With the close of another financial year upon us, apart from being one year closer to retirement and living the dream than you were 12 months ago, it’s an opportune time to attend to one or all of the following:

1. Give your super a free kick

Now is a good time of the year to make additional contributions into super especially if you intend to claim those contributions as a tax deduction as well as lodging your tax return early in the financial year.

Why is that, you may ask?

Well, any surplus cash you have sitting in a bank account earning an abysmal rate of interest can be contributed into super before June 30 as a “personal” contribution and claimed as a tax deduction.

Providing you haven’t exhausted your $25K concessional contribution cap, that increased tax deduction, all things being equal, will most likely result in you obtaining an increased refund from the ATO once your tax return is lodged and assessed.

The benefits are twofold; you get an increased tax refund which can be directed however you wish whilst increasing the wealth you have accumulating in super.

2. Share the wealth

If you have a partner you should be thinking about your finances together and make the most of opportunities that present.

For instance, if your partner has taken time out of the workforce or is a low-income earner, there’s every chance their super could do with a boost.  If your partner earns below $37,000 you can claim the maximum tax offset of $540 if you contribute $3,000 into their super before 30 June.

You get $540 off your tax bill whilst increasing the wealth accumulating inside super.

3. Check in on your goals

As we traverse life our needs and circumstances change, hence it is important to check in on your life and financial goals every 12 months to see how you’re tracking.

Are you on target for making your dreams a reality or do expectations need to be revised to take account of changes to your circumstances?

In relation to your super, at the end of the day, your super is your money.  You are ultimately responsible for how it performs and grows.  You need to ensure it is being invested wisely and in line with the timeframe you intend to access it.

As we enter winter and move another year closer to retirement, check in on one or all of the above…you might just get a good outcome in the future and surprise yourself.

Please note the above has been provided as general advice. If you would like more tailored financial advice, please contact us today. One of our advisers would be delighted to speak with you.

I’m often asked how best to invest for children and grandchildren. My clients are looking for the best long-term strategy to provide a gift to their children or grandchildren on their 18^th birthday.

The best gift we can give children is educating them about the value of money and the benefits of saving and investing.

Prior to choosing an investment, we need to consider a few aspects including tax, fees and the complexity of the structure.

A major consideration for parents and grandparents is the tax rate children have to pay. To prevent Australians investing money in their children’s name to save tax, special rules apply to income earned by children under 18. Income derived from investments and savings account is taxed at 66 percent once it exceeds $416 a year until it reaches $1,445, after which 47 percent tax applies.

We can safely say that investing in the child’s name will incur the highest marginal tax rate.

The simplest approach is to invest in your own name, preferably the lowest earning parent or grandparent.

• You pay the tax at your marginal rate
• The first $18,200 earned is tax-free
  • You may be eligible for the low-income tax offset
  • If you meet the age requirements for Age pension, you may be eligible for the seniors and pensioners tax offset
• Income derived from the investment may have franking credits

Another structure that can be used is a family trust, however, they are costly to establish and maintain, and time-consuming to administer.

As you can observe, the decision on the most appropriate investment vehicle for your children or grandchildren can vary depending on your circumstances. It is best to speak to your financial adviser at The Investment Collective.

Please note that this article is provided as general advice, it has not taken your personal or financial circumstances into consideration. If you would like more tailored advice, please contact us today.

Come across the aphorism “sell in May and go away”?  Perhaps heard reference to the “Santa Claus rally”?  Many people believe there are seasonal patterns to share prices.  Some months are typically good with prices going up, and some not so good with prices going down or sideways.  Let’s look at some history using the S&P/ASX 200 Index.

This index shows the aggregate performance for the biggest (by market capitalisation, worked out by multiplying the number of shares on issue by the price per share) 200 Australian Stock Exchange (ASX) listed enterprises.  This index only shows price movements (does not include dividends) and the larger companies carry more weight in the index than the not-so-large ones.

Of course, if the index of 200 companies is going up this does not mean all the companies in the index are going up.  Only that a larger number of market capitalisation went up.  Individual companies may have their own seasonal price patterns.  However, let’s keep it simple and look at the S&P/ASX 200 Index (also known by its ASX code XJO).

This chart shows the average (arithmetic mean) of monthly price movements for the index for the last 12 years (May 2006 to April 2018).  The figures on the right edge of the chart show the average level of the index at the end of each month, using a figure of 100.0 as the starting point.  So, if the average of the index at the end of December is 101.2 this means the average price increase for the month of December for the period examined was 1.2%.  The figure for November is 98.4 and this means the average price decrease for the month of November for the period examined was 1.6%. The blue diamond above the April bar shows the result for April 2018 – a better than average one.

Based on the last 12 years the month of April has been a good one for the price of the S&P/ASX 200 index.  April 2018 was a better than average one.  Based on the last 12 years the averages for May and June have seen decreases.  This certainly does not mean that May and June 2018 will be negative ones, only that May and June have been weak months on average over the last 12 years.  No suggestion that any portfolio changes would be necessary.

We can look in more detail at these historical data in future articles.  For instance, a different chart will show the best and worst performances for each month as well as the average.  For something a bit outside the square, we can also arrange the data so it looks at performances on dates divided up on an astronomical basis (Aries, Taurus, etc.) rather than calendar months.  Keep watching for future articles.

Please note this article is providing general advice and information. It has not taken your personal or financial circumstances into consideration, if you would like more tailored financial or investment advice, please contact us today. One of our advisers would be delighted to speak with you.

End of financial year is fast upon us yet again. To make sure you’re ready and to maximise your tax savings, I’ve prepared some tips and tricks:

1. Reviewing your insurance coverage might save you $

We all know that our circumstances can change at the drop of the hat. Therefore, as our situation changes, so does our need for risk protection. If you’ve had your cover in place for some years and it’s been just as long since you’ve reviewed it, now’s the best time. Even if the amount of cover is still appropriate, you may want to modify the way in which you fund the premiums to make them more tax effective.

2. Bring forward your expenses

From a personal point of view, you might consider the option to pay a year ahead on your income protection policy. All income protection premiums paid by the individual are tax deductible at their highest marginal tax rate, this will mean a greater tax deduction at tax time.

From a business perspective, you may wish to do the same. However, the tax deductibility on certain policies such as Key Man and Buy/Sell will be determined whether the policy is meant for revenue or capital purposes. Speak to your Risk Adviser or Accountant to find out more.

3. Speak to an expert

As with anything not directly relating to your own field of work, we employ the services of specialists for certain tasks. I recommend you speak with your Financial Adviser, Risk Adviser and Accountant before making any changes to your current arrangements and to seek advice on how to maximise your tax savings this financial year.

Please note that the above is provided as general advice. If you would like more tailored advice regarding your insurance needs or in the lead up to the end of financial year, please contact us today. One of our advisers would be delighted to speak with you.

The 2018-19 Federal Budget handed down last week by the Treasurer, Scott Morrison focused more on minor adjustments rather than sweeping reforms. It was a Budget designed to create short sharp election headlines, but there were also many measures that will improve individuals’ financial position.

Below is a summary of three main areas:

1. Superannuation
2. Taxation
3. Social Security & Aged Care

Superannuation

• Super fund membership
  • The maximum number of members allowed in a Self-Managed Super Fund (SMSF) will increase from 4 to 6.
  • SMSF Trust Deed’s may need to be amended.
  • May appeal to some, i.e. intergenerational wealth planning.
  • From 1 July 2019.

• SMSF three yearly audit cycle:
  • SMSFs that have clear audit reports over 3 consecutive years and have lodged annual reports in a timely manner will be able to move to a three year audit cycle.
  • This will reduce compliance costs for some.
  • The Government has undertaken to consult with industry stakeholders.
  • From 1 July 2019.

• Work test exemption:
  • Individuals between 65 and 74 who have super balances below $300,000 will be able to make voluntary contributions in the first financial year following the year that they last met the work test.
  • The measure will provide individuals with low super balances with some additional flexibility and may assist with small business CGT concessions.
  • From 1 July 2019.

• Other items:
  • Individuals earning over $263,157 from multiple employers will be able to nominate that their wages from certain employers be NOT subject to SG from 1 July 2018. Avoids unintentional breaching of the $25,000 concessional contribution cap.
  • Opt-in arrangements for default insurance inside super applying to accounts with balances below $6,000, under age 25 where account has been inactive for more than 13 months,from 1 July 2019.
  • Fees capped to 3% pa on passive fees on super account balances below $6,000 from 1 July 2019.
  • Inactive super accounts with balances below $6,000 to be transferred to the ATO.

Taxation

The Government will introduce a seven year Personal Income Tax Plan over three stages:

1. Targeted tax relief to low and middle income earners

• Low and Middle Income Tax Offset (LMITO)
• Effective date: 1 July 2018 – 30 June 2022.
• Received as a lump sum on assessment after an individual lodges their tax return.
• The benefit of the offset is in addition to the existing Low Income Tax Offset (LITO).

2. Protecting middle-income earners from bracket creep

• Effective date: 1 July 2018 – 1 July 2022
• Affects those individuals on middle incomes

3. Ensuring Australians pay less tax by making the system simpler

• The 37% tax bracket will be removed entirely.
• Effective date: 1 July 2024

• Other items:
  • Retaining the Medicare Levy at 2%
  • Extension of $20,000 instant asset write-off for small business
    • This measure allows small businesses with a turnover of less than $10m a tax deduction for the purchase of assets worth up to $20,000. It was due to end 30 June 2018. It has been extended for 12 months to 30 June 2019.

Social Security

• Increase to the Pension Work Bonus (PWB)
  • The PWB is an income test concession for Age Pensioners who continue to work.
  • Currently, the first $250 of employment income per fortnight is not counted under the Centrelink income test.
  • From 1 July 2019, the Government proposes to increase this to $300 per fortnight (first increase since 2011).

• Expansion of the Pension Loans Scheme (PLS)
  • From 1 July 2019, the Government proposes to make the PLS available to full and part pensioners as well as self-funded retirees of age pension age.
  • Full rate pensioners will be able to increase their income by up to $11,799 (singles) or $17,787 (couples) per year by unlocking the equity in their home.
  • The current PLS interest rate of 5.25% pa will apply.
  • Only fortnightly pension payments are available (not lump sum amounts).
  • Repayments generally occur from the sale proceeds once the house is sold, however, it can be repaid at any time.

• Improving access to residential and home care
  • The Government proposes creating 14,000 additional high-level home care packages over the next four years.
  • It is also proposing to release 13,500 residential aged care places.

In the April meeting, the Reserve Bank of Australia (RBA) kept the cash rate on hold for the 20^th consecutive month, at the record low of 1.5%.  The cash rate was reduced from 1.75% to 1.5% in August 2016, and there has not been an increase in the cash rate since November 2010.

Most of the ‘experts’ predict that rates won’t rise until next year due to slow wages growth, and general economic conditions.  Although some of the banks have increased their rates outside of the RBA cycles, many borrowers have taken advantage of the competitive home loan market to access lower rates and save on their mortgage repayments.

Given that we are currently in a record low-interest rate environment, and logic would dictate that rates are most likely to go up, does it make sense to fix your home loan?  Well, as with most financial decisions, there are pros and cons to consider with fixed rate vs variable rate mortgages.

Some of the key features of fixed rate and variable rate loans are shown below:

Fixed rate loans

• Fixed rate loans can provide peace of mind and avoid the risk of rising interest rates. If interest rates increase above your fixed rate, you will enjoy the savings as your repayments are locked in.
• At the end of the fixed rate period, the loan may revert to a much higher variable interest rate.
• If interest rates fall, you will miss out on any savings, as your fixed rate is locked in until the end of the term selected.
• Fixed rate loans are typically higher than variable rate loans, and charge break costs if you repay the loan early, wish to switch providers, or change to a variable rate before the expiry of the fixed rate term. The break costs are to compensate the lender for the loss of projected earnings on the loan and can be several thousands of dollars.
• Fixed rate loans may limit the amount of additional payments you can make above the minimum repayment amount. A penalty may be charged for exceeding the maximum repayments allowed each year, or in the fixed rate term.
• Fixed rate loans offer less flexibility, and do not provide full offset accounts. Some providers offer partial offset accounts, and depending on the provider, you may not have the ability to redraw.

Variable rate loans

• Variable rate loans typically allow greater flexibility. You may be able to make unlimited repayments without penalty, and redraw the funds as required.
• Variable rate loans can offer more comprehensive features such as a full offset account(s). An offset account will allow you to reduce interest costs by linking a savings/transaction account.  The balance held in the account will offset your home-loan and allow you to have access to that money as required.
• If interest rates fall, your lender may reduce the rate so you can take advantage of reduced repayments.
• If interest rates rise, your repayments will increase to the rate set by your lender.
• Variable rate loans usually allow you repay the loan before the end of the loan contract without break costs or penalties. A standard discharge fee would apply.
• If interest rates start to rise unexpectedly, you can convert the loan to a fixed rate. An additional application fee would apply.

Unfortunately, no one has a crystal ball and it can be difficult to predict when rates may rise.  Another option may be to split your loan.

Split loans

A split loan facility allows you fix part of your loan and leave part of the loan on a variable rate.  By splitting your loan, you have protection against increasing interest rates on the fixed portion, and you will have the flexibility of making extra repayments, and the features available on the variable portion.

There are many issues to consider before making any changes to your home loan.  Before you decide on what option would suit your needs, take the time to understand the pros and cons of fixing your home loan.   One of our friendly mortgage brokers might be able to save you thousands over the life of your home loan/s.

Please note that the above is given as general advice. It has not taken your personal circumstances into account. If you would like more tailored advice, or to learn more, please contact one of our lending specialists to determine the costs and benefits, and to discuss your options.

Centrelink’s Age Pension rates are currently as follows:

From 20 March 2018, Centrelink’s Age Pension starts reducing when your assessable assets are more than the amounts below:

And the Pension ceases altogether when your assessable assets are more than the following amounts

What’s the message that the Government’s sending people here?

Well, let’s take an example to illustrate. Say we have one retiree couple, Albert and Betty. They have assessable assets of $380,500, just on the lower asset test threshold. As a result, they receive the full Centrelink age pension and supplements. They receive the following annual income:

• $19,025 – Investment income of 5.0% (assumed) per year on their $380,500 diversified investment portfolio
• $35,573 – Combined Centrelink age pension and supplements
• $54,598 – Total combined annual income

Now let’s take a second retiree couple, Charlie and Deb. They have assessable assets of $837,000, just on the upper asset test threshold. As a result, they receive no Centrelink age pension and supplements. They receive the following annual income:

• $41,850 – Investment income of 5.0% (assumed) per year on their $837,000 diversified investment portfolio
• $0 – Combined Centrelink age pension and supplements
• $41,850 – Total combined annual income

Charlie and Deb are entirely self-funded retirees. They receive no taxpayer-funded benefits from Centrelink, and assume the full investment risk associated with generating $41,850 in annual investment income. However, their combined income is $12,748 per year lower than Albert and Betty who have less than half their assets!

What message is the Government sending to Charlie and Deb? I’d suggest that the message they’re hearing from the Government is ‘Spend your money. Go on that overseas holiday. Buy that new car. We’ll look after you’. And seeing that they are worse off than Albert and Betty even though they have a lot more investments, Charlie and Deb might think that spending their money is the logical and rational thing to do.

But of course, discouraging people from self-reliance is entirely the wrong message. However, as more and more people like Charlie and Deb hear that message, and as the population ages, the current social security structure will come under increasing pressure, and painful consequences will follow. It’s only a matter of time.

Please note that the above is provided as general advice. It has not taken into account your personal or financial circumstances. If you would like more tailored advice, please contact us today. One of our advisers would be delighted to speak with you.

Who does it apply to?

Succession Planning involves everyone. Whether it is planning for retirement or exit from your business or getting your ‘papers’ together for end of life, Succession Planning refers to both and is applicable at all ages.

While it may not be something that many people in their 30s or 40s may think of, being in the prime of their life, and it may not be on the top of their priority list, but it is something you need to consider. It’s important to decide what will happen to your assets when you die. I know when I was in my 20s, I thought I didn’t have assets, but when I went to a bank for a loan, I realised that I actually had quite a few assets. You need to consider how and to whom you should leave instructions about your legal and medical preferences in case you fall ill or lose the capacity to make those decisions yourself. If you have children, you should consider what provisions to make for their care or what you might want to do to help them. Therefore you should ensure that you have a valid and up-to-date Will and seek estate planning advice if appropriate.

For a business, a succession plan ensures there are qualified and motivated employees who are able to take over when the executive director or other key people leave and organisation. It also demonstrates to stakeholders (i.e. clients, funders, employees and volunteers) that the organisation is committed to and able to provide excellent programs and services at all time, including during times of transition. 

So, what is it? Why is it important?

An Estate Plan includes your Will as well as any other directions on how you want your assets distributed after your death. This includes documents that govern how you will be cared for, medically and financially, if you for whatever reason are unable to make your own decisions in the future.

With your business, whether you decide to sell up, retire or have to get out of business due to health reasons, it is important that you spend the time with your family and/or your business partners and plan what you are going to do. A succession (or sometimes called an ‘exit plan’) can help you outline what will happen and who will take over your business when you leave.

Your succession plan will depend on a number of factors, including your family situation, age, financial position and overall health. A good succession plan enables a smooth transition, with less likelihood of disruption to operations. By planning your exit well in advance you can maximise that value of your business and enable it to meet future needs. Please keep in mind that your succession plan must remain attainable – set a realistic timetable and measurable milestone along the way and stick to them. Even if you’re not planning on leaving your business just yet, it pays to have a detailed plan in place for when the time comes.

Another reason to focus on succession planning is the changing realities of workplaces. The impending retirement of the baby boomers is expected to have a major impact on workforce capacity.

Benefits of a good succession plan for your business

The benefits of good succession planning include:

• Ensuring the organisation maintains a plan to support service continuity when the executive director, senior manager or any key people leave;
• A continuing supply of qualified, motivated people (or how to identify them), who are prepared to take over when current senior staff and other key employees leave the organisation. This involves knowing your staff and knowing if you have someone to replace them;
• Alignment between your organisation’s vision and human resources that demonstrates an understanding of the need to have appropriate staffing to achieve strategic plans;
• A commitment to developing career paths for employees which will facilitate your organisation’s ability to recruit and retain top-performing employees and volunteers.

Wills

A will comes into effect after you pass away. It can cover things like how your assets will be shared, who will look after your children if they are still young, what trusts you want to be established, how much money you’d like donated to charities and even instructions about your funeral.

Your will can be written and updated by private trustees and solicitors, who usually charge a fee. Some Public Trustees will not charge to prepare or update your will, but only if they act as the executor of your will. Other Public Trustees may only exempt you from charges if you are a pensioner or aged over 60. Check with the Public Trustee in your state or territory.

Who is responsible for succession planning in my business?

Both the board and the executive director have pivotal roles to play in succession planning.

The board is responsible for succession planning for the executive director position. The board hires the executive director to ensure it has a skilled manager to implement the organisation’s mission and vision. It is therefore very important for boards to spend some time reflecting on what they would do if, or when, the executive director leaves. All too often, boards find that they are unprepared for such an occurrence and are left scrambling to replace them.

The executive director is responsible for ensuring a succession plan is in place for other key positions in the organisation. These will likely be developed with help from the management team with input from implicated employees. 

What do I need to do?

Identify key positions for your organisation. These include the executive director, senior management and other staff members who would, for their specialised skills or level of experience, be hard to replace. Which position would need to be filled almost immediately to ensure your organisation continues to function effectively?

Review and list your current and emerging needs.

Prepare a chart that identifies the key positions and individuals in the organisation. This may include those listed above as well as others that are pertinent to your organisation, such as volunteers or administrative personnel.

Pinpoint and list any gaps by asking questions:

• Which individuals are slated or likely to leave (through retirement, project completion, etc.) and when?
• Which new positions will be required to support the strategic plan?
• Which positions have become or will become obsolete (for example, those related to a program that has been terminated)?
• What skills and knowledge will need to be developed (for example, to support a new program)?

Evaluate/assess staff members who have the skills and knowledge or the potential as well as the desire to be promoted to existing and new positions. It is important to note if they have the desire to take any other role. It could be terrible for your business if you were to rely on someone ‘stepping up’ only to find they aren’t interested. 

Do you have any tips for successful succession planning?

As time passes, your circumstances will change and it is important to update your succession to ensure you are always ready, should the need arise that you leave earlier than anticipated.

You need to secure senior management and board support for a succession planning process. This shows employees and staff how important succession planning is to the organisation.

Again, review and update your succession plan regularly. This ensures you reassess your hiring needs and determine where the employees identified in the succession plan are in their development.

Develop procedure manuals for essential tasks carried out by key positions. Include step-by-step guidelines. Nothing worse than having a long-term or busy employee who leaves (for any reason) and most of the procedures were ‘in their head’. That makes the ‘scramble’ after the employee leaves so much worse.

Allow adequate time to prepare successors. The earlier they are identified, the easier it is on the individual to be advanced and on other employees within your organisation who will know whether certain options are available to them.

Final notes

Wills are just the same. You need to consider what you want to leave and to whom. Regularly check your will and make sure it is brought up to date. Ensure your family is aware of your wishes.

Communication is key to Succession and Exit Planning. You need to communicate with family, colleagues and all key staff members. You need to express to them what you want. Then get the plans drawn up (by a legal professional or by the Public Trustee).

All too often, a will has been drawn up but there are other issues that prevent the exiting person’s wishes from being following. These include not keeping documents up to date; not discussing it with anyone; the will being written up without professional advice (this includes having the will drawn up but the legal professional was not aware of all the circumstances).

Are you interested in getting your will and your succession plan decided started? For your free initial consultation contact us today, one of our friendly advisers would be delighted to speak with you.

Please note: The information provided in this article is general advice only. It has been prepared without taking into account any person’s individual objectives, financial situation or needs. Before acting on anything in this article you should consider its appropriateness to you, having regard to your objectives, financial situation and needs.

Thousands of Australians wrongly think they are adequately covered by insurance held inside their superannuation funds, or those bought directly from an insurer. Usually via TV advertisement or online, known as direct marketing.

An article in The Age newspaper on Wednesday, February 21, titled ‘Protect yourself – make sure your insurance covers you’, highlighted the pitfalls of these policies, which only become known at the most crucial time – claim time.

Although these policies can seem hassle-free to put in place, given the (usually) very limited disclosures required around lifestyle or medical history, and the ability to obtain cover without any blood tests etc. (known as deferred underwriting). In many cases, this can be problematic.

Deferred underwriting means the assessment of the insured’s eligibility for cover (in terms of health, pastimes and financial entitlement) is done at claim time, rather than on application. This essentially means, there is no certainty of a claim actually being paid.

As a result, these types of policies have a significantly higher rate of denial at claim time when compared with policies taken out under the advice of a risk professional.

There is nothing worse than thinking that one is fully insured, only to find the policy doesn’t work at claim time. For the insured and their family, the right advice may be the difference between long-term financial security and severe financial distress in the case of death or serious health event.

Learn more about our Life Insurance services.

Please note that the above is provided as general advice and has not taken your personal or financial circumstances into consideration. If you would like more tailored advice, please contact us today. One of our friendly advisers would be delighted to speak with you.

I have just read my Super statement…

I am turning 65 in about 3 months’ time and I plan to retire the week after my birthday, but I have just received my super statement and I am not sure if I have enough money to last me.  I have $175,000 in my accumulation account and I plan to take out enough for an overseas holiday next year and to buy a new car.  I’m going to apply for the age pension and then I want to draw enough from my super account to give me the same kind of income I’ve been getting from work.  I need the same income because I still owe some money on my home and my wife doesn’t work.

Does this scenario sound a bit far-fetched?

Do you think that everyone plans their retirement for years ahead?  We find that some people do, but many don’t give that matter much thought until the time comes to quit their job.  This conversation is one that happens with frightening frequency and it means that many people are unable to live the life that they have dreamed of in their later years.

What can I do now so that I am prepared for my retirement?

Like everything that we do, planning and preparation are key factors.  Seeing a financial adviser is a good starting place, as an adviser will be able to advise you on the most appropriate path.  Sooner is better, so that there is time to make changes that will make a difference well ahead of your planned retirement date.  Setting proper goals and objectives is vital.

It is really never too early to take this step.  For example, small things put in place when you first begin to earn a salary will compound over time and place you in a much more substantial position than if you were to do nothing. A simple strategy such as saving a small amount from each and every pay will make a large difference to your retirement savings not only from what you have saved, but from the effect of compounding.  It’s a good idea to increase your savings every time you get a pay increase.

Don’t rely on a credit card to fund your living expenses, unless you pay it off in full every month so that you don’t incur any interest charges.  If you don’t have the cash available now, don’t buy it!  Save a little each pay period so that you can afford to pay cash for it.  You will have the added satisfaction of having earned something that you really wanted!

If you have a home loan, make sure you have your repayments scheduled at the most effective frequency – your adviser can assist with this.  Pay a bit more than your required minimum payment, and don’t decrease the amount that you pay because your interest rate has dropped.  They won’t always drop and it will be a real benefit to have made a big hole in your outstanding balance while rates are down.

Is it ever too late to seek financial advice?

No, not really, because there will always be advice that will benefit you.  It may well be too late to realise some of your dreams and aspirations, but careful advice and planning can help you to make the best of what you have.

Are you interested in planning for your retirement? Are you ready to retire now? Contact us today for your free initial consultation, one of our friendly advisers would be delighted to speak with you and help you plan for your retirement.

Please note: The information provided in this article is general advice only. It has been prepared without taking into account any person’s Individual objectives, financial situation or needs.  Before acting on anything in this article you should consider if it is appropriate for you, having regard to your objectives, financial situation and needs.