Tag Archives: Financial Goals

Celebrate Your Financial Goals

At the start of every new year, many people set new goals for themselves however not everyone is successful. Many of us identify what we want to achieve, however we don’t think about and plan how to achieve it. It’s proven that people who develop action plans can experience less anxiety, increased confidence, improved concentration, greater satisfaction about achieving their goals and are more likely to succeed.


We can often also have goals wandering around in our mind that we end up forgetting so “ink it, don’t think it”. By writing down your dream or goal, you make a conscious commitment that this is what you want to achieve. Once you have made this commitment, put it in places that can easily be seen. Put it on your home screen of your phone, tablet or computer, your bathroom mirror, in your gym bag or on your kitchen fridge. These reminders and a positive mindset will help you stay motivated for achieving your goals.


One of the most exciting things that JBS are fortunate enough to do is celebrate with our clients who achieve their financial goals and are living out their dreams. Contact the team at JBS to book an appointment so we can help you achieve your financial goals.

Challenges in setting financial goals

The challenge in getting one’s financial goals structured is actually identifying the goals and hunting around for answers.  Often the first challenge is to get in the right mind set to sit down and talk to your spouse or family about your short term and long term financial needs. These needs then develop into a goal which you wish to achieve, but people are limited by financial planning knowledge and even time.


Financial goals generally involve the growth and protection of your savings and enjoying your retirement – yes I am mentioning retirement because eventually that is the long term goal and if not, then it’s time to start planning your financial goals around your retirement. At JBS, we have a Retire Right program that aims to help you plan your retirement better.


There are multiple ways in which a person can overcome the hurdle of limited financial planning knowledge. Let’s look at some of the hurdles that we face and try to understand ways to overcome them.


Limited or no time to research investment options
In the financial world, time is money. It doesn’t mean you make this your full time job, but it is crucial to devote some time towards gaining knowledge on the instruments that will help you grow and preserve your hard earned money. Generally speaking, your investment options depend on your risk profile. As you can see in the graph, the types of assets your money can be invested relies on the relative risk you are willing to take on given the expected relative return. To help with the research, today there are numerous tools accessible on the internet, for example Yahoo Finance or Morningstar.

Source: Australian Investors Association

Lack of working knowledge of investment instruments
Once you have removed time to identify your present financial status and researched which investment options are out there in the market, the next hurdle arises in understanding the workings of that instrument or options. Some are straight forward, like a fixed term deposit while some might look complicated, like Exchange Traded Funds or Equally Weighted funds. It may look daunting at the start but with the help of the right tools and resources, you will be on the track to implement your financial goals. ASIC’s Money Smart website provides basic insights into the financial aspects that are vital to be understood, especially on the risk side of things, before venturing on your own. One of the best options is to have a financial coach by your side who will help you attain your financial needs. Have a look at what we at JBS have to offer in our Cash Coach program.


Waiting for the right time to invest
If you have never invested or traded before then it is imperative to at least not start at the wrong stage of the stock market cycle. However don’t waste time over thinking and analysing the situation. The earlier you start hitting your financial goals, the better it is. Currently the market seems to be performing well with the ASX200 Accumulation racking up a 4.8% return in the March 2017 quarter. If you look at Warren Buffett’s  ‘Buffett Indicator’ (Total Market Capitalisation divided by the country’s GDP) for Australia, since post GFC, it has been treading around 96%, which indicates that the Australian stocks are valued more or less accurately and a big correction is not on the cards as per the market commentators.

Source: Eureka Report

Finding the right advice from the right people
In this fast paced changing world, it can be difficult to manage your work life, family, friends, travel and financial goals. MLC’s Q3 March 2017 Wealth Sentiment Survey found that after not having enough money to invest, self-doubt on how to invest and save money was the second reason why Australians did not reach their financial goals. Only one out of every four respondents on that survey had a financial plan. So find the right adviser whom you can trust and who understands your personal financial goals in order to avoid being that bracket of society.


Again, always seek advice from experts because you are dealing with your life savings.


– Aakash Mehta –

Getting ahead in your 20’s & 30’s

Travel or tinned beans?

Which choice would you make? And believe it or not, at this age, with time on your side, getting ahead financially is easier than you think.  If you are one who would choose travel over tinned beans, here’s three simple steps you can take now to set yourself up financially in the future – and skip the beans.


20'sTIP 1: Set Financial Goals
Start with a bucket list, what are all the things you’d like to do throughout your life? Now sort them into timeframes. Pick one core goal per timeframe and each pay slip you receive, allocate money toward that goal. For example:


–    SHORT TERM (1-3 YEAR) GOAL: Go to New York for two weeks. Set up a savings account, contribute some every pay cheque.


–    MID TERM (7-15 YEAR) GOAL: Educate your children. Consider an investment such as an investment property, managed fund or share portfolio, contribute even a small amount from every pay cheque.


–    LONG TERM (20+ YEAR) GOAL: Have the choice to retire at 60. Make sure that your superannuation plan is the right one for you, considering fees, investment options, insurance coverage, and any other benefits. To have the ability to retire early, you might want to consider contributing funds to super above the legally required minimum amount (SG contributions) from your employer.


TIP 2: Pay Off Personal Debt
Paying interest is lost money. For example: If you have $3,500 owing on your credit card, paying 21.5% interest and are only making the minimum repayments of $70 a month – it will take you 90 years and 1 month to pay off and you’ll have racked up $27,050 in interest!  Even by paying a little extra each month, say $150. You’ll repay it in two years 8 months and only accrue $1,074 interest. Earn more, spend less or use savings to get rid of credit card debt ASAP so you can start focusing on your exciting goals ahead.


TIP 3: Choose Super Investing Options Wisely
You can choose how you invest and contribute to your super. Compound interest 101: Say you’re 25 years old and you can access your super when you’re 65 years of age. If you have $1,000 in your fund currently and are earning $65,000 a year, contributing 9.5% of your annual salary, being $6,175.  If you receive 5% returns, you’ll retire on $752, 979. If you receive 6% returns you’ll retire on $965, 941. If you receive 7% returns you’ll retire on approximately $1,250,000. We can’t change the timeframe with super but we can influence our rate of return. Always check what your agreed risk profile is. Whether you’re in a conservative (more cash, less shares, property) or high growth (less cash, more shares, property) investing option, it’s important to understand what assets make up your account and whether they will deliver the growth and income you require to meet your goals. But also remember that with greater potenital for growth is greater potential for loss so adjust your portfolio wisely based on your views.


You also have options to contribute on top of the legal minimum paid by your employer, contributing $1,000 per annum on top of employer contributions could result in as much as a $100,000 difference when you retire.


If you need help setting a spending and savings plan, reducing debt or would like more information around the investment options in your super, please contact our office today.