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.

I am on a quest to create the perfect Father’s Day card. I want it to be personal, to show that my sister and I really appreciate him. So this card cannot be generic or store bought. The problem with this is that in the card making world, there aren’t many products that I can use to represent my Father and his interests.

I got really excited when I stumbled across a stamp set that has a car in it. This was not just any old car; there are plenty of stamp sets that have those. No, this car represents his passion, 1934 Ford Coupes.

I had to get this stamp set, the car was perfect! But I could not find it anywhere. Not in the American Craft Stores and definitely not in the Australian ones. I looked and looked and admittedly, I had to give up. Maybe it wasn’t meant to be. But it definitely was meant to be, because I stumbled across it by accident in an Australian store.

After 18 months of wanting this stamp set I finally had it! Now I just needed to figure out what to do with it. Do I make it an exact replica of his car? Do I make it an artistic representation of his interest?

This is the latest version of my Father’s Day card. It will change before Father’s Day. My cards always do. Afterall, I am on a quest to make the perfect Father’s Day card!

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.

We all know that stereotype. The uni student who gets up at midday, spends all night finishing an assignment and seems to spend more time partying than in class. While I, and the majority of university students, can’t claim to enjoy such a laid-back lifestyle, the idea made me think about finding a balance in what we do.

I have been lucky enough to combine my university studies in commerce with a somewhat more practical education helping out the team here at JBS. Yet, contrary to many opinions regarding lazy uni students, this has resulted in a busy (by uni standards at least), finance-centred schedule.

That’s where soccer comes in. For the last three years I have been filling my winter weeknights and Saturday afternoons with training and games. While it would be something of a stretch to see this progress from just a hobby, every member of the club shares the hope of progressing up the leagues and enjoying the success of a table topping team. We have had an exciting season so far, and with just a handful of matches left, the senior team has a chance to achieve the club’s first ever promotion.

I enjoy my sports, especially soccer, and have woken up at all hours in the morning in the past to follow my team Arsenal, so the continued decision to keep playing is a relatively easy one.

Yet the real reason I choose to freeze on a cold, raining, winter Wednesday night out on an exposed oval is the change it gives to my schedule, the ability to step away from everyday activities and engage in a completely different discipline. It has enabled me to find something of a balance in an otherwise full schedule; the fact that it keeps me at a reasonable level of fitness is a bonus. There is a structure to it that ensures that nothing dominates my thoughts to the detriment of my wellbeing.

I hope to keep playing soccer for at least a little while longer, but I have no doubt that the understanding that I have gained regarding the balance it has brought will be something I try to continue, particularly with my graduation coming up soon and from it a more permanent move into the workforce.

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.

If you’re like me, you most likely have family that lives in all parts of Australia or the world. Myself, I have family that lives in Melbourne, Noosa (Queensland), Mansfield (Victoria) and even Papua New Guinea. When you have family that lives not so close to home it can be hard to keep in touch or even visit them on a regular basis.

We all have those excuses not to take the trip to see our family; we get caught up in work, we’re too busy, we can’t afford it and the list goes on and on. And because of this, we don’t end up taking the time to see our family and we may even lose touch with them.

For me it really hit home last year, I fortunately didn’t lose any family members or anyone close, but unfortunately my friend lost his father and my girlfriend lost her grandfather (at the ripe old age of 96!). And it got me thinking, my grandmother moved to Queensland a number of years ago and I hadn’t seen her since she made the move. Sure I rang her on her birthdays, sent her birthday and Christmas cards, but that’s just not the same as spending time with them. I also had an Aunty and Uncle that lived in Queensland and I hadn’t taken the time to go see them either, the only time I’d seen them was when they’d make the time to come to Melbourne.

I’m not super close to my grandmother or Aunty and Uncle but that wasn’t really the point, so I put all those common excuses aside, booked a trip to Queensland with my mother and girlfriend and went to visit my grandma. We had a great time and most importantly was able to spend time with my grandma and see my Aunty and Uncle, and we got in a bit of R & R for ourselves.

My grandma just turned 95 (fingers crossed I’ve inherited her genes) and going strong, but you don’t know what tomorrow is going to bring or how much time you have left with someone, and family is always important no matter what. I guess what I’m trying to say with all this is put aside any excuses and take the time to see your family and make sure you stay in touch, as none of us can predict what tomorrow will bring.

Peter Folk

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.

I recently moved out of home for the first time and wanted to share a couple of cost saving tips that helped make the transition as smooth as possible for me. It can be a daunting experience especially for someone who has never done it before. There are so many things to organise, all of which are even harder if you work full time during office hours.

The first fantastic company I came across is Foxie. They run a service which helps you connect all of their utilities so they are setup and ready to go from the day you move in. You can either give them a buzz or jump onto their website and submit an enquiry. Their friendly staff will generally call you back within the hour. They fill you in about the best plan and rates for your area and take care of the application for you.

Borrow a trailer and move yourself. Most petrol stations hire a range of trailers out by the hour or for full days if you need it for longer. Better yet, if a friend has one, ask to borrow it and give them a slab of beer to help you move. It will be far cheaper than paying to rent a van and removalists which generally cost upwards of $120 per hour. If you are young and don’t have too much stuff, take you time and pack intelligently, with the idea to make as few trips between the two houses as possible.

Gumtree is an awesome source for furniture. Every day there are hundreds of advertisements posted by people either giving away or selling furniture and other household items. You can get some great bargains if you are patient but quick to pounce, especially with the freebies. Speak to your friends and family, most will have stuff lying around in their garage that they would happily see used or go to a good home. There are also a few Facebook groups such as Melbourne Hard Rubbish which provide daily updates about where you can find cool stuff on the side of the road for free. Furnishing a house can be one of the most expensive tasks so minimizing this in any way you can is key.

One handy trick that my cousin suggested was to wrap fragile items in clothes to save on bubble wrapping. It worked a treat and socks, clean ones of course, are especially good for glasses and stemware. You can also wrap draws in glad wrap to keep them from sliding during the move. Much more fun to run around a set of draws with a roll of cling than to tape it up, which also leaves marks and sticky residue.

It’s been an exciting experience and I am loving every minute of the freedom, I wonder why I didn’t do it earlier. Whilst it’s generally not the most sensible financial move to rent, often you need to make decisions based on lifestyle and being happy. Finding a balance between the two is key.

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.

Hei. Mitä kuuluu? Go on – which language do you think it is? German? Croatian? Well, no, it’s Finnish. It’s not a language that many would know but it is one that I used to. You may not have known but I lived in Finland when I was 16. I was an exchange student with Rotary and it was seriously one of the best experiences of my life.

My interview went well – 6 Rotary people in a semi-circle around me firing questions at me. Some I answered well, some not so well – I remember my answer to the question “what do you think is the most pressing issue in the news at the moment that relates to young people”. You’d think I’d be very sophisticated and say something like “violence on tv” or “drug use and availability” or something like that but my answer that won me my exchange year was “I don’t really know – I watch the Simpsons when the news is on”.

I put in for England, America, Canada, Japan (as I’d been studying it since year 7) and then Germany (as I’d taken a couple of classes and knew some words) and I got the call saying that I got Finland. After referring to a map to find out where Finland was, I was very excited.

It was so different to life I’d known. I left in January and went straight into snow. So much was different – driving on the other side of the road, food, weather, I could go on. I went to school there and it is so interesting to see how they learn. In Finland they take 5 classes per semester but they have 5 semesters; so 25 subjects a year. They don’t go over work. It’s taught once and learnt once and it’s the expectation that everyone keeps up – which they seem to do. I found some subjects hard but that was probably as I was taking French class when I didn’t even know Finnish.

I learnt how to do cross-country skiing and did it a bit on the frozen lake out the front of my house as well as around the countryside of my host-parents summer house. I learnt to ride my bike in snow and on ice so I could get to school. And I learnt how to speak Finnish. I also learnt that you shouldn’t go outside with wet hair or it can literally break off!

One of my greatest memories of being in Finland was meeting Santa – yes THE Santa. He lives in Rovaniemi in the Artic Circle of Finland also known as Lapland. Santa can speak, like eight languages with ease. He is a lovely fellow who is happy to see anyone who comes to visit. If you’re ever in Europe, you’d want to drop in to say hello and maybe even hand delivery your Christmas list to Santa Claus Village.

One thing that living in Finland has taught me is to take every opportunity available to you and don’t be scared of things you don’t know. You only live once so live it well and to its fullest.