Kouteris Financial

18/12/2023

14/12/2023

We're almost half way there! 🥰

Your support so far for St Kilda Mum's has been AMAZING but we're not there yet! Christmas is just around the corner and we really want to reach our goal before then so they can help the growing list of families in need. They have a massive 515 FAMILIES requesting help to get set up with the basics like clothes, prams, cots and car seats. Please, if you can help, head to https://st-kilda-mums.giveeasy.org/community-fundraising/kouteris-financial-christmas-appeal
and donate what you can. Every donation helps.

Let's raise $3,000 for this small but amazing charity and make a real difference this Christmas!

03/12/2023

🤩🤩 Even Dani Minogue is getting behind this great cause! Please give what you can to help families who really need some support…https://st-kilda-mums.giveeasy.org/community-fundraising/kouteris-financial-christmas-appeal

28/11/2023

What happens if you need to become a carer?

You’ve made plans, set a budget and financial goals; you’re ready for anything, right? But what happens if a loved one is in an accident or your ageing parent starts needing dedicated care? How do you juggle career and the role of carer?

Registered Nurse, Rachel James, had packed her bags and was five days away from a big new move to Singapore when she got the call; her 22-year-old daughter, Emily, had suffered a fall while snowboarding in America, breaking her neck and rendering her quadriplegic. In an instant, their worlds turned upside down.

Rachel’s first reaction was one of shock and disbelief. “There’s sadness and a degree of panic about how you’re going to do this. There was also some grief about losing an imagined future. Then it settles into a heightened level of stress where you think, ‘How am I going to manage this?’”

In Australia, there are 2,698,700 carers – 12% of the population, and one in 8 Australian employees are carers.

Know your rights at work
Juggling work and caring can be difficult and, without adequate support, carers report greater strain on their work and life - a struggle that can impact their health as well as their productivity at work.

After the initial chaos and confusion had subsided, Rachel approached her previous employer to discuss re-entering her role as a practice nurse.

“Carers come into a distinct group within HR, and there are policies and entitlements so you can work optimally including paid and unpaid carers’ leave,” she says.
“You also have the right under the Fair Work Act to request flexible working arrangements. I started with just one Saturday a week, took on another day when things had settled down more and ultimately transitioned to more days later down the track.”

Tips for negotiating?
“Be assertive, be honest, endeavour to be flexible, have a realistic attitude in your ability to manage dual roles, and be a realist,” she says. “When I was honest with myself and my manager, there was really productive dialogue. She doesn’t ask me to perform tasks that are impractical for me. That’s really positive.”
Rachel also recommends setting a date to re-evaluate the arrangement to address any issues. “You may not get it right the first time and it’s helpful to have a date when you can revisit it”

Rachel strongly recommends aiming for a genuine balance.

Outsourcing tasks
Outsourcing part of the carer role is central to enjoying work, says Rachel. “You’re rarely alone in caring; there are usually family and friends who are happy to take over while you do your shopping, for instance.”

She also recommends having a ‘pyramid of communication’. “So you have five people you email if you need to get a message out there, and those people disseminate the information to the wider friends and family.”

Financial assistance
Rachel recommends investigating National Disability Insurance Scheme (NDIS) funding to see if you’re entitled to receive the help of a paid carer in the home or special equipment, like a hoist or commode. “Get going as soon as possible to get things rolling. You have to be prepared for the long haul and just keep filling in the paperwork and jumping through the hoops.”

She also suggests contacting Centrelink to ask about a carer allowance. “Also, visit Carer Gateway (carergateway.com.au) or contact your local council to see if there are nearby carers’ support groups with resources on offer.”

Look after yourself
“For me, post-traumatic recovery and resilience is about your mental health. Look after yourself because the person you care for doesn’t want you to be lost. I genuinely think that balance is achievable. You can have a career and care but you have to give yourself a break. Having a good work/life balance is the bottom line.”
Resources

In Australia, there are 2,698,700 carers – 12% of the population, and one in 8 Australian employees are carers.

If you or a friend needs assistance, the below resources are a good start.
• Carers Australia: 1800 242 636
• Carer Gateway: 1800 422 737
Source: Colonial First State

26/11/2023

You're a generous bunch!

Last year, you guys were amazing and donated over $3,000 to Foodbank Victoria. This year, we are hoping to do even better and help another amazing charity, St Kilda Mums.

Who are St Kilda Mums?

While our kids are a little older now, we still remember just how expensive it was when they were younger and needed cots, prams, car seats and toys and most of these only used for a short time. Imagine you have a baby on the way but you can barely afford your weekly groceries let alone a car seat or a pram. Or you have young children who seem to never stop growing and always need new clothes. So many families are struggling at the moment just to pay for life’s essentials and these items are simply out of reach. Many families in crisis don’t have a support network who can pass on second hand essentials. This is where St Kilda Mums can help by providing those in need with essentials such as nursery equipment and clothing.

Not only does this help families in need, it also helps the planet by reducing waste and pollution by extending the life of kids essential goods through repair and reuse.
To find out more, head to St Kilda Mums.

How can we help?

St Kilda Mums has launched its Festive Appeal for 2023 to raise much needed funds so they can continue to be there for thousands of vulnerable babies and children across Victoria and we are going to do what we can to help them out!

We no longer have any of these items to donate however, while St Kilda Mums focus is on rehoming used goods, it costs money to keep the programme running. Used goods need to checked and fixed, volunteers trained and when there’s a shortfall, items have to be purchased. Not to mention rent and bills.

So to kick things off, our family have donated $500 to this amazing cause to help them keep their doors open.

Now we’re asking you, our clients and friends to help out and donate what you can.

Make a donation to https://st-kilda-mums.giveeasy.org/community-fundraising/kouteris-financial-christmas-appeal and help a family in crisis today.

Let’s see if we can beat last year and donate even more!

22/11/2023

Understand estate planning

What is estate planning?
If you’ve got people in your life who you love and want to take care of, it’s wise to build an estate plan. This plan, which you can put together with the help of an estate planning specialist, will make sure loved ones are taken care of in the event of your death.

An estate plan is more than just drawing up a will. It also involves formalising how you want to be looked after (medically and financially) if something happens to you, or if you’re unable to make your own decisions later in life. Your estate plan will also clarify how you want your assets to be protected during your lifetime and distributed after your death.

How does an estate plan help?

You can make your wishes known
One of the benefits of a sound estate plan is the ability to formalise your wishes in writing. This can help if someone contests what you’ve said you want after you’ve passed away, or if you’re unable to speak for yourself.

You could minimise disagreements
Unfortunately, disputes often arise when unsettled assets need to be distributed among others—especially if there are no clear guidelines set. Being prepared with an estate plan could go a long way in preventing disputes should family members need to divide assets among themselves or make other hard decisions on your behalf.

You may improve tax consequences for your heirs
As the distribution of assets (including your income) can come with different tax obligations, a good estate plan might also minimise any tax that your heirs would need to pay. For instance, if they decide to sell something they’ve inherited, depending on the type of asset, they may need to pay capital gains tax. Estate planning, particularly with the guidance of estate planning specialists, could reduce these extra tax costs.

Key points when creating your estate plan
Consider drawing up a will and whether you want something legally binding
A solicitor or estate planning lawyer can help you draw up a will that is legally binding and covers what you’d like to happen with your assets, children (if you have any) and funeral when you die.

It’s important this document is kept up to date, and be sure any changes to your situation (marriage, divorce, separation or otherwise) are accounted for, so those who matter most are taken care of.

While it’s also possible to draw up your own will (there are various kits available online), these may not be adequate in complex situations, which is why engaging a professional is still worthwhile.

A word of warning: if your will is deemed invalid, your estate will be distributed according to the law in your state (which may not align with your wishes), and claims could be made by unintended recipients. This is why it’s a good idea to enlist the services of an estate planning specialist, even if you think your situation is relatively simple.

Review your nominated beneficiaries for any super or insurance you might have
When it comes to your super, you’ll need to do some planning in advance to make sure it’s distributed properly in the event of your passing.

During this process, take the time to nominate your beneficiaries with your super fund, and make sure you’re across how long different nominations are valid for. If you don’t make a nomination, the super fund trustee could use their discretion to determine who your super money goes to.

In addition, if you have insurance outside of super, make sure you’ve listed your beneficiaries on your insurance policy and that those beneficiaries are also kept up to date.

Consider appointing an enduring power of attorney to make decisions if you can’t
There may come a time when you’re unable to make legal or financial decisions on your own because of advanced age or medical issues. Granting power of attorney means you are designating an individual to make these decisions on your behalf if such a scenario arises.

For this reason, it’s important to choose someone you trust, as they’ll be responsible for looking after your bank accounts, ongoing bills, and even selling your house if you need to move into a care facility.

It’s also worth noting that you may be able to appoint a different type of power of attorney depending on what tasks you’d like this person to carry out on your behalf. For example, you may want your son or daughter to make general lifestyle decisions for you, while you appoint a financial adviser to make financial decisions.
Choose an executor to help carry out your wishes when you’re gone
Generally, an executor is the legal individual who manages and distributes the estate with the assistance of a solicitor, according to the terms you’ve set out in your will (which your solicitor should have a copy of).

When you nominate an executor in your will it’s important to let your family know, to avoid disputes after you die. Make sure the executor also has a good understanding of their duties and where your will and other important documents are kept. You may also want to let your family know where this information is stored.

The executor will typically be responsible for things like making funeral arrangements, ensuring your debts are paid and bank accounts closed, and collecting any life insurance.

They will also usually need to apply to the court for a grant of probate, which is a required legal step before your estate can be distributed. A grant of probate certifies that your will is valid.

Source: AMP, May 2019

19/11/2023

What's the best way to get insurance organised?

Making sure you’re getting the best deal on insurance without missing out on the cover you need can feel like a minefield. Get to know where and how to buy.

The low down on buying insurance
There’s no two ways about it; insurance can be pretty dull. Reading through a product disclosure statement is unlikely to excite you but taking the time to understand your options can definitely pay off. So keep reading and try not to nod off!

Getting insurance through your super
One way to get insurance is through your super fund. The insurance cover is added to your account and premiums are paid straight from your super balance. Your super fund will usually offer you Total and Permanent Disability (TPD) cover and Life cover (also known as Death cover) as well as Income Protection, that could cover you, if you are temporary disabled through illness or injury. Sometimes your fund may even add them automatically, which could mean you may have insurance cover without even knowing it. Income protection for loss of income is usually an optional add on.
Like with most of your money choices, there are pros and cons of going through your super fund for insurance.

The pros:
1. It’s easy and convenient
Your super fund will usually have a single policy they have negotiated for all their members. You’re already a member of the super fund so it’s a pretty painless process to get cover under that ‘group’ policy. Some funds may also offer a range of other insurers for you to choose from.

2. No impact on your take home pay
Your insurance premiums are paid directly from your super balance so you won’t even notice that you’re spending the money. You won’t need to put your hand in your pocket each month.

3. Cheaper premiums
Most super funds buy a group policy for thousands of members, which means they’ve got bargaining power. This can sometimes give you access to cheaper insurance premiums by going through your super fund.

4. Potential for tax savings
Your employer's super contributions and any salary sacrifice contributions you make are taxed at the concessional rate of 15%, which could be less than your marginal tax rate. This can make paying for insurance through your super fund more tax-effective should you choose to do so.

And the cons
1. Your retirement savings take a hit
While paying your insurance premiums from your super balance means you’re not out of pocket for them each month, your super balance and your savings for retirement are taking the hit. It’s a double whammy – you lose out on savings with each payment, plus the compound interest you could have earned on those savings. Over your lifetime, that could really add up.

2. It’s generic insurance cover
The default cover through your super fund is providing you with basic cover and the amount is usually based on your age. That may not be enough for your circumstances and needs and the cover is usually limited. If you want something more tailored or a higher level of cover you might want to apply for additional cover. You also won’t be able to get critical illness (trauma) cover through your super fund so you’ll need to go outside of super if you want it.

3. If you overlook notices from your super fund your cover could end accidentally
Imagine falling seriously ill, only to find out that you missed the reminders about your inactive account and your insurance was cancelled because your super account was deemed ‘inactive’. It seems far fetched but it does happen. We cover this very important topic in more detail below.

A caution about insurance through super
It’s pretty likely that you have more than one super account. It’s so common in fact, that there have been campaigns by the ATO to find your lost super. The most important thing to know about insurance within super, is that your cover can stop if your account becomes inactive.

Let’s say you change super funds and stop contributing to your old account. Super funds are required by law to cancel all insurance on accounts that haven’t received a contribution or rollover within 16 months. It helps save your inactive account from dwindling away through insurance fees but it means you could be under insured if you don’t stay on top of things. The good news is that you can fill out a single form to tell your fund not to cancel your cover but you must do this before reaching 16 months.

Your insurance options outside of super
Of course you don’t have to go through your super fund for insurance. You’ve got two other options:

• Going direct with an insurance company – if you’re feeling adventurous and willing to do some legwork, you can go directly to insurance companies or insurance comparison websites and shop around for alternatives. Be warned, insurance policies are complex and varied. To properly compare products, you’ll need to be prepared to invest some time to really understand what’s included in each one.

• Get help from a financial adviser – if you’re keen to make sure you have the right cover and analytics isn’t your strong point, you can get help from a financial adviser to find a good match for your situation. This will certainly save you time but comes at a price. The fee you’ll pay the financial adviser might be an upfront fee or they may charge you commission which will bump up the cost of your insurance policy. Any adviser will tell you what these costs are before you sign up.

Source: IOOF

13/11/2023

Aged care – know what’s involved

Ageing is a natural part of life and just as we plan for early milestones like buying a home or the arrival of kids, it’s worth laying foundations for old age.
Aged care can be a tough subject for many families to broach, but as we enjoy longer lives, there’s a growing likelihood that at least part of our final years will be spent in formal care.

The decision to move into aged care doesn’t just come with a raft of emotional issues. There are also financial considerations. That’s because nursing home accommodation can involve substantial costs, especially for self-funded retirees.

The costs involved
New residents entering aged care are often asked to pay an upfront accommodation bond. There is no set level for this bond – the only proviso is that residents must be left with at least $46,500 in assets (excluding the family home) after the bond has been paid.

An accommodation bond works like an interest-free loan to an aged care home. Any income earned from the bond is used by the aged care home to improve accommodation and services for residents.

As aged care facilities are generally free to set their own bond, it’s usually open to negotiation between families and the home’s staff. This can be a source of discomfort as it means revealing your financial worth to complete strangers. Simply being aware of how the system works can help you plan for it.

How do I pay my accommodation costs?

You can choose to pay an upfront bond by:
• a lump-sum style ‘refundable accommodation deposit’
• rental-type payments called a ‘daily accommodation payment’, or
• a combination of both.
The accommodation bond is generally returned to residents or their estate, if they move out or pass away.

But don’t expect to get the original sum back. The aged care facility is entitled to keep any interest earned on the bond and it can also withhold up to around $345 each month for the first five years as a contribution towards the upkeep of the facility.

Bonds vary widely and in some of our capital cities, the cost is running into hundreds of thousands of dollars. So it’s extremely important to consider all the facilities available and consider if a particular aged care home is the right place for you or your loved one.

Unfortunately, high demand for aged care, particularly high level care, often means families who haven’t done their research have to accept the first place that becomes available and that can see a mad scramble to find the bond money.

Basic daily fee
In addition to the accommodation bond, a basic daily fee is used to contribute towards your day-to-day living costs such as meals, cleaning, laundry, heating and cooling. Everyone entering an aged care home can be asked to pay this fee.
The maximum basic daily fee for new residents is $48.25 per day. This equals 85% of the basic age pension rate and it increases on 20 March and 20 September each year in line with changes to the age pension.

Means-tested care fee
This is an additional contribution towards the cost of care that some people - self-funded retirees in particular, may be required to pay. The Department of Human Services will work out if you are required to pay this fee based on your income and assets.

There are annual and lifetime caps that apply to the means-tested care fee. Once these caps are reached, you cannot be asked to pay any more means-tested care fees.

The government’s Aged Care website features a Residential Care Fee Estimator (www.myagedcare.gov.au/fee-estimator/residential-care/form) to help gauge the sorts of fees you could be looking at.

Funding it all
Meeting the future cost of aged care is just one aspect retirees need to factor into their investment portfolio. The way your portfolio is structured can impact on your age pension entitlements as well as the costs you’ll pay for aged care.

Source: BT

21/02/2023

Are you on track with your finances?

When it comes to life stages, we’re all different.

Some of us are all set up with a mortgage, a steady career and possibly even kids in our mid-20s, while others are footloose and fancy-free well into our 30s.

Some of us are fortunate enough to have a bit of spare cash to put into super or other investments in our 40s, while others are focusing more on paying the bills and putting food on the table.

And some of us enter our 60s with the kids long gone and the home loan paid off, while others still have a bit of a way to go before we can really put our feet up in retirement.

So it can be difficult to generalise. But AMP’s 2022 Financial Wellness report says that most working Australians fit one of seven profiles when it comes to their personal finances.

Younger Australians just starting out in their careers are more likely to be in a state of disinterested bliss, as finances take a back seat to other priorities – after all, life’s for living!

A bit later on in life, with a mortgage and potentially kids, more of us are security strivers or guilty risk-takers.
Then nearer retirement we tend to be more cautious spenders or – if we’re lucky – confidently affluent.

Getting to grips with your finances

Whatever stage you’re at in life, there are things you can be doing to get on top of your finances and put yourself on track to create your tomorrow.

In your 20s you should probably…
• Start budgeting and managing your cashflow – the right spending choices now can set you up for life.
• Pay off bad debt
o Fast track credit card and personal loan repayments.
• Start a regular investment plan
o Keep disciplined using direct debit and re-invest your earnings.
• Kick start your super
o Find out if you can get a Government bonus of up to $500 a year.
o Consider bringing your money together in one account.
o Consider a more aggressive investment mix – you’re in for the long haul.

In your 30s you should probably…
• Pay off bad debt
o Fast track credit card and personal loan repayments.
• Consider consolidating your debts/super fund/account/bank accounts.
• Start a regular investment plan
o Keep disciplined using direct debit and reinvest your earnings.
o Get financial advice on borrowing money to invest for the potential to magnify your returns.
o Take out adequate insurance – life cover, disability and income protection.
• Be smart with super
o Consider bringing your money together into one account.
o Consider a more aggressive investment mix, or one that suits your risk profile more closely.
o Put in extra for you and your spouse
o Find out if you can get a Government bonus of up to $500 a year.
• Create a will

In your 40s you should probably…
• Pay off bad debt
o Fast track credit card and personal loan repayments
• Consider consolidating your debts/ super fund/accounts/bank accounts.
• Start a regular investment plan
o Keep disciplined using direct debit and re-invest your earnings.
• Get financial advice on borrowing money to invest to potentially increase your returns.
• Check your insurance and who it will be paid to.
• Be smart with super
o Consider getting money together into one account
o Consider a more aggressive investment mix, you still have a long term investment horizon
o Put in extra for you and your spouse
o Find out if you can get a Government bonus of up to $500 a year.
• Review your will for your changing circumstances.

In your 50s you should probably…
• Get financial advice on how to pump up your super savings as you approach retirement.
• Review your risk profile and make sure your investments still suit.
• Get financial advice on borrowing money to invest to potentially increase your returns.
• Check your insurance and who it will be paid to.
• Review your will for your changing circumstances.

When you reach 57 you should probably…
• Take advantage of higher limits for concessional super contributions.
• Get financial advice on accessing your super to consider:
o continue working to tax effectively boost your super
o reducing your work hours and accessing super to supplement your income
o delaying retirement until at least age 60 for tax-free access to super.
• Get financial advice to help you take advantage of government benefits.
• Review your will for your changing circumstances.

And in your 60s you should probably…
• Revisit your budget
o Look at all the extra ways you can cut back on spending to give your finances a final boost.
o Consider the Government’s Work Bonus and if you want to earn a little extra income.
• Set up an emergency fund to cover any unplanned bills.
• Get financial advice on accessing your super
o Look at refreshing your arrangements each year to increase your income payments and contributions to further boost your super.
• Maximise Government benefits:
o by structuring your income and assets appropriately
o by opening an annuity.
• Accelerate your super savings, if you’re still working, consider
o Maximising your after-tax contributions while you’re still under 67.
o Contributing up to your tax-deductible limits.
o Making last-minute contributions.
o Making a downsizer contribution.
o How an annuity can give you guaranteed income for critical expenses.
• Release other wealth
o Consider downsizing strategies.
o Consider reverse equity for changing circumstances.
• Review your will for your changing circumstances.

Ask the experts
Deciding what changes to make to your finances isn’t always straightforward, so, if possible, speak to your financial adviser about the best options for you.

It starts with super…
When times are tough it’s understandable to focus on your day-to-day needs. After all, you need to put food on the table and keep paying the bills.
But as probably your biggest asset after the family home, super is the cornerstone of your long-term finances. So it could pay to get on top of your retirement savings…and taking control in one area of your finances could make it easier to start getting to grips with more pressing challenges like budgeting and saving.

Source: AMP

07/02/2023

We can't control the price of lettuce but we can help make sure you are making the most out of what you've got. Call us if you are feeling the pinch or just want to do a health check on your finances 🥗👨‍⚕️

01/02/2023

How to deal with rising inflation

Between March 2021-22, inflation in Australia rose by 5.1%. Meanwhile, wages only rose by 2.4%. With the bare essentials becoming – well, expensive, it’s not surprising that many people are looking for new ways to save money or increase their income.
The good news is there are steps you can take—and actions to avoid—that can help you navigate this period of high inflation, for however long it lasts.

Here are some of the best ways to manage rising inflation:

1. Continue investing
Investing a portion of your income is one way you can keep up with, or even outpace, inflation.

While rising interest rates or falling sharemarkets may cause many people to second guess themselves when making investment decisions, it’s important to stay focused on your long-term goals and avoid being influenced by short-term market volatility.
Having a diversified investment plan—money invested across many asset classes and in many industries—may help to cushion you from major sharemarket falls.

2. Find ways to reduce your expenses

Everyday bills
Shopping around for the best deals on your home loan, electricity and insurance, can end up saving you hundreds of dollars over the long-term.
You may also want to consider cutting down on subscriptions or memberships you don’t use, and make sure you’re getting all the concessions you’re entitled to such as rebates and pensioner discounts.

Home loans
Official interest rates are predicted to continue rising throughout the year, so if you have a home loan that isn’t on a fixed interest rate, you’ll need to factor in increased repayments to your budget.

Electricity
Consider using some of these energy saving tips:
• Check out government and council rebates to reduce your energy bill
• Switch to energy efficient lightbulbs
• Consider installing solar panels: while costly initially, this can save thousands of dollars over the long-term
• Water savings: install a water efficient showerhead and only run the dishwasher on a full load
• Only heat and cool the rooms you’re using and use a timer
• Unplug unused electronics
• Hang-dry your laundry rather than using a dryer

Groceries
While food might be a necessary expense, there are ways to save without compromising quality.
Meal planning is a simple way to get better at grocery shopping to reduce wasting food. You could also consider finding recipes that use the same ingredients as you’re more likely to use up an entire bag of vegetables or a fresh bunch of coriander.
You may also want to consider growing your own vegetables.

Petrol
While we can’t control global oil prices, you can plan clever ways to reduce costs.
• Request to work from home a few days a week
• Ride your bike to work and get the benefit of a good workout
• Use public transport – if you live in a city or town with a decent public transportation system, this alternative is a great option to cut down on commuting costs
• Carpool – if you have colleagues who live in the same area, you could split the driving between you.

3. Consider ways to increase your income
Although there isn’t always a quick or easy way to increase your income, there are options for earning extra cash to cover more immediate expenses.
Passive income is a great way to earn money with little effort. This could include things like buying an investment property, investing in shares, bonds or fixed-income, starting a business on the side or even creating your own social media content.

You can also find an extra source of income outside of your 9-to-5 job by:
• renting out a room or parking space
• pet sitting
• dog walking
• online tutoring
• or driving for a rideshare service.

Lastly, while it may not be easy to increase your pay overnight, you could consider ways to use your job performance and rising inflation to get a promotion or salary increase.

Source: Insignia Financial