Blog and News articles

For some of us, setting financial goals may seem like an overwhelming chore that quickly ends up in the “too hard” basket. The key to overcoming this problem is to break things into a few simple steps that will get you off the ground and set you on a steady path toward financial freedom. Create a visionThe best way to start setting realistic financial goals is to determine what will motivate you. What are your dreams for your ideal lifestyle? What will you own? Where do you want to live? What car will you drive? What will you enjoy doing? Whether your answers to these questions are humble or huge, the important thing is to make them as specific as possible so you can visualise yourself enjoying them. Build positivity with quick winsWhile the first step is to think long-term about your big dreams, it is important to get some smaller goals under your belt. This might be aiming to go hard on paying off your credit card balances, or to start regularly depositing a modest amount in a savings account that is earmarked purely for future investment purposes. Reality check your spendingMany people fail to get their financial goals off the ground because they think they can rely on willpower alone to change spending habits, rather than using hard evidence about what they spend on and where changes can be made. Just one hour with your bank statements for the last 12 months will allow you to get a handle on exactly where your money is going. You may be surprised to find a much higher proportion of your income going toward discretionary spending than you first thought, such as eating out or impulsive purchases. This exercise allows you to quickly determine which areas can be cut back on, so that you can identify funds that can be redirected toward financial growth objectives. Save before you spendAnother quick and effective budgeting technique that can generate momentum is to follow the rule of “paying yourself first”. This simply means that the first thing you take out of your regular pay cheque is a set amount to put toward saving and investment plans before you start spending on anything else. By prioritising this one simple action, you are taking a significant step and forming an invaluable habit that will start growing your wealth, without any tedious record keeping. Of course, more detailed budgeting should be the ideal you are aiming for, but if you wince at the thought of crunching numbers, this step will at least get you started, and deliver a sense of progress and control. Set staged and realistic goalsOnce you have taken the above small steps, you can start to make more adventurous plans for the medium to long-term. This can involve bigger-ticket financial objectives that will make a real difference to your wealth creation, such as paying down your mortgage faster, setting targets on your superannuation nest egg, or building a diverse investment portfolio. Ask the expertsOne phone call could be the start of some profound and exciting changes in your goal-setting journey. Engaging the help of a financial planner can open up a whole range of opportunities and resources that can benefit your financial growth. This includes a structured approach to examining your lifestyle priorities and investment preferences, so you can map out a more comprehensive plan targeting a variety of goals and take the worry out of making investment decisions. You can lean on their research capabilities to create a durable ongoing plan that will help you reach your goals more effectively. Take the next step to discuss your financial situation, make an appointment with a Bridges financial planner. We have an established alliance with Bridges, to provide our customers with financial advice. Bridges has been helping Australians with financial advice for 30 years. A Bridges financial planner will develop a plan specifically for you; one that’s tailored to your needs and circumstances to help you achieve your goals. To make an appointment with a Bridges financial planner, call 02 6384 1111. The initial consultation is complimentary and obligation free. Bridges Financial Services Pty Ltd (Bridges). ABN 60 003 474 977. ASX Participant. AFSL 240837. This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner or a registered tax agent. Examples are illustrative only and are subject to the assumptions and qualifications disclosed. Part of the IOOF group In referring customers to Bridges, South West Slopes Credit Union Ltd does not accept responsibility for any acts, omissions or advice of Bridges and its authorised representatives.

It is human nature for parents to want to provide for their children but at some point, the “help” you may be giving them could actually be more of a hindrance to them gaining their own financial independence - stunting their financial literacy and growth. Your financial future is at stake The other consideration is your retirement lifestyle. If you are 50 or older, now is the time to be setting yourself up for the future and making the most of every discretionary dollar for the development of your nest egg. If you are operating the “bank of mum and dad” for your kids instead of building your retirement, it could mean you need to work longer or compromise your retirement lifestyle. Helping them become financially savvy So, what can you do to help your kids get a grip on their situation and gain financial responsibility? You can give your children positive encouragement and tangible education on the financial life skills they will need. This doesn’t mean you should suddenly “cut them off”, but it does mean you need to begin a serious discussion with them about the costs of maintaining their lifestyle and determine a timeline for passing over responsibility to them. Budgeting is the foundation If you have been putting food on the table and a roof over their head, chances are their income has been directed toward spending on their own entertainment and enjoyment. Giving them an understanding of budgeting is critical for them to gain a broader view of what it takes to survive and prosper financially. Fortunately, there are plenty of budgeting tools available online or through banks, which you can encourage them to use and help them to complete. This will give them an understanding of the scope and scale of spending required to live independently, as well as an appreciation of the differences between essential living expenses (such as food, utilities, communication, transport, and rent) and discretionary spending (such as eating out, entertainment, gaming, and hobbies). Developing responsible habits An extension of the budgeting process is to educate them on the vital importance of saving regularly from their income. Start with a simple rule of saving a set percentage of everything they earn. This can then be developed into goal-oriented saving for various objectives they consider important and worth sacrificing for. If you do want to provide some form of financial support, rather than giving random handouts toward immediate needs, perhaps you can offer to match their savings dollar for dollar in support of something worthwhile, such as a home deposit, rental bond, or a business venture. This gives real incentive to form solid saving habits that will benefit them throughout their life. Educating on credit is also essential as it is easy for them to quickly rack up personal debts that can demoralise them and distort their financial priorities. Analysing a month’s spending may point out where their income is being squandered or wasted. Creating wealth slowly Your children may view the concept of creating financial independence as something that can only happen through outrageous luck or taking huge risks for quick gain. Therefore, one of the most vital lessons you can pass on is the value and importance of creating wealth slowly.   Real financial independence is not the result of a lottery win or riding the back of an investment boom — rather it is the result of forming sound investment practices such as: Allocating a certain proportion of your regular savings toward long-term wealth creation plans Utilising available tools that accelerate wealth, such as superannuation tax incentives Diversifying investments beyond bank term deposits and into a variety of asset classes that relate to your investment time horizons Planning for contingencies (such as sudden loss of income or emergency expenses) by establishing an emergency savings plan and personal insurance protection plans Seeking the advice of a financial adviser to coordinate all of the above, and to develop a lifelong plan and strategy for wealth creation.   Start the conversation now Delaying the steps outlined here may result in an ongoing cycle of dependence that will only become harder to break if it isn’t addressed.   Take the next step To discuss your financial situation, make an appointment with a Bridges financial planner. We have an established alliance with Bridges, to provide our customers with financial advice. Bridges has been helping Australians with financial advice for 30 years. A Bridges financial planner will develop a plan specifically for you; one that’s tailored to your needs and circumstances to help you achieve your goals. To make an appointment with a Bridges financial planner, call 02 6384 1111. The initial consultation is complimentary and obligation free.   Bridges Financial Services Pty Ltd (Bridges). ABN 60 003 474 977. ASX Participant. AFSL 240837. This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner or a registered tax agent. Examples are illustrative only and are subject to the assumptions and qualifications disclosed. Part of the IOOF group In referring customers to Bridges, South West Slopes Credit Union Ltd does not accept responsibility for any acts, omissions or advice of Bridges and its authorised representatives.  

You only get one shot at going into retirement, so it is essential that you go in with your eyes wide open. That means being aware of where your income may be coming from, how to plan for living and recreational expenses, and making decisions that are balanced and have an eye on the long term.   The earlier you start preparing, the more options you will have, so here are some top tips to get the ball rolling.   Where do you stand now?Even if you haven’t been especially concerned about financial planning throughout your working life, it is important to do so as you enter retirement, when you are no longer able to rely on earned income. The first part of the planning process is to get a clear understanding of where you currently stand financially. What assets do you have and what are they worth? This includes your home, your savings and investments accounts, your superannuation, and your possessions.   Key dates to be aware ofThe next step is to establish the key milestones as you transition to retirement. The first milestone is your ‘preservation age‘ — the age at which you can access your super. Provided you have retired from the workforce, the minimum preservation age is 55 years if you were born before July 1960. This age increases on a sliding scale up to age 60 for those born after June 1964. The second milestone is the age at which you are eligible for the age pension. For those born before July 1952, this will be 65. For those younger than that, it can be as high as age 67, depending on your date of birth. Eligibility also depends on the income and assets tests. Plan around your lifestyle decisionsOnce you know when your super and pension income will kick in, you can start to plan your finances around the lifestyle activities you want to engage in during the potentially long years of retirement ahead. For example, you may want to: Travel in the earlier stages of retirement, before settling down Make some renovations around the home in the earlier years, so you don’t have to worry about them later Make major recreational purchases, such as a boat or motorhome Downsize your home or move to a retirement village down the track Ideally, all of these major lifestyle decisions should be projected early, so that you can allocate funds for them, decide where those funds should be drawn from, and ensure that you have enough left to generate an ongoing income.   Assess your income optionsGet a clear picture of where your retirement income may come from. This could include: Income from super Investments outside super Part-time employment The age pension Home equity release or selling the family home In assessing these income sources, you need to consider whether one may impact another. For example, selling the family home or working part-time may impact your age pension.   Take full advantage of entitlementsWhile the age pension on its own may not be enough to fund the lifestyle you want to enjoy, it can certainly be a handy supplement to your ongoing living income. Apart from the pension itself, there may also be other benefits, such as travel concessions, cheaper medicines, and reduced council and water rates, which can translate into a significant amount of savings every year. Structuring your investments to maximise entitlements is therefore a critical issue and some professional financial advice can make a big difference.   Is work an option?Not everyone is particularly keen on making a sudden shift from full-time work to full-time leisure, so if you are still interested in continuing to work part-time, it can help you delay drawing down on your super and other assets. There are incentives within the social security system to encourage this, so seek advice to see how it may be a good option for you financially. Budgeting is essentialThere may be a temptation to splurge a little when you first receive a large lump sum from your super, but make sure you project your living expenses properly before taking the plunge. More than ever, a simple budget is essential to ensure you don’t outlive your income in retirement, so ask for advice and get things in writing to make it as tangible as possible.   Don’t forget to include emergency funds in your budget to take care of any surprises or spikes in expenses, such as unexpected illness, a house move, or a family crisis.   Get advice early As you can see from the factors mentioned here, there are many interconnected elements to planning income and expenses for retirement. Speak to a Bridges financial planner to help put the puzzle together, structure a diversified investment strategy, maximise entitlements, and map out your lifestyle and living expense needs.   Take the next step To discuss your financial situation, make an appointment with a Bridges financial planner. We have an established alliance with Bridges, to provide our customers with financial advice. Bridges has been helping Australians with financial advice for 30 years. A Bridges financial planner will develop a plan specifically for you; one that’s tailored to your needs and circumstances to help you achieve your goals. To make an appointment with a Bridges financial planner, call 02 6384 1111. The initial consultation is complimentary and obligation free.   Bridges Financial Services Pty Ltd (Bridges). ABN 60 003 474 977. ASX Participant. AFSL 240837. This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner or a registered tax agent. Examples are illustrative only and are subject to the assumptions and qualifications disclosed. Part of the IOOF group

If you have a superannuation fund, you’ve probably been asked to nominate your beneficiary. But, super fund trustees can only pay your super death benefit to eligible dependants or to the legal personal representative of your estate. Bridges, our financial planning partner, explains what you and your family need to know, learn more.