my-will-is-my-legacy

Leave a lasting legacy

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my-will-is-my-legacy

Your will. Your Legacy

We all like to think we’ll leave a lasting legacy. But without a valid will, there’s a good chance your most memorable legacy could be a costly court battle over your estate. Dying without a professionally drafted, up-to-date Will opens the door to the confusing and often expensive world of intestacy.

It’s a world in which lawyers could be the key beneficiaries while family, friends and even business associates are left emotionally and financially drained.

A valid Will specifies how you would like your personal assets (or ‘estate’) distributed following your death. It works in concert with the rest of your estate plans, which can be used to make provisions for children – as well as yourself while you are alive, through various powers of attorney and guardianship.

Despite the importance of a Will, it’s estimated that around 45 per cent of Australians don’t have one. Among those that do, many could find their Will doesn’t meet strict legal requirements, effectively leaving loved ones no better placed than if there was no Will at all.

Having a watertight Will plays a vital role in wealth management. Yes, there is a cost involved in having your Will written by a skilled legal representative. But this could be a tiny fraction of the costs racked up by loved ones if they have to fend off unexpected claims on your estate.

Knowing that your final wishes are set in cement can bring priceless peace of mind to those who matter in your life.

money gift

Helping the kids buy a home

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Helping the kids buy a home and protecting parents’ interests

money gift

Thanks Mum & Dad XOX

A recent survey of Australians aged 50 and over has revealed that parents give $22 billion a year to their adult children to help them get established, buy property and tide them over tough times.

Gift, loan or other?

One way to help adult children buy a home is providing them with money to help with a deposit. The gift may be given directly or contributed to a First Home Saver Account, a tax-effective way to save for a home. Any asset or amount over or above $10,000 gifted by a single person or couple in a single financial year or above $30,000 over a five-year rolling period impacts on parents’ pension entitlements for five years.

A better way to provide support and to protect parents’interests is through a written loan agreement. This would ensure that the parents’ rights are protected in the event a child’s relationship with his or her spouse or partner broke down.

Another option is for parents to provide guarantor support for their children by providing either the parents’ home or term deposits as security. Finally, parents could consider buying the property jointly with their children, but this would mean the parents would have their names on the title deeds.

For both guarantor support and joint ownership of property, parents need to be aware that they are fully liable for their child’s loan obligations. The possible effect on parents’ pension entitlements should also be a consideration in both arrangements.

 

As further protection, parents who gift or lend money can insist that their child and spouse or partner enter into a binding financial agreement to ensure that the gift or loan is repaid if the relationship fails. Parents should always obtain specialist legal and taxation advice when setting up a loan for their children.

 

Here are some options to consider:

 

• Should the loan be on interest free or commercial terms?

• If interest is charged, will it be fixed or variable or pegged to a bank interest rate?

• Should the loan be open ended or does it need to be repaid within a certain time frame?

• Should parents request security over the debt, even through the agreement is classed as a personal debt?

Adventure Before Dementia

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Ok, you are now retired – Yay!  Now what?  Have you planned what you are going to do?  You now have all this time on your hands to do what you have always wanted to do.  Are you going to sit at home and waste this opportunity?

 So, where will you go?  What will be your big adventure?  What have you always dreamed of doing?  What is on your bucket list?  Is there a hobby you’ve always wanted to get back to doing?

 Now that you are thinking of all the possibilities and have an idea of what you want to do, the next question is……How are you going to fund all those dreams?  You need to ensure that your working life is growing your investments. 

 This is where Fil and Marcia at AFD Financial Solutions can help you to take advantage of all the opportunities available and that your investment is working harder, to enable you to have that adventure before dementia.

Adelaide Financial Advice - Seven Deadly Sins

Seven Deadly Financial Sins for Women (and some men!)

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Seven Deadly SinsSeven Deadly Financial Sins for Women (and some men!)

Unless we’re rubbing shoulders with A-listers or running a multi-million dollar fashion business, we need to invest time and effort if we want a successful financial future.

It seems that today’s woman can be easily distracted by the comforts that short term material wealth can provide and these ineffective money management habits are best described as Seven Deadly Financial Sins.

 

Sin: Sloth

People who stick their head in the sand and are happy to take the lazy approach when it comes to their financial situation may suffer from the financial deadly sin – Sloth.

Rescue yourself by…
Taking charge of your financial affairs, starting with your superannuation and find lost super by logging onto the ATO’s Super Seeker website at http://www.ato.gov.au/super.

Sin: Anger

Finding excuses or others to blame for your financial situation doesn’t make it go away.

Rescue yourself by …
Take a reality check by doing a budget based on your income and expenses. You may be surprised. Visit the budget planner tool on the ATO website. If it helps curb your needless spending ways, then you shouldn’t be angry any longer.

Sin: Greed

People of today live in a ‘now’ society and the risk of this behaviour is that it may trap you into spending more than you earn.

Rescue yourself by…
Building your wealth through sound financial strategies that suit your financial and lifestyle needs. This can give you peace of mind to have all that you want – with a little discipline.

 

Sin: Damsel in distress

Ladies (or fellas) in-waiting on the lookout for a knight in shining armour to rescue them from the burdens of their financial situation is otherwise known as Cinderella syndrome.

Rescue yourself by…
Saving regularly – just $20 per week can add up to over $7000 in five years in an online high interest bearing account.

Sin: Gluttony

Ladies with an appetite for debt and credit cards to feed their addiction may suffer from the financial deadly sin of Gluttony. Online shopping and VIP nights at your favourite department stores feed on gluttonous appetites and before you know it, you’re in way over your head.

Rescue yourself by …
Spring cleaning your debt – start with cutting up store cards and start to seriously consider protecting your wealth.
Income protection insurance will provide you an income when you’re sick or injured and unable to return to work.

Sin: Lust

It can be hard to resist a good deal and retailers enhance their businesses to appear irresistible with ambient music and designer scents – all to put shoppers in the mood for spending money.

Rescue yourself by…
Take control of your financial future and put a portion of your regular income into savings and investments so it’s not all lost through the temptation of impulse shopping.

Sin: Envy

Don’t hold a vendetta, do something about your financial situation if you’re not happy with it.

Rescue yourself by …
Consider an investment plan that works for your short, medium and long term goals.

Be your own fairy Godmother

It’s never too late to rescue yourself and take control of your financial destiny. Your financial planner (hint! hint! ) can provide straightforward and transparent financial advice by helping you with your current situation and implementing a plan to meet your needs in every stage of your life. 

Source | MLC