Below are some of the biggest errors our Advisers see Australian’s do before they receive good advice Check them out below.
- Super is chosen for them by someone who may have no idea
We see this time and time again. Payroll officers telling new employees what fund to use. How does this make sense? Why is this fund the best? Perhaps it’s just the easiest fund for them & their system? Tick a box and get to work. Worry about super later? Is this the approach?
Most people work because they have too. Not because they want too. So with this in mind, a time will come where you are unable to work anymore but you will still need money. Get your super into gear today. It may be costing you a fortune in retirement.
- Preparing for your tax return after the tax year has finished
This is always the way. June 30 rolls around and you can’t wait to get your pay summary from work, so you can lodge your tax return and then hope for a big return. But people don’t realise, by the time June 30 rolls around the financial year has closed so there is really nothing you can do now anyway except hope.
You need to be proactive not reactive. It is what you do now, in the financial year, that counts at tax time. Start planning ahead please!
- Have contents insurance but not income protection insurance
If you had to choose one, would you insure your plasma t.v. OR insure your income? What could you live without if you had to choose? Our advisers see this all the time. People only want to allocate a certain % per year to insurance & we get that but you may need to take a step back and look at what is actually more important. the t.v. or the income that hopefully keeps going up each year?
- Multiple super funds
If you have a few jobs in your lifetime, chances are you have quite a few different funds floating around. Not really sure why you haven’t looked into them & compared them against each other to work our the best one. We know super is boring but we also know how important it is. An adviser can do this pretty quickly and it shouldn’t cost you much money at all. Consolidate and start caring.
- Have credit card debt BUT also have savings
This one really is a little crazy. People have credit card debt, charging around 20% in interest but then they have cash sitting in an account earning 3% before tax. Why would you not just pay off the credit card? We know you like to see the cash in the account from a comfort point of view but do you have any idea how much money you are losing? Get your finances in order. You will have more savings in the end of the day.
If you are doing any of the above, please get this sorted asap. Reach out to us and we will have the adviser contact you sort if out.