Plan 2 Prosper

During tough economic times, you may look for ways to cut your expenses. However, when reviewing your budget, insurance should be one of the last items examined.

If the unthinkable were to happen and you didn’t have adequate insurance, the financial impact on you and your family could be quite dramatic. Regardless of whether you’re feeling the squeeze right now or looking for ways to reduce your expenses, there are a number of ways many of us can make personal insurance cover more affordable. (more…)

Insurance is vital career protection for professionals.

Success as a white collar professional is often built on years of education and hard work. Once you’ve made it, there’s probably a temptation to feel like you have set yourself up for life.

There is no doubt a healthy income is a big help when it comes to building a comfortable lifestyle for your family. The challenge can be sustaining this income, and this lifestyle, if you suffer a serious illness or injury.

Serious illnesses and accidents can happen to anyone, at any time. It could happen walking down the street, it could happen milking a cow, if all of a sudden you stop and look out your window it could be happening … right now. (more…)

Most people build their hopes and dreams for the future on the strong financial and emotional foundations of a loving partnership … sadly, for far too many those aspirational dreams and goals become unachievable when the relationship foundations crumble and disintegrate. In broad terms, legislation enables superannuation, certain annuities, life insurance policies and other investments to be divided between parties upon breakdown of a marriage or De Facto relationship.  (more…)

During the week an email arrived with the results of some recent surveys … apparently, Australian Mums would rather face dirty nappies, the dentist or a pap smear than the reality of completing an application for life insurance. 83% of these mums say their untimely death would place a huge financial burden on their family, and more than 62 % indicated they do not have any life insurance.

The main concerns of these mums were perceptions of high cost, lack of time to spend on arranging insurance and lack of full understanding of the benefits.  They were also unable to identify with TV direct insurance advertising as this focuses primarily on what would happen if Dad dies.

These are obstacles we help people to overcome. So please don’t continue to be one of those women still walking the insurance tightrope … (more…)

The concept of degradation in performance is usually associated with cars. When your car is performing well, it is more enjoyable to drive, is more responsive and more efficient. Constant use, driving long distances over the holidays and sitting in traffic every day, day after day, takes it toll on your car. It takes such a toll that if you don’t schedule it in for a service or do some essential maintenance, your car will eventually break down.

That’s why every year, or after a set number of kilometres, we book our cars in for a check up. Expert mechanics complete a full inspection and safety report and make adjustments to ensure your car is back to its optimal functioning level.

Just like cars, our finances also have an optimal functioning level. After prolonged periods of constant pressure, our budgets, savings plans, financial strategies can also become sluggish and run the risk of becoming irrelevant to our changing needs. (more…)

The flood situation in QLD and Northern NSW continues to deteriorate placing many of you in difficult circumstances.

MLC will be offering premium relief on MLC Life Insurance policies for those Qld and Northern NSW residents experiencing financial hardship as a result of the floods. Each case for premium relief will be assessed on its particular circumstances, and a consultant will confirm the premium relief MLC will be able to offer.

To support you during this time MLC have established a dedicated email address for any queries relating to the QLD and Northern NSW floods which is flood_support@mlc.com.au. MLC have also mobilised a team within their Service Centre to deal directly with your queries relating to the floods. We also welcome any queries you have where we may be able to act as an intermediary on your behalf.

Please share this with anyone you think may have an MLC life insurance policy.

Where possible, please advise MLC as soon as practicable of any requests for relief and provide the following information:

• Policyholder name
• Policy number
• Explanation of situation
• Contact details

Information on NAB’s support for those impacted by the floods is available when you click here.

We will provide you with any additional information as it comes to hand. For those affected by the floods our thoughts are with you and we wish you all a safe outcome.

Where to from here?

If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

Dan Smith is an Aged Care Advice specialist. Financial advice concerning aged care is complex and requires a thorough understanding of the aged care system, processes involved, estate planning, tax implications and interaction with the social security system. His advice can enable you or those close to you to:

• better understand how the aged care system works;
• choose the cost of care options that best meet individual need (or determine an acceptable compromise)
• employ strategies to reduce the cost of care

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

The typical Australian family looks somewhat different in the 21^st century than it did during the economic glory days of the 50′s & 60′s, where the stereotype saw 3 children supported by a breadwinner dad and a stay-at-home mum. Since that era, Australians have tended to get married later, have fewer children and do so when they are older. Indeed, more than half the babies born this year are likely to be to parents aged 30 and over.

Regardless of the best intentions of parents, the reality is that children cannot be raised on love alone. While there is no actual fixed or absolute cost of a child – a range of variables will impact on how many financial resources any individual family dedicates to the task – some clear patterns have emerged from various research projects undertaken to examine the topic. (more…)

It seems like there’s always time to talk about the little things in life, but discussing the big issues is never as easy. 

If you think about what’s really important to you -family, security and your way of life – you realise the need to keep them safe. 

Illness isn’t a subject anyone likes to dwell on but the unfortunate reality is you or someone close to you will be critically ill at some stage.

The financial cost of this is something you can avoid. Research from the University of Canberra’s National Centre for Social and Economic Modelling shows living expenses during a time of critical illness can be about $80,000 a year, not including the cost of medical treatment and rehabilitation.

For many people, the scenario gets worse as their illness prevents them from working and they lose their income, then their savings and investments. But it doesn’t have to be this way.

Easing the financial pain

Many people aren’t aware you can insure yourself against critical illness.

Critical Illness (CI) insurance provides a lump sum if you become critically ill so you can pay your mortgage or anything else that needs funding.  It takes away the financial pressure so you can concentrate on getting better.

But CI insurance isn’t just about financial protection, MLC policies include access to Best Doctors, a worldwide network of medical experts that consult with you and your doctor on your diagnosis and treatment.       

Elizabeth‘s story

Elizabeth Gould knows the value of critical illness cover.

The mother of two children was diagnosed with breast cancer in her late thirties and had a double mastectomy.

Dealing with this illness was emotionally and physically tough for Elizabeth, but given she had CI insurance, the financial strain was significantly lessened.     

“I think one of the first times I got upset was when I received the bill for my mastectomy,” Elizabeth said.

“It was an operation that costs thousands and the Medicare component was hundreds. I was such a long way out of pocket but I had great cover. I remember thinking, I never wanted to have cancer and now I’ve paid so much money to fight it.”  

While it’s not something anyone wants to think about, Elizabeth’s grateful she took the time and initiative to plan for the unexpected.

“You don’t see cancer coming. There was no medical history in my family and I was only 38 when I was diagnosed,” she said.

“If you think there’s always time to take out insurance later on, then it’s already too late.  

“Imagine never being able to work again because of illness or accident and then ask how you would support your family. If you can, then you have enough insurance.”

Finding out how to protect your family’s future with insurance doesn’t have to be difficult or expensive.

Having the right insurance cover can be simple and cost-effective, allowing you to get on with enjoying life, because you no longer have to worry about what might happen tomorrow.

In a previous post “Protecting whats important to you …” we explored some of the value based discussions which are important for those still preferring to walk the underinsurance tightrope; again I’d implore those people to reconsider their position.

An appropriate wealth protection strategy is the foundation of any long term wealth creation strategy and financial plan. Contact us, if you would like to revisit the safety net you have in place while you walk through the tightrope that is life.

Where to from here?

If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Adviser based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

Whether they’re highly paid professionals or full time home makers, women tend to underestimate the valuable contribution they make to the family unit. This undervaluation factor leads many women to neglect insuring their own lives and incomes. The reality is that a 30 year old woman could be protected with $700,000 life cover for as little as $1 per day, which is much less than a daily cup of coffee.

In a previous post “Protecting whats important to you …” we explored some of the value based discussions which are important for those still preferring to walk the underinsurance tightrope; again I’d implore those people to reconsider their position. (more…)

If you’re approaching retirement, you may be wondering how life is going to treat you on the health and financial fronts. That can be challenging enough in itself.

Probably the last thing you’d expect to cope with would be taking on a parental role again, but for around 22,500* Australians this is something they’re already experiencing.

If something happened to your son or daughter, you’d want to make sure your grandchildren were looked after financially, whether you became the legal guardian or played a supportive role.

A growing concern

While financial worries wouldn’t be top of mind during such family trauma, if your child hasn’t planned ahead there could be financial pressure on your retirement funds.

By investing in Life and/or Total and Permanent Disability insurance, your child can make sure the financial pressure of raising their children is eased.

This means you can focus on providing the emotional support and family structure to stabilise your grandchildren’s home life.

The cold hard facts

• An adequate standard of living in retirement requires 70-80% of pre-retirement expenditure. ^†
• Baby boomers are expected to live, on average, some seven years longer than their parents. ^‡
• 20% of baby Boomers will probably inherit very little or nothing at all. ^‡
• ‘Cancer has overtaken cardiovascular disease as the leading cause of burden.’ ^§

Start the conversation

So while talking to your grown, self-sufficient child about their financial obligations is difficult, you owe it to yourself and your grandchildren to start the conversation as early as possible.

Here are some statistics to help you with the conversation.

• To raise two children from birth to age 21 can cost $537,000^║, which would put a serious dent in your retirement nest-egg.
• Food, housing, health, education and clothing take up 55% of the total cost of raising two children for middle income families. ^║
• The costs of recreation, transport, fuel and power accumulate to just over $134,000, with food amounting to $107,800 to raise two children. ^║
• You may find you can’t get State education allowances or ‘school cards’.^¶
• If you’re a self-funded retiree (or still in the workforce) Centrelink’s means tests may result in you not being eligible for any family support payment. ^¶

At a time when individuals are increasingly expected to self-fund in retirement, Baby Boomers have become the ‘bunnies’, caught in a situation in which they are being asked to do something they do not have the capacity to do.

Source:

• The Australia Institute; Rich Boomer, Poor Boomer, 2006.
• * ABS: Family Characteristics, Australia, 2003.
• † The Australia Institute; Rich Boomer, Poor Boomer, 2006.
• ‡ NATSEM, Wealth and inheritance, 2003.
• § Australian Institute of Health and Welfare, 2007.
• ║NATSEM, Australian child costs in 2007.

Case study – David & Susan Jones

David was 15 when he started an apprenticeship at his local steel works.  Forty years later, he was still working at the same factory. 

His wife Susan has kept the family ticking along, having raised four children to become independent adults with their own families.

After a company restructure was announced, David took the opportunity to ask for a redundancy and succeeded in getting a healthy redundancy package. This, together with his superannuation and accumulated benefits, meant David and Susan were sitting pretty for an early retirement. 

Both David and Susan viewed this as a great opportunity to enjoy time with their grandchildren and to travel around Australia.

On Boxing Day of that year, David’s eldest son Rodney had a massive brain haemorrhage and passed away. 

And, because he was young and didn’t see the need for any life insurance, Rodney left his wife and three children without any means of support.

As any parent or grandparent would, David & Susan took in Erin and the kids into the family home.

The unplanned financial impact on David, Susan and their retirement plans was devastating and they were unable to do most of the things that they had hoped 40 years of work would allow them to do.

This case study is for illustrative purposes only.

“Wondering: What should I do? … “

Speak to your financial adviser about the best way to protect and manage the financial future of both you and your loved ones.  For example, you could pay for your child’s insurance if they aren’t in a position to do so themselves.

Where to from here … Maybe, it’s time we talked?

If you would like to discuss the topics raised in this post or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060