10 things I hate about you (things you don't want to hear from your financial planner)

1. You will have to work longer
2. You need to save more
3. You have to live on less
4. You need to take more risk
5. Your family won't be covered in case something happens to you
6. It's not financially viable for me to help you at this stage (I'm not earning enough commission out of you)
7. You have to get another part-time job
8. Invest in shares only
9. Property is not a good invetsment
10. Do as I say, not as I do (my portfolio took a dive)

 All this can be avoided by speaking to a financial planner at Intellichoice who will help you find the right mix of financial strategies. Have peace of mind if the market declines, but you can also reap the rewards when the market is moving higher.

Visit www.intellichoice.com.au to view our range of financial planning services or make an obligation free appointment normally worth $500 with our financial planner. Call 1300 55 10 45 to find out how we can help you achieve your financial goals.

Benefits of a self managed super fund

A self managed super fund (SMSF) is one of the most popular and effective forms of investment and wealth creation available to Australians. There are many benefits to a self managed super fund, including control over the investments you choose to invest in, flexibility and the taxation benefits offered by the government. The benefits of a SMSF has led to an increase in the number of Australians who choose to manage and control their own super fund. Reports suggest that there are currently more than 350,000 self managed super funds with an overall 700,000 members.

The other benefit of a self managed super fund is that it helps offer an optional retirement saving mechanism thus giving the investor greater flexibility and control over the investments. The funds also enable you the ability to choose from the wide range of investment and strategies that are currently available in Australia. For example, through your self managed super fund, you could invest in cash, shares, bonds or property.

Self managed super funds offers the investor the chance to take advantage of tax benefits. DIY super also accept rollovers from other existing superannuation funds. In addition, they allow one to decide the amount of funds that one can contribute to the self managed super fund. The super fund also enjoys concessional tax rates which apply to the realized capital gains so long as the SMSF has held the assets for at least 12 months. The concessional tax rate of 15 % is applied to the deductible contributions and income held by the self managed super fund.

Self managed super funds allows an investor to change an administrator without the need for paying penalties or exit fees. Also, upon the death of the investor, the dependants of the fund member are in a position to receive the whole balance of the account tax free. The premium payable for total incapacitation insurance and death is tax deductible so long as it is paid through the DIY super fund. The cheques from the funds can only be signed by a member of the funds making self managed super a safe investment haven for most Australians. The funds also offer an inexpensive and simple structure especially for investors who wish to invest as couples.

The other benefit of self managed super funds is that they are cheaper to establish and run compared to other normal super funds. They are also a more flexible investment option compared to commercial and retail funds as they allow you to invest in property, cash, bonds, mortgage investments, shares, private equity and fixed interests. The self managed super fund allows an investor to invest in a wide variety of financial instruments that would not be available through traditional super funds.

To find out more about self managed super funds, speak to our financial planner today on +61 7 3624 1900. Through Intellichoice Financial Services, our mortgage brokers can also help you buy property through your self managed super fund with a SMSF home loan.

Pros and cons of a debt consolidation loan

If you have multiple credit card debts, car loans and personal loans and making minimum repayments each month is causing you stress, then you should consider a debt consolidation loan. Before you take out a debt consolidation loan, we recommend that you first speak with a financial advisor to ensure this is the best option for you.

Below are a list of pros and cons for debt consolidation loans:

Advantages of a debt consolidation loan

• One payment to make: Making a single repayment each month is so much easier and less stressful for you. It makes it easier to manage your finances
• Reduced interest rate: The interest rate on a debt consolidation loan will be much lower than the interest rate on your credit cards
• Lower monthly repayments to make: As the interest rate on your debt consolidation loan is lower, the amount you pay each month will also be lower
• Only 1 creditor: You only have to deal with one creditor instead of multiple creditors. 

Disadvantages of a debt consolidation loan

• It may be easy to get into debt again: As all your debt has been consolidated into the one loan, it might be tempting to start using your credit cards again or continue bad spending habits that got you into debt in the first place
• Longer time to pay off your debt
• You may end up paying more over the long term: As the debt consolidation loan term is longer, you may end up paying more interest to clear your debt

Before you get a debt consolidation loan, you should realistically look at the pros and cons to determine if this is right for you. Speak to one of the financial planners at Intellichoice for more information about debt consolidation loan and how we can help you with budgeting and managing debt.

Credit card traps

Differences in the way interest on credit card balances is calculated can cost consumers big dollars. Consumer group Choice found that two consumers with exactly the same transaction history and exactly the same outstanding balance of $2,000 could be paying either $10 in interest or $45, depending on the credit card they are using.

If you one day late or pay less than the minimum required repayment, most credit cards will charge you a full rate of interest on the full balance going back to the date of the original transactions, with no interest free days applying. If you fail to pay your bill on time, most cards will not give you any interest free days on new purchases either.

Superannuation investors turn to property

Superannuation investors are more likely to put any extra money they have into property rather than superannuation, a new study conducted by the Australian Institute of Superannuation Trustees has found.

According to the survey, approximately 43.6% of superannuation investors would buy an investment property, while only 22.4% would put more money into their super fund.

The survey also found that women were more likely to go for property, while men were much more likely to invest directly in the sharemarket. Only one-third of the consumers surveyed said they were satisfied with their super fund’s investment performance.

If you are thinking of setting up a self managed super fund (SMSF), speak to one of the financial planners at Intellichoice on +61 7 3624 1900 for more information and to find out whether a SMSF is right for you. Intellichoice can also help you buy property through your self managed super fund with a SMSF home loan.

What happens to your super if you die?

Superannuation is an excellent way to invest for your retirement. The Australian government has provided some great tax concessions, which make super one of the best long term investment vehicles. Your savings grow because money is paid in regularly, which your super fund invests at low rates of tax. But what happens to your super if you die?

Dependants
If you die while still a super fund member, the super company must normally pay your death benefit to one or more of your dependants or your estate.

'Dependants' could include your spouse, children, people with whom you had an 'interdependent' relationship or those who depend on you financially. We recommend that you ask your super fund for more details. If the super is paid to people who are not your dependants, it may be taxed.

Nominations
Most super funds let you nominate who you want your death benefit paid to, either as a 'non-binding' or 'binding' nomination.

A 'non-binding nomination' just guides the trustee, who still has the final say, especially if you have dependants, but you nominate someone who does not depend on you. The trustee is not required to follow the instructions in your will.

A 'binding nomination' will bind the trustee, and lets you name:

• a dependant, or
• your 'legal personal representative', who must distribute your benefit according to your will or according to law if you have no will.

Make sure that you keep these nominations up to date, for example, if you marry, re-marry or have children.

For more information about superannuation, speak to one of our financial planners at Intellichoice on + 61 7 3624 1900.

Planning an affordable family holiday

During the school holidays, we find that many families plan short getaways – either to spend quality time together or just to keep the children occupied. Below are some tips on keeping your travel expenses low, yet still ensuring a great time for everyone!

Search for deals
Do not miss out on the many online opportunities to find great bargains. You can use online travel sites to search for the lowest airfare, hotel rates and car rental rates, as well as great entertainment deals. It is also a good idea to check specific airline sites too, as they may be advertising specials that are not included on the other sites.

Pick the package
Before booking any part of your trip, check out travel packages available from the airlines or hotel chains. It is often possible to find low-priced packages that include both hotel and airfare, and admission to local attractions as well. However, remember that these packages may not always be the cheapest deals. Compare and check all the details and make sure that what you are getting is worth what you are paying.

Be flexible
Uncertain exactly where you would like to go? Then plan your trip around the best deals available. Sites that specialize in low-cost travel usually advertise specials to certain locations - as do many airlines. If the location sounds like somewhere you would enjoy exploring, you could save a great deal on your trip. It's also a great way to explore new places you may never have thought or know about.

Choose a destination location
Want to save money  on gasoline and admission costs for various attractions during your holiday? Pick a hotel that has a pool, playground, nearby hiking or other on-site activities. In addition, many hotels offer suites with their own kitchens. While these may cost more than regular rooms, the savings on take-aways and dining out may more than offset the higher price.

Explore the great outdoors
Camping is not only a fun family activity, it is also a cheaper way to travel. There are campgrounds and cabins at national parks all around Australia and they offer an inexpensive way to explore these locations. Outdoor holidays are a great departure from the usual routine and make it possible for your children to get away from the television and computers and enjoy nature. In many cases, they are much less rustic than you might imagine. There are also many activities available and great sights at the national parks.

For more information about budgeting, or for other ideas on saving money, speak with one of the financial planners at Intellichoice today on +61 7 3624 1900.

Flood insurance

Major floods across Australia in the past couple of years have raised strong community concerns about the extent and availability of cover for flood damage in house and contents insurance policies. The effects of flood can be devastating and may result in the loss of homes or in extensive water damage to buildings and contents. It is therefore vital that consumers understand exactly what their insurance policies do and do not cover.


Most home and contents insurance policies exclude cover for flood damage - this exclusion must be made clear in the policy documents. However, your home insurance policy will probably cover you for stormwater and possibly rainwater damage. Insurance companies generally define these events differently. It is imperative that you check with your insurance company if you are unsure whether your existing policy covers damage caused by storm and/or flood. Ask them to clearly explain that part of your insurance policy where flood cover, or flood exclusion, is contained. This will allow you to work out whether to change your insurance policy if you need insurance for flood damage.

It has become common for some insurers to provide cover against ' flash flooding', that is, when the damage to your property occurs within 24 hours of the rain that caused the flood. This cover may be optional (you have to pay more, and it may only cover you for a smaller amount eg 20% of the sum insured).

If you would like to find out more about home and contents insurance that includes flood, speak to one of our financial advisors on 1300 55 10 45 for more details.

Aussies in debt again

Australian households are returning to their debt fueled lifestyles after a year of austerity and paying down their debts. According to the Reserve Bank of Australia, personal loans and card debts have been rising for the last four months.

Approximately 25% of Australians expect to increase their debt within the next three months according to a survey by Dun & Bradstreet. Economist Shane Oliver from AMP Capital says people are less worried about their jobs and therefore more prepared to take on debt.

Aussies value their weekends more than being rich

More than half of Australians value their weekends more than being a millionaire.

According to an online poll published in News Ltd newspapers, 55% of Australians would not give up their weekends and work 7 days a week, even if it meant they would be millionaires within ten years. Approximately 44% of respondents said they would give up their weekends for financial gain.

Save money while you travel

While you are travelling overseas, it is even more important to make your money go as far as possible. You do not want to face a huge credit card bill when you return from your overseas adventure, but you also do not want to miss out on once-in-a-lifetime opportunities while you are away. We have provided some tips on how to make your dollar go further while abroad.

Staying in touch
Use email to keep in contact with family and friends. Internet cafés (including laundries and libraries) can be found everywhere. Using "global roaming" on your mobile phone can be expensive. Alternatively use International Calling cards so you can control how much you spend

Get plugged in
If you are taking your mobile phone, laptop, razor or hairdryer, you will need an adaptor – buy one before you leave home as they will be cheaper here and will save you the time of finding a shop that supplies one when you reach your destination.

Banking from far away
ATMs are plentiful overseas but be wary of the transaction costs the overseas banks will charge. Use Internet banking if you need to check your account and move money about.

Online bookings
Finding well-priced accommodation is also quite easy in many major foreign cities using discounted travel websites.

Check local bargains
Often there are significant price differences between home and overseas. For instance, a camera may be cheaper in Italy but a haircut is a lot more expensive.

Take the bus/tram/train/subway
Do not try to drive and park in major cities. If you think driving into Australian cities is difficult and expensive, you should try Europe. The best plan is to drive to the outskirts of the city, park and catch public transport. It will also be an experience for you to try public transport when overseas and you will be able to take in the sights without the stress of having to navigate around a strange city.

Eat where the locals do
Many prominent eateries are tourist traps. Take a stroll up the back streets and you can often find excellent food at a fraction of the price.

You never know - if you save money as you go, you could afford to extend your holiday for another few days, or even weeks!

Money saving tips for the kitchen

1.    When in doubt, make soup. Make a big batch of your favourite veggie soup, then do something different to it each time you serve it - blend some curry spices, add tomatoes, throw in some lentils, add bacon bits, serve with grilled garlic bread. (They were all different options, but you could do them all at once if you were really hungry).
2.    Self-preservation - There is growing interest in home preserving, baking, curing, brewing, sausage making etc.
3.    Listen to your grandmother - Turn off taps when you're done, save string, re-use bags and bottles, put lids on your saucepans (saves 20% energy and speeds everything up), and cut out waste. Think twice before you toss anything out. Greeks cook beetroot greens and toss in olive oil, Turks stew broad beans pods and serve with yogurt and dill, Chinese dry mandarin peel and add to stews for fragrance and flavour.
4.    Grow Your Own - Funny how we're turning back to growing our own fruit and veg. Even if it's just a pot or two of herbs you can keep on the windowsill of a flat, you will suddenly feel completely self-sufficient.
5.    Eat with the seasons - Because it's in season, it's more abundant, because it's more abundant it should be cheaper. Even if it isn't, it's better value because it's fresher and tastier. It also means the producers haven't had to find new ways of preserving shelf life and storage.
6.    Send the food processors broke - Not the ones you plug in and whiz, but the middleman who buy fresh unprocessed foods and do things to them, offering them to you with extra flavours you don't want or need. Instead, buy the fresh, unprocessed food yourself and keep your own 'processing' to a minimum, e.g. buy whole fish and whole chicken rather than fillets and pieces - you'll get better quality, and learn how to fillet and joint like a chef. Whole lettuces last longer than bags of mixed leaves, and unwashed is cheaper than washed. Don't buy ready-made vinaigrette, breadcrumbs, pre-chopped vegetables and pre-grated cheese. It's money down the drain, when you can do it yourself and save.
7.    Love your leftovers - Throwing food out is throwing money out. If you do have leftovers, take it for lunch the next day.
8.    Steak. Get over it - A plateful of vegies and pulses with a little bit of red meat is a lot cheaper than a plate of meat with a little veg and a lentil. Striking a better balance is better for your pocket and for your overall health. Make fish, chicken and meat go further by adding beans, lentils, chickpeas and rice. Turn your meal - planning around so that the most expensive ingredient is the 'flavouring' rather than the main event.
9.    Use eggs and cheese for protein, nuts and seeds for fibre and crunch, and yogurt and avocado for richness. And return to something as beautiful as a great steak-and-red-wine dinner to the special status it deserves... crave it, look forward to it, and enjoy the hell out of it. Just not every second day.
10.    Cook your own 'take-away' - Love pizzas? Learn to make your own, or use pita breads as the bases, and get some help from the kids with doing the toppings so everyone has their own. Are you a burger person? Try cooking salmon burgers, chicken burgers, or normal burgers with a bit less meat and more of your other fillings, such as beetroot, avocado, tomato, cheese and lettuce. Craving Greek/Lebanese? Cover the table with little dishes of dips, breads, raw vegetables, herbed rice, and skewers of home-made lamb or tuna souvlaki.
11.    Freeze - It's a fabulous feeling knowing you have tubs of chicken stock, pumpkin soup, chicken curry, Bolognese sauce, good bread, etc in the freezer. Frozen bananas make a great instant ice-cream - just soften and whiz.
12.    Buy ten get one free - Beware of the supermarket bonus offers, which often tempt you into buying two for one of something you didn't really want in the first place.

For more savings tips, speak to one of our financial advisors at 1300 55 10 45 or visit www.intellichoice.com.au for more details.