/exit fee. There may also be tax consequences when transferring funds between asset classes. Sometimes it is more tax effective to use new cashflow or distributions rather than transferring assets.

If you have a large portfolio, redirecting cash flow or dividends may not be sufficient to bring your asset allocation back into balance. In such instances, you might have to liquidate investments to rebalance, which may have tax implications.

How often should investors rebalance?

Generally, more frequent rebalancing will ensure tighter tracking to your target asset allocation, but this potentially comes at the cost of lower returns, increased turnover, and a heavier tax burden in the current period. This is why rebalancing should not occur on a daily or weekly basis.

Vanguard research has found that there is no specific rebalancing threshold or frequency that consistently outperforms. Rather, an investor’s rebalancing strategy is based on their willingness to accept risk against their expected returns.

Research has also shown that any rebalancing is better than not rebalancing at all. If you are unsure which rebalancing process is right for you, speak to us on Phone: 07 5641 4134 and we can help tailor rebalancing strategies to your personal situation.

Source: Vanguard September 2021

Reproduced with permission of Vanguard Investments Australia Ltd

Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours and your clients’ circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our PDS or Prospectus online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.

© 2021 Vanguard Investments Australia Ltd. All rights reserved.

Important:
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

A transaction account is an account you use for day-to-day banking such as paying bills and getting your wages.

Transaction accounts are often called ‘everyday accounts’.

When you choose a transaction account, compare the account features and choose a no-fee or low-fee account.

What to look for in a transaction account

Most transaction accounts come with a debit card for withdrawing cash and making purchases.

Low-fee or no-fee

Some transaction accounts charge monthly account-keeping fees and other fees for things like ATM withdrawals and internet banking.

Think about your spending habits and choose the account with the lowest fees. For example, if you often use ATMs, choose an account that has low or no ATM fees.

The best option is a no-fee account.

Basic bank accounts

If you’re on a low income, you may be able to get a ‘basic bank account’ which has:

• no account-keeping fees

• free monthly statements

• no minimum deposit amount

• no overdraft fee

See Australian Banking Association – Affordable banking for information about eligibility and a list of basic bank accounts.

Debit versus credit cards

When you use a debit card to pay for things, you are spending the money in your account. If there’s no money in the account, you can’t make a purchase.

When you use a credit card, you are borrowing money, which you will have to pay back with interest.

Using a debit card is less risky than using a credit card, because you can’t run up a debt.

Some debit cards are ‘dual network cards’, which means you can also use them as a credit card. If you do use your debit card as a credit card, you can be charged high interest. You might end up paying more than you would on a regular credit card.

If you are switching from a credit card to a debit card to avoid debt, make sure your debit card does not have a credit option.

Contactless payments

Most debit cards have Visa’s payWave or Mastercard’s PayPass as a contactless payment option. This means you don’t have to insert or swipe your card or use your PIN for transactions under $200.

Many accounts also have ‘digital wallet’ options such as Google Pay and Apple Pay. These allow you to pay for things with your smartphone or smartwatch instead of using a card.

Check what your options are when you choose your transaction account.

Overdraft fees

If you withdraw more money than is in your account, it’s called going into overdraft.

If you go into overdraft, you may have to pay hefty fees and interest.

Make sure you regularly check your account balance. Leave enough in your account for any automatic payments that you’ve set up, like direct debits.

Compare transaction accounts

Compare transaction accounts to find the one with the lowest fees and a debit card that suits your needs.

Your current provider’s default transaction account may not be the best option.

Compare these features:

Review regularly for better features

Banks often offer new accounts with competitive features. Compare the fees and features and consider switching bank accounts if you find one that suits you better. 

Source: moneysmart.gov.au
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/banking/transaction-accounts-and-debit-cards

Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.

Important
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

1. Try a working bee

What better excuse to have a barbecue than with a working bee? Get family, friends, neighbours and co-workers together to turn mundane jobs into an afternoon of fun (and toil). Get them painting bedrooms, polishing decks or hammering shelves—while you repay them with a drink and a BBQ.

2. Check out display homes

It’s one thing having an idea in your head—it’s quite another when you see it in front of you. A little known fact about display homes is that when they’re sold, so is the furniture. That’s right—premium furniture and accessories sold at heavily reduced prices. Don’t forget to leave your email address with the builders so you don’t miss their sales.

3. Check out the flash new buildings in town

Most of these establishments hire architects and interior decorators which are beyond the budgets of most of us. But scribbling down a few ideas from a new restaurant or bar is free.

4. Barter at garage sales

It’s amazing what people get rid off. Items are a fraction of the retail cost, people are desperate to sell and haggling is expected. Find sales through your local newspaper, or keep an eye out for posters stuck on lamp posts around your neighbourhood.

5. Visit trade fairs

Trade fairs take place all over Australia, opens in new window at different times of the year. Sellers showcase their goods and buyers get the chance to buy stuff at cost price. Be mindful that some fairs require you to have a business registration, or work in that particular trade.

6. Hire a handy-person

They’re inexpensive, experienced and perfect for all manner of odd jobs. Especially the one’s you’ve been putting off because you don’t have the time or skills to complete them. Get your handyperson to build a shed, mount a shelf, or paint a room perhaps.

7. Choose the right season of the year

When travelling, saving money means avoiding peak seasons like Christmas, Easter and school holidays and the same rules apply for renovations. For instance, if you’re planning to install air conditioning, do it in winter when demand is low.

8. Buy from alternative markets

Do flea markets, trash and treasure and car boot sales sound familiar? They’re like garage sales, but on a mighty scale. People gather in large halls or vacant outdoor areas to sell their unwanted goods. Most items are second hand, some even faulty (be careful), but they’re super cheap.

9. Beg, borrow, steal from family and friends

We don’t mean hang out on the side of the road and ask for loose change. But make the most of the people close to you. Beg people for their time — puppy-dog eyes always work. Borrow equipment from friends and family, it’s always cheaper than buying. Then get parts or materials for a steal. Someone probably has a shed full of unused bricks or left-over paint they want to get rid of. You could also try the  for unwanted items needing a new home.

10. Wait for hard collections

Twice a year some local councils invite residents to throw out large items that can’t be accepted in weekly collections. People ditch all sorts of stuff like mattresses, beds, wood, white goods and appliances. Before you start lugging an oversized piece of wood over your shoulder, just remember to ask permission from the owner (and don’t pick up anything that has a council sticker on it).

11. Buy from a tip

We don’t want you to scavenge through the trash — but instead visit the tip’s shop-front. Some pretty cool stuff gets reused and sold there. You’ll find recycled household material and plants, which means your landscaping might cost you a few gold coins instead of a few hundred bucks.

Source: NAB https://www.nab.com.au/personal/life-moments/home-property/renovate/ideas

Reproduced with permission of National Australia Bank (‘NAB’). This article was original published at https://www.nab.com.au/personal/life-moments/home-property/renovate/ideas
National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. The information contained in this article is intended to be of a general nature only. Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this website, NAB recommends that you consider whether it is appropriate for your circumstances.

© 2021 National Australia Bank Limited (“NAB”). All rights reserved.

Important:
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. 

Your super fund invests your money for you. Most funds let you choose from a range of investment options, from conservative to growth.

It’s worth taking the time to check your options and decide what’s right for you. The options you choose can make a big difference to how your super grows.

You can find out about your fund’s investment options by checking its website or product disclosure statement (PDS).

Most funds allow you to change your super investment options online.

Pre-mixed investment options

Growth

• Investment mix: around 85% in shares or property, and 15% in fixed interest or cash. Or 100% in shares or property for a ‘high growth’ option.

• Returns: Aims for higher average returns over the long term. This also means higher losses in bad years than those you would experience with lower risk options.

Balanced

• Investment mix: around 70% in shares or property, and 30% in fixed interest and cash. Or ‘moderate’ option with 50% in shares and property.

• Returns: Aims for reasonable returns, but less than growth funds to reduce risk of losses in bad years. Those losses usually occur less frequently than in the growth option.

Conservative

• Investment mix: around 30% in shares and property, and 70% in fixed interest and cash.

• Returns: Aims to reduce the risk of loss and therefore accepts a lower return over the long term. There is less chance of having a bad year than in the balanced or growth options.

Cash

• Investment mix: 100% in deposits with Australian deposit-taking institutions or in a ‘capital guaranteed’ life insurance policy.

• Returns: Aims to guarantee your capital and accumulated earnings cannot be reduced by losses on investments.

Ethical

This option aims to screen out investments in companies that don’t meet certain environmental, social and governance standards. An ethical option can sit anywhere on the risk spectrum — from high growth to conservative.

Choose-your-own investment options

Some super funds let you choose the mix of different asset types or pick direct investments.

For example, you may favour international over Australian shares, and allocate a percentage of your funds to reflect that. Or, you might choose direct investments, such as shares, exchange traded funds or term deposits. 

MySuper

If you have a MySuper account, you’ll most likely have a balanced, single diversified option.

Single diversified investment option

This is how most MySuper accounts work. Your fund puts your money in a standard mix of investments, and the investment approach stays the same for your whole life. These funds usually have a balanced or growth approach.

Lifecycle investment strategy

With this option, your fund will typically move your money from growth investments when you’re young to more conservative investments when you’re older.

Choose the right investment option

When choosing your investment option, consider:

• your age

• how comfortable you are with investment risk

• how long before you will be able to access your funds

Your risk comfort level

Think about how much investment risk you’re comfortable with.

A higher growth option will have higher risk and experience more volatile returns over the short term. But it will usually achieve higher returns over the long term. A conservative option will offer lower risk but lower returns over the long term.

When you’ll access your funds

Some people choose to be more conservative with their investments as they approach retirement to reduce the risk of their balance going down. Others choose to keep their investments in growth options seeking higher returns. There is no one correct approach.

Use our superannuation calculator

Change the investment option in the drop-down and compare the estimated super balance.

Case Study

Pablo, 40, wants to retire when he is 60. To make this happen, he knows he has to build a nest egg. He has some shares and is paying off an investment property with his sister.

Pablo wants a super fund that offers relatively high returns over the long term. He is willing to tolerate the risk of negative returns in bad years. He chooses a growth option as he hopes the good years will outweigh the bad over the next 20.

If you would like to find out more about investment options in your super, call us today on Phone: 07 5641 4134 

Source: moneysmart.gov.au
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/grow-your-super/super-investment-options

Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.

Important
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Many business owners start out as sole traders. As a sole trader, you – the business owner – are the business. You have a registered business name, an Australian Business Number (ABN), and if turnover exceeds $75,000 p.a., you are registered for GST, writes Rolf Howard, Managing Partner at Owen Hodge Lawyers. 

You still only file your personal income tax return, albeit with the business schedule supplement, and you pay tax on the profits from your business at the standard personal income tax rates.

You are the business entity. You are totally responsible, and completely liable – even your personal assets, including your home in joint names, are at risk if things go bad.

Being a sole trader is a straightforward and relatively simple place to start. But a successful and expanding business will outgrow that structure.

Here are a few options available to sole traders looking to shift to a more mature business structure

Partnership

A partnership is a structure whereby two or more people co-own and operate the business. This can be with a colleague with complementary skills and ambitions, or a partner or spouse. Income (and losses) can be shared, and risk can be somewhat diversified. A written partnership agreement is highly advisable as verbal arrangements can be fraught.

While a partnership is perhaps a step in the right direction, for a successful and expanding business, the next step may be to form a company.

Company

A company is a legal entity in its own right and will have its own ABN. You cannot transfer your current ABN. It will also have a business name, but your current sole trader business name can be transferred and owned by your new company.

A company needs to be registered with and overseen by ASIC, and there are several requirements, essentially:

• Establish a registered office and place of business.

• Appoint director(s).

• Create and maintain your business name.

• Keep appropriate financial records.

• Keep ASIC advised of any changes.

• Pay ASIC fees (which are not onerous).

Most small companies are established as Proprietary Limited companies, which is to say that the ownership (proprietary) of the company is limited to 50 non-employee shareholders. Further, the company has limited liability and therefore provides a layer of protection between you and third parties.

Small companies are required to have a minimum of one director, and in the first instance, that will be you. As a company director you will have responsibilities and liabilities. These are really just common-sense requirements for good governance, but it is important that directors comply with the rules, as failure to do so can have ramifications.

Since the company is the business, it must submit its own tax return, and will pay tax at the company tax rate. Currently, the standard rate is 30%, though in some circumstances this may be reduced.

A company structure:

• Enables ready access to expansion with like-minded investors.

• Provides credibility with banks and financiers, clients, and suppliers – the Pty. Ltd. label

• Opens opportunities to contracts that are only available to companies.

• Limits personal liability to the owners.

• May well reduce the tax payable.

• Provides tax offsets for some R&D and other activities.

• Provides easier succession planning – the company will continue to exist until wound up.

When it comes to changing your company structure, with an experienced company lawyer to advise you and an astute accountant to provide appropriate support where needed, you will be able to get on with what you do best – keep your business trajectory on track towards the next stage. 

If you’d like more information on the structure of your small business, call us on Phone: 07 5641 4134.

Source: Flying Solo September 2021

This article by Rolf Howard is reproduced with the permission of Flying Solo – Australia’s micro business community. Find out more and join over 100K others https://www.flyingsolo.com.au/join.

Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) ac www.flyingsolo.com.au > Logo file is here: https://bit.ly/flying-solo-logo