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.
Tuesday, March 16, 2010
Friday, March 12, 2010
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:
For more information about superannuation, speak to one of our financial planners at Intellichoice on + 61 7 3624 1900.
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.
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.
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.
Tuesday, March 9, 2010
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.
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.
Monday, March 8, 2010
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.
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.
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.
Thursday, March 4, 2010
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!
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!
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