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The Golden Years Retirement Myth

Business coaching BrisbaneIn the words of Tennessee Williams, “You can be young without money, but you can’t be old without it”.   Retirement is often referred to as the golden years, but for many a golden years retirement is a myth, and not just because of a lack of money.

There are four (4) must-have requirements that must be met before retirement is likely to approach a golden era.  They are:

  1. Must have good health
  2. Must have enough money
  3. Must have satisfying relationships; and
  4. Must have a continuing sense of purpose

Regardless of the amount of money you have, poor health can devastate your retirement if it occurs in the early stages.  It can also make it much more expensive than it needs to be.  The irony is that in many cases, poor health can be the result of the decades spent under stress to earn the money to fund a life, including retirement.

The financial reality for most people is that they exist on a full or part government age pension.  Even if all the other requirements are met, a lack of money can mean a frugal lifestyle indeed plus a severe restriction on travel and other touted ‘golden year’ activities.

Loneliness can have a severe negative impact on the quality of a person’s retirement. Having one or more satisfying relationships is essential because all people have an innate need for social interaction and support.  The key relationship might not be a spouse; it could be one or more close friendships.

One essential requirement that is overlooked by eager retirees is an ongoing sense of purpose.  After a year or two of travelling overseas, or touring the country in a caravan, the reality of nothingness often sets in.  If you don’t like fishing, golf or bowls, life can become extremely boring.  For this reason, many people go back to work or give their time to charities.

Retirement is a period that can last for 30 years or more.  So if you do some golden years planning that great, but remember that money is only part of the plan.  If, like most people, you don’t plan, at least you know what’s coming.

Gary

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Give your children the gift of personal finance basics

learn personal finance basics

Children learn financial management from their parents.  At a very early age, our kids become aware that money comes from a machine outside a bank (ATM) or a supermarket cash register (EFTPOS); and that flashing a thin sliver of plastic allows us to walk out of a shop with just about anything we want.   

So it comes as no surprise that older children can believe that a credit card is the one and only option when cash is needed instantly.  Of course, people skilled in financial management know that’s crazy because nothing capable of growing in value or earning an income return is ever purchased with a credit card and the amount that is ultimately repaid often far exceeds the original purchase price.

It is a natural urge of all parents to want the best for their kids.  Consequently, we all invest a lot of time and money into their education and career guidance.  However, the ability to earn good money is only half the story.  Keeping the money they earn and making it grow is far more important. 

This ‘make-or-break’ chapter of our children’s education is so often missing because parents don’t have the skills themselves.  As a result, young people do not see a good example in the way their parents manage money.  Worse, they see bad habits on a daily basis and copy them in the innocent belief that Mum and Dad are right.  They can also copy the negative behaviours that relentless money stress can cause!

One way or another, our children need to be shown good money skills.  With these skills, there would be less pressure on them to become high income earners just to get by.   Without self-imposed financial pressure caused by bad habits and a lack of know-how, our kids could be encouraged at a much earlier age to follow their dreams instead of the drudgery of a life lived merely for the sake of money.

To me, this is what personal financial management is all about – a life well lived!

Gary Weigh

the big c curse

Turning prosperity into retirement

HOW-TO WORKSHOPS

Starting in Brisbane – February 2014

“Is a Self Managed Super Fund right for you?”

SelfBusiness consultancy Australia Managed Superannuation is a hot topic at the moment.  Many people are being talked into setting SMSF to own an investment house via slick property marketeering.    This can be a huge mistake unless you know what you are doing.

Merely setting up a Self Managed Super Fund (SMSF)  does not guarantee success.  It needs to be crafted to the owners needs.  A SMSF structure can be a tax-effective investment machine.  But it must be used the right way.   Like turning a house into a home, a new SMSF shell must be furnished to meet the particular needs of the family.

My 1-hour evening workshop will cover:

  1. How to know if a SMSF is right for you?
  2. How much money do you need?
  3. How much work is it to manage?
  4. How and when can you access your money?
  5. How to making a SMSF actually work?
  6. How to keeping the costs down?

Numbers will be limited to 8 people per session so that we can field questions and put everyone on the right path with their superannuation.  We will conduct as many small group workshops as we need to.

The workshops will be held at Toowong, Brisbane after hours and there is no cost to attend.  Yes, of course we would like you to consider us as your ongoing advisers but there is absolutely no obligation.

To register your interest just send me an email personally to gary@garyweigh.com

 

two buildings in brisbane

Business consultancy Australia

Self-managed super – is it right for you?

Business consultancy AustraliaThe number of people establishing self-managed superannuation finds (SMSF) continues to increase.  People are enticed by the prospect of having control over their own superannuation affairs.  But in my experience, people don’t realize the full extent of what they are getting themselves into. Having control may be desirable, but being your own administrator, accountant and investment adviser is very challenging and can be a trap for many SMSF newcomers.   Although it is easy to outsource all of these knowledge gaps, the resulting cost structure can be very expensive. In many cases, people set up SMSFs without doing enough homework.  Often they fail to reach the objectives they set for themselves and could have been better off choosing an appropriate APRA-regulated fund. In my experience, people don’t understand the wide range of superannuation choice available.  Unless a member investor particularly wants to invest in direct property through superannuation, other forms of superannuation should also be considered before the decision is made to set up a SMSF. ASIC (The Australian Securities and Investments Commission) is also concerned about trustee knowledge gaps.  The corporate and financial services industry regulator has weighed in recently and, as part of its SMSF taskforce activities, has outlined a range of factors it believes are important for financial advisers to discuss with their clients. Conversely, anyone considering a SMSF should seek unbiased advice before acting.  In particular, more information should be sought and greater consideration given to:

  • the roles and responsibilities associated with being a trustee of an SMSF
  • the time, cost and resources required to run an SMSF
  • the risks associated with an SMSF structure (ie, not having access to a government compensation scheme)
  • whether the investor has the necessary skills and expertise to make investment decisions for the SMSF
  • the importance of asset diversification
  • whether the investor’s investment strategy will deliver the returns required to adequately fund their retirement; and
  • the advantages and disadvantages associated with a switch from an APRA-regulated fund

Check out the ASIC Moneysmart site to read a little more about how a SMSF works https://www.moneysmart.gov.au/superannuation-and-retirement/self-managed-super-fund-smsf Call me for a free 1-hour overview of a SMSF where I will give you a balanced explanation of both the opportunities and responsibilities that will be placed on you and your family as trustees.  Contact me at Gary Weigh & Associates Business consultancy Australia on 0408 756 531 or gary@garyweigh.com

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Business management tips – risk insurance

9 myth-busters on personal insurance in Australia

Business management tipsYou hear it almost every night on TV.  Buy insurance direct and avoid the unwanted medicals.  Well here is the other side of the story – some business management tips, and tips for all individuals considering insurance.  When you purchase personal risk insurance through a licensed adviser, you will have a product recommended to you that suits your needs.  You will also have someone to explain the fine print to you, and to arrange everything for you.

So here is what really happens when you seek advice from an insurance adviser in Australia:

  1. Very few people are required to have a full medical for insurance purposes
  2. Most policies are accepted on the strength of your medical disclosure in the application and the report from your regular doctor (you agree to that in the initial application)
  3. You do not have to go to a doctor and pay for medical testing to get insurance
  4. If an insurance company wants you to undergo any medical test, they pay for it.  Because it is an expense to them, they try to keep all medical testing to a minimum
  5. Occasionally a blood test or other test is required.  If so, a registered nurse or other qualified professional from a specialist insurance medical testing service will arrange to see you at home or at work at a time convenient to you.  It takes 5 minutes.
  6. Most insurers have a tele-underwriting service where an underwriter will talk to you about your medical history over the phone in about 20 minutes.  You don’t spend hours filling in forms.
  7. If you apply for insurance that is personally underwritten, you will get a very competitive price because the insurer knows exactly the risk you represent to them.  You will also know up front what you are covered for and not covered for.
  8. Underwriting at application stage generally means that unless you fail to disclose information or you tell a lie, you are certain to be paid at claim time.  If you are not underwritten when you first apply, you may have the insurer asking these same questions when you make a claim.
  9. Insurance medical testing saves lives.  Many people have had their lives saved by finding out through an insurance requested blood test that they have a serious medical condition

Yes it is true that you will pay a fee to an adviser or the adviser will receive upfront and ongoing commission from the insurer.  It depends on the adviser however, every professional is entitled to be paid for what they do.  However, you will not necessarily save that cost by going direct, and you certainly won’t receive unbiased advice.

Personal risk insurance is must for business owners.  One final comment in this week’s business management tips:

“Ownership of an insurance policy is a crucial issue.  In the event of a claim, the money needs to be paid to where the protection is needed.  That could be to you the owner or your family; or to the business  (company or trust) if your business equity or a key person in your business is the subject of insurance protection.”

 

Make your superannuation commission free!!

Why pay an adviser you never see?

 

a business man and woman looking at something from afar

Managing start up business – 9 essentials to consider

9 Essentials to consider when managing start up business

  1. Offer something different
  2. Focus on the customer; the service; the satisfaction and the retention
  3. Prepare a written plan and road test it before you commit totally
  4. Ditch the 9-5 employee mindset and become the lateral thinking entrepreneur
  5. Recognize your strengths and ask for help where you know you need it
  6. Set your KPIs; know your pricing, costing & breakeven point; watch your cash
  7. Stick to your plan unless there is good reason to change
  8. Work hard but focus only on the things that matter, learn as you go
  9. Stay calm and practice a little humility

The single most important piece of advice I can offer is to seek advice before you take the plunge into your own business.  In my experience (which is a lot), the conversation after the fact is usually about where things went wrong.  A common mistake people make is focusing on what they personally like, and therefore assume customers would like; rather than on finding out what customers really want.

Trouble managing start up business?  Call me direct on 0408 756 531 or email gary@garyweigh.com

Make your superannuation commission free!!

Why pay an adviser you never see?

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Welcome to my financial planning & business planning Australia blog

business coaching Brisbane7 Handy hints for personal insurance

  1. Be careful buying personal insurance without advice; some cheap life insurance policies pay only if you die by accident (only about 20% of deaths are caused by accident)
  2. Unless you are personally underwritten when you apply, do not assume you are covered for pre-existing medical conditions
  3. ‘No medicals’ insurance could mean that the insurer starts asking questions to determine payment (if any) when you make a claim
  4. It is a myth that applying for insurance means having a medical. Most people are insured on the basis of their medical disclosure in the application and a report from their family doctor (you give written permission for the insurer to write to your doctor in the application form)
  5. If an insurance company wants any medical testing done (commonly a blood test if anything) they will pay for it and will arrange to send a medical professional to your door at your convenience
  6. Never assume you are uninsurable.  An insurance underwriter may exclude some insurance but not all; or exclude certain pre-existing conditions; or increase the premium to reflect higher risk
  7. If you are thinking insurance, think trauma insurance because suffering a serious illness (e.g. heart attack, bypass surgery, cancer, stroke) is statistically your most likely health event

 A good adviser will tell you what is in the fine print.  Personal underwriting and truthful disclosure when you apply is the way to guarantee you will be paid at claim time.

Call me direct on 0408 756 531 or email gary@garyweigh.com

For more helpful financial & business planning Australia information, check out our financial planning services

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Welcome to my business building Australia blog

Gary Weigh business coaching Brisbane5 Handy hints for your super

  1. It’s compulsory so why not make it work for you
  2. Gather it all in the same fund and save on admin fees
  3. Make your super commission free – why pay an adviser you never see
  4. If you don’t have insurance get some through your super fund
  5. Make sure you nominate a beneficiary to receive your benefit if you die (be careful, there is only a few people you can legally choose)

 We can arrange it for you. Call me direct on 0408 756 531 or email gary@garyweigh.com

So what about the government’s new MySuper initiative? 

My answer to that is if you don’t care about your super, then MySuper is for you.  It is there for people who don’t care.

For more helpful business building Australia information about superannuation check out our financial planning services

thumbnail of Alberto Cairo

There are no scraps of men

This is a TED talk.  You can see this and many other talks that inspire and capture the imagination at http://www.ted.com.  there are a range of topics including technology, business building, entertainment, and science.

This is an awe inspiring story told by Alberto Cairo, a physiotherapist who leads the International Red Cross’ orthopaedic rehabilitation work in Afghanistan.

He’s spent the past two decades in this war-ravaged nation, far from  his native Italy, helping an estimated 100,000 Afghan landmine and accident victims learn to find the strength within themselves to not  only walk, but also to hope, again.

In a country where the  disabled are generally given pity but no rights, Alberto found a way through micro-loans, positive discrimination schemes and home schooling, to give tens of thousands of disabled Afghans a job and a sense of  dignity and pride.

This has nothing to do with financial planning, business coaching or business building but it does have a lot to do with empathy, care, kindness and respect for other human beings.  We could do with a lot more people like Alberto Cairo in the world today.

Learn The Art of Peace

Check out Griffith Aikido at http://www.griffithaikido.com.auAikido is a highly refined Japanese system of self protection.  It is a martial art where the ultimate aim is to not to fight or to hurt an opponent, but to develop inner peace and hone a positive spirit.  As we all come to learn, the only real control is self control.  As O Sensei once said, “True victory is self-victory.”

This mysterious art is practiced all over the world by people of all ages, abilities and backgrounds.  It’s teachings are metaphors for living life as well as positive business building, regardless of circumstance or adversity.  We actively promote peace, one student at a time.

Gary Weigh

Business building

Aikido Instructor

More Super confusion on the way

business coaching BrisbaneFor employers and employees there is yet another major change to superannuation just around the corner.  And it will probably impact you.

Chances are you aren’t aware of this.  This monumental change in Australia’s superannuation system is one of the country’s best kept secrets.

The federal government and the superannuation industry know about it because they have been talking amongst themselves about MySuper for a couple of years now.

But most people in Australia’s work force (i.e. the consumers it actually affects) are still largely in the dark.  This is unfortunate because many employers and employees will have to take action; and soon.

MySuper is the government’s initiative to replace employer default funds with a cheap; one-size-fits-all super fund offering; with no investment choice and basic insurance benefits.   Everyone gets the same and, to the extent that you do nothing, you will get what you are given.  They will look very much like union super funds (i.e. industry funds).

For employees

So what does MySuper mean to employees who chose to go with their employer’s default super?

  • You may have an additional super fund on New Year’s Day
  • If so, you will have two sets of fees
  • You may also have a duplication of default insurance which you will pay for
  • Your employer will only be permitted to contribute to your new MySuper fund
  • In mid-2017 your current super will be transferred to your MySuper fund
  • For older workers it removes the option of the ‘transition to retirement’ strategy because there are no immediate plans to have a pension version of MySuper
  • You may lose access to advice from an adviser associated with your employer’s fund
  • Fortunately, you can roll your money out of MySuper at any time to a fund of your choice

Will you be asked first if any of this is ok with you?  No!  This will happen without asking you.  So if you want another choice that puts you in control of your retirement savings, SEEK ADVICE NOW!

For employers

By 1 January 2014, you must have categorised all of your employees for superannuation purposes.  Categories include MySuper members, choice members and transitional members.  This probably means adjusting your payroll system to accommodate the payment of employer contributions to one or more MySuper funds.  Doing as you’ve always done is likely to result in penalties.

Conclusion

This is real money we are talking about.  Your money!  So take control of it.  Your superannuation plays an important role in your personal finances.  Ignoring it for decades is sheer madness.

This change is a great opportunity for both employers and employees to side-step ‘MySuper’ and take control.  Doing so will provide the opportunity for your own super and that of your employees to work hard for your retirement.

MySuper is the ‘do-nothing’ option for employees, but not for employers.   I am here to tell you that with superannuation, as with every other product and service – you get what you pay for!  There is so much more you can do with superannuation these days.   SEEK ADVICE NOW!

Call Gary for

  • financial planning Brisbane
  • business coaching Brisbane

Call direct on 0408 756 531