|
|
Welcome to the January 2008 edition of Your Financial Future. In this issue, we let you know of the ways in which we can help you improve your financial fitness in 2008. We also explain what the rising Australian dollar means to you and your investments, and examine whether share markets will keep performing as well as they have in recent years.
|
We update you on some changes made to how we can accept requests from you for the payment of benefits, and we introduce you to Oahn Bui, the new member of our wealth creation financial planning team.
As usual, we also include the latest offers from the Fair Go Member Benefits program, and update you on how the different asset classes and investment markets have performed in the past quarter.
Get into financial shape in 2008
Here are some ways in which we can help you improve your financial fitness in 2008.
1. Get rid of the Christmas spending hangover
It's important to take control of your debts because they can quickly get out of hand. Remember the interest you pay on debt, including credit card debt, is money that cannot be saved or invested. It's just gone!
The first step in managing your debt is to draw up a realistic budget to track where your money goes and to ensure that you don't spend more than you earn. As part of the process, you should also examine what payments you need to make on loans, such as your mortgage or car loan repayments.
You might consider consolidating all your loans into the lowest interest loan, such as your home loan. But check first that there are no penalties for repaying your existing loans early and that there are no fees for increasing your mortgage.
Click here to access our handy budget planner and savings tips we have prepared for you.
For more on debt management, click here.
If your soaring debts are keeping you up at night, you are also able to speak to one of our planners who will advise you on the best strategy to get rid of them, and this is a service available to you free of charge. Just call 1800 800 002.
2. Review your investment strategy
If you've never seen a financial planner and haven't put an investment strategy in place, now is as good a time as ever to do so.
And, if you saw a financial planner a while ago, it's important to ensure that the investment strategy you originally decided on is still relevant to your current situation. As you know, investment trends and your circumstances can change over time. The aim of a review is to ensure that your financial plan remains appropriate to your goals and that you are doing the very best you can to maximise your retirement savings.
If you are a member of FuturePlus Super, any consultation with one of our qualified financial planners will cost you absolutely nothing.
For more information or to book an appointment with a planner, call 1800 800 002.
3. Make your super count
The Federal Government offers numerous tax incentives for those who make additional super contributions, and recent reforms to the super system now place super up there amongst the most lucrative savings mechanisms available.
There are a host of ways in which you and your family can benefit, ranging from sacrificing some of your pre-tax salary to making a post-tax co-contribution on behalf of yourself and your spouse (and receiving a contribution back from the Government).
The incentives now provided by the Government are now so attractive you are likely to regret it if you don't take advantage of them.
To learn more, click here or call Member Services on 1800 067 059.
4. Consolidate your super accounts
If you're like many Australians, you may have two or three different superannuation accounts. This means that you could be paying three times the administration fees, which can end up being quite expensive. You may be paying fees on superannuation you are not even aware you have.
If you don't want to waste your money, it pays to consolidate your super into one account. This is really easy to do. By having all of your super with the Fund, you will only pay one administration fee. Another great reason to consolidate your super into FuturePlus Super is that there are no entry fees and its returns are among the best in the country.
As a bonus, you'll also be able to keep track of your super easily. To consolidate your super with FuturePlus Super, simply complete the transfer-in authority form available here and return it to us. We'll do the rest.
You can also use the ATO SuperSeeker to find lost Super. Just click here or call 13 28 65 and follow the prompts.
5. Review your home loan
Interest rates are on the up and up, but that doesn't necessarily mean that you have to keep forking out more on your mortgage payments.
One way to keep these payments in check is to ensure that you secure one of the more competitive home loans around, one which comes at a low mortgage rate and without unnecessary fees and charges.
Chifley Home Loans was created especially to help our super members own their homes sooner by offering them lower interest rates. Chifley is part of a member-based organisation with our services designed to provide additional benefits to Fund members.
To find out more about Chifley Home Loans click here or call 1800 800 002.
6. Save on life insurance
You work hard to build up your assets, but what measures do you have in place to protect them?
Insurance is considered a vital part of any wealth creation plan. It's about providing you peace of mind and it helps you protect your financial security and that of your family in the event of sickness, injury, disablement or death.
And, did you know that obtaining life insurance through your super is one of the most cost effective ways of doing so? One benefit is that the premiums are paid from your superannuation contributions, meaning that you don't pay for the cost of the insurance directly. You also get to take advantage of the wholesale insurance rates that a super fund can negotiate which are among the lowest rates available. Buying insurance elsewhere as an individual is most likely to cost you more.
For more information on insurance, please call 1800 067 059.
7. Don't overpay for general insurance
Don't spend more than you need to on general insurance. As a member of this Fund, we are now able to offer you general insurance at highly competitive rates through Chifley Insurance Brokers. As Chifley is your Fund's trustee, we can now offer home, contents, vehicle, caravan, boat cover and travel insurance.
For an obligation free quote, please call 1300 562 774.
8. Have a Fair Go
It's not always easy to find ways to save for the important things we want in life. To help you find those extra dollars, this Fund has used its large purchasing power to negotiate a range of special offers for you.
Our Fair Go Member Benefits program provides you with a wide range of savings, from essential items like health cover and pharmaceuticals to holidays, travel insurance, car hire and family outings. We are also constantly looking to introduce new and improved offers to the program.
For more information, visit the Fair Go section on our website at: www.futureplussuper.com.au or call Member Services on 1800 067 059.
What a rising A$ means to you
In October last year, the Australian dollar (A$) sailed above 90 US cents for the first time since June 1984. Although it has since eased back, it still remains strong against the US dollar and some economists expect it to stay firm for some time to come. So what does this mean for you and your investments?
A stronger A$ is good news for Australian consumers as it means they will pay lower prices for imported items or if they travel to countries like the US.
While some companies, especially those that rely on imports, tend to benefit, a strong A$ is usually bad news for those that export or compete with importers who bring in goods from countries with weaker currencies. It also hurts companies with offshore operations and which convert their profits back into the A$.
This means that the earnings potential of some companies you may invest in directly, or through a managed fund, may be hurt by a stronger A$. Thankfully, however, many companies use hedging strategies, which is a form of 'insurance' that protects themselves from currency fluctuations.
You may also be affected if you invest in offshore assets like international shares, property or fixed interest.
But like the profits of companies you invest in, returns from your offshore investments can also be hedged. If your assets are in this Fund, you can be rest assured. Our investment experts have either hedged your overseas exposure or, if they haven't, they have done so as part of a carefully planned strategy that carefully takes into account currency exposure.
If you have investments outside the Fund, now may be a good time to examine whether these are hedged against currency fluctuations and whether any changes are required.
If you'd like to discuss your investment portfolio with one of our financial planners, please call 1800 800 002. This service is provided at no additional cost to you as a member of the Fund.
The myths of financial planning
In these days of financial information overload, it's often difficult to discern fact from fiction. For this reason, we expose a financial planning myth in each issue of Your Financial Future to help guide you through the maze of information out there in the marketplace.
Myth: It's best to bail out when an investment goes through a rough time
You are not alone if you've been worried about the latest share price slumps around the world. Volatile global equity markets have caught many of the most experienced and professional investors off guard. The important factor is how you respond to them.
The advice from the experts is firstly, don't panic! This could lead to knee-jerk reactions that you might regret later.
Share markets have enjoyed a spectacular run over the past four years and were, perhaps, due for a correction. Remember that investment markets are cyclical. In other words, they go up and they go down. Fortunately, however, they've risen more than they've fallen, especially over the longer term. And, they've always come back after a share market crash in the past.
Share markets are unpredictable. If they weren't, we'd have a lot more millionaires around. With this in mind, the financial experts warn against trying to pick the market cycles because investors rarely get the timing right.
So, if you rush off now and sell off your shares at their current lower prices to avoid further losses, you might be timing the market wrong and may be selling out just as share prices are about to pick up, making it harder for you to get back into the market in the future. In fact, many savvy investors view a slump as a good opportunity to put more money into the share market.
So, it may not be best to bail out when an investment goes through a rough time unless, of course, you are looking for a tax write off.
The experts agree that while there may be short-term dips in market returns, most carefully selected and age-appropriate strategies work well for investors over the long-term.
That's why it is important to remember why you selected your investment strategy in the first place. You might have chosen it for a number of reasons, such as:
To meet your financial goals;
Because of the number of years you have left until retirement;
Because of your level of risk tolerance;
To diversify your investments and spread your risks; or
Because it's generally the right strategy for your life stage.
If your reasons have changed, then maybe you should re-examine your portfolio mix. If your reasons haven't changed, perhaps it's best to sit tight even if the ride gets a bit bumpy.
However, if you feel uncomfortable with this approach, or believe that this is a good time to review your investment portfolio, please call Member Services on 1300 369 901 to speak to one of our planners at no additional cost.
It's also a good idea to understand why equity markets have been so shaky lately and to look at their long-term fundamentals.
The market's woes all started with what's become known as the 'subprime crisis'. It was sparked by mortgage lending practices in the US where loans were advanced to borrowers with poor credit ratings. It took a while for the problems to surface because many of these loans carried artificially low interest rates in the first few years which then jumped up, often dramatically. At the same time, the housing market in the US started to slow, making it harder for subprime borrowers to refinance into other loans at lower interest rates. As a result, there's been a surge in the number of Americans defaulting on their home loans and financial service companies exposed to subprime borrowers were also hurt.
As these companies began to announce their losses, investors became increasingly anxious. They went 'on strike' and withdrew their funds from markets because they were unsure how deep the problems ran. This sparked a global credit crunch - where nervous lenders stopped lending, credit became tough to obtain and the cost of debt rose for companies.
The US authorities have taken steps to ease market concerns, but investors have remained jittery, still trying to fathom whether there are future shocks to come - and there have been. Some large US banks recently announced multi-billion dollar losses and key economic indicators have started pointing towards a recession in the US.
It used to be that when the US sneezed the rest of the world caught a cold, but this impact isn't as great any more. The Australian economy is still considered to be in good shape and these days, its fate has become far more linked to the phenomenal growth of Asian countries like India, and especially China, who buy our resources. These economies are expected to continue growing (albeit perhaps a little more slowly than recently) even if the US economy hits the skids. And, some experts believe that the US economy has a good chance of rebounding in the second half of this year.
Proof of Identity and Date of Birth
Requirements for application to pay a benefit
With the commencement of the Anti-Money Laundering and Counter-Terrorism Financing Act on 12 December 2007, a member of a superannuation entity must provide proof of identity and date of birth when making application for payment of a benefit (ie application for release, transfer, deferral or insurance claim).
We cannot process an application for payment of a benefit unless we are reasonably satisfied that we identified the member (ie the member is the person they claim to be) and that we have verified the member's date of birth. This legal obligation is in addition to other identification processes to guard against fraud.
Usually, a certified copy (or original - however original documents may be lost in transit and/or not returned) of the member's current driver's licence or Australian passport that has not expired more than 2 years ago may be sufficient to meet the requirements of the Act. Other documents like Citizenship Certificates, Birth Certificates coupled with notices from the Australian Taxation Office within the last 12 months or rates notices from a Local Government body or utilities (eg electricity, gas, water, telephone) supplier within the last 3 months may also be sufficient to meet the requirements of the Act.
Please note that the certification process is prescriptive (ie person certifying must sight the original and the copy, must ensure they are identical, must certify all pages, must certify in particular way and must provide certain details and the date they certified) and there are limitations on who may certify (eg Justice of the Peace, solicitor, employee of Australia Post with two or more years continuous service, Authorised Representative with two or more years continuous service, accountant with two or more years continuous membership of specified professional body, police officer).
Where a person has changed their name, they must provide a certified copy (or original) of the document that shows the link between the two (or more) names (eg Marriage Certificate, Deed Poll, Change of Name Certificate, Decree Nisi).
Full details of what is required, especially the certification process, is detailed in 'What is Required for Proof of Identity and Date of Birth' in the Forms section on the Fund's website.
For more information, please contact Member Services on 1800 067 059.
Meet your financial planner: Oanh Bui
To members, Oanh Bui may seem like the new member of our Sydney Wealth Creation financial planning team. In reality, though, she's been actively supporting our financial planners behind the scenes in a technical role ever since joining the Fund as a Paraplanner in 2004.
Oanh says she's particularly enjoyed the change to face-to-face financial planning. "The financial services industry is very dynamic, legislation continually changes and everyone is constantly learning. I thoroughly enjoy this part of my job. More importantly, what gives me the most satisfaction is providing advice that makes a difference to a member's situation - no matter how big or small - and which helps them build and protect their wealth."
Oanh says on meeting a new member, she attempts to obtain as much information from them as possible to make sure the advice she gives is appropriate to their situation. She then spends time explaining the concepts and reasons behind her advice to make sure that the member is informed.
"I believe financial planning is about providing holistic advice, looking at the member's overall situation. Because of this, you get to know the member very well and a trusted ongoing relationship can develop," she says.
Oanh, who has been in the financial services industry for six and a half years, is a member of the Financial Planning Association (FPA), has completed a Diploma of Financial Services (Financial Planning) and has a Bachelors degree in Business.
Financial planning online
Did you know that you can now hear from our financial planners online?
We have put together a series of online presentations dealing with the latest on the super reforms and other important issues. Topics covered include the new laws for paying employment termination payments into your superannuation, the potential benefits of insuring through your superannuation, the latest changes to contribution rules and new developments which may affect your eligibility for the Centrelink Age Pension.
Click here to hear from our financial planners.
More from Fair Go
The Fair Go member benefits program provides you with a wide range of savings - from essential items like health cover and pharmaceuticals to holidays, travel insurance, car hire and family outings.
The latest offers follow
It’s time to reward your family and enjoy a visit to one of Sydney’s premier attractions.
Walk into the red earth world of Semi-Arid Grasslands and come face-to-face with its inhabitants and journey through the rainforest canopy. Come face to face with 12,000 all-Australian aquatic animals including fearsome sharks, majestic rays and the largest Great Barrier Reef display in the world! Experience Sydney’s best views from the Observation Deck and be amazed by OzTrek, an incredible virtual reality ride across Australia.
 
BACK TO SCHOOL BIG discounts are available till the end of February on Prepaid Orders
NO MINIMUM numbers required.
Buy one Adult ticket and receive a free child ticket!
Valid till 29th February 2008
Attached is a pre-purchase order form you need to complete to take up this offer. Simply complete and fax back to 02 9262 2385.
Think Thrifty this holiday season!
Fair Go members currently receive special rates on Australia's most diverse range of cars, trucks, buses, 4WD's & luxury vehicles from over 260 Thrifty locations nationwide.
Members also receive a substantially reduced Compulsory Premium Protection (PP) of just $9.90 per day (on Cars) and $16.50 per day (on Trucks). This is a saving of up to 50% on PP! Please note this PP offer is only applicable when booking on your Fair Go rates.
These great rates and conditions are available to you all year round, so remember to think Thrifty this holiday season. Book now to ensure you secure your vehicle on 1300 367 227 and quote your Corporate Discount (CD) Number: FAIRGO or visit the car section at www.fairgo.com.au to book online.
Sensational Experiences
RedBalloon Days is Australia's leading online gift retailer for experiences. They carry the largest range of experiential gifts to thrill, excite and indulge friends, family and colleagues.
Bring your dreams to life with more than 1500 experiences to choose from at RedBalloon Days, including:
- Rally Driving
- Hot Air Ballooning
- Romantic Escapes
- Day Spas & Massages
- Rock Climbing
- Cooking Classes
- Photography Shoots
- Surfing Lessons
Save 6% off any experience purchased at RedBalloon Days!
Visit www.fairgo.com.au to browse the fantastic range of experiences and to find out how to obtain your discount.
Let the Automotive Buying Service put you firmly in the drivers seat!
If you are looking for a new vehicle why not take the time to speak to one of our Automotive Buying Service consultants. They will provide you with the best advice, best price with fleet type discounts on most new cars and assist with your trade-in if required.
Contact Member Services on 1300 369 901 or visit www.fairgo.com.au to have an Automotive Buying Service consultant contact you to discuss your motor vehicle requirements in more detail.
Investment and market commentary
Click here for commentary on how investment markets performed over the December 2007 quarter.
Investment returns
Click here for the latest returns (post-tax)
Come along to a seminar
Are you looking to set aside some money for a house, a holiday or perhaps for your children's education? Would you like to know more about investment options, risk and return and managed funds? Are you wondering whether you will have enough money to retire on?
You could get the answers to these questions, and more, by attending one of the free wealth creation or pre-retirement planning seminars we are running at a venue close to you. To find out more, click here, or contact Member Services on 1800 067 059.
Contact us
Chifley Financial Services Limited
Ground Floor
28 Margaret Street
Sydney, NSW 2000
Member Services
T: 1800 067 059
F: (02) 9273 0033
Financial Planning
T: 1800 800 002
Please note that the information contained in this document is of a general nature only and is not for personal advice and has not taken into account your personal objectives, financial situation or needs. Any advice in this document is provided by Chifley Financial Services Limited (ABN 75 053 704 706), as an Australian Financial Services Licensee (AFSL 231148). Chifley Financial Services Limited is an APRA Registrable Superannuation Entity Licensee (RSEL: L0001120) and the trustee of FuturePlus Super (ABN 76 829 356 693). FuturePlus Super is a Registered Superannuation Entity (RSE: R1004366). Chifley Financial Services Limited is co-owned by the Local Government Superannuation Scheme, the Energy Industries Superannuation Scheme and Unions NSW. Members should not rely solely on this information and should consider their own personal objectives, financial situation and needs before acting on this information. Prior to making any decision you should obtain and consider the relevant Product Disclosure Statement (PDS) pertaining to your membership.
UNSUBSCRIBE - Your privacy is important to us, so if you wish
not to receive information from this service, please
click here,
enter your email address and we will remove you from the list.
|
