Festive Season Finance & Smart Planning

THE ADVISER MONTHLY | NOVEMBER 2021

VOLUME I. ISSUE 11

ARE YOU FINANCIALLY READY FOR THE FESTIVE SEASON?

Lockdown has ended for the majority of Australia, and I’m sure that a lot of you are looking forward to reconnecting with your family and friends. And what a great way to reconnect. This time of the year marks the start of the silly season with the Melbourne Cup having kicked off the festivities.

Appealing further to our festive mood is the holidays. Many of you may already be planning your celebrations, complete with a list for Christmas shopping. Not to spoil the excitement, but while you enjoy buying those presents, it is also good to remember that this is a critical time in your cash flow strategy, where you can either make or break your budget for the year. For this reason, I have included an article with some tips on how you can curb spending over Christmas.

The post-Christmas period is a great time to envision the life you want to live in the new year and to start noting down your plans so that you’ll be ready to act on them come 2022.

To help you get started, I have curated articles that are ‘in season’ for you, starting with the recent policy changes in mortgage lending and the New Home Guarantee. This is helpful if you have plans to buy your first home in the coming year, or if you are thinking about whether or not to keep renting.

You may also have heard about the growing popularity of bitcoin – the cryptocurrency that everyone is talking about. There are verifiable success stories around bitcoin investment, but before you jump into the bandwagon, you should first educate yourself on the risks, threats, and vulnerabilities. Much is still to happen in this space, especially now that the ATO has taken an interest.

Finally, we have selected a special article about the role financial advisers play in the transition to retirement. Smart planning as early as possible for the future is crucial to ensuring you enjoy your golden years. The foundations you set now will set you up to live the life you want to live in your retirement.

I hope that you enjoy spending time with your family, friends and colleagues over the silly season. Stay safe!

THE 3% MORTGAGE STRESS TEST

In our last issue, we shared with you the new policy governing mortgages. The new policy has since taken effect and many are seeing its impacts. Before you apply for a mortgage, you need to read about the 3% mortgage stress test, how it may affect your borrowing capacity, and how it may affect your budget.

THE $250 ‘THANK YOU’ PAYMENT

Thousands of households with school-aged children across New South Wales are set to receive a $250 voucher. Premier Perrottet announced this to be a part of a $2.8 billion “Economic Recovery Strategy” to help repair the $50 billion hole left by NSW’s lengthy pandemic lockdown. Here’s what you need to know.

WHAT DO YOU NEED TO KNOW ABOUT THE NEW HOME GUARANTEE?

Building a brand-new home is expensive, so why not get a hand from the government? At the height of the pandemic, the Federal and State Governments have launched initiatives to encourage homebuyers to buy a home. The most recent of these initiatives is called the New Home Guarantee. Be in-the-know.

IS IT POSSIBLE TO STICK TO YOUR BUDGET OVER THE SILLY SEASON?

Christmas is the most wonderful time of the year. But for many, it also means undoing the hard work they’ve put into their savings throughout the year. Christmas doesn’t have to be a time of overspending and splurging. With a few simple strategies, you can plan and manage your spending wisely.

ARE YOU CURIOUS ABOUT BITCOIN?

There’s been a lot of hype about Bitcoin, and if it’s piqued your interest, you might be wondering how on earth to start trading in this digital currency. Just like other investments, navigating the world of cryptocurrency can be difficult if you’re just starting out. Here’s an overview, but remember to tread carefully and do your own research.

HOW DO ADVISERS HELP ADD VALUE AT PRE-RETIREMENT?

Most retirees take two years to feel more in control over their retirement. This happens for a lot of reasons but on top of which is the realisation of emerging needs. If you wish to avoid financial stress during pre-retirement, read this short article about how a financial planner can become your reliable partner in transition.

HOW TO UNDERSTAND THE CONCEPT OF ‘WILLS’ IF YOU’RE A SENIOR

Technical terms can easily overwhelm and intimidate people. But if you’re talking about your or your loved ones’ financial future, it is vital to understand what this jargon means. Here’s a website that talks about the concepts of wills, trusts, and estate planning in a language that is clear and easy to understand.

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