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.