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.

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.

Do you hold some of your cash in a term deposit? Maybe you have term deposits in your self-managed super fund? Or do you plan on investing in one in order to earn a higher rate of interest than your standard savings account? Well, recent changes to banking legislation may affect you and how you save your money.

The key difference is that banks will now demand at least a 31 day notice period if you try to withdraw your money early from a term deposit. This means that if you want to quickly access the cash you have locked away, you cannot just pay a fee and lose part of your interest, but will have to wait at least a month as well.

These new requirements were introduced on 1 January 2015 in response to the new “Basel III Liquidity Reforms” which demand higher levels of liquid assets to be held by banks in order to provide protection against short term events that may prove a threat to the bank’s ability to pay its obligations, such as a bank run. The reforms expect banks to hold enough high quality liquid assets (such as cash) to cover total net cash outflows for up to 30 days and, in order to achieve this, the banks have applied these new restrictions on term deposits, ensuring that the money held as term deposits does not count as part of the total net cash outflows.

So what does this change for you?  In most cases this should, hopefully, not cause much concern. If you intend to hold your term deposit for the full term until maturity, this legislation will not cause anything to happen differently. If you believe, however, that you may be relying on accessing the funds in your term deposit before the term deposit matures, then you should consider alternative arrangements such as holding part of your funds in a savings account. While some banks have stated that they would relax this requirement in the case of financial hardship, this would be reliant on their assessment.

If you’re concerned about what this change may mean for your savings plans or your retirement savings then please contact the team at JBS to discuss your personal situation.

On the weekend of the Queen’s Birthday, I was lucky (or unlucky some might say) enough to spend the time repairing the fences around my family home. Kristyn and I had a few helping hands with my mum and dad coming down from Shepparton to help; my brother and sister in law were roped in too.

After much debate and discussion about design and strategy we began to dig the holes to lay the foundations. 17 holes in all were dug over 45 metres, all having to be evenly spread and of equal depth to ensure that everything lined up. The posts were finally cemented into position using a combination of a string line and the naked eye, mainly due to the windy conditions. This was a very slow process that seemed to take forever, but we needed to make sure that it was done correctly, otherwise any imperfections would only be magnified once it was complete. We worked together closely as a team, each performing our roles to ensure that we succeeded together.

Monday morning was the moment of truth and it was time to hang all the rails. Once again, there was a lot of work involved with ensuring that they were hung straight, with the plinth board along the bottom being used as our guide to ensure that the height of the fence was consistent. After 2 solid days of not really seeing any significant improvement, by lunch time of day three we could really see things coming together. Then it was time to nail the paillings. Dad was on measuring and I was on nailing. 480 paiings, 2 nails at 3 heights, meant that I essentially did 480 squats, but the job was finally done. We finished up on Monday afternoon and although my knees were a little sore, I’m pretty proud of our achievement. Clearing and building 45 meters of fencing over 3 days was a monumental achievement that couldn’t have been done without the support of my family. The effort really shows how much can be achieve in such a short period of time when you work together as a team.

The other thing that really stood out throughout this experience was that although building the foundations can often seem to take a long time and can often be the less exciting part of any process, it is critical to ensure that it is done correctly otherwise you will have to deal with imperfections for a very long time.

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.

I have many hobbies which I follow on a regular basis such as sport cars, playing soccer and even guitars. There is one hobby which I have a great passion for but never really chased due to “sensible reasons” and that is kickboxing / martial arts.

Some may see martial arts as violent and unnecessary, and some see it as a way of getting fit. I see martial arts as a way to strengthen the mind and body. From learning simple Karate techniques and steps to actual contact inside the ring, I’ve always had a sense of passion for the sport. Even at times when we were pushed to the limit time after time, I feel martial arts have taught me discipline and more importantly to appreciate the safety we get in our everyday lives.

Now to why I never pursued this sport intently. I returned home one night from training to be met with the question from mum, “were you involved in a fight?” I’m not sure what gave it away, maybe it was the bruises on my face arms and legs, or perhaps the wraps which were still on wrists. “No Mum, it’s from training” I replied. My reply was instantly met with another question from mum “do you know why we ran from our home country?” Knowing well what mum was thinking, I assured her it was simply training and nothing more. Mum’s thoughts were however, is why would we escape from violence to get into more violence? My thoughts were different, I believed martial arts is more than just plain old violence, it teaches me discipline and respect.

It was since then that I stopped pursing this “violent and dangerous sport”. Not because mum’s words changed my mind on martial arts, but because I believe my parents have had their fair share of fear arising from violence and didn’t need me to contribute to it further. Plus keeping the folks happy is a good thing too I suppose, as I couldn’t afford expensive clothing and footwear back then. I still hit the old punching bag from time to time, but just to keep fit and mind sharp.

Superannuation, it’s a bit of mine field when it comes to knowing how to maximise your super contributions. But don’t worry, we’ll break it down for you:

Maximise concessional superannuation contributions

Concessional superannuation contributions for the 2014/15 financial year are limited to $30,000. However, if you were aged 49 or older on 1 July 2014, a transitional limit of $35,000 applies giving you the opportunity to maximise your concessional contributions before the end of the current financial year.

Claiming a tax deduction for personal superannuation contributions

If you’re intending to claim a tax deduction for personal superannuation contributions, a “Notice of Intention to Claim a Tax Deduction” (s.290-170 Notice) must be lodged with your superannuation fund before any one of the following events occurs, whichever is first:

–    lodgement of the income tax return for the financial year in which the tax deduction is being claimed
–    commencing a pension
–    withdrawing superannuation benefits
–    rolling over your superannuation to another superannuation fund

Maximise non-concessional contributions

Non-concessional contributions are personal contributions made from after-tax income. For the 2014/15 financial year, non-concessional contributions are limited to a maximum of $180,000. If aged 64 or under on 1 July 2014, you’re able to bring forward up to three years’ worth of contributions (up to $540,000) provided you haven’t done this previously.

Making large non-concessional contributions is a big decision and advice from a financial planner is recommended before any contribution is made.

Salary sacrificed contributions

Foregoing part of your salary in favour of having additional concessional contributions made to super by an employer may deliver tax advantages.

Existing salary sacrifice arrangements should be reviewed on a regular basis, at least annually. Reviewing a salary sacrifice arrangement before the end of the financial year and amending for the following financial year represents good planning.

Your superannuation contributions at 65

If you’re aged 65-74, your superannuation fund is only able to accept contributions if you have been gainfully employed or self-employed for a minimum period of 40 hours, worked  over not more than 30 consecutive days, in the financial year in which the contribution is being made.

If you’re approaching 65 and not working, consider making superannuation contributions before your 65th birthday.

Government co-contributions for low income earners

If you earn less than $49,488 a year and make a non-concessional contribution to superannuation you may be eligible to receive a Government contribution of up to an additional $500. The actual amount, and eligibility for the co-contribution, depends on a number of factors including the proportion of total income derived from employment, age and taxable income.

Spouse contributions

Where you make a non-concessional contribution to superannuation for your spouse, you may be entitled to receive a tax offset of up to $540 if your spouse has an income of less than $10,800. The tax offset reduces if your spouse’s income is between $10,800 and $13,800. You will not receive a tax offset if your spouse’s income exceeds $13,800. The maximum offset available is 18% of the contribution made, subject to a maximum offset of $540.

Spouse contribution splitting

Superannuation laws allow for a person to split their concessional contributions with an eligible spouse to build up retirement savings for the other. Up to 85% of concessional contributions made in the 2013/14 financial year may be split with a spouse prior to 1 July 2015. Splitting superannuation contributions allows for couples to balance their superannuation savings between partners.

Life insurance held in super

On 1 July 2014, restrictions came into effect in relation to the types of insurance held through superannuation.

The new restrictions affect insurance policies that provide for the payment for an insured event that is aligned to a superannuation condition of release. In essence, the only new policies that can be taken out through superannuation after 1 July 2014 are those covering the following events:

–    death
–    terminal illness
–    total and permanent incapacity – any occupation
–    temporary incapacity

The new restrictions mean that you will no longer be able to take out a policy with your superannuation fund that covers trauma insurance, total and permanent disablement – any occupation and income protection insurance that provides ancillary (such as rehabilitation) benefits in addition to income replacement. Policies taken out prior to 1 July 2014 will not be affected by these new restrictions.