The toughest tasks for self-managed super

What are the hardest aspects of running your self-managed super fund (SMSF)? Is it the paperwork, all of the investment rules or the fundamental challenge of choosing where to invest your money? 

If you named choosing investments for your SMSF as the toughest task, you would be far from alone. 

A comprehensive survey for the Vanguard/Investment Trends 2016 Self-Managed Super Fund Reports, released during the past week, asked SMSF trustees to list the hardest aspects of running an SMSF. Their main responses included: 

  • Investment selection (43 per cent). This percentage has risen over the past year as SMSF trustees, along with other investors, attempt to come to terms with the low-interest environment and widespread expectations for more challenging and volatile investment conditions over the medium-to-long term. (See Vanguard’s economic and investment outlook, Australian edition, from our Investment Strategy Group.) 

  • Administration and regulation (40 per cent). This includes having trouble keeping track of changes in the rules. 

  • A lack of time including to review and plan for their SMSFs (24 per cent). 

Interestingly, 22 per cent of respondents to the survey did not find any aspect of running their fund difficult. 

The finding that more SMSF trustees have difficulty choosing investments would also partly explain another finding from the survey that a large proportion of SMSFs recognise that they have unmet needs for advice. 

An estimated 255,000 SMSFs – out of 572,000 funds at the time of the survey – had unmet needs for advice. This is the largest number recorded by Investment Trends over the years. 

“Advice needs most often relate to retirement,” the report comments, “though more [SMSFs] are citing investment-related advice gaps.” 

For instance, an estimated 146,000 SMSFs have broad unmet needs for advice on retirement strategies while 139,000 have unmet needs for investment advice. And an estimated 100,000 funds have unmet needs for advice on tax optimisation. 

Drilling down on more specific unmet needs for advice, SMSFs recognise their need for advice on inheritance and estate planning (an estimated 61,000 funds), SMSF pension strategies (57,000), age pension and other social security entitlements (55,000 funds), investment strategy/portfolio review (52,000), identifying undervalued assets (51,000), Exchange Traded Funds (46,000), offshore investing (43,000), trying to ensure members don’t outlive their savings (42,000 funds) and protecting assets against market falls (39,000). 

The finding that 44 per cent of Australia’s SMSFs recognise that they have unmet needs for professional advice is extremely positive. This should lead to more fund trustees working with advisers to set appropriate asset allocations for their diversified portfolios, checking on the adequacy of their retirement savings and setting suitable retirement income strategies for retired members.

 

Source

Written by Robin Bowerman, Head of Market Strategy and Communications at Vanguard.

Reproduced with permission of Vanguard Investments Australia Ltd

Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours and your clients’ circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our PDS or Prospectus online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.

© 2016 Vanguard Investments Australia Ltd. All rights reserved. 

Important

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for their action or any service they provide.

 


A popular retirement career – but can you make money from it?

Ever wanted to be a writer? Retired and thinking of new ways to earn money? Published author, Karen Turner, shares her experiences, navigating the unpredictable but satisfying world of professional writing.

They say everyone has a story to tell – but can you make a living from writing? Truth is, it’s very difficult to live solely on royalties from book sales. Some people do, but for mere mortals whose names are not J.K. Rowling, here are some cold, hard figures:

My books, Torn and Inviolate, retail for $24.95. I receive roughly $8.00 per sale, after the publisher, retailer, distributer et-al take their respective shares.

From my $8.00, I pay income tax and superannuation.

There are online sales too. eBooks retail for less, meaning my royalty is lower.

Question: What’s the quickest way to upset a writer?

Answer: Tell her you loved her book so much you lent it to your friend. Arrrgh! If you love the book so much buy it for your friend!

As a fiction writer, I make a good living writing non-fiction. Here are a few ways to do this:

  • Become a technical writer: large organisations regularly pay good writers to draft technical or business documents.

  • Write a business book: perfect if you have an area of expertise.

  • Blogging: writers post articles about any topic you can shake a pencil at: travel, food, sport, etc. Some writers even blog about writing – ahem. Bloggers earn money by selling advertising space or reviewing products and services.

Retired people or those not reliant on regular income often write their memoirs or family chronicle. Others undertake to record their town or suburb’s local history. These can be rewarding, but generally not profitable.

Just remember: if you’re earning money the tax office needs to know. I run this as a business so I have to manage its affairs, e.g. invoicing clients, lodging tax returns, completing BAS, etc. Even authors need to seek good financial advice. A book can take years from the initial draft to publication so planning ahead is imperative.

I am often asked about how to get published.

Traditional – pitching to publishers/agents can be incredibly demoralising. Rejection will become your middle name – accept it! Even J.K. Rowling was regularly rejected; persistence is key. If you are offered a contract, don’t rush into signing without fully understanding the implications. Bodies like the Australian Society of Authors provide contractual advice.

Independent – Self-publishing can be expensive – eBooks, less so – but Indie publishing allows you complete control. Do your readers a favour though: have your manuscript professionally edited. Even great writers make errors!

 

Ready to go? Even if you’re a good writer, you can’t go wrong by doing a course. Stick to better-known institutions like your local TAFE, or check out the Australian Writers’ Centre website, www.writerscentre.com.au.

The best advice I can offer is: start. Once you’re into it, stopping will be the hard part!

Writing may not the most lucrative career, but it’s one of the most satisfying – I love my job!

 

This article has been written by Australian author Karen Turner. Karen’s books, Torn and Inviolate are available from online bookshops and your favourite downloadable eBook site. She is currently writing the third (and final) book in the series.

See Karen’s website for further details of where to buy her books www.karenturner.com.au and receive a free chapter sample of Torn.

 

 


Take five with Lucy Liu, Paraplanner at Advisersure

Have you met Lucy? You may have spoken to Lucy on the phone or seen her in the office. She is our extremely experienced and very detailed Paraplanner; one of the brains of the team. We sat down with Lucy this month to find out a little bit more about her and her background. Thank you Lucy for being so candid and sharing your background with us.

  1. Which hospital were you born in?

I was born in a local hospital in my hometown, which is a small ancient town along the Yangtze River.

  1. What is your reason for waking up in the mornings?

Hmmm, hahaha, my breakfast and coffee? I am a foodie, so food is a great incentive for me.

  1. If you could travel to any country in the world, where would it be and why?

I would like to visit Egypt again. I travelled to Egypt in Nov 2012 and spent two months there. It was one of the most unforgettable experiences in my life.

  1. If we were to come to your house tonight for dinner, who would cook and what would they cook?

I would make Si Chuan Hot Pot for my guests. It’s quite spicy but very tasty.

  1. Favourite movie?

I don’t really have a favourite movie. But Forrest Gump will definitely be on my top movies list.

  1. If someone gave you $500 what would you do with it?

I would use the money to buy flight tickets to my hometown.

  1. What do you do at Advisersure?

My role in Advisersure is Paraplanner, and my main responsibilities include assisting Gordon in preparing Statement of Advice, overseeing recommendations implementation, liaison with third parties such as stock brokers and investment products research.

  1. Imagine you were stranded on an island for six weeks, who would you take and why?

I would take my parents and my sister with me because I love spending time with my family.

  1. What do you love most about working at Advisersure?

My colleagues and the clients.

  1. What are your qualifications?

I have a Bachelor Degree in Economics from Renmin University of China and a Master Degree in Finance from University of Melbourne. I have also recently completed Diploma of Financial Planning with International Institute of Technology.


Insurance in super – is your cover adequate?

You have insurance cover in your superannuation right? You probably think you’re adequately covered, yet if something were to happen to you, you might be in for an unpleasant surprise – and by then it might be too late.

I met a new client recently who was in quite a state of distress. Maryanne is 38 and a stay-at-home mum with three children all under the age of 10. She explained that her husband, Simon, had been killed in a car accident.

Simon had done the right thing by his wife and kids – he’d taken out life insurance through his superannuation.

Unfortunately however, Simon had not sought professional advice. He’d guesstimated how much cover he might need with the result that the insurance payout wasn’t nearly adequate. Of course Maryanne received Simon’s superannuation as well, but as he was only 40, the accumulated value was not substantial.

One of our clients referred Maryanne to me for advice about managing her affairs. She was actively looking for work but in the meantime was forced to live off the proceeds of Simon’s insurance and super – which included repaying her mortgage.

Sadly, Maryanne’s story is familiar. According to Rice Warner, more than 70% of Australians hold life insurance policies through their superannuation funds. Despite this, under-insurance is a huge problem in Australia.

Perhaps it’s because many people don’t seek professional advice before taking out cover, thinking whatever their fund offers will be appropriate.

Of course some insurance is better than no insurance, and insurance in super is easy and convenient to set up and pay for. But it comes with a couple of points to be aware of and this is where professional advice is invaluable.

Firstly, a portion of your super contributions are used to pay the insurance premium. Unless you’ve done the sums, you may not realise that you’re not contributing as much to your retirement savings as you believe.

Your insurances must be regularly reviewed just like other financial affairs. Your family grows: review your Will, your insurances, etc. Upsize your house and mortgage: review, review, review! And – I can’t stress this enough –seek advice from a professional who understands your personal circumstances.

I often have this conversation with my clients; after we do the maths, many are surprised by the cover they actually need. Even a partner who doesn’t earn an income should be covered, particularly where dependent children are involved.

Naturally, the more cover you have, the higher the premium, but I’m pretty sure Maryanne would have preferred a higher payout in lieu of monthly restaurant dinners.

In contrast to Maryanne, I received a call from Mark, a client whose wife, Suzy, 43, had recently died from a brain aneurism. Some years back I’d arranged a full suite of insurance cover for both Suzy and Mark, in and outside their super.

Mark claimed on Suzy’s life insurance. He paid off the mortgage, credit card and car loan, and can afford a part-time nanny to help with their two children. Losing Suzy devastated her family but the loss of her income hasn’t impacted their finances.

Even to me, the contrast between Mark’s situation and Maryanne’s is profound. But the good news is Maryanne has found a job and I helped her to create a realistic budget and restructure her mortgage. It will take time, but things are looking up.


Continue to protect the skin you’re in

Data from Cancer Council’s recent National Sun Protection Survey reveals just 44 percent of Australian adults wear a hat when exposed to UV on summer weekends, down from 48 percent in 2003.

As we age our skin becomes more delicate and while some older people may think ‘the damage has already been done’ and are lax with their sunscreen, is still important to take precautions.

Studies have shown the skin’s ability to attract special protective immune cells to damaged areas, such as when the skin has been sunburnt, has been reduced. As we get older skin won’t be able to heal as well as it used to, making it increasingly vulnerable to infections and cancer.

And although skin cancer affects people of all ages, the majority of people affected are older adults between the ages of 65 and 85. It is often not until later in life, with years of accumulative sun exposure, that skin cancer presents.

Australasian College of Dermatologists’ President Associate Professor Chris Baker says dermatologists regularly treated skin cancers that could have been easily prevented through proper sun protection.

“Dermatologists see a lot of skin cancers on the face, ears, head and neck,” he says. “These skin cancers are particularly concerning because they can arise quickly and are more difficult to treat. Surgery is the most common treatment, with visible scarring often unavoidable.”

Other treatments include topical therapy for some early skin cancers through to radiotherapy and chemotherapy for more advanced cancers. “Sadly, we don’t always get them in time,” he says.

Prof Baker also urges Australians to keep a close eye on their skin, know what normal spots they have and to keep a watch for any changes.

“It’s important to remember that skin cancer can be prevented and, if detected early, can often be successfully treated,” he highlights.

“If you notice any changes in size, shape or colour of an existing spot, or the development of a new spot, you should get it checked as soon as possible.”

The Slip! Slop! Slap! Campaign has played a key role in changing community attitudes and behaviour towards sun safety (Source: Shutterstock)

Older adults should continue to look after their delicate skin and limit sun exposure to prevent further damage.

One of the most successful sun protection messages from Cancer Council – the Slip! Slop! Slap! Campaign – is still going strong.

It first launched nearly 40 years ago and has played a key role in changing community attitudes and behaviour towards sun safety over the last few decades.

Sid the Seagull is still on our screens reminding us how to stay sun-safe, but the message has been expanded to Slip! Slop! Slap! Seek! Slide!:

  1. Slip on sun protective clothing that covers as much of your body as possible.

  2. Slop on SPF 30 or higher broad-spectrum, water-resistant sunscreen, at least 20 minutes before sun exposure. Reapply every two hours when outdoors or more often if perspiring or swimming.

  3. Slap on a broad-brimmed hat that shades your face, neck and ears.

  4. Seek shade.

  5. Slide on sunglasses.

Find out more visit www.sunsmart.com.au

Source:

This article was originally published on AgedCareGuide.com.au. Reproduced with permission of DPS Publishing.
 
Important:

This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for their action or any service they provide.


Your New Year reading: beyond John Grisham

Behavioural economist and psychologist Daniel Kahneman has begun 2017 by retaining his place near the top of The New York Times best-seller list, wedged among the latest John Grisham legal thriller, The Whistler, and the psychological thriller The girl on the train by Paula Hawkins.

Your New Year reading: beyond John Grisham

Kahneman’s book Thinking, fast and slow is a consistent long-term performer – high on the list of best-selling non-fiction paperbacks for 116 weeks, currently ranking fifth.

Further, The undoing project by Michael Lewis – number five of the combined print and e-book bestsellers – tells the story behind the pioneering studies of Kahneman and fellow psychologist Amos Tversky into the psychology of economic or financial decision-making. Lewis’ book is a newcomer to the bestseller list, having featured for three weeks.

The fact that the subject of behavioural economics can become a near chart-topping best seller underlines the increasingly widespread recognition that our behavioural traits can play a crucial role in our investment success – or failure. Expect to read much more about behavioural economics in 2017.

A new year provides, of course, a prompt to read and think about how to improve our personal finances including our investment portfolios.

The best publications in this genre tend to provide pointers about how to accumulate wealth slowly and progressively through an understanding of the fundamental principles of sound saving and investment practices. These are the opposite of the relentless and potentially wealth-destroying, get-rich-quick offerings.

Here are a few books to consider adding to your 2017 reading list:

  • Thinking, fast and slow by Daniel Kahneman: A winner of the Nobel Prize for economics, Kahneman points to the many flaws in financial decision-making – including overconfidence and excessive loss aversion (inhibiting appropriate risk-taking and encouraging a short-term focus) – that can have costly consequences for an investor. His views underline the benefits of having an appropriately-diversified portfolio while avoiding the potential traps of market-timing, stock-picking and making emotionally-charged investment decisions. “Much of the discussion in this book is about the biases of intuition,” he writes.

  • The only investment guide you’ll ever need by Andrew Tobias: While his fellow personal finance authors are unlikely to agree with his book’s title, Tobias’s veteran work – it has been in publication for 40 years – has plenty to offer investors. His over-arching message is to take a common-sense approach to looking after your investments and other personal finances. For instance, only buy investments you can understand, stay away from investments that seem too good to be true, and don’t carry credit card debt. It’s good basic stuff worth repeating again and again.

  • The behaviour gap – Simple ways to stop doing dumb things with money by Carl Richards: This is an entertaining, easy-to-read guide by a financial planner turned personal finance columnist to keeping our negative behavioural traits under control when saving, investing and spending. His tips include: adopt strategies to avoid buying shares at high prices and selling low, don’t spend money on things that don’t really matter, identify your real financial goals and simplify your financial life.

  • The millionaire next door by Thomas Stanley and William Danko: Long-term research by late academics Stanley and Danko suggests that “prodigious accumulators of wealth” are typically content to progressively build their wealth while being inconspicuous in their spending. In other words, these wealth accumulators are not in a hurry to make their money by taking excessive risks or in a hurry to spend their money.

  • A random walk down Wall Street: The time-tested strategy for successful investing by Burton Malkiel: The basic theme behind this classic is Malkiel’s argument that investors – individuals and professionals – cannot not expect to consistently outperform the market. Given that belief, Malkiel, a Princeton University economics professor, is a firm believer in investing in market-tracking index funds (including ETFs), dollar-cost averaging (regularly investing set amounts), appropriate portfolio diversification, periodic portfolio rebalancing, low-cost investing and how investors should understand the risks of irrational behaviour.

  • The little book of commonsense investing by Jack Bogle: As Bogle writes, “successful investing is all about common-sense”. Don’t try to pick the best time to buy and sell stocks – consistent success with market-timing is rarely achieved; diversify to minimise risks (and spread opportunities); recognise the value of compounding, long-term returns; and keep investment costs as low as possible. “The more the managers and brokers take, the less investors make,” Vanguard’s founder emphasises.

These books reinforce critical messages for investors. These include: get your investment basics right (including your goals and portfolio asset allocation), periodically rebalance your portfolio, don’t try to time the market, minimise investment costs, and beware of the risks of trying to pick winning stocks and fund managers.

And a foremost consideration of most of these authors is that investors should be aware of the dangers of trusting their gut feelings by allowing their emotions to dictate investment decisions.

Finally, save regularly – enjoying the rewards of long-time compounding – and keep your spending under control. Conspicuous consumption should not be taken as a sign of wealth – quite often it means the opposite.

Written by Robin Bowerman, Head of Market Strategy and Communications at Vanguard.

Reproduced with permission of Vanguard Investments Australia Ltd

Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours and your clients’ circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our PDS or Prospectus online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.

© 2017 Vanguard Investments Australia Ltd. All rights reserved. 

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for their action or any service they provide.


Choosing an investment option

As part of your retirement savings plan, it is important you understand how your superannuation money is invested by your super fund.

No two people’s financial situation and investment requirements are the same. To cater for these different needs, most superannuation funds offer you a choice about how your superannuation money is invested. Funds offer a range of different investment portfolios that you can choose from. You can also choose to spread your super money over multiple investment portfolios.

One advantage of investment earnings in super is that they are taxed differently to your other income.
The maximum tax rate on superannuation investment earnings is currently 15 per cent, compared to the marginal tax rate that is applied to your investment earnings and income outside superannuation, which could be up to 45 per cent.

The different investment options

Most superannuation funds will offer a range of investment options for you to choose from. These will vary in their level of risk and the kinds of assets held within them.

You may see terms such as Growth, Balanced, Conservative and Cash.

Other funds may refer to investment options like Australian Equities, International Equities, Sustainable Shares, Property, and Fixed Interest.

Further information about the options available, the assets held within them and the likely risks and returns should be available on your fund’s website.

Why should I care how my super is invested?

You’re probably thinking it’s not your job to worry about how your super is invested, but it pays to take an interest. Investment choice can have a big impact on the final lump sum that you receive when you retire, due to the impact of compound interest. Over a working lifetime, the same amount of money invested in different investment options can produce different results at the end. Therefore it’s important the take the time to understand the different options available to you and the potential impact it could have on your investment earning.

How do I choose?

Your age is very important when it comes to making an investment choice.

When you join a fund you are asked if you would like to choose a specific investment option on the form. If you don’t choose an investment option you are placed in what is commonly called the default option.

If you didn’t choose a specific investment option when you joined the fund this doesn’t mean you can’t select one later.

When it comes to choosing which investment option is most suitable for your superannuation savings, there are a couple of basic questions that you need to ask yourself before making a decision:

  • How much risk do I feel comfortable taking?

  • What type of return am I seeking for my money?

  • How long will I be investing for?

The answers to these questions will help guide you in choosing the right investment option or mix of options for your superannuation savings.

Your age is very important when it comes to making an investment choice. How long you expect your money to remain invested (or your investment timeframe), will have a significant impact on the investment mix that is most appropriate for you.

If you are young and have a long time until you will need to access your money, the short term ups and downs that can occur when investing in higher risk options such as shares may not be so important. History has shown that over the long term, short term fluctuations tend to be outweighed by the higher returns from these ‘riskier’ types of assets.

If you will need to access your money soon, it may be more appropriate to protect it by investing in assets that are considered lower risk, even though this may result in lower returns over the medium to long term. On the other hand people entering retirement may still have 20-30 years to plan for. Depending on your appetite for risk, it may still be appropriate to invest some or even most of your savings in ‘growth’ products for the longer term.

Source:

Reproduced with the permission of the The Association of Superannuation Funds of Australia Limited. This article was originally published at www.superguru.com.au

 

Important:

This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for their action or any service they provide.

 


Financial abuse: Protecting your money from others

Financial abuse occurs when another person, perhaps your partner, one of your children, another member of your family or a friend, controls your access to money or other property without your consent. It can happen to anyone, no matter how old you are or how much money you have.

What is financial abuse: the warning signs

When you are in a financially abusive relationship it can sometimes be difficult to recognise the warning signs.  Sometimes it takes a friend to spot the signs and help you find the support you need. 

Here are some of the warning signs you may be in a financially abusive relationship:

  • Another person controls your access to bank accounts.

  • The other person refuses to contribute financially to you or the family, or they are not providing enough money to cover living expenses.

  • You are being prevented from working or studying.

  • Someone is taking out loans or running up debts in your name.

  • You have to account for how you spend your money.

  • Someone is selling your property (or threatening to sell it) without your permission.

  • Money is being hidden from you.

  • You are being made to feel like you are incompetent with money.

Financial abuse is often accompanied by anger, verbal abuse, or the threat of violence.

Where to get help and support for financial abuse

If you think you may be experiencing financial abuse, you can contact the following organisations for assistance:

Organisation

What they do

Contact details

1800 RESPECT

Free, confidential family violence and sexual assault counselling service

1800 737 732, 24 hours a day, 7 days a week

Family Relationship Advice Line

Information and advice on family relationship issues and parenting arrangements after separation

1800 050 321, 8am-8pm Mon to Fri, 10am-4pm Sat

Lifeline

Provides crisis support services

131 114, 24 hours a day, 7 days a week

Relationships Australia

Counselling services, mediation, and family dispute resolution services 

1300 364 277 (call from anywhere in Australia for the cost of a local call)

WIRE Women

Victorian free information support and referral service for women, conducts research into women and financial abuse

1300 134 130

 

Elder financial abuse

Older people are particularly vulnerable to financial abuse because they are often dependent on family members and other people for their day-to-day care or social contact. The people around you might seek to control your money or other assets.

Elder financial abuse commonly involves family members, including spouses, children, grandchildren, nieces or nephews, but can include others such as carers and neighbours. 

Signs of elder financial abuse

As well as the warning signs listed above, here are some additional red flags that may be a sign that you are experiencing elder financial abuse:

  • Another person is controlling your bank accounts or credit cards or using them without your consent.

  • You are being forced to change your will.

  • A friend or family member is pressuring you to appoint them as your enduring power of attorney.

  • Your signature has been forged on cheques, bank accounts or legal documents.

  • Your bills haven’t been paid, even though you have entrusted someone to do this for you.

  • You are being pressured to invest money in schemes that sound too good to be true.

  • Large or unexplained withdrawals or transfers have been made from your bank account.

  • You are being isolated from your family or friends, or threatened with being isolated if you don’t give the perpetrator what they want.

  • Your property or possessions are being used without your permission.

  • You are made to feel guilty if you don’t give money to the perpetrator or their family.

Financial abuse often occurs with other forms of abuse, such as physical abuse, sexual abuse, psychological abuse or neglect. Evidence of these forms of abuse is usually more visible than financial abuse, and can sometimes be a sign that financial abuse is happening.

 

Case study: Maurice is financially abused by his daughter


Maurice did not want to move into a care facility when he was diagnosed with dementia, so his daughter moved him into her family’s spare bedroom.  She then convinced Maurice to appoint her as his enduring power of attorney. 

When she had control of Maurice’s finances, she sold his house without his knowledge and used the funds to pay off her own mortgage.  She and her husband also bought a new car and used Maurice’s money to pay their children’s school fees. 

The financial abuse was only uncovered when Maurice’s niece became concerned that she had not heard from him for some time. She contacted the Elder Abuse Hotline in her state for advice to help Maurice.

 

Support for elder abuse victims

You can obtain free legal advice from a community legal centre or Legal Aid office in your state or territory.

There are also organisations in each state and territory to support you if think you, or someone you know, might be experiencing elder financial abuse:

 

Location

Organisation

Contact details

National

Alzheimer’s Australia

1800 100 500

ACT

Older Persons Abuse Prevention Referral and Information Line

ACT Disability, Aged and Carer Advocacy Service

02 6205 3535

(02) 6242 5060 or  1800 700 600

NSW

NSW Elder Abuse Helpline

1800 628 221

NT

NT Elder Abuse Information Line

1300 037 072

QLD

Elder Abuse Prevention Unit

Queensland Aged and Disability Advocacy

1300 651 192

1800 818 338

SA

SA Elder Abuse Prevention phone line

Alliance for the Prevention of Elder Abuse

1800 372 310

08 8232 5377 (Adelaide) or 1800 700 600 (rural)

TAS

Tasmanian Elder Abuse Helpline

(03) 6237 0047 or 1800 441 169

VIC

Seniors Rights Victoria

Elder Rights Advocacy

1300 368 821

1800 700 600

WA

Advocare Inc.

1300 724 679 (Perth) or 1800 655 566 (rural)

 

Financial abuse is never okay.  In some states and territories it is regarded as a form of family violence.  Recognise the warning signs and don’t be afraid to get help.

 

Source

Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at www.moneysmart.gov.au

Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  

Important:

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for their action or any service they provide.


Super - even more important for women

Women tend to live longer than men, making it even more essential that they accumulate enough superannuation to last through retirement.

But women face unique challenges when it comes to retirement savings. Lower pay, time out of the workforce to raise children, and running a single-parent household, can make it challenging to build a reasonable amount of super. However, some simple strategies make it possible for women to overcome these hurdles.

Super is good for you

Superannuation is a very tax-effective way to save for retirement. Your super fund pays a low rate of tax on contributions and investment earnings while you grow your nest egg. From age 60, you can withdraw your super tax-free.

Without super, many women are forced to rely on the age pension in their senior years. But the pension is designed as a safety net and won’t provide for a comfortable old age. So it’s essential to focus on growing your super.

Super contributions calculator

Our career break super calculator can help you work out how working part-time or taking a break from paid work (to have a baby or due to carer responsibilities)  affects your super.

Career break super calculator

Video: Women and super

Pauline Vamos from the Association of Superannuation Funds of Australia (ASFA) talks about the financial challenges that women face and gives her top tips on boosting your super.

 

Get to know your fund  

Your employer should be making super contributions on your behalf. These contributions will be worth around 9.5% of your annual wage or salary.

If you haven’t given your employer instructions about the super fund of your choice, it’s likely the contributions are paid into a fund your employer has chosen. This may not be the sort of fund you would prefer.

By law, you can normally select your own fund and have your employer’s contributions paid into that. If you have several super funds, it’s a good idea to roll over or consolidate your super into your preferred fund. This will save you the administration fees charged by any extra funds.

To choose a super fund, look at the fees it charges and the sort of investments the fund chooses. It’s important that you are comfortable with your super investment options. Don’t base your choice on past investment returns, as past performance is not a reliable indicator of future performance.

When choosing a fund also consider the insurance it provides and the level of cover you require. For more information see insurance through super.

Options to grow your nest egg

There are a number of ways to build your super. You cannot normally access your super before you retire, so only contribute money you can afford to set aside.

  • Ask your employer to pay part of your pre-tax wage or salary into your super fund. Before-tax salary sacrificing can be a tax-friendly way to grow your super.

  • Make super contributions out of your own pocket. These after-tax super contributions, known as ‘non-concessional’ contributions, are not subject to the 15% contributions tax that can apply to other types of contribution. Depending on your annual income, you may also be eligible for a government co-contribution to your fund. It’s an easy way to give your super a valuable boost. Find out more from the Australian Tax Office: Super co-contributions.

  • Ask your partner or spouse to make contributions on your behalf. He or she may be able to claim a tax offset on the contributions made to your fund.

Even small contributions can make a big difference over time. Try it out on our calculator.

Super contributions calculator

Case study: Ajinder boosts her super savings

Ajinder was concerned that she didn’t have much superannuation, and wasn’t keen on the idea of relying solely on the age pension. She decided to take action to get her super under control.

‘It struck me that I have 15 or so years until I retire. My super isn’t great at present, so I’ve started adding a bit extra to my super each month by making payments out of my own pocket. It means I get the government co-contribution each year.

‘I’m also going to ask my boss if I can salary sacrifice a small amount direct from my pay – and that means I pay less income tax. It’s not a lot but my super balance should grow over time thanks to investment returns. Every extra bit I add now will make a difference to my retirement.’

Track down lost super

If you have ever held a part-time or casual job, or moved house, you could have superannuation invested in a fund that you’ve lost track of.

Use myGov to keep track of all your super and combine multiple super accounts into one, which will make it even easier to manage your super. More more information, visit the ATO’s page on checking your super.

Superannuation is very important to the quality of your retirement. By adding even small amounts to your super now, you will make a big difference later in life.

 

Sources:

Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://www.moneysmart.gov.au

Important:

This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for their action or any service they provide.


After hospital (transition care) explained

The Transition Care Program provides short term support and assistance for older people after completing any necessary acute and sub-acute care in a hospital.

It aims to help in improving an individual’s independence and confidence.

The program provides goal oriented, time limited and therapy focused care for older people at the end of a hospital stay.

It can be delivered in the individual’s own home or in a ‘live in’ setting, which must be a home like, non-hospital environment with space available for therapy.

To be eligible for transition care, an older person must be an in patient of a hospital and have been assessed by the Aged Care Assessment Team (ACAT) or Aged Care Assessment Service (ACAS) if you live in Victoria.

Transition care can be provided for a period of up to 12 weeks, with a possibility to extend to 18 weeks if assessed as requiring an extra period of therapeutic care. Seven weeks is the expected average.

Services

Transition care provides a package of services which include a range of low intensity therapy services and nursing support and/or personal care services.

Low intensity therapy services may include physiotherapy, occupational therapy, dietetics, speech therapy, podiatry, counselling and social work.

Personal care services may include:

  • Assistance with showering and dressing
  • Eating and eating aids
  • Managing incontinence
  • Transport to appointments
  • Mobility and communication

Fees

An approved provider may charge a contribution fee to the cost of your care.

The maximum fee is 85% of the basic daily rate of a single pension for care delivered in a ‘live in’ setting, or 17.5% of the basic daily rate of single pension for care provided at home.

Access to transition care is decided on a needs basis, not on an individual’s ability to pay fees.

Talk to your hospital social worker or discharge planner to find out more details about the Transition Care Program.

Source:

This article was originally published on AgedCareGuide.com.au. Reproduced with permission of DPS Publishing.

Important:

This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for their action or any service they provide.