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Thinking about setting some financial goals? Sounds simple; but simple doesn't always mean easy

When it comes to managing our personal debts and credit cards, savings and investing, many people are quick to look for a sequence of simple steps to follow (or a three minute blog to read) to achieve what can usually be a complex outcome.

If a fast solution isn’t found, ‘it's obviously the wrong option’ so we quickly browse on elsewhere looking for that dopamine hit of ‘New’ and never really get to where we need to go.

What happens when business owners use their own money in the business?

Most small to medium business owners will tell you they went into business so they could provide for their family, in greater flexibility and free time, increased resources and a legacy.

Like most long term plans, building a self sustaining business takes time; time to mature, time to stabilise in the market and time to return the capital invested.

To achieve this, the majority of business owners use debt and overdraft facilities as an ongoing business tool.

And these types of tools can quickly work against you and your family if you're unprepared.

It's been a tough year… there's been some tough learnings

This year, 2020 has been a year where the Confidence of many people has been tested.

In Australia it started in January 2020 with;

  • unseasonably extreme bushfires that burnt over 46 million acres (or 186,000 square kilometres) with devastating effects on life; and then
  • major flooding over Queensland and NSW that saw a years worth of rain delivered in just a few days, with devastating effects; and then
  • the global coronavirus pandemic; (first declared a Public Health Emergency of International Concern in January 2020, and then a Pandemic in March 2020).

As we close out 2020, it's fair to say, ‘it's been a tough year’.

Can you still get life insurance with a history of drug use?

There's one thing we can all agree on and that's 'Life is complicated at times'.

Getting on with life today regardless of our decisions yesterday is even more complicated; so it's important to talk about what matters most and know where we stand.

  • In 2019, around 3.4 million Australians reported using an illicit (recreational) drug in the last 12 months.1

So how does having a history of personal drug use affect your ability to get life insurances and create a safety net for yourself and your family?

Here's what you need to know ahead of time, when getting your life insurances sorted and have previously used recreational drugs.

Living with depression or an anxiety disorder shouldn’t stop you from getting your life insurances sorted.

As if living with a mental illness, like anxiety or depression, wasn’t difficult enough - getting your life insurance sorted when you're living with these conditions can seem overwhelming too.

Thankfully good mental health is now becoming part of the regular conversations for many Australians.

Here are tips to help navigate the application process.

  • About 3 million Australians are living with a form of anxiety or depression (Beyond Blue, 2020) and at least 45 per cent of Australians will experience a mental health issue at some point in their lives. (SANE, 2019)

How to leave an inheritance to your Grandchildren, but not your adult children?

The reasons why you may wish to leave an inheritance directly to a grandchild and not your adult children are as wide and varied as the motivation to do so.

Just leaving money via your Will for a grandchild to be held in trust until they reach 21 is fraught with risks; from of a challenge to your Will through to concerns of the effects of addiction, divorce and financial mismanagement.

So to help you better understand your options, here are three key phrases you need to understand.

Are you part of the 30% of Australians who have remarried and now have adult children from a past relationship?

It's a common fact of modern life, people live longer and have more relationships.  It's not uncommon for many parents today to be part of a blended family and to each have older (and often soon to be adult) children from a former relationship.

And when it comes to making a Will, how can you be sure you're kids are not cut out of their inheritance by your new partner? Here's a strategy that might be what you're looking for.

What you can't give away in your Will and why?

To give something away, you need to legally own it first.
You'd think this would be kind of straightforward, well think again.

Now I'm not talking about the neighbour's cat who has lived with you as your adopted fur-child for the past two years or the trailer your adult son still parks at your home for temporary safekeeping, 5 years ago.

I'm talking about bigger value items we sometimes own with others and often believe we can simply give them away in our Will. (And if you don't have a Will we'd love to help you out with that too.)

A problem arises when we share ownership of assets with another party.

Most Australians report preferring to talk to their parents about sex, rather than money

When it comes to the reality of talking with our parents about money and aging, there is never really a right time. But there is probably a better time - and this is what you can do about that.

If you're part of the Sandwich Generation, there's a good chance you’ll become part of the growing number of adult children who will have to get involved with their parents' financial lives as they age.

Yet, the overwhelming majority of adult children – have not had detailed conversations with their parents about their finances, their estate wishes and plans.

One day you’ll be ready to retire (whatever that may look like)

The idea is then you can slow down (or stop) working and spend more time doing the things you enjoy. But what are your options when it comes time to access your super?

How will you be using your superannuation balance?  Lump-sum or regular income stream - or a combination of both?

Until then, many of us are also taking an active interest in our elderly parent's financial position in their retirement.  Many of us are either the paperwork or financial backup, so it pays to have an idea of what they’re working with too.

drew browne pic

Drew Browne

Sapience Founder & Director.
Simplifying Financial Complexity

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