Massey Financial Advice

Question: My insurance premiums have become very expensive. What are some ways I can reduce my premiums? Answer: Reducing the cost of personal risk insurance often involves tailoring your policy to suit your needs without compromising coverage. One of the most common ways is ensuring to adjust your level of coverage to reflect your current financial commitments. For example, if your mortgage has decreased or your children are financially independent, you may no longer need the same level of cover. For income protection policies, increasing your waiting period before benefits start (e.g., from 30 to 90 days) or reducing the benefit period can lower premiums, however, they will reduce the benefits you receive in a claim. Consolidating policies with one insurer might also offer discounts, particularly if you have multiple types of coverage, such as life and trauma insurance. Your health and lifestyle can also play a role. If your health has improved since you initially took out your policy, it may be worth requesting a reassessment from your insurer to reflect your current status. Lastly, reviewing your policy’s additional features and removing unnecessary add-ons can help you strike the right balance between adequate coverage and affordability. Your financial adviser can guide you in tailoring your insurance to your specific needs, and a regular review can ensure cost-effectiveness without compromising protection. If you would like to check your personal insurance cover, book a free initial call https://buff.ly/3RaGqS4

The Modern Retirement Equation: Balancing Work, Wealth, and Wellbeing The concept of retirement is evolving, with a need to balance continued work, financial security, and personal wellbeing. Some benefits of working beyond traditional retirement age, such as financial stability and mental health, need to be balanced with challenges like ageism and health issues. The importance of financial planning and diversification is underscored, along with strategies for aligning lifestyle expectations with financial realities. Ultimately, the focus is on achieving a fulfilling retirement through adaptability, informed decision-making, and a holistic approach to work, wealth, and wellbeing. Read more at https://buff.ly/3BjFuWP If you would like to find out how retirement might work for you, book a free initial call https://buff.ly/3RaGqS4

Here is a great New Year's Resolution question: I saw the markets have been doing very well lately. Should I wait for the market to go down before investing? Answer: Waiting for the market to dip before investing might seem like a good strategy, but timing the market can be risky and often leads to missed opportunities. Markets are inherently unpredictable, and waiting for a downturn could result in sitting out during periods of growth or investing right before further declines. Instead of focusing on timing, many investors adopt a long-term investment strategy, focusing on creating a diversified portfolio that aligns with their financial goals and risk tolerance. A common approach is dollar-cost averaging, where you invest a fixed amount at regular intervals, regardless of market conditions. This strategy helps to reduce the impact of market volatility by buying more shares when prices are low and fewer shares when prices are high. Additionally, remember that the market’s current level should not solely dictate your decision. Factors such as your investment horizon, cash flow needs, and risk capacity are crucial in determining the right time and strategy for you. Your financial adviser can help tailor an investment strategy to your unique circumstances, ensuring it aligns with your long-term goals rather than short-term market movements. If you would like some help tailoring your investment strategy, book a free initial call https://buff.ly/3RaGqS4

Avoiding wealth transfer pitfalls Effective wealth transfer planning is crucial to avoid common pitfalls and ensure assets are passed down smoothly and equitably. Engaging in early family conversations about financial wishes and involving professional advisers can help align investment strategies with beneficiaries’ goals. Diversifying asset allocation and utilizing structures like testamentary trusts can minimize tax burdens and protect wealth across generations. Proper planning can prevent family disputes and ensure a seamless transition of wealth, reflecting the values and intentions of the benefactor. Read more at https://buff.ly/3BjFuWP If this applies to you, book a free initial call https://buff.ly/3RaGqS4

The Modern Retirement Equation: Balancing Work, Wealth, and Wellbeing The concept of retirement is evolving, with a need to balance continued work, financial security, and personal wellbeing. Some benefits of working beyond traditional retirement age, such as financial stability and mental health, need to be balanced with challenges like ageism and health issues. The importance of financial planning and diversification is underscored, along with strategies for aligning lifestyle expectations with financial realities. Ultimately, the focus is on achieving a fulfilling retirement through adaptability, informed decision-making, and a holistic approach to work, wealth, and wellbeing. Read more at https://buff.ly/3BjFuWP If you would like to find out how retirement might work for you, book a free initial call https://buff.ly/3RaGqS4

Question: My friend told me the insurance policies in her super fund are much cheaper than the policies I got through my adviser. What are the differences between them that makes mine more expensive? Answer: Insurance through super funds, known as group cover, is often cheaper because it’s a one-size-fits-all product negotiated between the super fund and insurer. While this can save money upfront, it usually comes with less flexibility and more restrictive terms compared to insurance policies taken out direct with an insurer. Group policies can also be adjusted or cancelled by the super fund without your consent and claim processes may be more complex due to limited underwriting at the time of application. Retail insurance, on the other hand, is tailored to your needs, with features like locked-in terms and premiums and comprehensive underwriting upfront. This provides greater certainty at claim time and ensures the policy remains in place as long as premiums are paid. Additionally, group policies require the same duty to take reasonable care as retail policies, meaning non-disclosure of past medical conditions could still result in denied claims, even if unrelated to the condition. Insurance is about reducing risk, and retail policies often provide stronger protection. You should consult your financial adviser to ensure your cover suits your needs and to review premium costs regularly. If you would like to find out how this applies to your situation, book a free initial call https://buff.ly/3RaGqS4

Superannuation or Shelter? Rethinking the Path to Wealth and Stability The discussion centres on the tension between using superannuation savings for home purchases and ensuring long-term financial security. It highlights the risks of depleting retirement funds for short-term housing needs, potentially leaving individuals reliant on the Age Pension. The debate also touches on generational equity, noting that younger Australians face significant challenges in balancing home ownership and retirement savings. Strategies for financial resilience include enhanced financial education, policy innovation, and encouraging voluntary superannuation contributions. Read more at https://buff.ly/3BjFuWP

Question: What’s the difference between holding insurance inside and outside of super, and what should I consider? Answer: Holding insurance inside superannuation—such as life insurance, total and permanent disability (TPD), or income protection—can be convenient and make coverage affordable, as premiums are often deducted directly from your super balance rather than paid out of your own pocket. However, policies within super can have limited coverage options, and benefits may be taxed when paid out, especially if your beneficiaries are adult children or non-dependants. On the other hand, holding insurance outside of super can offer greater flexibility in terms of policy features and cover amounts. For example, standalone income protection outside of super typically provides more comprehensive coverage, including longer benefit periods and higher monthly payout caps. However, these premiums are paid from your after-tax income, which may make it more costly than insurance inside super. When deciding where to hold your insurance, consider your cash flow, the type of coverage you need, and tax implications. Your adviser can help you assess the best approach for your circumstances, balancing affordability with the level of protection you need. If you would like to find out more about how to adequately protect yourself with personal insurance, book a free initial call https://buff.ly/3RaGqS4

Asset Allocation and Advice: Securing Financial Health Through Upswings and Downturns Financial advisers play a critical role of in maintaining financial health through both market upswings and downturns. Strategic asset allocation, tailored to individual goals and risk tolerance, is essential for long-term portfolio performance. Advisers provide stability by helping investors stay disciplined and avoid reactive decisions during market volatility. Additionally, rebalancing strategies are crucial for capturing gains in prosperous times while managing risks. Read more at https://buff.ly/3V26nFk If you would like to find out how this applies to your investments, book a free initial call https://buff.ly/3RaGqS4

Question: I’m considering opening an investment account for my child. What should I be aware of? Answer: Opening an investment account for a child can be a great way to kickstart their financial future. Some options include investing in shares, managed funds, or exchange-traded funds (ETFs) in your child’s name or a trust account. However, there are a few considerations, such as tax implications. Investment earnings for minors are taxed at penalty tax rates of the highest marginal tax rate (47%) beyond the $416 income threshold, so you may want to hold investments in a parent’s name or use investment bonds which may be more tax efficient. You should also think about the time horizon for the investment. If the goal is to provide funds for education or a first home, choosing a diversified portfolio with a balance of growth and defensive assets might be appropriate. Investing for a child is a long-term strategy, so choosing the right vehicle and asset allocation can set them up well for the future. You should consult your financial adviser can guide you through the various options and help you select the best approach for your child based on your goals and tax considerations. If you would like to find out more, book a free initial call https://buff.ly/3RaGqS4