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Our Money Management Blog

There’s a lot of stuff on the internet about money management – it can be hard to know where to get started. Here’s some light reading on the main money matters to get you going.

A dark blue credit card sits on a white background
29 Jan, 2024
Did you ever hear the line “you need a credit card to build good credit”? It’s a common American belief that isn’t all that relevant here in Australia. So if you don’t need a credit card – should you get one? It can certainly be appealing with rewards points; cashback deals and free insurance on offer to entice you to sign up. So, what are some of the drawbacks? We break it down for you. We've also got a handy video below from Director and Financial Adviser Josh Lee , with his take on whether you should get a credit card.
A child puts money into a piggy bank.
17 Jan, 2024
If you’ve got kids in your life, you may be wondering how you can set them up for success. Whether it’s your child, a younger sibling or a niece or nephew – you can play a positive role in their life, helping to educate them about money and set up them up financially for the future.
By Aimee Croxon 09 Jan, 2024
Four high-impact money moves you can make in 2024 to improve your long-term financial position.
By Brooke Ayano 15 Dec, 2023
Hard conversations such as death can lead us to put necessary decisions on the back burner. Admin around your assets such as your will or beneficiaries can offer you peace of mind that everything will be distributed as per your wishes. Unlike most assets, your super and insurance are treated differently due to being separate from your estate. Because of this, it’s imperative to stay on top of your admin when it comes to beneficiaries for these assets and ensure that they are valid, so the money is distributed to the correct person. In this article, we will be exploring what happens to your super when you pass away and the various actions you can take to ensure that the correct people receive your superannuation death benefit. What is a superannuation death benefit? In simple terms, a superannuation death benefit is the payment process that occurs when a person with a superfund balance passes away. It’s typically paid to the valid nominated beneficiary of the deceased or can default to the trustee. Why should I nominate a beneficiary? Your super and insurance benefits are not considered part of your estate like other assets are. Legally, your super is considered to be held in a trust structure until you are eligible to access it. If you do not nominate a valid beneficiary, the money will be subject to the appropriate laws at the time of your passing. This may mean the benefits are received by your dependant or your legal personal representative. Who is considered a valid beneficiary? A valid beneficiary includes: ⁃ One or multiple of your children ⁃ Your spouse or de facto partner ⁃ Other dependants that rely on you financially ⁃ Your legal personal representative (otherwise known as your estate) To be valid, the nominated person must fit the legal description of a dependant and the binding nomination must still be in effect. Not sure who you want to nominate just yet? You can alternatively decide that the legal personal representative of your estate is your valid beneficiary. What type of beneficiary nominations are there? There are 3 different types of nominations for beneficiaries: ⁃ Binding nomination ⁃ Non-Binding nomination ⁃ Reversionary nomination Binding nomination A binding nomination means that your super fund legally must pay your balance out to your valid nominated beneficiary. They are only valid for 3 years before your death and if they fit the eligibility criteria at the time of your passing. Some super funds now offer non-lapsing nominations so that you do not have to update these again unless you would like to change the recipient of the benefit. Non-Binding nomination A non-binding nomination tells your fund whom you’d prefer your super to be paid to but this is not legally binding. The super fund will take your request into account but will decide the best course of action based on the relevant laws at the time. They will also consider the needs of your dependents at this time. Reversionary nomination A revisionary nomination is only accessible to those with an account-based pension. In the event of your death, your super payments will go to your nominated beneficiary until the balance hits $0, but the balance of your super will remain with the fund. If you nominate an adult child, they are only a valid nomination if they are permanently disabled or under the age of 25 whilst being financially dependent on you. This is the only nomination type where you cannot nominate your legal personal representative. Organising the logistics around succession planning can alleviate a lot of stress and tension for your loved ones in what is already quite a tough time. Reviewing your plan consistently can ensure that your wishes will be executed accordingly and can provide a smoother transition for your family members. If you need assistance with estate planning and beneficiaries, feel free to reach out to any of our Link Wealth advisers to discuss your personal situation. General advice disclaimer: The information contained within this post is general in nature and does not take into account your personal circumstances. Please reach out if you wish to discuss your personal situation.
By Aimee Croxon 15 Dec, 2023
If you’ve heard about the wonder of compound interest, you’ll know you could be building wealth for your future self by investing. However, it can be easy to fall into analysis paralysis and fail to take action. Particularly if you’ve got any of these common investing beliefs below running on repeat in your head. You can also check out our Director Josh Lee's tips for investing in 2024 above. 1.“It’s too risky. It’s basically gambling.” If you’re picking shares, day trading and getting your tips from extended family members convinced this is the “next big one” – then yes, investing is pretty much gambling. You might be doing some basic research but you’re mostly pinning your hopes on a risky investment, in the chance it may pay-off. The reality is all investments carry risk – some are higher risk than others. However, unlike gambling, successful investors understand their risk tolerance and make aligned investment choices. They don’t put all their eggs in one basket (diversification), and they understand the need for patience and time in the market. So before you consider investing, make sure you understand your goals, your risk tolerance, and your timeframe. 2.“You need to have a lot of money to start.” Traditionally you may have needed at least $500 to buy shares, however with the rise in app-based trading platforms, this is no longer the case. You can now get started with as little as $5 and some apps even offer round-up features so you can invest with your (digital) spare change. This accessibility has resulted in an increase in 18–24-year-old “next-gen” investors who now make up 9% of the 10.2 million Aussies investing outside real estate or super. Of those investors, 63% only began investing in the last two years*. 3.“I can do it later. I have plenty of time.” Sure, you could start later, but the power of compounding is what helps you to build wealth in the long term. You can take advantage of compound interest by reinvesting your dividend and distribution payments, alongside your regular contributions. The longer you do this, the more you’ll potentially earn. You can find a compound interest calculator on the Money Smart website that demonstrates how compounding could work for your investing strategy. 4.“You need to time the market.” Buy low, sell high is a common refrain. Unfortunately, the share market is notoriously difficult to predict so trying to time the market may not be feasible. Instead, you should aim to start investing as soon as you can for as long as you can. There’ll no doubt be dips during your investing journey but you’re not actually losing any money unless you sell during a downturn. Selling crystallises your losses. This is why it can often be good to automate your investing. Once you’ve got your strategy sorted it may be worth just setting and forgetting. 5. “You can get rich quick.” Unless you really want to risk it to get the biscuit — gambling style — the focus should be on getting rich slow. Cryptocurrency in the last five years is a great example of an investment with the potential for both big returns and big losses. Egged on by influencers on social media, many people invested significant money into cryptocurrency thinking they could make a quick buck. It’s now tanked, and they’re left unsure if they’ll get that money back. If you’re feeling unsure about how to go about investing, consider working with a financial adviser . We can help you to understand your risk tolerance and develop an investment strategy to meet your goals. General advice disclaimer: The information contained within this post is general in nature and does not take into account your personal circumstances. Please reach out if you wish to discuss your personal situation. Sources: 2023 ASX Australian Investor Study
24 May, 2023
Who knew your retirement fund could be so useful? Superannuation might be one of the most overlooked financial tools out there, yet those who harnessed its power have seen the benefits in the long run. You could almost call it your financial superpower!
By Link Wealth Group 12 Oct, 2021
If you look at the statistics, it takes the majority of Australians a little over three and a half years on average to save for a deposit on a first home*
By Link Wealth Group 12 Oct, 2021
The post Lessons from the blue zones: secrets of a long life appeared first on Link Wealth Group.
By Link Wealth Group 12 Oct, 2021
Close to one in three Aussies is feeling the pinch financially, with money worries reportedly leading to sleep loss, conflicts in relationships, isolation, as well as a range of other things.
By Link Wealth Group 12 Oct, 2021
If you’re thinking of dabbling in investments like shares, managed funds or cryptocurrencies, here’s a list of common mistakes which are generally worth steering clear of
By Link Wealth Group 12 Oct, 2021
Been together for a while or are edging on making a big financial decision together, having the money talk could make a big difference to whether you go the distance.
By Link Wealth Group 12 Oct, 2021
“Buyers are very fussy at the moment. I’ve seen buyers not want to buy a property over the smallest things like a feature wall that you could paint over a weekend,” says Peggy Willcox
By Link Wealth Group 12 Oct, 2021
The post Holiday budgeting tips— How to avoid a travel debt hangover appeared first on Link Wealth Group.
By Link Wealth Group 12 Oct, 2021
Research from the Responsible Investment Association Australasia (RIAA) shows that 92% of Australians now expect their super or other investments to be invested responsibly and ethically,
By Link Wealth Group 12 Oct, 2021
With the age at which you can access your super and age pension creeping up—not to mention the increasing cost of living—you might be steeling yourself for a longer working life
By Link Wealth Group 12 Oct, 2021
The World Happiness Report, published by the United Nations Sustainable Development Solutions Network, uses six key variables to determine a country’s happiness levels..
By Link Wealth Group 12 Oct, 2021
APRA has released its quarterly superannuation performance statistics for the June 2018 quarter, revealing the Australian super sector has grown to $2,709.3 billion.
By Link Wealth Group 12 Oct, 2021
If your spouse (husband, wife, de facto or same-sex partner) is a low-income earner or not working at the moment, chances are they’re accumulating little or no super at all to fund their retirement.
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