Setting aside time to review your finances is important. It’s also one of the easiest ways to keep your plans on track so that you may achieve your financial goals. Goals which might include an immediate solution for making ends meet or longer term goals that might include sorting out an appropriate succession plan for your family farming business.
Start a ‘Succession Planning’ conversation
Transitioning ownership of the family farming business to the next generation takes time, on average five to six years to reach agreement on the terms of the transition and implement those plans. Starting the conversation can be emotional so it’s important to follow some structure. I’ve been working with farming families for years, providing guidance and coordinating other services necessary for parents to retire and for family members to take the reins.
- Review your super…
Looking at how your super is invested regularly can make a big difference to the final amount you have when you retire.
Does your super’s asset allocation still fit with your risk profile?
This is particularly important if your financial circumstances have changed as it could mean you are taking on too much risk.
On the flip side, you may also be in a situation where you are not taking enough risk, which may mean your retirement nest egg ends up being a lot lower than it could be.
A financial adviser can help you review your super’s investment strategy and suggest appropriate changes, which may help you build towards the retirement lifestyle you want.
As part of this, a financial adviser can also look at how much you are contributing to super and where appropriate, suggest you ‘top up’ your super through a salary sacrifice arrangement or ‘after-tax’ contributions.
Even a small increase in super contributions can have a big impact on the lifestyle you may enjoy in retirement, so it’s important to get some advice on making your super work harder for you.
- Check your life insurance…
There are two reasons you should regularly review your life insurance cover – to consider whether or not you are paying too much, or putting you and your family at risk by paying too little.
Life insurance policies may need to change after each major life event, whether that is buying a first home, starting a business, having children or preparing for retirement.
A financial adviser can check to see if your current level of insurance may be appropriate for your needs, and if not, help you to make any changes to your existing cover or recommend new policies that may cover the gap.
While you might find your existing insurance cover does not need to change, at least you will have the opportunity to explore different options for paying your premiums under the guidance of an expert.
- Health insurance
At this time of the year you could consider taking an even broader view of your financial situation and looking at whether your health insurance is appropriate for you or if it needs updating.
Perhaps you want to speak to your financial adviser about making funds available in your cash flow to increase your premiums so you can get more comprehensive cover as you prepare for a new year?
- Your mortgage
Taking stock of loans and how your home loan compares to other loans could potentially save thousands of dollars in interest.
Home loans with new features and better interest rates are launched all the time, so why not use this to your advantage and talk to me about your options?
While the interest rate is important, we’ll also consider the fees and other facilities that might make the loan more appealing in terms of better managing your cash flow or a structure that can help you to pay your mortgage faster.
To find out more and to arrange a time to review your financial position please contact me on 0438 946 638 or email phillip@financialservicessa.com.au
Phillip Dibben is a financial adviser at Active Financial Management. Active Financial Management and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306 trading as Fortnum Financial Advisers.
This information (including taxation) does not consider your personal circumstances and is of a general nature only. You should not act on the information provided without first obtaining advice specific to your circumstances.