A “nest egg “, traditionally called, refers to a bundle of financial assets saved for the future. These assets can either be sold and/or generate income for you. Let’s investigate pros and cons of your nest egg.
"Everyone cheats a bit, so I can too";... "others won't care if I cheat";..."I claim deductions (legit or not) to make sure I get a refund".. sounds familiar? According to the world’s top anti-tax avoidance cop Chris Jordan, too many individuals and small businesses are making excessive tax deductions and the Tax Office is threatening to come after them. The Taxman will be looking into people’s dirty laundry and target the common areas of scrutiny...
There is no shortage of advice when it comes to insurance but how do you decide on which insurance advisor is right for your business? No two businesses are exactly the same, so ..
Do you have goals in mind like starting your own business or investing in property, but find that day to day living expenses are setting you back?
If you find yourself in this situation then despair not. You are not alone, ...
Did you incorporate possible Risks into your big plans and goals that involve bigger amounts of money? Did you think about the Australian Economy and possible worst-case scenarios when setting up your new year’s resolution? Me neither, until I had a had a chat with John, our Principle and Senior Financial Planner.
So much to do, so little time to do it, and exercise is often the first thing to be let go when times get tight. In the end, we feel unhappy or even frustrated to not stick to the fitness plan. Everyone can understand it; driving to the gym, finding a park, getting changed, negotiating yourself around the gym, showering, changing again, back into the car to get home is not a 5-minute exercise.
Did you know that ATO increases its number of audits? You can be selected at random because of your postcode, your type of business or just because you have a self-managed Super Fund.
I am not talking about the new Nintendo Switch, latest iPhone or a new pair of earrings. I am talking about altruism, care and blankets, basic furniture, food, unbroken shoes and T-Shirts. Things that we take for granted are not accessible for everyone. It’s time to stop closing our eyes and showing gratitude by giving back to the community and teaching our children to appreciate what they have.
We can’t predict the future, but we can have a walk down the share market memory lane up until September 2017 and see what may be in store for eager Investors for 2018.
Christmas is meant to be a time of good cheer, but good cheer can soon turn to despair when faced with post-Christmas debt and bills that can’t be paid.
Some of our team at Johnson Grocke put their heads together to come up with ways of avoiding the post-Christmas debt blues, beginning by addressing the following question;
Is your business seasonal or do external factors influence your customer’s behaviour? After running your business for a while you might be able to see quiet times coming. Good for you – but foresight isn’t everything! Turn foresight into action and lead your business in the right direction.
Change is inevitable and quiet often unforeseeable. Quiet times can hit us when we least expect it. The cancellation of a major project, a big customer leaves or roadworks commences that make your shop inaccessible. The unexpected can catch us all.
Tax Refund Tips for 2017
To increase your tax refund in 2017, you need to either reduce your taxable income or increase your deductable expenses. Now this doesn’t mean that you should go out and earn less and spend more.
What it does mean though is that if you run a business, you should look at the timing of both the payments you receive and the expenses you pay.
7 Tax Tips for Planning your 2017 Tax Return
When it comes to tax returns, most people want the same thing, the biggest refund possible or at least the minimum tax payable possible, executed as quickly as possible, at the least cost possible. At Johnston Grocke, we understand this so here are some tax tips to help you achieve your tax return goals for 2017.
Superannuation Changes 2017
The changes to the superannuation contributions effective 1 July 2017 represent a move by the Federal Government to increase revenue by reducing tax concessions.
To best understand these changes and what they mean to you, it’s firstly, worth having a look at the current superannuation contribution arrangements, so we can gain some perspective.
The Dirty Little Secret the Banks Don't Want You to Know...
that could help you with your tax planning and cash flow management.
Have you ever stumbled upon a product or service your bank has available that could have been of benefit to you, if only they had let you know about it?
Well there are many products and services that banks deliberately don’t publicise or widely offer. You may be one of the lucky customers that get tapped on the shoulder and receive a whispered offer because someone at the bank considers you to be exceptionally “valuable”. But for most of us who are considered by our bank to be ‘less valuable’, we are unlikely to learn about these offerings first hand.
CBD Apartments- Set for a Shock?
New reports from, global and financial institutions are now warning about what we have suspected for quite some time...
Succession Planning - 3 Major Factors
Sadly, we are seeing too many businesses looking to sell but struggling to find an interested buyer at the right price. Unfortunately, the most common mistake in succession planning is the absence of a plan!
The uncertainty surrounding the superannuation rules is now starting to ease as legislation gets through the new parliament. Time flies though, so make sure you consider seeking advice on these 5 areas before tougher rules come into force on 1 July 2017.
Most people have more than one super account. And some people have forgotten about a super account!
Consolidating super accounts is about getting organised, bringing together information and making good decisions about how to invest and protect your super savings. This topic may be boring for some people and you probably already want to stop reading but wait! I can assure you that you will get that feel good feeling once you take control of your money and move those numerous small super account balances into one large account balance.
Visualising where your new sofa will sit and planning paint colours is much more exciting than strategizing ways to save a house deposit. Unfortunately, as most of my first home buyers discover: you usually can’t get to the fun stuff until you’ve done the hard yards and saved your deposit. But how can you get to your goal quicker?
Why is a non-family member often a good person to have on the board of a business?
Life is pretty easy when we only have to look after ourselves. We enjoy a freedom that we take for granted and responsibilities are not too onerous. My, how that changes when we have kids!
No one really likes to talk about the negative “what-if’s” of life especially death and disablement, so it’s easier to just keep thinking that we’re invincible and bury our heads in the sand. That works great until something goes wrong….
The simple answer is yes, but what exactly is it?
Protecting one’s assets is all about planning to make sure any valuable asset is not able to be targeted by a creditor, bank or other entity making a claim on you or your business. History is full of sad stories where people have ‘lost the lot’ when unexpected events happen, sometimes out of their control, and their assets are seized by others.
Moving can be a new and exciting experience. It can also be quite daunting if you find yourself in a new city, state or even country. This was my experience when I moved to Australia in 2000. I suddenly found myself on the opposite side of the world in a thrilling Sydney around the time of the 2000 Olympics. I am originally from the suburbs in Kansas, USA. I didn’t exactly grow up in a small town but it was worlds apart from the atmosphere in Sydney at that time. I was experiencing a strange mix of emotions. I was filled with the joviality of being young in a big thriving city. I was overwhelmed at the challenges I faced to find a job and accommodation. I was also a bit sad about being 15,308 Kilometres away from my family.
BREXIT- While it has had a significant impact to the share market and property prices in London, Australia remains largely unaffected. Remembering that it could be another 2 years before the UK actually leaves the EU, Australian economists predict expect little impact to Australian property prices. Others are suggesting that Australian ex-pats may return home if it becomes too difficult to work and travel in the EU (which would add to local demand for property).
In July, I had the pleasure of speaking at the Johnston Grocke Market Update where I gave my review of the Australian property market’s performance over the last 12 months. This is a summary of that presentation.
The annual growth of 5.5% over the last decade (as shown below), is a little short of the 7.2% per annum that is required for property values to double every 10 years. It’s important to note however that not all cities have performed this way. This is the combined capital city data.
A few weeks ago, Johnston Grocke held an information session for its clients. The information session was a Market Update, covering the global economy, shares, property and retirement. Watch in the following weeks for blogs from the speakers, summarising their thoughts and information presented on that night. John Grocke was one of the speakers at this event and below are some of his key messages.
Changing consumer trends have favoured premium and healthy food produce in recent years, to the detriment of traditional fast food outlets.
This trend has played out in the pizza restaurant and takeaway industry, as Pizza Hut has struggled to maintain growth as smaller pizza store operators have increasingly offered premium produce.
For the last year and a half, I have been studying a university course part-time while still working full time. This isn't the first time I've undertaken study while working full time however it is the first time I've been studying a course that requires me to attend campus. This, of course, raises some additional logistical issues.
Whether or not Brexit is the correct decision (time will tell), it's important to understand why the decision making process was flawed and understand that if this process was adopted in a private business, it would be a disaster.
The following are some key decision-making pointers, to help you make the right decisions, for YOU.
One thing that can be proven by analysis across many companies is that depsite periods of loss, a good return on shareholders' funds (ie returns after salaries) can be quite sustainable.
Australia's highest performing businesses largely follow similar success guidelines to average over 35% ROSF in any five-year period.
There is a lot of media about the removal of the “I” return for individual taxpayers. The Australian Government identifies individual income tax as the “single largest Australian Government revenue source” (www.bettertax.gov.au) and proposals have been put forward which would remove the need for many individuals to submit tax returns.
Family Super Funds, referred to as Self-Managed Super Funds (SMSF's), have become the popular choice for those people seeking more control, flexibility and access to direct investments that otherwise are not available through most Institutional or Industry super funds.
As you may have read in our latest newsletter, we were delighted to announce our Para-Broker Matthew Bodger and his wife Kelly, recently become parents for the first time. Leading up to the birth of their baby daughter, there was a whole lot of planning required, making sure the baby’s room was prepared, purchasing items such as a cot, car seat, change table etc., not to mention attending the anti-natal classes.
Online home loan comparison sites are all the rage at the moment and it is easy to see why: simply jump online, punch in your details and compare every available home loan on the market. What a great concept... until it costs you $33,730.
Lender Mortgage insurance, often referred to as LMI, is an insurance taken out by the lender to protect them against the borrower defaulting on their loan. It is a once off payment, paid by the borrower, when the loan is first taken out if the loan is above 80% of the value of the house eg. if the house was worth $400,000 then an 80% lend would be a $320,000 loan. Anything above 80% is considered a higher risk for the bank to lend against as there is less hurt money (equity) in the property if the borrower were to default.
Knowing how to manage money is important for everyone irrespective of one’s profession, financial circumstances, lifestyle etc. Young adults need to understand that financial planning for the future can no longer be restricted to those approaching retirement. To get ahead in life one needs to plan one’s finances in addition to other responsibilities. As a young professional just starting out, the future can seem a long way off so it’s understandable not to spend too much time thinking about things like investing, insurance or even retirement. However, life moves pretty quickly and with the ever-increasing life expectancy in Australia and the uncertain future of social security, it is never a bad idea to put a plan into perspective.
The First Home Buyer journey can be tough. For most of us, it’s the first major financial decision we’ve had to make on our own. It’s also usually a time for managing lots of expectations: What you want vs what you can afford, which areas you think you’d like to live in and what your parents think you should look for.
Exchange Traded Funds (ETF) or Listed Investment Companies (LICs): it′s an often-held debate between investors. The technical differences between the two often causes confusion among investors, especially when it comes to determining the suitability within one's broader investment profile.
Deciding to invest your money, in order to have a prosperous future, is a wise decision. However, it can also be a confusing one, especially when considering what area to invest your money into. It is timely, then, to consider the difference between assets like Cash/Shares/Property. Each has a different profile in terms of immediate access, but, even the view on those rules has been tested over the past few weeks.
I recently embarked on a pretty exciting journey with my significant other: building our next home together. We found the perfect bit of land, not too big and not too small. Closer to work and which would give us the scope to build the home we’ve both been dreaming of. If you’re like us and have decided to build too, your next few months will be full of collaboration and big decisions to get you closer to moving into your new home. There are several benefits to buying land and building, instead of purchasing an established property. The main financial benefit is the reduction in stamp duty applicable, as you’ll only be charged duty on the cost of the land – not the entire value of the property when it’s complete. Most people however, are drawn to building as it gives them the freedom to design their dream home. Dream fittings and features, an amazing free standing bath, dream layout, additions which are too expensive or too hard to add to an established home. Depending on your budget, building gives you the scope to encompass all these options and more.
So, you have now completed your budget and the bottom line shows you are breaking even, or worse, spending more than you earn. For those of you who are just ‘breaking even’ you may feel like you are in control of your budget. However, do you have a regular savings plan in place and an ‘emergency fund’ for those unexpected expenses? For those of you who are spending more than you earn, your financial position can decline fast unless you address your spending habits.
How often do unexpected bills land in your letterbox, and you haven’t set aside savings to pay for them? Have you ever made a New Years resolution to set up a Christmas Gift Savings Account to try avoiding the hefty credit card bill you receive in January? By establishing a Budget you will be more prepared to pay for these expected and unexpected expenses.
For most people financial matter are something to think about when time permits, or when a crunch comes and they have no choice. Long term investments such as superannuation often gets even less attention, who wants to think about something that might only be accessible years away, most of us just try to keep up with today’s problems!
3 Things Most Successful Businesses Do Right
It’s tough being a business owner with so many things to consider – where do you start? If you think too much, micro things you get overwhelmed so its best to look at the main areas.