I started gardening four years ago as a way of relaxing. What started as one small garden bed in the backyard quickly turned into me redesigning the entire front yard! My favourite time of year has to be end of winter through to spring. That is when all the bulbs that are hidden in the various garden beds come to life again and dazzle us with their colour.

In order to prepare for our spring garden we need to start planning now in January. I have learned that with gardening, I am always focussed at least 6 months ahead. Spring bulbs need to be planted in February/March, the exception being Tulips. Tulips need to be placed in the fridge for five weeks and then can be planted in May. It sounds odd, putting bulbs into the fridge before planting, but they need to be chilled in order to flower.

This year we will be shuffling bulbs around, what I refer to as my ‘Bluebell garden’ will be dug up and halved to make room for more Tulips. The Ranunculus and Anemone gardens will be added to as well. The hardest part is limiting myself each year with how many bulbs to purchase! It is very easy to get carried away with ideas about what I want to add, I have to remember that it is very important to look after what is already there, the bulbs need fertilising and fresh compost every year. The same principle can be applied to retirement savings, it is important to look after what is there; because once it is gone it is costly to start again.

It is always sad when the spring flowers start to fade and the garden looks lifeless once again. But, then I remember that summertime means David Austin Roses will bloom, colour will be restored and the next project begins: planting sunflower seeds!

If you have ever changed your name, address or especially in today’s environment where you could change jobs several times throughout your working life, it’s easy to lose track of where you’re super is being paid. Having several super accounts could mean that fees and charges are reducing your overall super investment.

The ATO claims there is around $17 billion owing to account holders and therefore could be holding unclaimed super on your behalf. This happens when Super Funds transfer the balance of small inactive account directly to the ATO. This is still your super and you are able to claim and transfer it to your preferred super fund at any time.

There are two primary ways to find any lost or unclaimed super:

Australian Tax Office

AUSfund (Australia’s unclaimed super fund)

The first thing you should do is go to the Australian Tax Office’s online search tool or by calling 13 28 65.

To do a simple search, you’ll need to provide:

•    Tax file number
•    Full name
•    Date of birth

For a more comprehensive search of all your superannuation, you’ll need to register for a secure login with the ATO.

Beware of companies or individuals trying to make money from you unclaimed funds. If you receive a letter or phone call advising you of unclaimed funds, there is no need to take advantage of their service.

Before making any decisions to close any super accounts speak with the team at JBS as you could be losing access to any insurance in place within the super or other benefits such as access to reduced home loan rates or lower fee structures.

If you would like to know more about unclaimed super please speak to the team at JBS.

I’m a bit of a rev head; I love good looking and fast cars. Last weekend out of pure curiosity I booked myself into test drive some new “hot hatches” as the manufacturers have coined them. I thought I would share a few really interesting discoveries about service innovation.

My first stop was at Audi to put the new 2016 RS3 through its paces. The R salesman Andrew was extremely friendly and allowed me to take an extensive test drive – with him as a passenger – clearly I looked like too much of a hoon for him to let me go by myself. He diligently explained all of the amazing features of the car and was keen to find out about the type of driving I normally do so that he could adapt his pitch to suit my needs.

Second was Mercedes to step into the well acclaimed A45 AMG. Again I was greeted with an offer of tea, coffee, or something stronger, then eventually sat down with the AMG salesman Josef. He ran me through the test drive procedure all on his phone – Mercedes have developed this app that records all of the necessary information and allows you to sign a waiver on the phone. Everything that was discussed, including the signed waiver is automatically emailed to you, genius.

I discovered that if you work for a large employer – generally anything over 50 employees many car dealerships will sometimes negotiate free servicing on the purchase of a new vehicle. This can save you anywhere in the vicinity of $3,000 – $5,000 potentially based on the car you are buying.

Little things like efficiency have allowed Mercedes to price their hot hatch which performance wise is almost identical to the Audi around $20,000 cheaper. Keeping the economy of the car under 7 Litres per 100Km, they have been able to avoid the luxury car tax, which makes up almost $10,000 of the Audi RS3’s cost. Tweaking really small areas of your service or product can create a huge difference for the end user or customer.

Since I haven’t been new car shopping in ages, I was amazed to see the effort that has gone into improving their service processes, so that they wow you from the moment you walk in the door. Their salesmen are well trained to ensure they connect with you and talk about things that are relevant to your needs. It shows that service isn’t dead and for those businesses that are willing to invest the time and money into making their process and awesome experience for the client, good times are ahead.

Bring on 2016 – the JBS team have all enjoyed some time off and are now ready to kick start the year.

For many of us, the start of a new year allows us a fresh start, a new beginning or a clean slate. This time of year also presents a great opportunity for you to review your financial strategies and goals.

Financial reviews should take place regularly when you have the opportunity to make informed decisions and factor any changes into your financial plan. Below are some simple tips to tidy up your finances for the year ahead.

Have your key financial goals changed?
Our lives are not constant and our goals change slightly (or greatly) from year to year. Also, major life events such as serious illness, the birth of a child, inheritance, marriage and the death of a parent or spouse can all result in significant changes to our wealth management goals.

Prioritise your goals
It is important to rank and prioritise goals and decide in what timeframe you want to achieve them. Being realistic about your timeframe is essential to ensuring that your goals will be achieved.

Short, medium or long term?
Most industry experts agree that a short-term goal is one that can be achieved within a year or so. Medium term goals typically require two to five years, and long-term goals usually take longer than five years.

If your financial goals have changed, how will this affect your financial strategy?
This is where the advice of a financial adviser is critical. Advisers have the tools and knowledge to create projections that take into account changes to your goals and changes to your timeframes for achieving them. These projections will help you to see where your plans for savings, assets or investment contributions may need updating.

Be savvy
Make sure that your investments and level of protection support your level of risk and your goals.

Be sure to contact the JBS team if any of your circumstances have changed to ensure you are on track to reach your financial goals.

JBS would like to wish you a fabulous year ahead and hope that you are sticking to all those resolutions and goals you have set yourself for 2016.

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 🙂

“Move out of home” they say, “you’ll have all the independence you want”.  These are the words I often hear from relatives and friends.  I sometimes feel as though society demands that we must all move out of Mum and Dad’s house at a certain age.   However has anyone stopped to consider that some of our parents do not mind having us at home?  I can’t speak for everyone, but I contribute my fair share around the house.  I clean, cut the grass, pay bills when required and assist my folks with large expenses such as Kitchen renovations and purchase of a new car.  Furthermore as English is a second language for mum and dad, I take care of all incoming mail and admin work around the house.  Don’t think for a second though that it’s all my parents who benefit from me living at home.  I benefit as well as I don’t pay rent and mum’s cooking is the one of the best in the world, only rivalled by my lovely wife of course.

In my case it was because I continued to live at home, that I was able to save for a house. I realise that not everyone is in the same position as me so, given the opportunity I say stay at home for as long as possible and save as much as possible. Like most Aussies, I too found it very difficult to save enough for a house; however working in the financial planning space has assisted me in appreciating the value of budgeting and saving for my own place. I’ve since moved out of home and now live with my lovely wife and very active little son. So now that I’ve moved out of home, do I have all the “independence and privacy” I want? The answer is I don’t feel any different, as a matter of fact I found it strange living in a house with only 2 and half people. I feel as if the house is constantly empty. Over time however, I’m sure we’ll grow into it. Furthermore there are these little things called bills and mortgage repayments, which seems to constantly re-appear even though I pay them every week. I admit I never paid any attention to bills whilst living with mum and dad and would just pay them as they appear. Since moving out I would now analyse every bill I have to pay with a fine comb to ensure I’m not getting “scammed”.

I find there are merits to moving out of home and there are pitfalls associated with been “independent”, but not exactly what I had originally imagined. Whilst there were some things such as more house work which I expected, there were also some unexpected factors such the wife spending a fortune on flowers, which I never saw coming. Overall having my own place gives me a sense of achievement knowing I was able to save enough for my own house. Now it’s time to save for that house warming party everyone keeps asking about.

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.

As you may know from reading my previous blogs, I love the surf. However, living in Melbourne I don’t exactly get the fix every week that I used to when I lived on the Gold Coast. Living in Melbourne does give me the opportunity to visit the snow each year and go snowboarding – another sport that I love.

A couple of weeks ago I managed to get myself to Mt Buller for a few days with a group of friends. I have only ever been to Falls Creek in Victoria so I was really looking forward to going to Buller which has many more lifts and runs to conquer.

Going to the snow is an expensive exercise (especially when compared to surfing) so I usually only go once a season. Without the repetition of being on the snowboard every week like surfing the thought always crosses my mind as my trip inches closer – will I remember how to board, will I remember how to turn or even will I fall.

As soon as my boots go in the bindings and I’m at the top of the mountain it’s like riding a bike. What I love about the snow is the sense of freedom you get when you start down the run and then mid-way you can choose to take a different course and try the unknown. You get the opportunity to explore, get lost and sometimes on a good day it can take you the whole day to find you way back to where you started.

If you don’t explore and try new things, your course won’t change. Step outside your comfort zone, push the boundaries a little, lose your way and even fall – imagine where you could end up and what fun you could have along the way.