No matter where you are on your financial journey, you need to know that it’s possible for anyone to turn their financial life around. As with most things, sometimes that very first step is the hardest part. We have created a list of tips to start saving money today.

None of these tactics will be life-changing on their own, but they can make a difference over time if you are able to implement more than one. Some of these suggestions take just a few minutes, while others require a bit of regular effort. Still, they’re all incredibly simple – anyone can do them.

So here we go with our money saving ideas:

 
– Have a save buddy. Saving while hanging out with spenders can mean your money goes on impulsive or unnecessary items

 
– Review your bank accounts. Are you paying fees? Are there cheaper offerings? Are you restricted on what you can do with your money?

 
– Master the 30-day rule, waiting 30 days to decide on a purchase can give you better perspective on whether it’s truly worth the money, often the urge to buy the item has passed

 
– Write a shopping list before you go shopping to avoid impulse buying

 
– Lock up your credit card for a month and only pay for things with cash

 
– Set a limit for birthday and Christmas presents and don’t go over

 
– Buy in bulk

 
– Have a portion of your salary paid directly into your separate savings account

 
– Set a savings goal

 
– Pay your bills on time to avoid late fees

 
– Shop around for necessities such as car insurance, house and contents insurance, gas, electricity, phone, etc.

 
– Unsubscribe from sale email alerts. This is just constant temptation

 
– Stop buying bottled water! Buy a water filter instead if you can’t drink tap water

 
– Only purchase classic clothing that you can wear again. If you know you’ll only wear it once or twice, consider borrowing from someone rather than buying that sequent and lace floor length ball gown

 
– Empty your pockets and wallets of coins at the end of each day into a jar. But make sure to deposit into your savings account and not dive into because you want a coffee

 
– Double down. If you do have to buy luxury items, like makeup, wine or clothes, try saving the same amount. $15 on that gorgeous red lippy you had to have might not seem so great when it comes with another $15 savings requirement. If you can’t afford both, then you have to step away.

If you struggle to manage your money and wonder where your savings disappear to each month, fear not! Our comprehensive program will put you back into the driving seat, using high impact track and reporting technology teamed with expert advice. We’ll help you get your finances on track, so you can achieve your goals, plan for the future and say hello to a happier, healthier life where YOU are in control.

Cash Coach is a program run by JBS Financial Strategists. We believe that the biggest influence on achieving your goals is how you use your cash flow, so we start from there and help you develop great money management skills. Our aim is for you to consistently have money left over at the end of the month, so you can direct it towards the stuff that really counts!

If you’re not sure where to start – contact the team at JBS and we can run through a financial health check with you. This is a great way to understand your financial position and the team can identify any trouble areas, offer possible solutions and could also find growth areas you may not have considered.

Happy Saving 🙂

Life insurance is an effective way to protect your family against financial hardship if the unthinkable event happened and you pass away prematurely. Unlike other forms of insurance, such as income protection or critical illness insurance, life insurance can be put in place relatively easily depending on your health status and age.

Having appropriate life insurance policy in place, will mean your beneficiaries receive a lump sum payment to fund for everyday expenses, such as mortgage / rent, bills, childcare costs and kids’ education. The thought of losing our partner is unbearable, which makes the topic of implementing life insurance one we prefer to avoid however is necessary. Most Aussie families would find it difficult and almost impossible to meet daily living expenses should the main income earner pass away. This often leads to families having to move back in with relatives, increasing debt levels and even losing the family home.

Latest studies on the underinsurance issue of Australian families suggest the average household should have at least $680,000 of life insurance in place. This is because it takes into account not only debt and possibly medical costs but also lost income, even for the surviving spouse as the likelihood that you would need to take additional time on top of the obligatory 2 days bereavement leave is very high. In reality however the average household has less than half the required cover or even no insurance at all. Most Aussies believe that they have automatic insurance inside their Super Fund and this is sufficient enough. Furthermore hurdles such as having a perception of life insurance being expensive or time consuming to implement, further deters us from implementing life insurance covers.

Depending on your health and age, Life insurance is one of the most simple and cost effective types of personal insurance to put in place. It’s understandable that most of us would prefer to avoid the topic, however you do so at the risk of leaving your families without financial protection in the future. There are lots of options out there for setting up insurance; inside superannuation, through your bank, online or over the phone cover or insurance through an adviser. Any options outside seeing an adviser means that you have to determine the levels of cover and structure yourself, which is usually the part with the greatest benefit. Knowing how to calculate the level of cover required, including additional amounts if held through super and is ongoing to be paid to a non-tax beneficiary to cover tax, or making sure it’s structured right to pay the least amount of tax or even gain a tax deduction, is very important and shouldn’t be overlooked. This is more important than the product that you choose to take up.

So, before you go out and purchase life insurance, we strongly recommend you speak to an expert. Everyone has different needs for personal insurance and therefore it’s important to visit a financial adviser, like your friendly JBS team member, to discuss your own personal situation.

One of the major concerns for people when they retire is, ‘how long will my savings last in order to support my lifestyle of choice’? This is what we often refer to as ‘Longevity Risk’, or the risk of outliving our money.

We are advised of the importance of putting money away into savings or superannuation to ensure that we are able to enjoy our retirement. However there is another perspective to consider – your health.

We need to take one step back and remember our health in retirement is just as important as our wealth. In the same way that we are diligent about saving for retirement while we are working, we need to also focus on our health during our working life.

A person’s health experiences later in life can be affected by their behaviours during their younger years.

So, you may ask ‘what is the health experience that could reduce longevity risk’? It could have something to do with our growing waist-lines:

More than five million Australians are obese;

– If weight gain continues at current levels, by 2025, close to 80% of all Australian adults and a third of all children will be overweight or obese;

– Obesity has overtaken smoking as the leading cause of premature death and illness in Australia;

– Obesity has become the single biggest threat to public health in Australia;

– On the basis of present trends, by the time our kids reach the age of 20 they will have a shorter life expectancy than earlier generations simply because of obesity.

Dr. Joanna McMillan a leading nutrition and healthy lifestyle expert was recently speaking about the obesity epidemic and emphasised the need and importance of a balanced diet and the dangers of a sedentary life.

Inactivity is the second silent killer which can contribute to a person’s shortened life expectancy. Evidence is emerging that sedentary behaviour, such as sitting or lying down for long periods of time is not good for your health. Technology has made our lives easier, but also made us lazy. There are fewer of us doing manual work, many of us have jobs which involve very little physical effort. As a general guide, we should be looking to achieve 150 minutes of moderate intense physical activity in a week.

Tips for a healthy and happy retirement:

– Maintain a balanced diet, including vegetables and legumes, fruit, bread, cereals, rice, pasta and noodles, lean meat, fish, poultry, eggs, nuts and tofu, milk, yoghurt and cheese;

– Try to limit fizzy drinks, alcohol, chocolate, chips and fatty fast foods;

– Stay active – try to get 30 minutes of physical activity every day;

– Get involved with a social group or sports club, this can have many benefits – meeting new people, learning a new skill and overall keeping your mind and body active.

Whilst a planner can assist you with building a sufficient amount of assets to fund your retirement, your health is about you.   You are the one who has most control over a healthy lifestyle.  So get out there, get active, and enjoy life to the fullest, for the longest amount of time possible.  That’s what retirement is all about!

A Power of Attorney is a document that a person prepares to enable another person to make decisions on their behalf. On 1 September 2015 changes to Victorian power of attorney laws came into effect with the commencement of the Powers of Attorney Act 2015 (the Act).

Due to abuse of enduring powers of attorney, it was a necessary move to improve protection and to introduce a new supportive attorney appointment.

The new law sets out:

•    The General Power of Attorney will be called general ‘Non-Enduring Power of Attorney.’
A Non-Enduring Power of Attorney will undergo only minor changes and remain largely governed by the previous statutory and common law provisions.

•    The consolidation of the enduring power of attorney (financial) and power of guardianship into one enduring power of attorney.

This means that one form can now be used to manage a client’s financial and/or personal matters.

•    A new definition of ‘decision-making capacity’ and provides guidance in relation to the factors that should be taken into account when assessing decision making capacity.

Though ‘capacity’ is a key concept when dealing with powers of attorney, there was no clear definition of what that actually meant in any of the existing laws. Following new mental health laws enacted in 2014, this law defines decision-making capacity and therefore shows that a person is presumed to have decision-making capacity unless there is evidence to the contrary.

•    There will be a ‘Supportive Attorney’ role created. This allows a person to choose someone to support them to make and give effect to their own decisions such as banking and financial decisions.

The Act recognises that a person may have decision making capacity if they have practicable and appropriate support. The final decisions remain the decisions of the person and not the supportive attorney appointment. A person may have more than one support attorney appointment.

•    The Act adds safeguards to increase the protection of people making an enduring power of attorney or supportive attorney appointment.

The Act has also clarified VCAT’s powers in relation to enduring powers of attorney and has created new indictable offences punishable by up to 5 years imprisonment or 600 penalty units. One penalty unit is currently worth $151.67.

Enduring powers of attorney (medical treatment) are not impacted by the changes and will continue to be regulated separately under the Medical Treatment Act. The new law does not invalidate existing powers of attorney.

The new Power of Attorney must be in writing and must be in the prescribed form. The form set out the minimum requirements for what to include in a form to make, revoke (cancel), resign or provide notification (where required) in relation to enduring powers of attorney and supportive attorney appointments under the new Act.

When considering making a Power of Attorney as a principal or if you are or are intending to act as an attorney, you should carefully consider the implications of the new laws.

Visit the Victorian Government Department of Justice and Regulation website for more information about the changes to power of attorney laws.

If you would like to discuss your estate planning requirements please give JBS a call.

This article is not intended to be legal advice and is not a substitute for legal advice.

Buying your first home has never felt harder and it’s clear that people could use a helping hand.  Australian’s typically approach their finances with a ‘do-it-yourself’ attitude, and have quite a reactive, last minute approach when facing up to life-changing events such as home ownership.  

We understand Australians have a high emotional drive for property ownership and we see the importance to satisfy this driver to create life satisfaction.

Here are some tips to help make it happen:

Tip 1 – Determine / Cut Down your Expenses:  Saving the house deposit is going to involve some sacrifice.  Try cutting down on a little luxury each week.  It all adds up.  As a first step, determine what your living expenses are so you are happy, whilst also ensuring there is money left over to save.

Tip 2 – Start Now:  It doesn’t matter if you don’t know exactly where you will buy.  It’s going to take some time to save for a house deposit, so start a regular savings plan now and sort the finer details later.

Tip 3 – Stash your Cash somewhere Sensible:  Investing short term in the share market is not usually a good option.  Whilst an online savings account doesn’t pay much in interest, it is most likely the right place to save for your house deposit.

Tip 4 – Avoid Paying Rent:  One of the hardest parts about saving for a deposit is saving cash whilst also renting.  Living with your parents is not always an option, however if this is possible it will supercharge your savings.

Tip 5 – Save like you’re paying a mortgage:  Many people say they find it hard to save because they’re renting and still have all the other expenses as well.  If you have to rent, then as a minimum you should be saving the difference between your rent and expected mortgage repayments.

Tip 6 – Don’t forget Lenders Mortgage Insurance (LMI):  If you can save 15% – 20% of the purchase price you will generally avoid paying LMI.  The aim should be to avoid LMI because the insurance isn’t actually for you, it’s to protect the lender.

Tip 7 – Allow for Other Extra Costs:  Costs such as Stamp Duty and conveyancing add up and need to be factored in.  The Stamp Duty amount will depend on the purchase price and the State in which you purchase, whilst conveyancing costs will range somewhere between $800 – $2,500.

How JBS can Assist

We believe the biggest influence on you achieving your financial and lifestyle goals is how you best utilise your cash flow.

This has driven us to develop the JBS Cash Coach program which aims to assist the Generation X & Y demographic, and anyone else requiring advice / coaching / mentoring / tracking / accountability regarding their cash flow and financial goals, such as purchasing a first home / debt reduction / retirement planning etc.

We assist clients to develop great money management skills.  This puts you back into the driving seat, using high impact track and reporting technology teamed with expert advice.  We help clients get their finances back on track, so they can achieve their goal.

We have helped around 10 clients this year purchase their first home, and this was achieved through the JBS Cash Coach program.

If this is something of interest and you are looking for accountability and ongoing advice around achieving your savings goals / house purchase please give JBS a call.

Please refer to this brochure for further details.

Wills aren’t just for the sick or wealthy, if you’ve got a family, a home or investments you definitely should have one – especially if the asset is only owned by you. Your will is your voice after you die and can be drawn up to provide guidance around who gets what and the person in charge of the distribution process.

Dying without a will (intestate) leaves the decision to a judge. Your assets will be distributed by the law of the state where your property is located, regardless of what your wishes were. It could mean that your minor children could be awarded to someone not of your choosing.

If you have minor children, your will should name a guardian for them.  If your children are a little older and perhaps living with partners but not married; the court may deem their relationship to be “de facto” and their partner would have claim to your estate, even if they separate.  Testamentary trusts can assist with greater levels of protection for de facto and other relationships.

If you have a more complicated estate, you may want to consider a trust which can provide much greater levels of protection, control and tax effectiveness.  You should provide your lawyer with clear instructions on how to change the ownerships on your accounts or changing the deed of your assets to reflect your newly created trust.  For example, with a testamentary trust you could give your spouse the annual income from an investment property you owned but at the same time ensure the asset ownership passes to your children.

Trusts can also be useful to stagger an individual’s inheritance over time.  We all know of or have kids who are not the most responsible when it comes to having large amounts of money in their possession.  You could setup your trust to pay various amounts of the inheritance at ages 21, 25 and then 30, or you can tie the release of your assets to particular events, such as marriage, purchasing a house, education or overseas travel.

Having a lawyer draw up a will should generally cost about $500 to $1000. Your “will” should clearly state who gets what’s left to your estate.  Accounts with beneficiary designations (Property, Superannuation, Insurance and Investments) are typically distributed (or assigned) prior to “the reading of the will” – so it’s possible that very little could be left to your estate.  Nevertheless, dying with a will insures that any leftover assets will be awarded to the person or entity of your choice.

JBS can refer you to an appropriate solicitor who specialises in estate planning matters.

For the majority of us leaving our office desks forever is something we can only imagine about as it’s so far away.  For the luckier ones that are much closer to retirement this can be a time of excitement and relaxation.  Spending our days at the golf course or with our community groups, families and friends all day every day sounds like heaven on earth.  The transition from full time work to full time play however may become unbearable.  Here are 5 facts about retirement that you should be looking at before retiring.

1 – One of the first things retirees discover about retirement is that they have too much time on their hands with nothing to do.  Playing a round of golf with mates, or enjoying a drink at the bar will only fill up a certain amount of time in the day and you can’t go doing the same routine day after day.  Couples and singles alike will quickly become very unhappy once they run out of ideas on what to do with their time.  Having ideas in your head on what to do in retirement is one thing; however actually doing them is another.  Some experts are suggesting retirees have a day to day plan on what they want to do and even seek a therapist leading up to retirement.  You will never be as busy as you were pre-retirement so it’s important to map out ongoing hobbies, part time work and social events before embarking on retirement.

2 – Retired husband syndrome – Many couples get very excited about retiring together, travelling the world together and spending intensive time together.  If this is you then consider the fact that you and your other half may have been together for the past 30 years working full time.  Aside from weekends and holidays, you never have to see each other for more than a couple of hours in the morning and night.  Now all of a sudden you see each other 24 / 7 and may even start to discover that you can’t stand being together for a prolong period of time.  Each of you having your own hobbies, goals and friends will ensure you don’t spend intensive time together.

3 – Not having enough money to fund retirement – Once retired you might have the goal to travel, see the world and complete your bucket list, unfortunately you might not have the funds to do so.  Travelling can become very costly.  A single international trip can set you back several thousand dollars if not more.  By the time your second trip comes around you may find that you don’t have enough funds anymore, so eating out may be out of the question and this year you won’t be able to travel overseas to see your grandchildren.  Having a good financial planner early on can prepare you and set realistic goals for your retirement.  This way at least you have a more clear expectation of what you can afford in retirement and prevent any nasty surprises once you’ve retired.

4 – Entitlement to social security – At present, the Australian pension age is age 65, which is subject to rules, regulations and changes in the future.  During retirement some retirees aren’t aware of what social security benefits they’re entitled to.  Even if you are receiving funds from your Superannuation benefits, you may still be entitled to government age pension (subject to income and asset tests).  Having a good financial adviser will ensure you’re kept up to date regarding any social security payments you’re entitled to.

5 – Losing your identity from not being at work – For those of us who are passionate about our profession, this becomes our identity.  Anytime your friends or family think of Engineer, Accountant or Doctor, they think of you.  So it’s no surprise that once you retire you may feel like you’ve lost your identity, which may lead to discontent and even depression.  Without the daily interaction of your work colleagues, your mental and even physical health may start to deteriorate.  Retirees who are not very active tend to decline rather quickly mentally and physically.  Joining up to the local gym, taking up classes and just continuing to meet new people will have a longer lasting affect for you.  After all, we all need something exciting to look forward to in the future.

If you are one of the lucky ones thinking about retirement, make sure you talk to the team at JBS so there are no nasty surprises.

Some people hold multiple superannuation plans as they hold insurance cover. This is usually done to obtain cheaper insurance through an industry or retail fund, or due to health concerns that may affect your ability to take up new insurance.

Although this can be an effective strategy to maintain or even obtain insurance, as with most strategies there are some drawbacks. The two main drawbacks are that some funds will require you to maintain a minimum balance in order to be able to keep the insurance, and some also require ongoing contributions to be made for the cover to be held.

In some cases you will be notified of your insurance being cancelled if you do not meet their criteria, however in some cases you won’t find out until it comes time to claim. In order to help prevent this from occurring, there are a few things you can do:

– Have a read of your super providers insurance Product Disclosure Statement (PDS) to see if you need to keep a minimum balance or if there is a requirement for ongoing contributions, or both

– Speak to your fund and ask for confirmation of the rules for keeping insurance, and ask for it in writing.

– Make sure you leave enough to cover the minimum balance and at least one year’s worth of insurance premiums in the fund.

– Make sure, if you are considering rolling a portion of funds out of the fund, you leave enough funds to maintain this minimum. Be careful of using the ATO rollover form (NAT 74662) as this usually initiates a full rollover and therefore you may accidentally cancel your insurance.

– You may wish to consider letting your employer contributions continue to be paid to the fund holding the insurance, as this will help to ensure the balance remains above the minimum amount and satisfies the ongoing contributions clause, where applicable.

– If you don’t want the bulk of your superannuation funds invested with that super provider, you could do a further partial rollover when the balance is large enough. Be sure to check the super funds rules again to make sure they haven’t changed with regards to the insurance. Also be careful as some funds do charge a withdrawal fee so you need to take this fee into account if you’re rolling over funds on a regular basis.

As always JBS are here to help, so if you’re ever unsure feel free to contact JBS and we can make sure you have the right strategy in place when it comes to holding insurance in super.

We are all covered by so many insurances already – WorkCover, TAC, Health insurance – it’s understandable that people would question the need for further insurance but like many things that are ‘so called free’ there are always limitations, exceptions and restrictions.

I was reading in the Herald Sun about a lady by the name of Kerryn Barnett, a mum of 3 under 11 and how she contracted an infection that has effectively meant her stomach has stopped working. She hasn’t eaten a solid piece of food since Christmas day. Her infection has seen her lose about 15kg so far, and she suffers from severe nausea, vomiting, fatigue, muscle cramping and malnutrition. Doctors don’t know how or where she contracted the infection from but it has left her and her family’s life devastated. She has had to take time off work and has had to make the difficult decision about what treatment she should peruse to try to improve her situation.

Kerryn effectively had two options (1) removal of her entire stomach and a feeding tube inserted directly into her abdomen. This would mean that no food or drink would ever pass her lips ever again, the feeding tube would need to be replaced every 6 months and she’d be prone to infection or (2) have surgery to implant effectively a pacemaker in her stomach to regulate the nerves and muscles in her stomach. She chose option two as it would seem to give her a better quality of life however as the device itself is not on the Department of Health Prostheses List, her health insurance company won’t cover it. As a general rule, health insurance companies only fund surgeries that have been approved by the state Department of Health after extensive clinical trials. With only 22 of these operations been conducted in Australia, with an 80 per cent success rate, her insurance company won’t cover the $33,000 it costs for the device itself.

Kerryn is concerned about her health but most importantly she is concerned about how she is going to fund this cost, and how she will repay it (assuming its borrowed) especially as its unknown if she will be able to work again.

Kerryn was an ordinary mum, enjoying life with her husband, her daughter (11) and twin boys (8) until she caught this infection. Her life has been turned upside down and now is the time that she is finding out about what she is or isn’t covered for with the insurances she has. Some may think this is a rare condition and it won’t happen to me? Well, think about all the rare diseases, infections, and injuries that occur in the world, they add up when you put them together. And they have to happen to someone…..

The clear message from this article is not to rely on any one form of insurance cover to fund life’s bumps.  There’s not one insurance that covers you totally for everything and therefore at least a little of all or most covers will ensure that you have a backup plan if something goes wrong along the way.

Just as an example and depending on the wording and policy taken, if Kerryn had income protection, she could have been paid an ongoing amount of funds to replace some of her income while she was unable to work. If she had trauma insurance, this may have provided a lump sum of money to allow her options to cover the medical device, or assist with child care or assist with the household bills or even allow her husband time off work to care for her.

If you want to talk more about insurances including existing covers and limitations such as WorkCover, TAC, health insurance, salary continuance, life cover in super etc, please give JBS a call or drop us an email.

Based on figures from the Cancer Council, an estimated 128,000 of new cases of cancer will be diagnosed in Australia this year.

Just as alarming, 1 in 2 men, and 1 in 3 women will be diagnosed with cancer by age 85.  The most common forms of cancers in Australia include:

–  Prostate cancer
–  Breast cancer
–  Melanoma
–  Lung cancer

We all know someone who has suffered cancer of some form or critical illness.  Think back to the emotional stress and strain this placed on that individual and their respective family and friends.  It is a hard time for all.

What we want to highlight in this newsletter is the financial stress that can arise upon diagnoses of Cancer and other major illness.  Many of the advanced treatments for Cancer are not covered by the Government’s Pharmaceutical Benefit Scheme nor private health insurance, yet when it comes to our health, there is no doubt you would want the best treatment available.

Below is a list of some of the advanced drug treatments available and their cost:

–  Bevacizumab – Around $48,000 per year
–  Cetuzimab – Around $84,000 per year
–  Sunitinib – Around $68,950 per year
–  Erlotinib – Around $45,840 per year
–  Azacitidine – Around $84,000 per year
–  Gemcitabine – Around $10,000
–  Alemtuzumab – $26,400 for 12 weeks of treatment
–  Ozaliplatin – $700 every 2 weeks

Put yourself in the position where you are incurring the above cost.  It is most likely you would need to stop working at this point as well.  How would these advanced treatments be funded and how would it impact your financial situation, such as your ability to meet home loan repayments etc?

A Trauma insurance policy can assist with the funding of more advanced treatments, improving your chances of better health.  A Trauma insurance policy can also remove the financial stress that may arise in the event of critical illness which allows you to focus on what’s important, your recovery.

The team at JBS are passionate about the role Trauma insurance plays in your overall strategy and would be happy to assist with any questions you have.