Generise Financial Planning

14/01/2025

Generise Financial Planning has closed its doors as I transition to Retirement.

I am now specialising in Business and Personal risk for Steadfast Life.

I can refer you onto other very competent Advisers who specialise in all other areas of Advice areas if required.

I can be contacted on mobile 0419 782 415.

03/10/2023

DISCOVERING YOUR FINANCIAL MINDSET: THE KEY TO UNLOCKING FINANCIAL SUCCESS

What is your relationship with money? Let's explore the most common financial mindsets, identifying their unique attributes, to help you discover your financial mindset and unlock financial success.

In the quest for financial stability and success, we often focus on tangible elements like earning more money, saving diligently, or investing wisely.
But have you ever stopped to consider the role your financial mindset plays in achieving your financial goals?

UNDERSTANDING FINANCIAL MINDSET
Your financial mindset is a set of beliefs and attitudes you hold about money — how you earn it, save it, spend it, and invest it. This mindset largely influences your financial behaviours, decisions and ultimately your financial success.

Each mindset carries a unique perspective about money, influencing your financial decision-making process.

There are four common financial mindsets:

The Spender enjoys the thrill of the present, often overlooking long-term financial security for immediate gratification. If you frequently find yourself making impulsive purchases, or your credit card balance perpetually outweighs your savings, you may identify with this mindset.

The Saver is characterised by frugality and a steady focus on long-term financial security. If you diligently maintain a budget or feel a sense of accomplishment when growing your savings, the Saver mindset most likely resonates with you.

The Avoider, often plagued by financial anxiety, tends to shy away from money matters. If you find bills and bank statements overwhelming, or frequently procrastinate financial planning, you likely have an Avoider mindset.

The Investor sees money as a tool for wealth creation. If you appreciate the potential of assets and are willing to take calculated risks for future returns, you are most likely aligned with the Investor mindset.

IDENTIFYING YOUR CURRENT FINANCIAL MINDSET
So how do you uncover your financial mindset? It begins with self-reflection.
Examining your feelings and behaviours around money can provide valuable insights into your current financial mindset. This process is beneficial because it sets the stage for potential shifts in perspective that can improve your financial life.

Once identified, you can analyse your money behaviours, uncover potential blind spots, and take action to optimise your financial decision-making.

It’s not just about money; it’s about your attitude towards it. Adjusting your financial mindset means transforming both how you see money and how you engage with it, paving the path to financial success.

Remember, the journey to financial success starts in your mind!

03/10/2023

FINANCIAL EDUCATION FOR A SUCCESSFUL FUTURE

Hands up if you learned trigonometry in school, but not how to budget? I’m sure we can all agree that we need to do better at setting up our young adults for financial success. Here, we cover five tools that can help to change this narrative for future generations.

Let’s face it; our world isn’t particularly adept at teaching financial literacy to the younger generation.

I don’t know about you, but when I was in school, we learned trigonometry (SOH-CAH-TOA is still permanently etched in my brain), which has been helpful for all the times I’ve needed to solve the missing sides and angles of a right triangle, but not so much for managing my financial affairs as an adult.

It’s time we change that narrative by sparking open, honest discussions about money and giving our young adults the financial tools they need to flourish.

THE NEED FOR OPEN DISCUSSIONS ABOUT FINANCE
Money talk has often been cloaked in secrecy, even considered taboo in some households. This needs to change. Parents can play an integral role in setting their children up for financial success by fostering an environment where money conversations flow freely. Open dialogue demystifies the world of finance and empowers young adults to make informed decisions.

USING POSITIVE LANGUAGE
It’s important to remember that the language we use significantly impacts the subconscious beliefs and attitudes our children will develop.
Just as negativity can breed fear and anxiety, positive language can cultivate a healthy relationship with money.

Instead of saying, “We can’t afford this,” try saying, “Let’s work out how we can save for this.” This small shift in dialogue encourages a mindset of abundance and possibility rather than scarcity.

FINANCIAL GOAL SETTING
Goals give us direction and purpose. Whether saving for a first car, paying off a student loan, or investing in their first property, encouraging young adults to set and work towards financial goals from an early age is a great way to help them build discipline and a future focussed mindset.

It’s equally important to celebrate milestones, no matter how small. This positive reinforcement nurtures a sense of achievement and motivation, propelling them further on their financial journey.

THE ESSENTIALS OF BUDGETING
Ever heard of the saying, “Failing to plan is planning to fail”?
That’s precisely why budgeting is so important. Budgeting is not about limiting yourself; it’s about making your money work for you.

UNDERSTANDING AND PRACTICING RESPONSIBLE SPENDING
Managing your money doesn’t mean you have to miss out on the things you enjoy. It’s all about responsible spending.
Need versus want is a timeless debate, but helping young adults to understand the difference is key.

We’re not just equipping our young adults with financial knowledge but empowering them to build a successful financial future.

03/10/2023

MASTERING THE ART OF INVESTING

In an age where investing has evolved from an elite club to a widespread phenomenon, even the novice investor can thrive. But have you ever stopped to wonder what separates successful investors from the rest?

In an age where investing has evolved from an elite club to a widespread phenomenon, even the novice investor can thrive. But have you ever stopped to wonder what separates successful investors from the rest?

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” – Paul Samuelson

The answer lies in mastering the art of investing, a skill accessible to anyone willing to learn but that requires patience, consistency and discipline… much like any artform.

Let’s explore five essential steps that will get you on your way to mastering the art of investing –

Step 1: Understanding Risk and Return
The potential for great reward comes with inherent risks and, typically, the greater the risk; the greater the reward. Balancing risk and return is a delicate art, where understanding your risk tolerance and aligning investments accordingly paves the way to success.

Tip – When investing, consider how you would feel experiencing a portfolio loss of 10%?… 20%?… 50%? If the thought of losing 20-50% of your portfolio has your stomach in knots and you breaking out in a sweat, that’s a good sign that you need to have a more conservative/balanced approach to your investing.

Step 2: Building a Diverse Portfolio
Imagine putting all your eggs in one basket and then dropping it. The losses would be devastating! Diversification is your safety net in investing.

Step 3: Research and Analysis
An investor without research is like a painter without a vision.
Do you really think Michelangelo just rolled on up to the Sistine Chapel on day one and started slapping the paint on? He had to create beautiful art, suspended 20 metres in the air, hanging upside down on a curved roof… all while maintaining visual perspective from the ground below. It required planning, strategy, understanding his materials and learning new techniques that met his needs.

Step 4: Setting Realistic Goals and Time Horizons
As the old adage goes ‘Rome wasn’t built in a day’… And neither will your investment portfolio.
Achieving investment success requires time and realistic expectations. You need to set clear and achievable goals that align your investment strategies with the time you have.

Step 5: Monitoring and Adjusting
The road to investment success isn’t straight.
Regularly reviewing your portfolio and adapting to changes in the market or your life circumstances is vital.

The art of investing isn’t confined to Wall Street’s elites; it’s a craft that anyone can master with dedication, guidance, and a willingness to learn.

While these steps offer a solid foundation, personalised advice can make all the difference.

03/10/2023

THE PILLARS OF RETIREMENT INCOME

The "Three Pillars of Retirement Income," encompass the age pension, compulsory superannuation, and voluntary savings.

While older Australians are reportedly among the wealthiest retirees in the world, much of their wealth is tied up in their family home, leaving many to worry about how they will find the money to pay for their day-to-day expenses when they stop work.

This fear is made worse by estimates from the Association of Superannuation Funds of Australia that the minimum cost of a comfortable retirement for a single person in Australia is roughly $50,000 a year, while for couples, it’s $70,482.

During the past two decades, Australians have been able to rely on the so-called ‘Three Pillars of Retirement Funding’. These include the age pension funded by the Federal Government, compulsory superannuation and voluntary savings.

However, a recent ‘Household Capital: Your Life Choices’ survey, published by research house MorningStar, showed 85 per cent of all retiree respondents are unaware of these three potential sources of income through retirement. This is significant given that preparation for retirement should start at least ten years before your planned retirement date to optimise your financial situation.

But what exactly does that all mean, and why?

Most retirees understand the concept of the age pension: that it is asset-tested and income-tested. It is a fantastic safety net for all Australians, providing them with a regular, if modest, income throughout their retirement. Any other assets you hold or inherit through retirement can further boost this income. However, the more assets you own, the smaller your aged pension entitlements will become until you are not eligible for any age benefits.

This is where it is crucial to start planning early.

For many Australians, the full potential of superannuation is yet to be seen, given that compulsory superannuation only really spread through the community some twenty years ago, and many older Australians still have relatively modest superannuation balances.

Superannuation, though, still remains a central pillar of retirement planning, as once a private retirement pension commences from your superannuation account all the assets supporting that pension, in terms of capital gains and income, become tax-free.

The biggest issue for retirees, however, is that strict rules surround when you can contribute to super and how much you can contribute when you do make these super contributions. This can be a big issue for retirees looking to hold assets outside of super, such as investment property or other savings, and who were hoping to use these assets to help support themselves through retirement.

As a result, it has never been more important to plan for your retirement as early as possible and obtain sound financial advice on how to structure your finances in retirement, as the penalties for getting it wrong can be significant.

17/07/2023

HOW TO AVOID PROPERTY INVESTMENT FAILURE

There is an old saying that no investment is as safe as a bricks and mortar investment, but is that really the case or is it something that we just like to believe, spurred on by what appears to be
the never-ending increase in property prices?

While it’s easy to think investing in residential property is a fail-safe way to make money, there are endless traps for anyone hoping to get rich quick by buying into property.

Most economists believe the steady price rise in Australian housing during the past two decades is due only to two factors. The first is the deregulation of the Australian banking sector which has allowed more banks to lend more money to more Australians to buy a house. At the same time, interest rates have been at historically low levels and these two factors combined, has meant that come auction day, Australians have just been able to offer more for houses that are up from sale.

However, this apparent endless price rise, has given Australians an incorrect belief that it is impossible to go wrong investing in residential property.

So, what are the key mistakes investors make when investing in property?

1. ONE + ONE = TWO

The most common mistake is potential investors simply don’t do the numbers before they buy. They assume that even if you lose money on a month-to-month basis, the eventual capital gains will easily offset this loss. Maybe that will happen, but what if it doesn’t?

How much money will you lose if the rent doesn’t cover the outgoings on the property while you own it? And how much capital growth do you need to achieve after tax to make a profit?

2. DID YOU ASK YOUR TAX FINANCIAL ADVISER OR ACCOUNTANT?

It’s also imperative to get good advice from the outset. If you are investing in property to minimise your overall tax bill, then it’s important you have your Tax Financial Adviser or Accountant walk you through the key numbers.

If you are simply trying to minimise your tax bill, you might consider buying a new house or apartment, where you can potentially claim a raft of non-cash depreciation charges, which in turn may significantly boost your tax deductions, and with it, the likely financial success of the investment.

3. DO YOU NEED THAT MUCH?

It’s easy to get carried away and borrow more money than you can comfortably afford. You might start off by thinking you are happy with a tax loss of say $200 a week but could find that as the years drag on you are less happy dealing with this cash shortfall.

4. INTEREST RATES

Decades of historically low interest rates have left many Australians with the false belief that interest rates will always stay low. As we have witnessed in recent times, interest rates can rise at any time given the economic environment. Can you cover larger repayments if rates do rise?

5. RESEARCH, RESERACH, RESEARCH

Finally, too many would-be property investors fail to properly understand the property market or suburb they are buying into. This can lead to either paying too much for a property or spending too much money on renovations and over-capitalising.

Over-capitalising refers to a situation where a property owner may spend $100,000 improving a property by undertaking renovations or landscaping only to find when it comes time to
sell that they have only added $50,000 to the final price buyers are prepared to spend on a property in that area.

Since the 1990’s, according to the Australian Bureau of Statistics, there have been five periods where the growth in house prices has been negative, falling by as much as 10 per cent on average compared to the previous year.

There is risk in any investment, including in property investments, as much as many don’t want to believe that. The best protection is to seek quality advice before you buy a property and determine whether buying really makes sense after you’ve covered all expenses and taxes.

Laurelle Bryce, Registered Tax (Financial) Adviser - Registration Number 25965325. Mobile: 0419 782 415

21/06/2023

Interesting article by Morningstar....

Buying a house offers stability and a sense of community. But are you buying for these reasons? Or could your money work harder in other ways? 

16/06/2023

4 TIME-TESTED INVESTMENT STRATEGIES FOR YOUNG INVESTORS

Are you a young investor looking to pave the way for a successful financial future? With the Age of Information at your fingertips, the opportunities are endless. Here are four tried and true investment strategies that are perfect for those just starting out.

The newest generation of young investors were raised during the Age of Information.

Growing up alongside the internet, this generation has been exposed to more information and technological advancement than any generation before them.

Young investors have greater access to education around investing, more diverse opportunities for investing, as well as a rise in social media content creators creating communities around building wealth – making this topic much more popular among younger generations.

However, the world of investing can still seem intimidating, especially for young adults who are just starting out.

While investing does involve risk, there are some time-tested investing strategies that all young investors should adopt to set themselves up for success:

KNOW YOUR FINANCIAL GOALS

Before investing, it’s essential to know what you’re working towards. Are you saving for a house deposit? Or are you building wealth so that you can retire early? You may want to launch a business. Or start a family?

Knowing your financial goals can help determine the best investment strategy for you.

Once you have set your goals, you can develop a financial plan for achieving these through investing.

START SMALL AND GROW YOUR PORTFOLIO OVER TIME

When starting, you might think you don’t have “enough” to begin investing.

Starting small and gradually increasing your portfolio over time is a great way to begin. It allows you to “learn the ropes” and build your knowledge and confidence over time, without feeling like you have too much at stake.

Getting started sooner rather than later also means you’re taking advantage of the power of compounding returns. Compounding returns happen when you reinvest your investment earnings, allowing your investments to grow over time. The earlier you start investing, the more time your investments have to compound, leading to significant long-term growth.

DIVERSIFY YOUR INVESTMENTS

You might have heard the term ‘Don’t put all your eggs in one basket’, which, in the world of investing, translates to ‘Don’t put all your money in one investment’.

Diversifying your investments across different asset types is a key strategy that can be used to lower portfolio risk and provide more stable investment returns.

KEEP CALM .... AND REMBERS YOUR INVESTMENT PLAN

Investing should generally be viewed as a long-term strategy, as markets are cyclical and typically go through periods of growth, decline and stagnancy.

This means that you will likely experience a market crash at some point in your investing journey, which can be a scary time for investors.

It’s important to stay calm and avoid making impulsive investment decisions. In many cases, the best strategy during a market crash is to stay the course and stick to your investment plan.

Further, market corrections can often present a great opportunity to invest as markets sell off and asset prices reduce. As Warren Buffet said: “Be fearful when others are greedy and greedy when others are fearful”.

While investing may seem daunting at first, incorporating these fundamental strategies will pave the way for success.

AND THE FINAL TIP ... SEEK EXPERT GUIDANCE!

Generise Financial Planning can help you set achievable financial goals, plan ahead, and making informed investment decisions that will keep you on track towards building lasting wealth.

Don’t navigate the financial world alone – call Laurelle to be your partner in success! 0419 782 415

16/06/2023

WHY YOU MAY NEVER RETIRE

Millennials in Australia are facing an unprecedented challenge when it comes to planning for retirement. With the cost of living steadily increasing, and many millennials grappling with large debts and limited financial resources, it is likely that more people will have to work well into their golden years. How much is needed for a comfortable retirement?

Many will never fully retire, as they will be unable to accumulate the necessary funds to support themselves for an extended period of time. With the cost of living steadily increasing, and many millennials grappling with large debts and limited financial resources, it is likely that more people will have to work well into their golden years.

HOW MUCH IS NEEDED FOR A COMFORTABLE RETIREMENT?

According to the Association of Superannuation Funds of Australia (ASFA), an individual requires approximately $48,266 per year for a comfortable retirement. This amount increases to $68,014 per year for couples. However, the average superannuation balance for a 30 year old millennial is currently just $38,386, which is well below what is required for a comfortable retirement. As a result, many people in this age group are unlikely to hit their retirement targets.

WHY MAY THIS CONCEPT HAPPEN?

There are several reasons why many millennials in Australia may never fully retire. Firstly, many are facing significant debts, such as student loans and mortgages, which can make it difficult to save for retirement. The cost of living is also steadily increasing, which means that people have less disposable income to put towards their retirement savings.

Additionally, Australians are living longer than ever before, which means that people will need to support themselves for longer periods of time. While this is great news for those who are healthy and active in their later years, it can pose a challenge for those who have not saved enough to support themselves for an extended period of time.

WORKING THROUGH YOUR OLDER YEARS MAY BE EASIER.

One way that millennials may be able to support themselves in their later years is by continuing to work. Fortunately, technological advancements have made it easier than ever to work remotely or from home. This means that people can continue to earn an income even if they are not able to work full-time or travel to a physical workplace.

Many people may choose to slow down rather than fully retire, which means that they may continue to work on a part-time or casual basis. This can provide additional income to supplement their superannuation savings and help them to achieve a more comfortable retirement.

HIGH EXPECTATIONS OF LIFE EXPERIENCES AND MATERIAL GOODS .

Another reason why many millennials may never fully retire is that they have high expectations when it comes to life experiences and material goods. Many people in this age group place a high value on travel, dining out, and other experiences that can be expensive. Additionally, people may be accustomed to a certain standard of living, which can be difficult to maintain on a limited retirement income.

WHAT RETIREMENT LIFESTYLE DO YOU WANT TO LIVE ?

If you are a millennial who is concerned about your retirement prospects, it is important to take action now. Start by considering what kind of retirement lifestyle you want to live. Do you want to travel the world and enjoy all that life has to offer, or are you happy with a more modest lifestyle?

Once you have a clear idea of what you want to achieve, you can work with Generise Financial Planning to develop a plan to get there. This might involve making additional contributions to your superannuation fund, investing in property or shares, or taking other steps to increase your wealth and financial security.

While a fully retired life may not be achievable for many, with careful planning and diligent financial management, millennials can still enjoy a fulfilling and comfortable retirement.

Contact Laurelle on 00419 782 415

16/06/2023

EOFY IS COMING ...

The end of another financial year is looming, and with that may come thoughts about your tax return and how your wealth has tracked throughout the year. Whether you're nearing retirement, a high-income earner looking to reduce your taxable income, or you're on a lower income and looking for ways to maximise your super contributions; there are a few things you can consider at tax time.

NEARING RETIREMENT? MAXIMISE YOUR SUPER CONTRIBUTIONS

If you’re nearing retirement, putting as much money into your superannuation account now is a good way to make sure you build up a healthy nest egg to live off in your golden years. To maximise your super contributions, consider salary sacrificing to put more money into your super account.

Salary sacrificed super payments take money out of your pre-tax income. These are called concessional contributions and are taxed at 15%. This rate is lower than most taxpayers’ marginal tax rates, so it can be an excellent way to reduce your taxable income while increasing your superannuation savings.

The maximum employer and salary sacrificed contributions that can be made each financial year is $25,000. And remember, if you’re self-employed, your concessional contributions are a tax deduction.

Non-concessional contributions of up to $100,000 can also be made each financial year. These contributions come from your after-tax income.

CONSIDER A ONE-OFF CONTRIBUTION TO LOWER YOUR INCOME TAX

Let’s say you’re on an income of $170,000. If you haven’t opted to salary sacrifice, your employer contributions to super will be $14,748.86 in the financial year. Therefore, your taxable income will be $155,251.14.

To lower your taxable income, you could make a one-off concessional contribution of $10,000. This will reduce your taxable income and still come in under the concessional contribution cap of $25,000.

ARE YOU ELIGIBLE FOR THE GOVERNMENT CO-CONTRIBUTIONS TO SUPER?

If you earn less than $54,837 per year (20/21 financial year) before tax, you could be eligible for the Government’s co-contribution on after-tax super contributions.

Those who earn under the threshold can make an after-tax contribution, and the Government will calculate your co-contribution amount when you submit your tax return. The co-contribution will be deposited directly to your superannuation account.

Taking advantage of Government co-contributions can be a great way to boost your superannuation savings, either for retirement or to save towards buying your first home.

REVIEW YOUR RECORDS NOW

It just wouldn’t be tax time without the fun of sorting through your receipts and documents. If you stay organised throughout the year, however, it doesn’t need to be a headache.

Now is the time to check you’ve been keeping good records. Have you got a record of relevant receipts and policy statements for items such as income protection policies you have outside superannuation?

Understanding the paperwork you require now to maximise your deductions will save you time when it comes to completing your tax return. If you haven’t got all of your records organised, review your spending throughout the year, identify transactions that may be a tax deduction, and put aside those receipts for tax time.

LOOKING FOR MORE HELP?

If you’re looking to maximise your tax return and get ready for a successful financial year ahead, call Laurelle on 0419 782 415 to discuss your options.

It doesn’t matter your circumstances; there are options available to help you boost your super savings and get the best tax return possible.

16/06/2023

FINANCIAL SUCCESS: MORE THAN JUST MONEY

When discussing financial success, many people tend to use the terms "rich" and "wealthy" interchangeably. While being rich is often associated with having a lot of money or material possessions, being wealthy is about having financial abundance that is sustainable over the long term.

BEING RICH

Being rich is often associated with having a high net worth, a large income, or significant assets. It’s a term used to describe people who have accumulated substantial money or wealth.

However, being rich does not necessarily guarantee financial success. Someone who is rich may have a lot of money, but they may not have the financial stability or security that comes with being wealthy.

BEING WEALTHY

On the other hand, being wealthy is a more sustainable form of financial success. Wealth is often created through long-term investments, passive income streams, and wise financial planning.

A wealthy person has accumulated enough assets and income-generating investments to provide a steady income stream, allowing them to live comfortably without relying on external factors.

Financial success requires more than just having a lot of money… it is about having financial security AND freedom:

Financial security means having enough money to cover your basic needs and some comforts.
Financial freedom is the ability to make choices based on what you truly want rather than being constrained by financial limitations.
The path to financial success requires a good understanding of financial literacy, clearly defined personal values, a long-term perspective, and the ability to establish, and stick to, a strategic plan.

FINANCIAL LITERACY

Understanding how money works, including managing, investing, and saving it, is critical to achieving financial success.

This knowledge will help you make informed decisions about your finances and enable you to take control of your financial future.

PERSONAL VALUES

Successful people achieving financial freedom often clearly understand what is most important to them. They know their values and use them as a guide when making financial decisions.

This approach helps them focus on their priorities and avoid impulsive purchases that jeopardise their long-term financial security.

LONG TERM PERSPECTIVE

True financial success and wealth isn’t built on the back of “get rich quick” philosophies. There is no “magic pill” for financial success; it’s a lifestyle, not an overnight fix.

Building wealth takes time. It requires focus, discipline, patience, and long-term commitment.

STRATEGIC PLANNING

Achieving financial success requires strategies such as creating a budget, investing wisely, and building passive income streams.

Again, these are all strategies that require patience and commitment. It is essential to stay focused on your goals and take the necessary steps to achieve them.

While the above factors each play a critical role in your journey to financial success, the secret ingredient lies in defining what financial success and wealth mean to you personally, as someone else’s definition of financial success may look very different to yours.

Some ways to achieve this are to:

Assess your lifestyle – Consider what your ideal lifestyle looks like; where are you, who are you with, what are you doing?

Define your values – Figure out what is important to you and define your values based on this. Your values can then provide a framework to make decisions based on what is important.

Set Financial Goals – Be clear on what you want to achieve in life. You can then define your vision further by setting specific financial goals.

If you are ready to start your journey towards achieving financial success, we can help. We will assess your financial situation, identify your goals, and create a long-term financial plan tailored to your individual needs. With guidance and support, you can take control of your financial future and achieve the financial security AND the freedom you deserve.

Contact Laurelle today on 0419 782 415