Savings and wealth creation strategies

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Savings and wealth creation strategies
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ltltAdviser Namegtgt ltltPractice Namegtgt
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Important information

• This presentation has been prepared to provide
  you with general information only. It is not
  intended to take the place of professional advice
  and you should not take action on specific issues
  in reliance on this information.
• In preparing this information, we did not take
  into account the investment objectives, financial
  situation or particular needs of any particular
  person. Before making an investment decision
  (with or without the assistance of an adviser),
  you need to consider whether this information is
  appropriate to your needs, objectives and
  circumstances.

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Todays agenda

• The big picture - where are you now?
• Where do you want to be in the future?
• Seven simple strategies
• Quick and easy savings tips
• Cutting fees on your super
• Your future - your choices
• Getting help

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The big picture - where are you now?
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The big picture - where are you now?

• Australian population breakdown
• Longer life expectancy
• Trend towards earlier retirement
• Higher expectations of retirement

Table source Australian Bureau of Statistics
(Cat. No. 3201 and 3222).
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The big picture - where are you now?

• Wealth per head of Australians in 2001
• Baby boomers - wealthiest segment but still have
  more years of saving opportunity ahead
• Low savings of Australians in the 14 to 34 age
  bracket, including the Generation Xers

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Where do you want to be in the future?
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Where do you want to be in the future?

• 1. Work out your income needs
• create a budget of income and expenses - it may
  give you information to take control of your
  money, may show you ways to achieve this, and
  could assist your financial planner to give
  helpful advice
• 2. Project how much you need to accumulate to
  produce the required annual income every year
  from retirement until you die
• 3. Set realistic targets
• 4. Establish savings goals
• 5. Revisit and review your goals regularly

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Seven simple strategies
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Seven simple strategies

• 1. Invest in super
• there are tax breaks on contributions and
  investment earnings
• 2. Contribute super for a spouse
• you may become entitled to a rebate on your
  personal income tax
• 3. Borrow to invest and claim tax deductions on
  the interest expense
• interest on money borrowed to fund an investment
  is generally tax deductible
• 4. Invest in shares that pay franked dividends
• you can reduce tax payable on dividends, and
  franking credits can be used to reduce tax
  payable on other income

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Seven simple strategies

• 5. Pay off the family home
• you do not have to pay capital gains tax if there
  are more than 12 months between the
  purchase and sale of your home
• every dollar invested can give you a tax-free
  return on the sale of your home
• 6. Get private health insurance
• 30 tax rebate on the cost of private health
  insurance premiums
• 7. Convert super to an income stream
• potential tax benefits

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Quick and easy savings tips
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Quick and easy savings tips

• 1. Consider an automatic deduction from your pay
  into a dedicated savings
• account. Youll be surprised at how quickly
  it builds up!
• 2. Before making a credit card purchase, make
  sure youll be able to pay it off
  at the end of the month. If
  not, consider lay-by to avoid paying interest
• 3. Remember small purchases add up. For
  example, if you spend 8 on lunch
  each workday, over 12 months this adds
  up to over 2,000
• 4. Stick to your shopping list and dont go to
  the supermarket hungry!
  Impulse buying wastes money
• 5. Start saving coins. After a few months, the
  money can be used for household
  expenses

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Cutting fees on your super
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Cutting fees on your super

• If youve changed jobs over the years, there is a
  good chance that you have old super accounts from
  previous employers
• Multiple accounts multiple fees
• Generally, consolidating your super accounts
  reduces the amount of fees and charges you would
  otherwise pay on multiple super accounts
• A dollar saved on fees is generally another
  dollar thats invested
• Get your copy of the Super Consolidation Made
  Easy form

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Your future - your choices
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Your future - your choices

• Making the right investment choice may improve
  your quality of life in retirement
• Growth assets such as shares and property may
  achieve better returns, but they can also fall in
  value
• Income assets such as cash and bonds are lower
  risk, but the trade-off is a lower return
• When choosing an investment, take into account
  your
• - investment goals
• - timeframe for investing
• - tolerance to risk
• - financial position and
• - current investment diversification

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Your future - your choices
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Getting help
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Getting help

• The new AXA Freedom website features a range of
  calculators that can help you better understand
  your financial situation
• - Investor profile calculator
• - Budget planner
• - Super savings calculator
• Contact ltltAdviser namegtgt on ltltTelephone numbergtgt
  for additional guidance