17 March 2009
Build long-term wealth
We’ve been told Australia is entering a period of uncharacterised corporate instability. Full-time jobs have plummeted by nearly 44,000 and the number of age pensions being claimed has risen by 50 per cent. But the news isn’t all bad. Interest rates are lower and mortgages less burdensome. Part-time jobs have surged by 43,000. Houses are cheaper, shares more affordable and the government’s given out nearly $8.9 billion over Christmas. Seize the moment and put every dollar you spend to good use.
It`s time to budget, budget, budget. Pay down debt, save for a rainy day and explore options to build long-term wealth. Set yourself financial goals for the next year and monitor them — you’ll be surprised how quickly you start to see results! And let’s face it, there’s nothing like a fattening bank balance to trigger a euphoric gush of motivation.
If you’re still awhile to retirement:
Income protection insurance is a great side benefit for super fund members and can cover up to 75% of your annual salary if you’re off work for an extended period of time.
Non-casual Vision Super Saver members automatically receive income protection insurance. Check out your current level of cover and adjust it to suit your needs.
If you’re already in retirement:
Falling asset values may mean you`re eligible for a part or full age pension and accompanying seniors` concessions. Centrelink regularly revalues the assets of people already receiving the aged pension and the annual amount of entitlements. For more information contact Centrelink’s Retirement Services hotline on 132300.
Market Downturn Tips
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Seize opportunities when markets are low. Times are tough, but markets are low. You may be able to take advantage of the current market conditions by investing extra dollars into super.
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Think before you switch. By switching out of your current option, you could be crystallising your losses. When the markets pick up, investors in cash will miss out on the recovery. And while cash returns of 3 – 4% may sound like a better deal at the moment, they won`t provide the sort of long-term growth you need to fund a comfortable retirement.
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Focus on fees. Negative returns highlight how significant the difference between a 1 and a 2% fee can be. Vision Super fees are a flat $1.75 p/w for Super Savers and 0.35% capped at $1,050 for the Personal Plan and Income Streams.
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Take in a seminar on super. With falling account balances, you may be among those forced to rethink their retirement plans. Seminars on retirement and transitioning to retirement can help you make the best informed decisions.
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Defense might be your offense. You can choose to switch your super to a more defensive investment strategy.
Debt-Busting Ideas
We can help you! Give us a call on (03) 9911 3222 (or 1300 300 820 for regional members)
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