Blog

Merger consultation period to close soon

The member consultation period on a proposed merger between the Financial Planning Association of Australia (FPA) and Association of Financial Advisers (AFA) is due to close on 31 January, with members encouraged to provide their feedback before then. Members of both associations have been asked for their views on two key documents – a merger summary which includes draft resolutions, and a draft constitution that would form the new constitution of the merged entity. David Sharpe, chair of the FPA, says the next stage will be to incorporate member feedback, and finalise the draft documents. “Member feedback is essential to

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COVID-19 – ADVICE FOR FPA MEMBERS

The FPA is closely monitoring the outbreak of respiratory illness caused by coronavirus (COVID-19).  The World Health Organisation (WHO) has declared the outbreak of COVID-19 as a Public Health Emergency of International Concern. You can access the latest information on COVID-19 from the Australian Government Department of Health. Please find information and latest updates on FPA’s programs and events to support our members through this difficult time. CFP® Certification Program and webinars The CFP certification program and our webinar program will be running as normal.  If you are currently residing in a country severely affected by Coronavirus and have had

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Show me the cashflow!

When it comes to managing finances and building wealth, there’s one key conversation I have with all my clients – spend less than you earn. It seems so simple, yet for many it can be difficult and for some, just impossible. Others, however, may just think it’s impossible… Sometimes knowing what you spend is half the challenge. Maybe it’s difficult to track because of how your cashflow moves. Perhaps your income and expenditure is volatile year to year. Or maybe it falls into the ‘too hard’ basket and gets ignored. Whatever the reason, here are some ways to keep track

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Are we too comfortable with debt? What you can do.

Australians have some of the highest amounts of debt in the Western world. What can you do to manage your own debt? Credit cards, zero per cent balance transfers, lines of credit, interest-free store loans…it really has never been easier to spend money that you haven’t yet earned. Throw in low interest rates and a solid economy with few real hiccups for the best part of two decades and you have ripe conditions to encourage a binge on debt of epic proportions. And that’s exactly what we have witnessed. SIZE OF HOUSEHOLD DEBT COMPARED WITH ANNUAL INCOME Source: Australian Bureau of

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Property and your financial plan

Whether it’s a discussion about buying a family home or building a property portfolio, the steps to successful investing remain the same. You need to understand why you are investing, how that investment is going to meet your needs and what compromise you will need to make to get there. Being clear on the answer to ‘why’ lays the foundation for determining the best steps on ‘how’ you do it. Whether you are looking to buy your first home, upgrade to a new home or invest towards your retirement, it’s ideal that you can hold your asset for as long

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Insurance: are you putting yourself at risk?

Insurance can sometimes seem counter-productive, especially if you’re paying premiums year after year and never making a claim. Managed wisely, however, it can be a valuable partner in your long-term wealth creation plans, and guard against severe financial disadvantage if your circumstances change. As with any investment, choosing the right level of insurance cover can be a balancing act. The more assets you accumulate the more you need to evaluate their worth and because that can change, it pays to regularly review your cover and tolerance for risk. At home The family home is the largest investment most people make.

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Super strategies for end of financial year 2016

The end of the financial year is fast approaching. It’s not too late to review your situation to take advantage of strategies that may be appropriate. Let’s take a look at some of the strategies and incentives that you can consider regarding super. Super co-contribution Under this incentive, for every dollar you contribute, the Government will match it with a co-contribution of $0.50. If you deposit $1,000 into your super as a personal (after-tax) contribution, you could receive a co-contribution of up to $500 in a financial year. To qualify for the $500, your total income must be under $35,454

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Caring for elderly parents

Do you help care for an elderly parent or special someone? This post outlines some of the issues you may need to consider. As we live longer, more and more Australians are becoming part of the sandwich generation, finding themselves caring for an elderly parent whilst also looking after their own children. This can put enormous pressure on the person who is caught in the middle, with competing demands on their time and resources. Below are some hints and tips to help you manage if you are a carer in this situation. Organise their important documents A good place to

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Buying residential property results in unavoidable concentration risk

The decision to purchase a residential property in Australia is an expensive one. The median property price in our two largest cities at the end of 2015 was $718,000 in Melbourne and in Sydney this increases to $1,013,000. Melbourne and Sydney have been called the fifth and second most expensive cities in the world respectively, based on multiples of household income. Conventional wisdom says we should spread our eggs to reduce our risk, but when buying property it makes this very difficult. For most of us, we do not have this money just lying around so we require the assistance

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6 ways women can make more of their super

Women have to work their superannuation investments harder to help improve their retirement income. Lower salaries and time out of the workforce to raise families leave women with less than half the retirement savings of men, according to a recent ANZ study A Senate inquiry is underway to examine the problem but in the meantime, how can women make the most of what they’ve got? 1. Use just one super fund If you’ve worked for several different employers who have paid your compulsory super contributions into different funds, consolidate the accounts into one fund. It means you’ll save money in

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