Financial planning is a life-long journey and we are with you every step of the way

CBC Financial Advisers can help you get a clear understanding of your finances and goals to work out how much you need, understand the choices available to you, set up appropriate strategies to suit your individual circumstances, and create a personalised plan to help you achieve your goals.

Our Services

Benefits of Financial Advice

The true value of advice

There’s plenty to consider when trying to secure your financial future. Should I pay off the mortgage or put money into super.... but what about renovations? When can I stop work? How do I afford the children’s education?

Good financial advice answers these questions by mapping out your goals and putting in place the strategy to achieve them. The traditional measures of financial advice success have focused on achieving your tangible goals, such as retiring earlier, relative investment returns, or simply spending less.

While these financial benefits of advice have long been established, can financial advice positively affect the more intangible aspects of our lives? What is the true value of advice?

The intangible value of advice
A survey* of 312 financial advice clients about the intangible benefits of financial advice and the results were compelling. The survey revealed people who receive ongoing financial planning advice experience:

  • 13 per cent greater levels of overall personal happiness
  • 21 per cent overall increase in peace of mind
  • 20 per cent increased feelings of security regarding their day to day finances
  • 19 per cent less likelihood to have arguments with loved ones

While those that don’t receive financial advice were:

  • 22 per cent more likely to have their sleep disrupted due to money concerns
  • 15 per cent more likely to feel stress and anxiety
  • 11 per cent more likely to feel concerned about their finances

What’s more, 83 per cent of clients surveyed endorsed the value of financial advice by saying it’s also important for their loved ones to have good financial advice!

Even if you have your financial house in order, a financial planner provides the comfort and peace of mind of a well thought out plan, a plan that leaves you better prepared for the future. What’s more, advice extends beyond measurable financial gains, to improved physical health, stronger relationships and personal happiness. That’s the true value of advice.

*IOOF - True value of advice - December 2015
Wealth Protection (Insurance)

Insurance - protecting you and your family

Would you let your family travel in a car without ‘buckling up’? I can hear you say ‘definitely not’. Yet every day, many Australians set-off for their next destination in the journey of life without adequate protection. To help your family cope with traumatic events and make their life more secure, insurance is as important as buckling up.

Insurance will help you:

  • restructure your life if you are critically injured or incapacitated through accident or illness
  • get back on your feet if you are unable to work for an extended period
  • protect your family if you are taken from them.

Think you’re already covered?

Think again. Many super funds provide automatic cover for death and total and permanent disablement but in the event you were temporarily unable to work due to an illness or accident, this cover would not protect you. That’s why income protection insurance is so important. It pays you up to 75 per cent of your income and gives you the chance to maintain a reasonable standard of living.

Can you afford not to be insured?

Did you know that one in five families will be affected by the death of a parent, a serious accident or illness that means a parent is unable to work? Under these circumstances, a typical Australian family will lose half or more of their income*.

Financial advice makes a difference

CBC Financial Advisers welcome you to discuss your current protection so that we can help you choose the most appropriate insurance for your situation .

*Earnings Source: Average Weekly Earnings, Australia, May 2017, ABS
Superannuation Planning

Understanding the basics

Superannuation is an investment strategy for your retirement that you can build up during your working life.

  • Guaranteed contributions: If you are working, your employer is generally required to contribute at least 9.5 per cent of your salary to your super fund on your behalf (this is known as the superannuation guarantee or SG). Most employees who are above age 18 and are earning more than $450 per month are eligible for SG contributions. This applies whether you are full-time, part-time or employed on a casual basis.
  • Investment options: Your super fund pools your super money with other members' funds and invests the money in assets, such as property, shares, fixed interest and cash investments. By carefully choosing the best assets, your fund makes sure that the money you contribute is looked after and grows. The aim is to build up as much money as possible for your retirement, to ensure a comfortable lifestyle.
  • Timeframe: Superannuation is generally a long-term investment. This means that your money has a long time to benefit from the growth of your investments.

Your super account balance

Your super account diagram

Things to consider

  • Fees: To pay for the cost of looking after your super, fees are deducted from your account. Also, as super is an investment, the Government also charges tax albeit at a concessional rate.
  • Insurance premiums: Sometimes your super fund offers insurance to cover you for death, total and permanent disablement and income protection. If you elect to have insurance cover within your super fund, then the premiums for that insurance are deducted from your account.
  • Preservation age: The Government has placed restrictions on when you can access your super benefits, to ensure that super is used in retirement and not beforehand. Your preservation age is the Government specified age at which you can gain access to your superannuation benefits, provided you have permanently retired from the workforce. Your preservation age is determined by the year you were born.

Access to your benefits

All contributions paid into a superannuation fund are preserved until you have met a condition of release such as reaching your preservation age and being retired from the workforce. In other limited circumstances you may be able to access your superannuation benefit, for example under financial hardship, if you become totally and permanently disabled or under the transition to retirement rules.

At retirement

Once you retire, your fund may give you the option to take your superannuation benefit as either a lump sum or as an income stream. An example of an income stream product is an account-based pension.

There are many strategies available to boost your Superannuation balances from now up until retirement. Given the long investment time frame of super, it's important to get in early to make the most of it. Ask us how we can help you today!

Retirement Planning

Planning for your retirement

With better health and medical advances, you are likely to live longer and this means you’ll need more money for your retirement. Whatever your plans, it’s vital you have strategies in place to build your retirement savings as much as you can before you retire.

Decide on your lifestyle

Up until now you may have been focused on your immediate needs, with mortgage payments or rent combined with family needs and work pressures being your biggest worries. But you need to start thinking about how you want to live for the next 30 years or more. Do you want to stay where you are? Downsize? Always wanted to move to the beach or bush?

Figure out how much you need

Once you have decided how and where you want to live, you will need to set up plans to achieve this. There are a few things you can look at to ensure you are on the right track:

  • Superannuation – is your super invested appropriately? Do you need to contribute more now so that you have enough for the future?
  • Investments – if you have managed funds, shares or property, are they invested strategically to help accommodate your changing lifestyle?
  • Insurance – do you have the right level of life and income insurance? Are you and your family covered if anything happens?
  • Daily finances – are you spending money on things you don’t use? If the kids have moved out, are there ways you can scale back?

Start catching up now

You might find that you are further behind than you thought for your ideal retirement lifestyle. This happens to a lot of people but it is never too late to make a change. You could be at the peak of your earning potential, so that means you have a chance to save more and make up for lost time.

Get help

Everyone’s financial needs and goals are different so it’s worthwhile seeking professional financial advice before you make important financial decisions. We can provide you with strategies to help make your ideal retirement lifestyle a reality.

Financial advice makes a difference

A CBC financial planner can help you organise your super and help you put in place the right investment strategy to help you reach your goals. So, if you’re ready to start making plans for your retirement, reach out to us today!

Transition to Retirement (TTR)

Access your super before you retire

If you are aged between 56 and 64, you are no longer required to retire permanently before being able to access your super. Once you have reached your preservation age, you are able to access your super by purchasing a transition to retirement pension.

What is a transition to retirement pension?
A transition to retirement pension offers regular income payments, however it is not commutable (ie cannot be cashed out) until you permanently retire or reach age 65.

Option 1 — Reduce your working hours but not your take home pay

  • Reduce the number of hours you work
  • Supplement your reduced salary with income from a transition to retirement pension
  • Maintain the same take home pay.

Option 2 — Boost your super savings and maintain your take home pay

  • Continue to work full-time
  • Salary sacrifice part of your salary into super, however, contribution caps apply
  • Supplement your reduced salary with income from a transition to retirement pension
  • Maintain the same take home pay

Reap the benefits of salary sacrificing
By adopting a salary sacrifice strategy, you sacrifice a portion of your salary into your super. Salary sacrificing offers the following benefits:

  • Super contributions receive concessional tax treatment of just 15 per cent1 rather than the marginal rate of tax applied to your salary, which can be as high as 47 per cent.*
  • Salary sacrifice contributions are deducted from your pre-tax salary, so not only do you pay less tax but you boost your super savings with the tax saved.
  • The super fund pays up to 15 per cent tax on investment earnings versus your marginal rate which may be as high as 47 per cent.**

Although these rules provide you with choice and flexibility with your transition to retirement, it is important to the get the balance right to optimise your retirement outcome. Speak to us today to discuss your options.

*The contributions tax rate is 30 per cent for individuals earning over $300,000 per annum.
**Excluding the 2 per cent Medicare levy.
Investments

Investment fundamentals

Choosing investments for your investment portfolio is not easy. It goes without saying that you want the ‘best’ investments, however, you want to make sure that the investments you choose are appropriate for your circumstances and your goals.

Firstly, you need to establish your short and long-term financial goals. You then need to work out your ‘risk profile’. Risk is related to return – generally, the higher the expected return, the higher the risk and conversely, the lower the expected return, the lower the risk.

Choose what’s right for you

While some people are comfortable with higher risk investments because they offer the opportunity for higher returns, others are more conservative and prefer less risky investments such as fixed interest. When selecting your investments, it’s important to understand that the level of return will differ.

Once you have established your risk profile - from conservative through balanced to growth - you can choose investments to suit your risk profile.

There are a number of different asset classes you can choose for your investment portfolio: 

  • Cash – low risk, low return
  • Fixed interest – low to moderate risk, moderate return
  • Property – moderate to high risk, moderate to high return
  • Shares – high risk, high return

Spread your risks

Diversification is important because the positive returns you receive from one investment can generally offset any negative returns you may receive from other investments.

Financial advice makes a difference

Obviously there are a lot of issues to consider in choosing the right investment mix for your needs and goals, but advice from a professional can help you make the right decisions. Contact us to discuss your investment goals and risk profile.

Aged Care Help

Let's face it... we're getting older!

It’s not something any of us like to admit... but we’re all getting older!  Unfortunately, as we get older, it becomes more and more difficult to live independently – whether it’s because of illness, disability, reduced mobility, isolation or the problems associated with maintaining a large property. So, whether it’s for you, or on behalf of your parents, maybe it’s time to start finding out more about the aged care accommodation options that are available?

Australia’s population is aging

The first cohort of baby boomers turned 65 in 2011. By 2055, it’s estimated that more than 22.6 per cent of the population will be aged over 65*. Nearly one in ten people aged over 70 live in an aged care facility**. In the years ahead, the ageing population means the number of aged care residents is only going to increase and this will affect not only the availability of aged care, but it’s affordability as well.

Making the decision

There’s no doubt that the decision for either you, or a loved one, to move into an aged care facility is a tough and emotional one. It’s also complex - you need to have an understanding of the rules and regulations because it’s important to understand what your options are.

While moving in with family may be viable there are alternative accommodation options that not only allow a level of independence but also provide varying levels of care.

Let us help you make the right decision

Deciding on the right course of action can be difficult. We can help you and your loved ones work through the options that best suit your particular circumstances and needs, including: 

  • what fees and costs are involved
  • the best ways to pay, including whether to sell the family home
  • assessing what government benefits and entitlements are available.

To start planning your next steps, call us to arrange a complementary, obligation-free consultation with one of our financial advisers. For more information, click here to download our FREE consumer guide '5 Aged Care Traps Anyone Who Loves Their Mum & Dad Must Steer Clear Of - #3 Could Cost You Tens Of Thousands'.

*2015 Intergenerational Report, Australia in 2055, Chapter 1, page 12
**Australian Institute of Health and Welfare 2013.
http://www.aihw.gov.au/aged-care/residential-and-home-care-2013-14/characteristics/
Gearing

 

© Copyright CBC Financial Advisers
Cartwright Brown and Company Financial Planning Pty Ltd Trading as CBC Financial Advisers and as Aged Care Help is an Authorised Representative of Lonsdale Financial Group Ltd ABN 76006637225 AFSL 246934
This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial planner and seek tax advice from a registered tax agent. Information is current at the date of issue and may change.