Finance Quiz with Quizmaster Ash

 

Are you ready to put your financial knowledge to the test? Our office Quizmaster Ash has put together a set of questions designed to sharpen your skills and expand your money-minded prowess.

Here at Income Solutions we are all about empowering our clients with the tools and knowledge they need to make informed financial decisions. So buckle up, grab a pen and put your knowledge to the test! (answers at the bottom)

 

1.What is the primary purpose of the Super Guarantee (SG) in Australia?

a) To provide government welfare benefits

b) To mandate employer contributions to employees’ super funds

c) To offer tax breaks on personal savings

d) To subsidize healthcare expenses

 

2. What type of life insurance pays out a lump sum benefit to the policyholder’s beneficiaries upon their death?

a) Term life insurance

b) Whole life insurance

c) Trauma insurance

d) Income protection insurance

 

3. What is the term used to describe an investment strategy that aims to mimic the performance of a specific market index?

a) Active investing

b) Speculative investing

c) Passive investing

d) Growth investing

 

4. Which of the following documents allows individuals to specify their wishes regarding the distribution of their assets after death?

a) Superannuation beneficiary nomination form

b) Tax return

c) Last will and testament

d) Investment portfolio summary

 

5. What age are individuals in Australia typically eligible to access their superannuation funds?

a) 55 years old

b) 60 years old

c) 65 years old

d) Preservation age, which varies depending on date of birth

 

Thanks for playing along, stay tuned for more quizzes with Quizmaster Ash!

 

 

 

Answers:

  1. b) To mandate employer contributions to employees super funds
  2. a) Term life insurance
  3. c) Passive investing
  4. c) Last will and testament
  5. d) Preservation age, which varies depending on date of birth

 

Income Solutions Geelong No 2 Pty Ltd, ACN 644 550 078 T/A Income Solutions is a Corporate Authorised Representative of Personal Financial Services Limited ABN 26 098 725 145, AFSL 234459
The advice in this post is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.

Retirement planning for small business owners

 

When you run your own business a good retirement plan can bring real peace of mind. Read more about your options – and why it’s never too early to start.

PLANNING YOUR RETIREMENT

When you’re busy running your own business retiring could be the last thing on your mind. But planning your retirement well in advance can make it easier to enjoy the future you want.

WILL YOU SELL YOUR BUSINESS?

Many business owners plan to sell their business to fund their retirement – but it’s important to be realistic. It isn’t always easy to find a buyer who’s prepared to pay the price you want, particularly if you’re hoping for a quick sale. And, even if you intend to keep on working well beyond retirement age, unforeseen circumstances such as poor health or a change in market conditions could force your hand, so it’s important to be prepared.

ALLOW PLENTY OF TIME

If possible, you should give yourself at least three years to plan for the sale of your business. Most buyers will want to see three years of financial statements and you’ll also need time to work on increasing the value of your business. This could include everything from keeping your equipment up to date and making sure your premises are always clean and well-maintained to boosting your sales with a strong online presence. Remember that a buyer is investing in the future of the business so they’ll want to see positive yet realistic forecasts.

In the meantime, it’s also important to protect your business with the right insurance. Appropriate Income Protection, Total and Permanent Disability (TPD), Trauma and Business Expenses insurance can help prevent debt from accumulating if you’re unable to work and enable you to pay someone to keep your business up and running if you can’t.

SUCCESSION PLANNING

Passing your business on to a family member or employee may sound straightforward but, again, you should allow plenty of time to work through the process and clarify all the details. For example, do you intend to retain any interest in the business? Who will own any property, such as the business premises? And, if your successor plans to buy the business from you, can you be sure they’ll have access to the money when you want it?

A good succession plan will cover all this and more to ensure you can make the transition with minimum disruption and maximum benefit. And it’s important to talk to a professional adviser about how you can best structure your business to protect your assets and minimise tax.

SAVING MONEY FOR RETIREMENT

Personal superannuation isn’t compulsory for small business owners so you might be tempted to put investing in your business ahead of your savings. This can be risky as there’s no guarantee your business alone will provide enough money for you to live comfortably in retirement.

Building your business and your superannuation investment simultaneously can help to mitigate the risk. Many business owners choose a self-managed superannuation fund (SMSF) as this may provide benefits such as a lower tax rate, more investment options and flexibility when it comes to drawing an income. However, a SMSF isn’t right for everyone so you need to discuss your strategy with a professional adviser.

PLANNING TO LIVE LONGER

In general, Australians are living longer, which means you could spend decades in retirement. Ideally, you’ll have enough savings to cover your expenses well into your nineties.

Financial security in retirement could underpin many of the decisions you make about your business so it’s important to think about the lifestyle you want. As a general rule, if you own your own home, you’ll need 70-80 per cent of your pre-retirement income to maintain the same standard of living. The age pension and other government supplements provide a safety net but, at the moment, these are set at about 28 per cent of the average wage, and this is very unlikely to increase.

The most successful retirement planning is long term. Your spending and your needs are sure to change as your retirement progresses so your plan must be adaptable enough to evolve. And it’s never too early to take action. Once you have your retirement goal in mind you can work out the steps that will help you take control of your retirement and enjoy the lifestyle you want.

 

Source: NAB
Reproduced with permission of National Australia Bank (‘NAB’). This article was originally published at https://www.nab.com.au/business/small-business/moments/future/planning
National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. The information contained in this article is intended to be of a general nature only. Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this website, NAB recommends that you consider whether it is appropriate for your circumstances.
© 2023 National Australia Bank Limited (“”NAB””). All rights reserved.
Important:
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

September Newsletter 2023

 

Footy Finals Fever is here and so is our September Newsletter. The winter chill is slowly retreating and making way for warmer Spring days, perfect for getting out in the garden or enjoying the great outdoors. 

This month we discuss buying insurance through your Super, how the Aussie dollar impacts your investments and some out of the ordinary holiday destinations to spark the travel bug.

Read more

August Newsletter 2023

 

Our August newsletter highlights the potential for sunnier economic conditions as the rate of price increases slows down, according to the Consumer Price Index. Inflation has eased, leading to positive performance in share markets, particularly in the US. However, cost-of-living pressures persist, affecting retail turnover in Australia.

In this edition we delve into electric vehicles, boosting your super with a lump sum and the growing reliance on the Aged Pension in Australia.

Read more

July Newsletter 2023

 

Our July newsletter has just landed in your inbox. In it you will find a summary of the super changes that have come into effect this new financial year, we share the warm welcome of the newest mini member to the Income Solutions family and have some tips on managing the cost of raising children as the cost of living continues to spiral.

Have a read here

June Newsletter 2023

 

As we welcome winter and approach the end of the financial year it is the perfect time to get your financial affairs in order. It is a great time to set yourself up for success in the new financial year and reassess your goals and budget.

In our June Newsletter you’ll find some strategies to get you started, along with some tips on transitioning into retirement and if a testamentary trust is right for you and your loved ones.

Read more

May Newsletter 2023

 

While we await the delivery of the Federal Budget by Treasurer Jim Chalmers on May 9, we are keeping our eyes on the cash rate decision from the Reserve Bank of Australia which many predict will be another pause.

In our latest newsletter we explore how an emergency fund delivers peace of mind, May’s market movements and resident superstar Ash Irwin talks about credit scores.

Click here to read more

April Newsletter 2023

 

Daylight savings is officially over, the mornings are getting chilly and Easter is just around the corner. To say we are egg-cited is an understatement!

In our April Newsletter we talk about how interest rates may be affecting your investments, Associate Will Clark talks about his pathway to becoming a Financial Adviser and we wrap-up our first Common Sense Investing information evening post Covid.

Read more

March Newsletter 2023

Autumn is here and with it the return of our Common Sense Investing information evenings for the first time post Covid. We are so excited and can’t wait to welcome everyone back into our auditorium, all of the details are in the March newsletter with the first presentation on Wednesday 29th March at 6:00pm.

Also in our newsletter we touch on the importance of being flexible when planning for retirement and the new star rating system for aged care making family choices easier when moving a loved one into aged care accommodation.

Read more

The many elements of financial advice

Cropped shot of businessman greeting a young professional around the table in office. Close up of business people shaking hands in office.

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The Financial Advisors at Income Solutions are highly skilled and qualified professionals requiring a degree and major in financial planning, who assist our clients in achieving and working towards a secure future. The studies required ensure that our Advisors have the right set of skills to best provide our clients with a plan that reflects their unique circumstances and goals. However, over the 30 years of operating we know that while qualifications and skills are important, the partnership forged with our clients has many elements beyond simply providing facts and figures.

We have witnessed first hand that by making a person’s financial situation better, almost always has an impact of improving mental health too. Some examples of this are included in the attached Australian Unity Retrospective Australian Unity marks 20 years in financial advice _ an interview with Ross Johnston
this outlines someone who is being bullied at work, and their financial Advisor was able to improve their situation by letting them know they were in the position to retire early or take time off to find another job, this knowledge was able to dissolve the power that the bully had over them.

Also, when supporting clients who have had a death in the family, our Advisors are comprehensively aware of their financial situation and objectives. Clients who are grieving and emotionally vulnerable may find it difficult to think with clarity regarding complicated financial matters. This is especially important even with the support of family and friends, who often provide well-meaning but conflicting advice to ‘get it done’ or ‘move on’, making the advice of a qualified and experienced financial professional, that they have an established financial partnership with invaluable.

Another example of the many elements to the role of a financial advisor is when clients are going through a divorce, and we strive to assist clients in maintaining their lifestyle and strengthening their wealth and long-term financial position.

At Income Solutions our process not only updates and reviews individual financial plans that reflect our client’s needs and objectives, but we also work hard to ensure that people are comfortable with the risk profile of their investments. This ensures that the mental health of our clients is not subject to continuing external fluctuations of financial markets.

It is a privilege to offer financial advice to our clients through a variety of life stages and situations, many of our clients have even become friends. In the Income Solutions document titled ‘The True Value of our Relationship’ e-book the true value of our relationship we can see that the elements and benefits of financial advice are multi-faceted, and move through life stages both joyful and difficult.

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