Feeling Frugal?

Feeling Frugal?

That’s ok.  Things are tough out there right now.

As many households pull the purse strings a little tighter, the realisation gradually dawns that every penny counts.

And with thousands of Australians now hovering in financial no man’s land, how is it even possible to think with a clear head about monetary matters?

If this pandemic has taught us anything, though, it’s that life goes on without all the non-essentials.  It’s become increasingly apparent that we don’t really need that new tv or a holiday in France.  What we do require, however, are the important elements like food, water and shelter that are necessary for survival.

When you strip it all back to basics, there is one other significant necessity that will sustain a comfortable and secure life ahead.  That’s having enough money for retirement.

If you are currently out of work due to the health crisis, the thought of having to press pause on your super instalments is enough to set you into a panicked tailspin.

But, take a deep breath – because you don’t need to worry about that.  Not when there is a better deal on the table.

What if you could keep topping up your super fund without the need for extra cash?  Imagine if you could invest your super and walk away with double your money within a few short years.  It’s unlikely that your current fund is doing that.

The way forward is to take advantage of the right strategy. And GSA has worked all that out for you.  It couldn’t be simpler!  With the heavy lifting already taken care of by our senior investment team, the rest is up to you.  You don’t need to do anything else other than use what you already have.  No fluff.  No catch.  No bells and whistles.  Just common sense.

If you’d like to hear more about how to go from frugal to flourishing in a flash, get in touch today.

The ebb and flow of recession, and what it means for you

The ebb and flow of recession, and what it means for you

Economists say housing prices could fall as much as 20% if a recession lasts longer than six months (or two consecutive three-month periods).

With the imminent ebb in market growth thanks to the current global pandemic, it’s an alarming realisation for homeowners. Market experts have reported a rush to sell amid the mounting crisis.

While minimal interest rates provide some welcome home loan relief; a dwindling asset value is less than desirable.

If you were looking to sell your home or use it as investment equity in the near future, you might find you’re left a little short-changed.

It could be good news for buyers – though, with many currently being forced out of their jobs, the prospect of snapping up cheap real estate loses much of its sheen. Rather than researching lucrative property options, many households are having to scrape their pennies together just to put food on the table.

When the economy eventually starts to bounce back, it will be happy days for income earners, yet a slow process to full recovery. Even though housing prices may remain low, other essential daily expenses will soar in an effort to stimulate economic growth.

It’s a difficult time for many Australians, most of whom are battling to pay the bills and looking for a way out.

Though cash flow may be tight in this financial climate, there is still a way to generate wealth for the roads ahead.

Rather than relying on salary instalments, you can use your existing superannuation to boost your future comforts.  It’s a transition to a prosperous retirement that doesn’t require any extra funds.

Instead of dipping into your nest egg for immediate cash flow, think long-term gain over short-term relief.  By using your super to invest in GSA’s property syndication plan, you can generate fast and high-yielding rewards and give back to your future self.

Get in touch with our investment team today – and sail the tides of change to a buoyant tomorrow.

Pay and receive at the same time?

Pay and receive at the same time?

Yes, it is possible to pay your mortgage and earn a passive income from investment in one fell swoop.  Even with regular loan repayments, you can still boost your wealth and set yourself up for a financially secure future.

Never thought this was a viable option?  You’re not alone.

Many homeowners feel stuck in a perpetual cycle of income in – bills straight back out.  It seems beyond their comprehension that they may ever be able to break even, let alone get ahead.

There are several strategies employed by those in financial turmoil, each hoping it will give them some much-needed leeway.  But they’re quite probably doing more harm than good in the long run.  Methods like extending the mortgage to free up cash or shuffling shares to self-managed super funds may end up costing them more in taxes and interest.

So, what’s the plan, Stan?

By the time you’re in your 40s, keeping your financial life on track is more important than ever.  With retirement on the not-too-distant horizon, it would be prudent to start looking at all the feasible alternatives.

The current economic climate provides the perfect springboard to financial success.  Although it may sound counter-intuitive, now is the time to pay down your home loan sooner, rather than later.  Instead of extending your mortgage period to access more investment funds immediately, take advantage of the near-zero interest rates to knock your debt on the head faster.  By doing so, you will own more of your asset.  You then have more at your fingertips to use as equity for investment.  And this cycle creates escalating growth and paves a smooth path to retirement.

The fastest way to earn a passive investment income is to inject your funds into a high-yield, low-risk scheme like property.  And with GSA’s property syndication model, you can expect desirable returns over a short-term investment period.  This means you’re paid generous and consistent rewards, without being locked into long-term contracts.

Want to find out more?  Get in touch with one of our senior consultants as soon as possible.  Why choose between your house or your lifestyle – when you can have both?

The Three ‘R’s of Retirement

The Three ‘R’s of Retirement

Just when you thought you were too old for learning anything new, along comes the age of retirement.  Yes, the golden years still have something extra to teach you!

The general school of thought is that, once you stop work, you can finally enjoy winding down without a care.  But that’s not quite right.  There are three defining chapters in your retirement story – each punctuated with its unique concerns.

As Australians are living longer than ever before, it’s essential to prepare for the lifestyle changes and hidden expenses that are likely to crop up when you least expect them.

So, let’s examine these three important phases of retirement and how they’ll affect you.

 

1. Ready

This is stage 1 – the early years.  You’re ready and raring to go.  This phase usually spans from your early 60s to your mid-70s, depending on your level of health.

At this point in the game, you can’t wait to soak up all your wonderful free time.  You may choose to continue to work on a flexible part-time basis (so you’re not drawing down as much on your super) or just give it up once and for all.

These years are likely to be the most expensive – when you have the energy and finances at your disposal to do the things you want.

 

2. Reduce

Stage 2 kicks in.  Here you are in your mid-retirement years, starting anywhere from your late 60s to your early 80s.  Your energy levels may begin to decline, and health issues may arise.

Your income is less likely to accrue from paid employment; more conceivably coming from downsizing and less general lifestyle expenses.  As you’re probably spending less on leisure and travel, your financial focus will likely shift towards taking care of your health.

 

3. Rest

The third and final stage may see you requiring extra support – whether it’s maintaining your home or taking care of yourself and loved ones.

Your accommodation and healthcare needs may change again, often resulting in a move to a retirement village or nursing home.  This sort of transition can be emotional and certainly needs considered financial attention.

During the closing stage of your journey, it’s also vital that you have all your affairs in order through proper estate planning.

 

Your financial consultant can help you devise a plan to ensure you’re as ready as you ever will be.  And if you want to hear more about growing your nest egg well ahead of time, get in touch with one of our investment strategists asap.  We offer an A+ approach to increasing your wealth and enjoying your lifestyle.

Want to be able to spend 53% more when you retire?

Want to be able to spend 53% more when you retire?

How incredible would that be?

But are you secretly worried you’ll run out of money when you finally give up work?  That you won’t have enough to see you through your retirement?

It’s certainly something that weighs heavily on the minds of many.

Well, take a deep breath because the latest research has shown that you may be able to spend way more than you realise, giving wealthier retirees the capacity to spend up to 53% more than anticipated.

To get the most out of your nest egg, you’re going to have to play your cards right – but it’s entirely doable.  So, let’s explore the top 5 tips that will help you dispel your future financial fears.

1. Don’t inflate the situation

There is a tendency amongst retirees to overestimate how much money they need to put aside to account for the increased cost of living.  For example, if inflation is rising at 3% annually, then many people are panicked into thinking they need to have 3% more income to spend every year.

But findings show that numerous investors actually spend a bit less as they go through retirement.  So, you can splurge on more initially to enjoy the things you want, while you can.

2. Beware of the bear

The fear of a market downturn creates a scarcity mindset, seeing many retirees scrimping and saving every penny – just in case.  But a more sensible approach would be to spend while you can, then rein it in when you need to be more discretionary.   Why waste a perfect opportunity to travel or buy a new car for the sake of ‘what ifs’?

3. Do the maths

As you enter retirement, you may find that your previous outlays decrease or disappear altogether, such as paying for a mortgage or commuting.  So, you’d actually have more at your disposal than you first thought.

But there’s an urge to overcompensate for future needs based on your current ones, leaving you with less spending money than necessary.  It’s time to draw up a new budget plan to help with the numbers.

4. Keep a splurge fund

Essentially, this means saving for a rainy day.  If you’ve had a good year and your investments have performed well, then you’ll have a bit more spending money up your sleeve.  But you may not wish to spend it straight away.  So, pop it aside in a separate account for when you do want to take that trip around the world.

5. Axe the tax

Get yourself a personalised tax plan to determine how you can minimise the tax on your super withdrawals, and, therefore, maximise your spending capacity.  There are several financial tools available to help take the guesswork out of this process by predicting an optimal spending strategy to support the lifestyle you’ve earned.

While everyone has different needs and varying income levels, there is always a way to capitalise on what you have.  The rest is up to you.

If you’re looking for alternative strategies to build your nest egg, give GSA a call today.  We have a unique investment opportunity that’s perfect for retirement.

Defusing the economic time bomb

Defusing the economic time bomb

The Baby Boomers had it good, didn’t they?  Large, comfortable homes, affordable mortgages, and hard-earned, well-timed retirement dates.  I mean, that’s the way life should be, right?  We all want to live well and enjoy our golden years in peace.

But over the past decade or more, this great Aussie dream has become further and further out of reach.  It’s certainly alarming news for Generation X, not to mention those coming up through the ranks of Gen Y and beyond.

The cold hard truth is, if you’ve been looking forward to retirement, it might not be time to relax just yet.  According to Treasurer Josh Frydenberg, an ageing population becomes an economic time bomb if not dealt with appropriately.  It means, of course, that over the long term, more people will have to work longer.

Whoa – time bomb?  Work longer?  Back up …

Well, recent data shows that the proportion of people over 65 in the workforce has already climbed over the past 5 years.  It appears there’ll be a push to increase it further – with older working Australians having to re-train to keep up to date with the jobs market.

Now, that doesn’t sound a whole lot like hammock-strung palm-treed bliss, does it?

The harsh reality is – if we want to live longer, we have to be able to pay for it.

So, if the steady ticking seems somewhat disarming, it could be that you don’t have a solid plan of attack.  The good news is, a carefully prepared strategy will help defuse your financial concerns.  And better still, GSA has an easy, time-effective solution that you can put in place asap.

Talk to one of our senior investment strategists about dismantling your retirement woes.  Your future self will thank you.