Blog Archives - Page 3 of 7 - Hyland Financial Planning

Tips on How to Prepare Your Finances for Your Retirement

Posted on 18 May 202231 May 2022 by hylandfinplan

A significant challenge for people when planning for retirement is knowing how much money they need to save. This is different for everyone as it depends on your financial situation and ideal retirement lifestyle.

You may be wanting to achieve early retirement, and if that’s the case, planning ahead is essential. You may want to consider checking if your superannuation account is performing and whether or not you need to make extra contributions to grow your savings. You may want to consider starting an investment portfolio to provide you with an additional income source for your retirement income.

There are many financial strategies you can take to help ensure you meet your retirement goals. To help you choose the right strategies, it may be beneficial to seek personal financial advice. A financial advisor can help you develop your retirement plans and get you on the right track to achieving your dream retirement.

This article will explore how you can prepare your finances by planning for retirement. The sooner you start, the more opportunities there are to grow your nest egg.

Here’s what you need to know:

How Much Retirement Savings Do I Need?

The amount of money you need to save for your retired years will depend on your individual wants and needs. You may want to secure a comfortable retirement, which can look different to everyone and how much income you’ll need to fund this lifestyle is dependent on your personal circumstances.

According to the Association of Superannuation Funds of Australia (ASFA), here are the average annual income you will need in retirement (estimation for a person aged 65, who is in good health and who owns their own home):

For a Single Person: $43,687 per year
For a Couple: $61,909 per year

Image source: https://www.amp.com.au/retirement/prepare-to-retire/retirement-money-needs

How to Get Started Planning for Retirement

You may want to start by determining your financial goals and the strategies you can use to help achieve them.

Once you’ve listed your goals, you may want to consider your

Investment options
Your super fund investment strategy and if it’s tailored to your risk tolerance
Where you want to live
What your lifestyle looks like

A financial planner can help you determine what you need to consider when planning for your retirement and ensure you have the right financial strategies in place to secure financial security for your future income.

Determine Your Needs and Wants when Retirement Planning

Think about what monthly expenses you have now. These may include rent, food, healthcare, entertainment, gas, and other discretionary spending. You may want to use a budget calculator to help determine what you spend each month.

Create a budget for your expected retirement expenses. The budget should include everything you spend now, plus the additional costs you will have when you retire. You should consider your family size and whether you have a mortgage or annual expense payments.

Project your income, and subtract your projected expenses from it. If your income is more than your expenses, you are on the right track to a financially secure future!

Creating a Budget For Your Retirement Income

Your budget should include information about your expected income and expenses. The budget should also have a breakdown of your expenses and savings goals. You may want to have a written document outlining your retirement income, projected expenses, and goals. By doing so you can keep track of your income and expenses either online or on paper to make sure things balance.

Better yet, you can include this budget within your financial plan with your adviser and have it reviewed annually, so you can ensure your financial strategies are up-to-date and in line with your personal circumstances.

If your retirement budget includes sufficient regular income to fund your expenses, you should be able to retire comfortably. If you have a gap in funding and need more money to meet your goals, you may need to adjust your finances and strategies to achieve them.

Develop Your Retirement Plan

Many Australians start retirement planning at least 5 years before they retire. You may want to seek a financial adviser who can provide you with tailored strategies and develop a plan that will meet your needs and wants. The important thing to consider is making sure your assets are managed to reach your goals and that your income is sufficient to handle your expenses.

An adviser can help you navigate what your retirement income options are and how you can build your nest egg to help you fund your ideal retired lifestyle. This is usually part of their retirement planning process and can help guide you through options such as:

property investment and how to manage your investment property as a retiree
the right investment decisions to offer you steady investment returns – now and in the future
debt recycling
contributing to your super fund

Start Your Retirement Plan Today To Secure Your Financial Future!

You can live comfortably during your golden years, by planning ahead and considering your retirement income options. It’s important before you retire, to keep an eye on your budget and make adjustments to your retirement plan when needed.

If you are looking for reliable and expert financial advice in Hornsby, we can help you. Hyland Financial Planning was founded on the desire to build a collaborative relationship with our clients. Our financial advisers share an ambition to improve the lives of their clients with strategic planning, wealth creation and ultimately — wealth success, leaving nothing to chance.

Contact us today to learn more and get started!

Or Book a 15-minute FREE Call!

Estate Planning in Australia: A Quick Beginner’s Guide

Posted on 11 May 202212 May 2022 by hylandfinplan

Estate planning involves planning how you would like your affairs handled after you’ve passed and deciding how your assets should be distributed.

Estate planning could include organising a Will, a Testamentary Trust, a Power of Attorney, details about life insurance, superannuation or death benefit nominations and a plan to minimise the taxes on your estate so that your beneficiaries are not left with an unfair amount of taxes to pay.

If you are looking into your estate planning, this article will share a guide on how you can get started.

What is an Estate Plan?

An estate plan involves making arrangements for your assets and affairs in the event of your death – or if you get to a point in life where you are no longer capable of making your own decisions.

By having an estate plan in place, your loved ones will be best prepared to carry out your wishes. An estate plan strategy will ensure transfer, control and ownership of your ‘estate’ is managed in a timely and tax-efficient manner, which can help relieve stress on your loved ones during an emotional time.

What is involved in estate planning?

Before you start estate planning, have a chat with your friends, your parents, your spouse, your children and your siblings. Let them know what you would like your estate plan to look like, and let them know why you think it is important to have an estate plan.

You may want to discuss funeral instructions, your Will and plans for transferring your assets.

To ensure your plans can be carried out efficiently and effectively, you may want to include the following legal documents within your estate plan:

Advance Care Directive
Enduring Powers of Guardianship
Power of Attorney
Testamentary Trusts

It’s important to seek expert advice to help you prepare each legal document you wish to include in your plan. You may want to seek a certified financial planner, who can help guide you through the entire financial estate planning process and build a solution that matches all your needs and wants.

A Step-by-Step Plan to Begin the Estate Planning process

1 – List down your assets and liabilities

It’s important to list down every single asset that belongs to you. This includes your superannuation, investments, any shares, any property you own, your car, and anything that you think may be worth something.

2 – Protect yourself and your family members

Now that you have an accurate list of your assets and liabilities, you can then start thinking about who you would like to inherit your assets and how you would like your estate distributed.

The important thing to remember is you must follow the correct legal processes for your plan to be carried out legally and efficiently. Once you have this information, you may want to draft a Will or a Testamentary Trust.

3 – Appoint an Executor

Once you have drafted your Will or Testamentary Trust with an expert, the next thing you can consider is to appoint an Executor. The Executor will be responsible for making sure your Will or Testamentary Trust is carried out. It is important to choose someone that you can trust, and someone that you know will respect your wishes as well as your family’s wishes.

4 – Review your beneficiaries

Review your beneficiary designations to ensure that you have your accounts and investment accounts set up in a way that reflects your estate planning. Remember, if you want your wishes to be carried out, it’s important to have your accounts set up in line with what you have stated in your estate plan.

5 – Regularly Review Your Plan and Update When Needed

It is important to review your plan and make sure that it stays up-to-date. You should make changes to your estate plan if you have either:

entered into a marriage or de facto relationship,
have children born or adopted post-dating your estate plan,
or have had a significant change in your assets or liabilities.

Do you need a Financial Planner when Creating an Estate Plan?

A financial planner can help you make sure your assets go to the right people at the right time. In addition, a financial adviser from Hyland Financial Planning can help you structure your plan for financial outcomes that align with your goals.

If you need financial advice and assistance with estate planning in Hornsby, come to Hyland Financial Planning.

If you want your assets and your loved ones protected when you no longer can do it, you will need an estate plan. Without one, your family could face huge tax burdens and the courts could decide how your assets are divided, or even who gets your children. Don’t let this happen and plan for the worst. We are here to help make the uncomfortable conversation stress-free and as comfortable as possible.

Understanding Investments for Your Retirement Income

Posted on 4 May 202212 May 2022 by hylandfinplan

When you’re investing for retirement, you naturally want to know what your options are. Whether you have recently retired or are still a part of the workforce, you may find this quick guide to retirement investments from your trusted financial adviser in Hornsby helpful:

Investments for Retirement: What are your options?

To begin with, you may want to understand the types of investments you can choose from, which offer different rates of return, different liquidity levels, and risk factor.

Then you should consider mapping out your investment goals and how they will contribute to your financial future.

By gaining personalised advice, you can make informed investment choices, and be on track to achieving a comfortable retirement.

You can then evaluate each option for the specific goals you’re working towards for your ideal retirement.

What are the available types of retirement investments to increase your retirement savings?

The following are different types of investment options that you might consider:

Cash Investments: You may consider putting your cash in low-risk, short-term obligations, such as a deposit account, that can provide returns in the form of interest payments.
Equities: Are simply shares in the ownership of a company. They are the same as stocks, where if you buy stocks, you’re buying equities. They are considered high-risk as the market tends to be more volatile.
Annuities: They are financial products, that can offer you a guaranteed income stream during your retirement.
Bonds: Bonds are when you can lend your money to an issuer either government or cooperation, in exchange for interest payments and the future repayment of the bond’s face value.
Real Estate: You may want to consider purchasing an investment property and renting it out to be able to benefit from regular payments and use it as a form of retirement income.
Exchange-Traded Funds (ETFs): Investing in ETFs are similar to investing in stocks as they trade on regulated exchanges. They track broad-based or sector indexes, commodities, and baskets of assets.

What Are Your Investment Timeframes?

Consider your investment timeframes when retirement planning.

How long do you plan to invest your money? Some people reach their retirement goals in 10 or 20 years, while others want to invest for 30 or 40 years. You may want to include your investments and time horizon within your retirement plans.

It’s vital that you understand this because it can affect your overall retirement plan. For example, if you want a short-term investment, you may want to consider an investment that’s liquid, and doesn’t lock you in for an extended period.

Why Is Diversification Important for your Retirement Investment Portfolio?

There are two reasons why it’s so important to diversify your retirement investments.

By spreading your money into different types of investments, you can potentially reduce the risk of significant losses and protect your investment returns.
Diversification can allow you to maximise your return over time, which can put you in a better position to meet your retirement goals.

A diversification strategy can maximise your risk/reward. If you have too much of your money in a risk-free investment, such as a bank account, you won’t usually see a high return. On the other hand, if you put too much of your money into an investment with a high risk, there’s a high chance of losing a fair amount of your money.

By diversifying your investments, you can balance risk with return, keeping a significant portion of it in low-risk investments and the rest in slightly riskier investments. This is so, when one investment isn’t performing there’s a chance the other investment is still providing a return.

For more on diversification, check out our blog to learn: How to Build a Diversified Portfolio that Matches Your Investment Risk Tolerance.

If you are unsure about what investments you should make for your golden years, you may want to seek a trusted financial planner who can offer advice on the tax implications of investments, fees and potential risks involved. They can inform you, after considering your financial situation and financial goals, of what investments may be most suited to include in your financial plan.

Seek Expert Advice from a Qualified Investment Adviser for Your Retirement Planning

If you’re planning to invest for your retired years, then you’re doing a great job of planning ahead. Having a plan in place can provide you with the best chances of reaching your goals.

Hyland Financial Planning offers you the services of an experienced financial adviser in Hornsby who can help you understand the ins and outs of investing to help grow your nest egg.

3 Aged Care Options For You To Consider Post-Retirement in Australia

Posted on 27 April 202222 April 2022 by hylandfinplan

As you near your twilight years, it may be the perfect time to start discussing with your loved ones a transition plan for your post-retirement years and what that looks like to you.

There’s no denying that when it comes to ageing, requiring assistance is necessary and perfectly normal. We all get to a point where we need support, however, it can be difficult to know what the next steps are.

You may want to sit down and discuss with your loved ones all your aged care options so they are just as aware as you and can understand the processes should they need to act on your behalf. For any financial matters that arise within these options, it’s a good idea to speak to a financial adviser who specialises in aged care planning.

Here are 3 aged care options to discuss and consider with your loved ones:

1. Home Care

This helps people remain in their homes but assists with daily chores and maintaining the home. This service allows you to maintain independence, with support.

Home Care is a comprehensive long-term care solution that combines the best of home and communal living.

Home Care offers retirees a range of assistance through services such as personal care, respite care, transportation, and social support. This is an excellent option for those who wish to stay living in their own home, but need the extra support to maintain healthy living.

If you are considering Home Care for yourself, then you may want to seek advice from a financial adviser who specialises in aged care financial planning. They can help you navigate the aged care fees that would apply within this option and provide you with all the relevant and up-to-date information that is included in this option such as the waiting lists that can occur for home care services.

2. Retirement Villages or Assisted Living Communities

If you are looking for a more affordable long-term care solution, you may want to consider a retirement village or assisted living community. This aged care option usually offers a range of accommodation options, services and facilities for retirees.

Some retirement villages provide a range of social and recreational activities in the village, allowing you to maintain an active and social lifestyle.

There are various types of retirement accommodations to choose from so you can choose the one that suits you and your financial circumstance best. You may even be able to choose a retirement village that is located close by to an aged care facility allowing you to transition easily when needed.

3. Aged Care Facilities

Aged care facilities are best suited to those who begin to be unable to live independently and require more support as they reach their twilight years of life. There are many aged care facilities to choose from in Australia, however, it may be beneficial to find a facility located close by to your loved ones so they can visit you when desired.

Seek Financial Advice For Aged Care Planning At Hyland Financial Planning

There is no need to worry about your future as a retiree. A comprehensive range of long-term care services are available to enhance your senior years, especially in Australia. With these services, you can feel well supported whilst still maintaining your independence.

Hyland Financial Planning offers aged care financial advice to help you and your loved ones navigate the complexities of aged care and create a personalised financial plan to help secure peace of mind. Aside from checking our clients’ options, we also handle their concerns in terms of estate planning in Sydney or Hornsby.

Talk to one of our financial consultants today and get more out of your retirement in the future.

4 Ways to Achieving Your Dream Retirement

Posted on 20 April 202222 April 2022 by hylandfinplan

As life expectancy continues to increase in Australia for both men and women, retirement years are extending.

According to the ABS, the average age Australians are retiring is currently 55.4 years.¹

By the time you would like to retire, it would be beneficial to have a financial plan and be able to look forward to achieving some of your retirement goals. If you haven’t started planning for your retirement, it may be worthwhile to start planning as early as today.

Having a sound retirement plan that provides you with tailored financial strategies to grow your savings, can help you achieve your ideal retirement.

After all, the earlier you start thinking about retirement, the more time you have to grow your retirement savings and be on track to securing financial freedom.

If you are approaching retirement, it may be beneficial to seek an experienced financial adviser, who can provide you with strategic retirement planning advice and help you get on track to achieving a comfortable retirement.

Here are 4 ways to get you one step closer to securing your dream retirement:

#1: Determine Your Retirement Lifestyle and Your Needs

If you are nearing the end of your working years, you may want to ensure you have everything in place to be able to live comfortably during your retirement years. You may want to ask yourself the following questions:

What does your ideal retirement look like?
Will you need additional funds for travel and larger expense items?
Will your retirement savings be enough to continue your current lifestyle?

According to the Association of Superannuation Funds of Australia (ASFA), the minimum annual cost of a comfortable retirement is $45,962 for singles and $64,771 for couples. This includes the cost for:

Your daily living essentials;
Your health expenses such as health insurance, medical appointments, exercise resources;
Your lifestyle/hobby expenses; such as food outings, attending sports games, visiting the local club etc;
Travel costs for an overseas holiday or visiting family members interstate.

By planning ahead, you can have a good idea of what your needs and wants are for your golden years and understand how much you need to save for your retirement. You can use certain financial strategies that will help you grow your savings and be on track to achieving your ideal retirement lifestyle.

Check out our blog to learn more about: How much you should save for retirement?

#2: Make Extra Contributions To Your Superannuation

Many Australians rely on their superannuation to fund their retirement. However, if you haven’t checked to see if your super is on track to fund your ideal retirement, it may be time to check and possibly make extra contributions to give it a boost.

Boosting your retirement savings through making extra contributions to your super can help get you one step closer to securing your financial future.

While your employer must be paying the super guarantee of 10% of your income to your super fund, you are entitled to ask your employer to pay more of your pre-tax income to your super. These payments are called concessional contributions and are taxed at 15%, which is usually lower than the marginal tax rate. This is known as a salary sacrifice.

However, it’s important to note that you must not exceed the concessional contribution cap of $27,500 per financial year when you combine the total of your employer and salary sacrificed contributions.

Do you have more than one Superannuation Fund?

If you have multiple super funds you may want to consider consolidating them as soon as possible to save money on fees.

If you are unsure of how many super funds you have acquired over the years, you can check through your myGov account or the ATO.

#3: Consider a Self-Managed Superannuation Fund

Many people today choose to transfer their super to a self-managed super fund (SMSF). An SMSF allows you to have more control over your retirement savings including how your super fund is managed and how to invest the balance. This option is especially suited for those who have extra money they want to invest in something more than just stocks or shares.

However, SMSFs come with substantial responsibilities. If you’re unsure about which step you must take, you may want to consider seeking an expert financial adviser who can help you make an informed decision based on your personal circumstances.

#4: Seek Tailored Advice From a Financial Adviser

When seeking expert advice from an experienced retirement planner, they can help you by providing you with the financial roadmap to achieving your retirement goals. This can include providing you with the right financial strategies to grow your nest egg and get you on the right path to securing your ideal future.

At Hyland Financial Planning, we provide you with a retirement plan tailored to your financial needs and wants in life to ensure you can achieve a retirement that is comfortable and worry-free.

Hyland Financial Planning can help you with your retirement planning

Hyland Financial Planning’s financial advisors are dedicated to forming a collaborative relationship with you. We share your desire to improve lives through strategic planning, wealth creation, and wealth success.

Through our retirement financial advice, we hope to help clients develop a sense of preparedness and stability for anything that may come their way. Seeking financial advice in Sydney or Hornsby?

Book a complimentary 15-minute call today!

References:

https://www.abs.gov.au/statistics/labour/employment-and-unemployment/retirement-and-retirement-intentions-australia/latest-release

Navigating Financial Planning during a Divorce or Separation

Posted on 13 April 202214 April 2022 by hylandfinplan

Going through a divorce or relationship breakdown isn’t easy. It is a stressful event that may take a toll on your children, finances, living arrangements, and daily routine.

The cost of a separation can also be something that takes its toll and it can be difficult to prepare for due to the usually short timeframes and the urgency of action. Generally, the overall costs of your divorce will depend on how amicable you and your former partner are about reaching fair agreements.

Whilst it can be a challenging time navigating the separation process, it’s important to seek expert advice in areas that are going to streamline the process for you. This should include legal support as well as a financial adviser.

Financial advice may be able to help you make the right financial steps and provide you with a strategic financial plan throughout the divorce or separation.

They can also provide you with the relevant financial information you may be seeking during this time.

Read on to learn about financial planning amid a divorce or going through a separation.

Assessing Your Financial Situation with A Financial Adviser

It’s important to carefully assess your current financial position. It can help you know what steps to take next and what you should avoid.

A financial planner can tailor their strategies to your individual circumstances and provide you with the knowledge to make informed decisions surrounding your money.

It’s recommended you gather as much information as you can about all your assets and liabilities and note the names each is in.

Consider collecting the important documents and examine the following:

Savings (individual and shared accounts)
Art and collectables (and other assets that are worth considering)
Bank statements and credit card statements
Family trust
Insurance policy
Home loans and personal loan statements
Investment statements (for example, managed funds, share dividends)
Personal effects (boats, caravans, farm equipment, motor vehicles, etc.)
Superannuation statements
Marriage certificate
Insurance policies (health, home and contents, car, income protection and life)
Tax records (tax returns and tax file numbers)
Car registration
Loan statements
Utility bills (electricity, gas, water, phones and internet)
Property documents (lease, deeds, mortgage documents)

It is also beneficial to examine your joint income and expenses as this is crucial to help you plan for the future. The documents you may need are:

Business and personal tax returns
Payslips
Bank, credit cards or store card statements
Joint debt statements

Navigating Divorce and Separation Finances

Updating Your Accounts, Will and Super

Once you have gathered all the relevant financial documents, it’s crucial to begin separating your money.

In order to separate your money, you may consider doing the following:

Opening separate bank accounts in your name (for your income and savings)
Changing your PIN and online banking passwords
Closing joint bank accounts
Cancelling joint credit cards
Update your super and ensure the payout goes to who you want.
Update your will and powers of attorney.

If you possess joint accounts with your former partner, you should let relevant financial institutions know of your plan to seek divorce. As you do this, you can also start opening your own bank account for your finances after the relationship ends.

Reviewing Your Insurance

Because a divorce or separation is a major life event, this is a good time for you to review your insurance needs. These may include:

General insurance (contents, home, motor vehicle, etc.)
Health insurance
Personal insurance (income protection insurance, life, total and permanent disability, etc.)

Insurances are vital in protecting yourself and your family if an unexpected event occurs. Reviewing your policies will help you determine your savings in premiums and better methods to let you keep up with payments while spending on other necessities. Additionally, it’s essential to make sure your beneficiaries are up to date on life cover policies so that the financial support goes to who you want it to.

Creating New Cashflow Plans, Financial Plans and Investment Strategies

It is only natural to experience an income reduction as you go through a separation and understandably, it can take time to adjust to relying on only one income. Creating a budget and financial plan early on can make it easier to track expenses and feel confident that bills and payments will be covered.

It would be wise to think about your new level of income – and potentially new expenses – and how these will affect your lifestyle.

If you have investments in place, you may like to consider adjusting them to account for your new income, changed expenses, and different living arrangements.

Making important decisions can be overwhelming at a time of significant change. When going through a separation, managing your finances is probably the last thing you feel like doing.

A financial adviser can support and guide you through the process. The Hyland Financial Planning team has the knowledge and experience to help you make confident financial decisions in times of challenge.

Do you need help navigating your finances during a divorce or separation?

Seeking professional assistance through counselling, financial planning, legal advice, and the like will significantly help identify your options when navigating a financial separation. A divorce or separation is a tough time, so don’t hesitate to ask for help from reliable experts while navigating this challenging period in your life.

If you need financial planning services in Sydney, turn to Hyland Financial Planning. We were founded on the desire to build a collaborative relationship where our financial advisers strive to improve our clients’ lives.

We offer strategic planning, wealth creation, and ultimately—wealth success, leaving nothing to chance. Explore our services today.

The Different Types of Super Contributions You Should Know

Posted on 6 April 202214 April 2022 by hylandfinplan

A tax-effective way to grow your savings for your retirement can be by making your own personal contributions to your superannuation. When it comes to your super it’s important to make the most of it during your working years, so you can provide yourself with the best possible financial situation for your golden years.

However, just like anything tax and money-related, these things can get pretty complicated, causing you to get lost in all the jargon and complicated strategies. You may not be aware of the contribution limits and restrictions in superannuation, and if that’s the case, it’s beneficial to get yourself familiar with it.

By planning ahead for retirement, you can ensure you are making the right decisions about your super that will benefit you most in the long term.

Speaking with a financial adviser can provide you with the right guidance, especially when planning for your retirement.

In this article, our team of experts created a guide that will help you navigate through the different types of super contributions. Here’s what you need to know about the 4 different types of super contributions you can make:

The Different Types of Super Contributions

Type #1: Concessional Contributions:

Concessional contributions are contributions made from your pre-tax income to your super. This type of contribution is taxed at 15%, which is typically lower than your marginal tax rate. This generally allows you to pay less tax while boosting your retirement savings.

How can I make a concessional contribution?

You can ask your employer to pay part of your pre-tax pay into your super fund, which is known as a salary sacrifice method. This simply means, your employer will be paying more than the super guarantee, which is currently 10% of your gross salary, in exchange for you receiving less take-home pay – but also benefiting from paying less tax.

What is the limit to making concessional contributions?

You can currently contribute up to $27,500 per financial year through your combined employer and salary sacrificed contributions.

It may be beneficial, as you start to contribute to your retirement, to speak with your financial adviser to see which type works best for you and how you can maximise your contribution opportunities for your personal circumstances.

Type #2: Non-Concessional Contributions

A non-concessional contribution is a type of contribution that you can make to your super from your after-tax pay. These types of payments aren’t taxed when they are received by your super fund as you have already paid income tax on this money.

How can I make a non-concessional contribution?

It can be effective if you have spare money to contribute to your super, where it will be invested on your behalf through your super fund. You can easily make non-concessional contributions directly to your super through your super fund or by going through a financial adviser.

What is the limit to making non-concessional contributions?

You can currently make up to $110,000 of non-concessional contributions to your super each financial year. It’s important, however, that you do not exceed this cap within the financial year or you will have to pay an additional tax/fee.

You can learn more about making a non-concessional contribution through the ATO or by asking your financial adviser.

If you would like to make voluntary contributions, it can be useful to contact a financial adviser to achieve the most effective financial outcome for you.

Type #3: Spouse Contributions

Another effective way to reduce your tax can be by making non-concessional contributions to your spouse’s super fund. You can benefit by:

Helping your other half build their retirement savings
And you also may be eligible for a tax offset.

Am I eligible for the spouse contributions tax offset?

If you want to take advantage of the tax offset when making a spouse contribution, you should check to see if you meet the eligibility criteria:

You must make a non-concessional contribution to your spouse’s super.
You must be married or in a de facto relationship
You must both be Australian residents
The receiving spouse must be under 67 or meet the work test requirements

Spouse contributions can create additional opportunities for both you and your other half. Besides that, doing so also maximises the level of retirement savings that you and your spouse have to share.

Type #4: Downsizer Contribution

As part of the 2021-22 Federal Budget, from 1 July 2022 eligible individuals aged 60 years or older can make a downsizer contribution (currently, the required age to make a downsizer contribution is 65 and above)

This type of contribution can significantly boost your retirement savings, as it allows you to make a tax-free contribution to your super of up to $300,000 using the proceeds from the sale of your home.

Often individuals nearing retirement may choose to downsize their home to make it easier for them to maintain during their retirement. This contribution strategy is a great way to do that and still enjoy financial security.

Am I eligible for the downsizer contribution scheme?

To make a downsizer super contribution, you must:

Be aged over 65 (changing to over the age of 60 from 1 July 2022)
Have owned your Australian home for a minimum of 10 years
Have not previously made a downsizer contribution
Provide your super fund with a ‘Downsizer contributions into super form’

Seek a Financial Adviser to Help You Make the Most of Your Superannuation

Retirement planning experts can help you grow your super and ensure you are on track to achieving your retirement goals. They can help you choose the right options to boost your savings, while tailored to your personal circumstances. To improve your superannuation balance, it’s important to start early!

How Can We Help You?

If you’re planning for your retirement and need help managing your super contributions, work with Hyland Financial Planning’s expert financial advisers in Hornsby.

Hyland Financial Planning aims to build a collaborative partnership with clients to help them improve their wealth through strategic planning and creation. With our help, we’ll guide you through navigating your finances to help you reach financial freedom.

Book a complimentary 15-minute chat with one of our experts today to find out how we can help you achieve your financial goals!

Federal Budget Summary 2022-23

Posted on 1 April 20224 April 2022 by hylandfinplan

If you are interested in how the 2022/2023 Federal Budget will affect you, we have attached a link below providing a brief summary:

Overview 2022-23 Federal Budget Summary

Should you have any queries or concerns about how the budget may affect you, please contact the team at Hyland Financial Planning for assistance.

How to Build a Diversified Portfolio That Matches Your Investment Risk Tolerance

Posted on 28 March 202229 March 2022 by hylandfinplan

If you’re dabbling in investments and aspire to grow your portfolio, it’s important to understand your risk appetite and invest in line with your financial situation and individual risk tolerance.

While it’s true that every kind of investment come with risks, the level of risk varies depending on the asset class, so it’s up to you to ensure your investment portfolio matches your risk profile.

A financial adviser can help you determine your risk appetite and ensure you are confident in making investment decisions that not only align with your risk tolerance but also with your financial goals.

Tips on Building an Investment Portfolio that Suits Your Risk Tolerance

Tip #1: Know Your Risk Tolerance

Your risk tolerance level will determine how much investment risk you are willing to take to earn a higher return. The higher your risk tolerance is, the greater your potential to earn higher returns. However, bear in mind that the higher you set your risk appetite, you usually risk losing more money as well.

You can gauge your risk tolerance by answering the following questions:

Are you comfortable with investing in stocks and other equity-oriented investments even if that means you might lose some money?
Are you comfortable losing 30-50% of your money overnight in a falling market even if you have time to wait until the market recovers in the long term?
Would you be more comfortable with investing in a fixed income product that has relatively lower returns than other products?
What are your financial goals and investment goals? Do you have short term or long term investment goals?

Smart investors match their investments with their lifestyle and financial goals.

For example:

If you are investing for a house you want to buy in the next 3 years, it may make sense to choose a low-risk investment that does not experience much market volatility. This would be a more conservative portfolio – meaning you can be more certain of your investment returns and enjoy financial security in the short term.

If you are investing for retirement and planning to retire 15+ years down the track, you may have a higher risk tolerance. You may be comfortable taking greater risk in more volatile markets if it means your money will grow more over the long term.

Tip #2: Take Time to Learn about Investment Options

Your investment options are endless.

Before investing in a particular asset class, you should be aware of how it works, how the returns are generated, what the risks are and what the tax implications are. Different asset classes hold different risks. The right asset classes for you to build a diversified portfolio will depend on your financial situation.

If you are new to investing, consider talking to a financial adviser about your investment strategy and how you can match your strategy with an evidence-based market activist as well as your high or low-risk tolerance.

Tip #3: Learn About Asset Classes and Asset Allocation

Asset allocation refers to how you divide your portfolio between different types of investments. For example, you can divide your portfolio between fixed income products, equity products, property and other types of investments.

A well-diversified portfolio will generally carry lower risk as your assets are protected by short term losses by your other assets and investments.

The performance of each type of investment is different so you need to allocate your portfolio in a way that will help you achieve your target returns. However, you might need to tweak your asset allocation regularly depending on how financial markets perform.

Managing Risks and Building a Balanced Investment Portfolio

Your investment portfolio will usually contain a mix of investments that are likely safer than others. For example, you can invest in mutual funds, bonds, stocks, ETFs and other investment vehicles that are relatively safe.

Regardless of how you decide to invest, make sure you account for your levels of risk tolerance, investing goals and time horizon. Diversify your portfolio to reduce risk and help balance your investment portfolio.

How Can A Financial Adviser Help You?

If you’re planning your investment strategy and matching it to your risk appetite, seek investment advice from a qualified financial planner.

It’s best to work with a reliable financial adviser in Hornsby who can help you secure your financial future.

Hyland Financial Planning aims to build a collaborative partnership with clients to help them build and protect their wealth through strategic financial planning and creation. Our goal is to help you reach success – no matter what success looks like to you.

Reach out to us today!

Building Your Wealth With Tax Effective Investments: Working with an Investment Adviser

Posted on 21 March 202229 March 2022 by hylandfinplan

Investments can help you make more money for yourself. However, the secret to achieving your investment goals lies within your taxes.

Generally, as you increase your wealth, gain assets, and build your investment portfolio, the higher your taxes will be. That’s why you need to know how to strategically plan your investments, asset classes, and investment vehicles.

Minimising tax is an important part of growing your own money. There are ways to go about successful investing and pay less tax throughout the process.

You can seek professional advice from a financial planner who can help you make smart financial decisions. For now, let’s dive into some helpful tips so you understand your investment options and can start investing with confidence.

Minimising Taxes Through Investment Strategies

As an investor, you need to have the right strategy to meet your investment goals and financial goals. Minimising taxes should be a part of your strategy. To do that, here are a few different asset classes you can consider using as part of your diversified portfolio.

1. Superannuation or Self Managed Superannuation Funds

Superannuation is your retirement nest egg. It’s meant to help you in the future. However, by investing in your super early, you can enjoy significant tax benefits.

Through superannuation, you can get the following benefits:

The ability to reduce your taxes in the future
Lower effective tax rate than what you get through other means
The ability to grow your money faster through compound interest
Peace of mind you are contributing toward your retirement savings

You can choose to make concessional contributions or non-concessional contributions to grow your super fund. If you hold a Self Managed Superannuation Fund (SMSF), there are also several investment options to help you minimise taxes.

2. Property

The popularity of property to invest money into is growing in Australia. While other investments can be seen as quite volatile, property tends to be a low-risk investment as property prices continue to rise exponentially.

You can also reduce capital gains tax on your property investments by investing through an SMSF.

Some investors choose to invest in a couple of different properties to diversify their portfolio.

Other investors choose to make the most of tax benefits and opt for a negative gearing strategy. This is when you borrow money for an income-producing investment (such as a rental property) where the investment is not producing as much income as the cost of the asset. The short-term losses can be beneficial to your tax bill in some situations.

A negative gearing strategy can become quite complex and may be risky.

Seek financial advice from an investment advisor who can help you with personal advice based on your current financial situation.

3. Investment Bonds

Investment bonds (also known as insurance bonds) can be another tax-effective investment. Investment bonds are taxed at the company rate (which can be lowered than marginal rates). They also become tax-free after 10 years.

Additionally – with this investment product – you are taxed internally (ie. within the bond) meaning you do not have to declare the earnings you make on your tax return.

Ready to Achieve Your Financial Goals? Get Started with Tax Planning from an Investment Advisor

As an investor, you need to be aware of your tax implications. The good news is that you can reduce your tax with a financial advisor who can provide investment advice.

Ultimately, tax minimisation may not be the most enjoyable or rewarding part of investing, but its importance cannot be underestimated.

Minimise Your Taxes Now with Strategic Investment Advice from Hyland Financial Planning

If you are ready to start your investing journey (whether using property, the stock market or any other different investments), chat with Hyland Financial Planning’s advice team.

Hyland Financial Planning can provide you with investment financial advice in North Sydney to minimise your taxes and help build your wealth. We are located in Sydney and Hornsby, NSW.

Contact us today!