The COVID-19 pandemic has resulted in the government allowing early access to superannuation, for people significantly financially affected by the virus.

The eligibility criteria specified unemployment, eligibility for certain government payments, a drop in working hours by at least 20 percent, or suffered a 20 percent drop in turnover (sole traders) on or after January 1.

The scheme allows eligible members to withdraw $10,000 in the last three months of this financial year and another $10,000 in the first three months of next financial year.

The popularity of the scheme has surprised the ATO and reports that many of those accessing the scheme may not have been eligible has shone a bright light on this activity.

The ATO has said that it will consider action against all ineligible applicants. It said that individuals who accessed their super funds without meeting the eligibility requirements could face up to $12,000 in penalties for each false and misleading statement.

From a long term financial planning perspective it is better not to access super early, but if circumstances dictate then you may have no option, however, you MUST make sure you meet the eligibility criteria.

If you would like more information please give us a call on 03 9723 0522.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

As we continue our busy lives day in and day out it can be hard to take a step back and consider what your long term goals are and devising a plan on how to get there. We often focus on the here and now as there is always something demanding our immediate focus. With the current environment throwing more and more challenges at us this has never been truer. I believe the following quote (Source Unknown) sums up a financial plan quite well ‘Give me six hours to chop down a tree and I will spend the first hour sharpening the axe’. A solid financial and business plan is the sharp axe required in navigating this challenging environment.

Key Steps to Devising a Plan

1. Set your goals and objectives – The first step of a plan is to determine what you want to achieve in the short and long term. This could include retirement age, short and long term business goals or even a goal to buy a caravan and travel.

2. Review your Current Position – Set out how you are currently positioned. Note your assets, liabilities and understand your current cash flow. Budgeting and reviewing cash flow can be a mundane exercise however, it establishes the backbone of your planning.

3. Seek Expert Advice to Devise Plan – In order to develop a thorough plan, it is highly likely you will need to seek advice to assist. Specialists in accounting, finance and lending will assist in devising strategies to suit your situation. As you are an expert in your field, they are experts in their fields. If these specialists have your key goals and objectives in mind, these strategies will align to formulate your overall plan.

4. Review your Plan – Once your plan is in place it is important to regularly review it. This not only involves ensuring the strategies remain relevant but also tracking your current position towards meeting your goals and objectives. In addition, as time goes by, your goals and objectives may change and hence your plan will need to change accordingly.

To start you thinking about what you may plan for, I have summarised below some key areas which may be included in your planning.

Budgeting

Budgeting is a key component of a financial plan for not only business cash flow but also personal cash flow. At the end of the day it is cash flow that keeps both our business and lifestyle moving forward. We prefer to refer to a budget as a spending plan. As what you are trying to achieve is estimate your cash inflow and then devise where you would like to spend that cash flow. By establishing a spending plan, you can prioritise areas where you would like to direct cash flow (e.g. savings for a holiday) and identify areas where you may be able to make savings and pay out debt earlier (e.g. credit card debt).

A key component of reviewing your spending plan is reviewing regular ongoing expenses such as finance payments, utilities and insurances. These should be reviewed to determine if you can achieve the same level of quality service or product at a more competitive price. The savings can then be focussed into the areas which will further assist in meeting your goals and objectives.

A cash flow buffer will also assist in providing comfort so that in the event that unforeseen events may occur, you will be in a position to ride these out whilst making changes to your business or personal structure.

Superannuation

It is a common misconception that superannuation in its own right is an investment. In fact superannuation is effectively a tax structure. Superannuation is designed to provide incentive for Australians to save for their retirement. For those employed by an employer, there are mandatory payments required to each employee’s superannuation. However, those who are self-employed can often neglect considering superannuation as part of their overarching plan. Superannuation does have a vast number of rules regarding contributing and withdrawing money to mention a few however, this structure can be a key pillar to your overarching strategy. Given the complexity of this area it would be likely that you will need to seek advice to assist you.

Insurance

Given the amount of hard work you have put in to be in the position you are today, it is important to protect this. Not only should the assets which you utilise be protected but also your income. Without income it would not be possible to proceed in achieving your financial goals and objectives. Therefore, it is important to have appropriate insurance cover that is regularly reviewed to protect the areas that are important to you.

Moving Forward

In summary, a thorough and robust plan will assist in blocking out some of the current distractions to help keep focus towards your overarching goals and objectives. I hope this article has assisted in making the first steps to devising a plan for a great future. It is never too late to start planning AND the best time to start is now.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Car loans, credit cards and personal loans can be helpful at the time, however often become a source of unnecessary stress later on.

Clearing your debts doesn’t have to be hard work. With the right plan, it’s possible to get your finances on track sooner than you think – and back to living the good life, guilt-free. Here are some tips to help you get out of debt.

Plan your budget

Achieving your goal of being debt-free doesn’t have to be daunting; a good way to start is with a budget. Try to keep a diary for your expenses and your spending. This will let you track where your money is going and where you can make savings which you can use to attack your debt.

Make more than the minimum payment

Pay more than the minimum off your debts. Whether it’s personal loans or credit cards, paying the minimum will hardly make a dent as you will only be paying off the interest. If you have a mortgage, try to pay every two weeks instead of monthly. This can mean one full extra payment each year – saving thousands off your loan.

Talk to your loan or utility provider

In many cases a better deal is just a conversation away. Asking your bank for a better way to manage a loan may uncover options you hadn’t realised and you could even end up paying less interest. If you are having trouble with utility bills, let then know. Many companies have counsellors and can create a payment plan to help you out of trouble. It is always better to be proactive about any financial issues you may have, rather than trying to deal with it later once it becomes a larger issue.

Prioritise

Prioritise all your debts by the interest rate you are paying. It makes sense to get the balance down on high-interest debts first, as paying these off first will save you more money. The money you save in interest, you can then use to pay off your lower priority debts. Another approach, if you have a few small balances, is to prioritise repaying these debts. After all, getting rid of debt can psychologically be very powerful.

Consolidate

If you have more than one loan, consolidate all your higher-interest debts into one lower interest debt. This could be in the form of a low-interest rate credit card or a personal loan. Your loan will be easier to manage and also reduce your interest repayments.

Ensure you have the right card

Don’t pay 20 per cent interest on your credit cards. Increased competition in the credit card space means many lenders are offering much lower interest rates and deals such as zero percent on balance transfers. Make sure you read the fine print and don’t use that card for any new purchases until you have paid off the full amount from the initial transfer. The best way to do that is the old fashioned way – cut your card up and throw it away!

Take the first step

If you’re having difficulties repaying your debt, take the first step and speak to your lender. If you’re open and honest about your financial difficulties with your lender, you will probably find they are open to review your repayments and look at other solutions to help you out.

Speak to a professional

If you feel that you are in over your head and struggling with your finances, speak to us today for help with a financial strategy that gets you back on track.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Most people wouldn’t dream of taking their car on the road without car insurance or living in a house without home and contents insurance. But when it comes to taking up insurance to protect their life or income, most Australians act indifferently.

Common reasons for not taking up insurance are a lack of knowledge, a belief that insurance is too expensive and the age-old ‘it won’t happen to me’ mentality. If this sounds like you, it’s worth taking a moment to consider your insurance needs. The peace of mind this will give you is well worth the effort.

Myth #1: It’s too complicated

If you’re new to insurance, it may seem complicated. There are all sorts of different products, acronyms and official-sounding terms. To help make things clearer below is a snapshot of the typical types of insurance available to you.

Type: Death (AKA Life or Term life)
Death cover provides your family with financial security if you die. If you die, your insured benefit may be paid to your beneficiaries, as nominated on your superannuation account or will.

Type: Total & permanent disablement (AKA TPD)
Total & permanent disablement cover provides you and your family with financial security by paying a lump sum if you become totally and permanently disabled and are unable to ever work.

Type: Income protection (AKA Salary continuance)
Income protection cover provides you with a regular monthly income if you are unable to work and earn your income.

Type:Critical illness (AKA Trauma)
Critical illness provides you and your family with financial security if you are diagnosed with a life-threatening illness like cancer, heart attack or stroke. Unlike TPD, there is no need to prove disablement, only that you have suffered one of the specified medical conditions.

Myth #2: It’s too expensive

Value is relative and depends on what is important to you. But when you have dependents, it’s hard to argue that the right insurance cover is anything but money well-spent. The ability to sleep better at night knowing that everything is taken care of is priceless.

Besides, insurance doesn’t have to be exorbitant. By finding the cover that best suits your needs, you should be able to structure your insurance cover so that your premiums are well within reach.

Myth #3: It won’t happen to me

You might think ‘I don’t need to worry, I’m fit and healthy’ but with the incidence of life-threatening or debilitating health conditions on the rise, you may think again after considering the following leading causes of death (and disability) in Australia.

• Heart disease – Affects 1.4 million Australians and is the leading cause of death in Australia.
• Strokes – There are 50,000 strokes in Australia each year – 65% result in disability.
• Dementia – Dementia is already the single greatest cause of disability of Australians aged 65 years or older.
• Cancer – 1 in 2 men and 1 in 3 women will be diagnosed with cancer by the age of 85.

Get some advice

If the thought of understanding insurance and what’s right for you seems like an insurmountable obstacle then leave it to the experts. The cost of insurance doesn’t need to stop you in your tracks and you’re always better off knowing more. Speak to us to get the advice you need to protect yourself – and your family. Give us a call on 03 9723 0522.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Choosing to give money to charity or charitable causes that you care passionately about can be straightforward but there are several different ways you can give. Some considerations include:

• When do you want to give? When you are alive, after you have died, or both?
• How much do you want to give?
• How much control do you want over how the funds are managed and granted?
• Are tax benefits something you need to consider?
• Do you want to leave a lasting legacy, which involves your spouse, children and grandchildren?

Your answers to these questions will help you decide which of the different structures offers you the smartest way to give. Four of the most common options range from simple and quick, such as a one-off direct donation to complex and long-lasting, such as setting up a private ancillary fund. Let’s take a more detailed look at the options.

One-off donations

Making a direct donation to a charity is still the most common way to give.

Donations can be as small as $2 and are fully tax-deductible.

Bequests

A bequest is a donation to benefit a charity or cause of your choice which is specified in your Will and commences upon your death. It may be a specific donation or you might choose to establish a charitable trust, which is a long-term giving structure often in perpetuity.

A charitable trust is effective if you want to maximise the impact of your initial gift over the long term All earnings on the funds held in trust are tax-free This option is most suitable if you have over $250,000 to give.

Private ancillary funds

A private ancillary fund (PAF) is a charitable trust, set up during your lifetime or upon your death to benefit nominated causes. A PAF enables you to ensure your giving will align with your values and interests and that it will continue after you die.

Any donations you make to a PAF are tax-deductible and all income and capital gains generated within the PAF are tax-exempt. This option is suitable if you have over $500,000 to give.

Public ancillary funds

As an alternative to a private ancillary fund, you can establish an account under a public ancillary fund. This allows you to focus on the pleasure of giving, without having to worry about the ongoing administration, investment management or compliance involved in a private ancillary fund.

An account can be established with an amount of $50,000.

Remember – if you need help to decide on your smartest way to give, we’re here to help. Give us a call on 03 9723 0522

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Children certainly don’t come with an instruction manual. From the time they’re learning to crawl parents begin teaching their children about right and wrong, personal safety, manners and morals. Over time, children are taught about stranger-danger, healthy eating and personal accountability. Interestingly however, many Australian parents leave out one of the most important survival skills their children will need in the future – how to take care of themselves financially.

Earning, saving and sharing

Children see their parents spend money, on one thing or another, most days. This emphasis on spending can come at the expense of other important money skills – earning, saving and even investing. Teaching children about the less visible aspects of how to manage their personal finances from a young age will have a profound impact on their attitude to money in the future.

It’s more about character than coin

Giving children the skills to control their finances is not only beneficial in their financial wellbeing – it also contributes to the forming of their personality and unique attributes. The lessons on self-control, conviction, resourcefulness, contentment and compassion are all valuable in shaping a well-rounded, socially aware, and responsible person.

Where do you start?

ASIC’s MoneySmart website has teaching resources to help develop financial skills in young people. Resources include e-books, videos and interactive activities. You can visit their website at moneysmart.gov.au/teaching

And around the home, there are some simple things you can do to help your children on the right track:

• For young children, encourage your children to play ‘shop’ at home
• Let them help with putting coins in the parking meter or vending machine
• Set a goal to save money for their next toy. Make sure it’s not too expensive – it’s important it’s something they can achieve in a realistic timeframe
• Occasionally let your children watch you do online banking so they can see how your money is managed each month to pay for recurring and unexpected living expenses.
• For older children, encourage your children to earn their pocket money by doing age-appropriate chores around the house – and consider putting the money directly in a bank account to help create a savings routine.
• For teenage children, teach them about the value of compounding interest and consider establishing a trust in their name. That way they can see the benefits of longer-term investing in managed funds or shares. This can be a daunting task for a parent and it may be useful to talk to us about different ways this can be done.
• Talk to your children about money and keep talking to them about it as they grow. The lessons learned will stay with them for life.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.