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In response to the many questions we routinely field about trauma cover, we would like to provide some of the basic facts.

What is It?

Trauma cover provides you with a lump sum payment if you sustain an injury or illness that is specifically covered in your policy. After suffering a traumatic illness or injury, the money can help you take care of the immediate adjustments you may have to make to your lifestyle as a result of trauma.

Why Would You Need It?

Nobody plans on having a traumatic event such as a severe injury or illness, but the sad reality is that a severe injury or illness can happen to anyone at anytime. If you decide that it’s appropriate to make plans to protect yourself from the financial consequences of such an event, trauma cover can provide you with the assurance that if something does happen, you will have resources to help with your financial well-being while you recover.

Doesn’t My Private Health Insurance Cover Trauma?

Your health insurance usually covers medical treatments, hospital stays and any extras you pay. However, when traumatic events occur, there are often expenses that aren’t covered by your health insurance. For example, you may need rehabilitation equipment or certain kinds of specialised therapies that aren’t included in your health insurance.

Many Australians think that they can find a mortgage with the best rates and terms for their situation by going to their bank or preferred lender. On occasion, your lender will actually have the best mortgage for your situation. But the odds are that they won’t.

Look at the situation mathematically. If a mortgage broker has access to more than twenty different lenders and you are seeing one lender, who is most likely to find the terms and rates that are best for you?

Why You Should Choose Your Mortgage Broker Carefully

Finding the right mortgage isn’t easy. Lenders often vacillate between strict guidelines and borrower-friendly standards. Some lenders use tactics that can not only cost you money, but can compromise your standard of living and affect your ability to obtain future loans.

Some mortgage brokers do things the right way. They know their market like the back of their hands and do their due diligence in the beginning with their clients, obtaining exactly the information they need to figure out which lenders will be appropriate for any given client. Then, they will apply only to those lenders.

30 June is a date with which financial planners and their clients are equally familiar: the date on which paperwork must be filed with the Australian Tax Office (ATO). For the financial planner, this date produces two main challenges: keeping their clients’ affairs in order while constantly monitoring the government for any last-minute changes to rules or regulations that may be relevant to their clients.

In recent years, the industry trend has been to be much better prepared by 30 June, but the proximity of “Budget Night,” when the Government announces the budget for the next twelve months and 30 June can still present a busy six weeks or so for financial planners and taxpayers alike.

This year, the budget was announced on 13 May, leaving 47 days until the 30 June deadline to make any adjustments caused by changes in the budget. However, well-prepared financial planners stay on top of projected changes and see the timeframe as long enough to be prepared but short enough to discourage procrastination.

Retirement is a lot tougher than it once was. Gone are the days when a family could pay off the family home, put away some savings and maybe a small investment or two and live happily ever after. In this era, it takes careful planning to have enough money to retire. At this point, we like to see people in their 20’s start planning for their futures.

If you want a comfortable retirement, you need to start early. You should also avoid these crucial mistakes.

Failure to Plan

As the old adage goes, “If you fail to plan, you plan to fail.” The fourth edition of The ANZ Survey of Financial Literacy in Australia, which was conducted in 2011 and is their most recent, showed that among adult Australians, only 37% had come up with an estimate of how much money they would need for retirement. A good plan should include what risk you deem acceptable, which investment vehicles you want to use, how much you have to invest, your preferred cash flow and what insurance you need to protect your investments.

Failure to Formulate a Budget

You should formulate a budget and stick to it if you want to have investment success. A budget accomplishes two things; it lets you know where your money is going and earmarks a set amount for your future.

One of the oldest adages in the financial planning industry is “pay yourself first” by depositing a percentage of your income in a savings account. However, many of us are already so “maxed out” that we don’t have any money to put aside. The mere thought “I should save money” is more an affirmation of one’s inability to do so.

However, there are plenty of ways we can save money if we really motivate ourselves. The way to do this is to take small steps with great discipline and clarity of purpose. Too often, people trying to save money deposit large amounts into savings accounts, leaving them so strapped that they eventually withdraw it again.

Here is how to save money: take a small amount every week off of the top of your pay. This can be difficult at first and there are always temptations to spend your savings, but “slow and steady wins the race” applies here. Many people try to save by giving up something they really like and are actually surprised when they give in and stop saving money.

Ultimately, the most important question is this:

In an environment where business, finance and real estate are becoming increasingly competitive, it is crucial to find a great financial adviser. With an investment market that is becoming even more complicated, we think that it will be even more important to have a great financial adviser who can steer you through a maze of investment possibilities and help you choose the path that leads to treasure at the end.

Before You Meet Your Adviser

Before you walk into a financial planning firm’s office, you absolutely must do your homework. The first thing you need to do is ask yourself some questions. Why do you want a financial adviser? What do you aim to accomplish? How much risk is acceptable and how much is unacceptable? What time frame are you looking at for growth? What vehicles would you like to use for investment?

When You Meet Your Adviser

After you have answered your own questions, there are plenty of questions you should ask your adviser, too. How long have they been associated with the finance industry? What is their specialty? How much money do they charge? What is their philosophy on investing? Is there a free consult? If you aren’t satisfied and want to change advisers, will it cost you anything?

While the current super guarantee of 9.25% and its eventual 12% sound like a lot of money, most people who want a better retirement lifestyle will want to make extra contributions and use other techniques to ensure that they live the lives they want after they retire. Here are some tips for maximising your super.

Consolidate to One Account

If you have more than one super account, you may be paying unnecessary fees. Each fund charges fees and these fees can turn into a lot of money over a period of 30 years. When you pay extra fees, you are losing money twice: the fee itself and the money it could have made for you as an investment.

It is a good idea to move it all into one account. This means less paperwork, less fees and more money for your super. In addition, it is much easier to monitor the performance of one fund than multiple funds.

It’s never too early to think about your future, and Approved Financial Planners helps you do just that. One of the most important factors in your future is your superannuation fund, or “super.” Learning how to maximise it now will have a profound effect on your future lifestyle.

What Is Your Super Fund?

Your super fund is your own personal retirement fund. Your employer makes contributions to it and you are allowed to make contributions to it as well. In addition, the Government sometimes contributes to your super in special cases. Your employer is currently required by law to pay the “Super Guarantee” of 9.25% into your super. By 2019, this will have increased to 12%.

Your super will grow from year to year from accumulation. In addition, it will also grow from being invested. The laws have changed and allow individual Australians to manage and invest their own super funds. One important benefit is that super income is taxed at a lower rate than other investment income. In addition, those who contribute extra to their supers can receive co-contribution funds from the Government.

Another benefit is that you can purchase income protection or disability insurance at a lower rate through your super.

When it comes to life insurance, many Australians are misinformed due to a number of myths that pass for “wisdom” in some circles. Unfortunately, many Australians buy into these myths and leave themselves and their families woefully underinsured or not insured at all. Here are seven myths about life insurance.

“I am Too Young and Healthy to Get Life Insurance.”

Many young people overestimate themselves but no one can really predict when illnesses and accidents happen. By getting life insurance early, you can be sure that your loved ones are protected.

“The Government Provides All of the Protection I Need.”

The current maximum disability pension (for 2013-2014) is only $569.80 every fortnight for a single person and only $475.90 each for married couples. Can you sustain your current lifestyle on that payment?

“I’m Covered by Workers Compensation.”

Unfortunately, Workers Compensation only covers you if you are hurt at work. Most illnesses and accidents don’t happen at work, meaning that most Australians who rely on Workers Compensation are out of luck.

Have you ever stopped to think of what would happen if you suddenly had no income for three months? Six months? If the answer to this question disturbs you, it’s time to learn about income protection insurance. Income protection insurance pays you if you are unable to work for an extended period of time. This can help you with expenses that are crucial to keeping your home and providing for your family.

Who Needs Income Protection Cover and How Does It Work?

We recommend income protection cover for everyone whose ability to support their lifestyle is dependent upon them working to earn income. This can be someone with a small business that depends on their presence to function correctly. It is great for the self-employed and for those whose ability to work depends upon their physical health.

Income protection cover works exactly as one might think. If you are unable to work due to illness or injury, it pays you up to 75% of your current income. Income protection cover is 100% deductible. However, you must pay taxes on your income if you ever need to collect benefits.

Most policies have limits. For example, they will pay you until the age of 60 or for a set number of years. Your premiums may be stepped or level. A stepped premium means that your premium starts out lower and increases as you age. A level premium means that you pay the same amount of money each year. This ends up being more expensive in the beginning and cheaper towards the end.