Tag Archives: Lifestyle

Buy Swap Sell – How to make cash from your clear out

By Robert Wright /July 24,2019/

It’s official, a de-cluttering spree is sweeping the country, and Aussies are favouring a minimalist look over homes packed with possessions. This gives us an opportunity to turn our culled items into cash.

While the organising, agonising and piling can take time, selling your things can take no time at all! Garage sales and lemonade stands may be a thing of the past, but the internet is making it easier than ever to start selling.

So, here’s how to get started:

What can you sell?

When you do your clear out, make sure to look for things in good condition. This helps you to separate rubbish from things that could be sold. Look out for items that:

Could have value to others – Even if your items don’t have value to you any more, they may have value to others. So don’t discount last season’s clothing or that fancy dress stash just yet. Look for jewellery, furniture, recent technology or even camping gear, as they’re all things that others could make use of too.

Are small and simple, not just big and pricey – You may think that the bigger the better when it comes to making cash, but that’s not the case. Smaller items can add-up, so look for little things that may be simple to sell, such as phone cases or accessories.

Where can you sell it?

Selling your small things – To sell your smaller items, you can easily make use of local Facebook groups and Facebook marketplace. Not only are local pick-ups or postage easy to arrange, but you won’t be paying fees on items with smaller costs.

Selling your big things – For larger items like sofas, you’ll want a little more security. With EBay and Gumtree, you can place detailed adverts and photos, see the potential buyers, as well as organise the payments all though the websites.

Tips to get you started

No matter what you’re selling, make sure that you’ve got these basics down, giving yourself the best chance to make a sale.

Do your research – You’ve got the item, now you need to know if it’s worth selling. A quick online search can let you know if it’s in demand; the quality is up to scratch, and what people are paying. This’ll help you set yours up for sale too.

Set a fair price – Make sure you set a price that’s reflective of your item and its condition. High prices could turn off potential buyers, and you want to keep them keen.

Avoid high reserves – While eBay encourages people to bid, with Gumtree people can make you offers. Keep reserve prices reasonable too, so that you’re open to what people may offer.

Get descriptive – The more detail you can give buyers, the better. Include everything from its condition to how it’s been used, and you’ll make sure there’s no hiccups down the line.

Share some snaps – Photos are the best way to show buyers what they’re getting, so make sure to take bright, good quality photos. Some close-ups can’t hurt, so that detail or damage can be spotted.

Post at a good time – Share your advert online in the evening or at the weekend, so that as many people see it as possible when it’s uploaded, and don’t need to search later.

Answer questions – If people ask questions, try to answer them quickly to keep them keen. It may be that they pick-up on points that others may be thinking too, so you could update the item description afterwards to help others who may be looking.

Give buyers a peek – With some items, people may want to pop by and take a look at. If several people would like to, try to save time and schedule for them to all come by on one morning or afternoon.

Don’t be afraid to negotiate – Haggling, it’s going to happen. So be ready with how low you’d be prepared to go, and get your negotiate on. 

Look after your safety

Make sure that before you embark on a selling spree, you’re taking steps to look after your safety.

Posting your items is usually the safest way to send something that you’ve sold, but occasionally items may be too big and require pick-up. Always make sure that you don’t give out your address if you’re uncomfortable, and have a friend or partner present if you’ve arranged a pick-up. Simple steps can help keep you and your stuff, safe.

Then you’re ready to get selling, and start turning your clean-ups into cash.

Source: ING, March 2019

How much do I need to retire?

By Robert Wright /May 31,2019/

When you plan to retire will often be determined by whether you can afford to stop working and still have enough income to maintain your lifestyle. Latest figures from the Australian Bureau of Statistics show the majority of men (36%) and women (22%) chose to retire at the time when they became eligible to draw on their superannuation and/or the age pension. And their average age at retirement was 63.5 years.

If you’re planning to delay retirement until your super balance reaches an amount you can comfortably live on, just how do you determine what that target should be? There are a number of factors that will affect how far your money will go, including your life expectancy, how your money is invested and other choices you make for managing your income. But one of the most important steps to planning for a secure financial future in retirement is to be realistic about your living costs.

How your living costs might change

As you stop working and have more time to yourself, your routine will change and you might save on some costs as a result. Spending on transport could fall as you no longer have to commute. If buying lunch and takeaway coffees has been a daily habit while working, you could also make significant savings by leaving these out of your retirement routine. Other living expenses, such as buying groceries and clothes and paying household bills are likely to be much the same before and after retirement.

Thinking about how you’ll spend time in retirement and where you’re planning to live will also give you clues about how your spending might go up or down. If a few trips overseas are on the cards, you’ll need to allow for these occasional costs in your overall budget. But if you’re planning to limit travel to domestic holidays only, then you won’t need to allow for these expenses in your financial plan.

Start with a ballpark estimate

How much travel you plan to be doing is just one of the many daily and one-off costs taken into account in the Retirement Standard estimates for annual expenses. Updated every quarter by the Association of Superannuation Funds of Australia (ASFA), these figures can give you a rough idea of what you can expect to be spending day-to-day in retirement.

There are two estimates available, a higher one for a comfortable lifestyle and a lower amount for a modest lifestyle. As at December 2018, the amount you’d spend as a single person aged around 65 years enjoying a comfortable lifestyle is $43,317 and for a modest lifestyle the annual budget is $27,648. The estimate for couples is $60,977 and $39,775 for comfortable and modest lifestyles respectively.

To give you an idea of how differences between a modest and comfortable budget might impact on your retirement plans, the annual travel budget is a good place to start. A couple living modestly can expect to spend approximately $2,500, with no allowance for overseas trips. On a comfortable budget, a couple can splash out more than $5,000 each year on travel, with roughly a third going towards international travel.

The cost of lifestyle changes

Although it’s wise to build a budget based on what you expect to be doing in early retirement, your overall plan should also take into account potential for lifestyle changes as you age. Travelling for longer periods, dining out and entertainment and taking part in sports and hobbies could taper off as you grow older. Health and aged care costs, on the other hand, could make up a larger share of your budget in the later years of retirement.

A plan to see you through retirement

Your expenses are just one side of the whole budget planning process. Taking a good look at all your retirement income options is just as important to figuring out how much you’ll need and when you’ll be ready to take that step. From the age pension to the equity in your home to retirement income products such as annuities and account based pensions, there are all sorts of ways to support yourself financially towards having the lifestyle you want.  A qualified professional who specialises in retirement planning can support you in exploring these opportunities to manage your income for your whole retirement so you can make better choices for a secure financial future.

Source: FPA Money and Life, 02 April 2019

Dust off your lunch boxes

By Robert Wright /March 22,2019/

If you want to get ahead with your savings goals in 2019, packing a lunch each day is a great place to start. (And forget the soggy cheese sandwich, as with a bit of planning and thought, you’ll be guaranteed to give your colleagues lunch box envy.) With ING research showing that Australian employees spend a whopping $129 on average per month filling their bellies at lunchtime, you could tuck away over $1,500 in your savings account in one year alone, just by getting a little lunchbox virtuous…

So why dust off the lunch box?

Tuck into the savings

With the average lunch being $15 a day, it’s not hard to give your savings a major boost by cutting out the daily pilgrimage to the sandwich shop. And it’s not just money that you’ll be saving, there’s more…

Quality ‘you’ time

People often say buying lunch is an excuse to get out of the office. However, instead of spending half your lunchtime standing in a cafe queue, you could spend that time meaningfully. Go for a run or walk around the nearest park. You’ll not only fit in your 10,000 steps but it will clear your head. The best way to come back alert and refreshed to work.

Underwhelming, indeed

How often do you get excited about getting take away, and then feel underwhelmed or like you need a decontamination shower afterwards? As well as being more expensive than bringing food in from home, takeaway food can often be less fresh and nutritious than your own pantry. It’s also hard to justify buying fruit from a takeaway cafe or shop too because it’s often more expensive then supermarkets. So to guarantee your daily ‘five’ veggies and ‘two’ fruit intake, it’s worth being ready to pack and go.

Waste wars

In our waste conscious society, it’s good to look at our food wastage. Packing up a lunch each day is a great way to decrease food waste and save leftovers from going furry in the fridge. You can take last night’s meal as is, or be creative and give the dish a lunchtime twist.

Gain savings, lose pounds

With a combination of having more time to exercise at lunchtime and by bringing in nutritious and controlled amounts of food (without the temptation of buying that banana cake at the counter) your healthier lifestyle could convert to diminished kilos.

How to create lunch box envy

Plan A

Planning is key to rolling out enviable packed lunches each day. Shop for your lunches on the weekend, and batch cook and freeze/chill items such as salads, frittatas, soup and rice paper rolls so you can grab and run during the week. You can even freeze sandwiches in advance (yep you heard right)! Just seal them well. Take it one step further and divide and store your food into individual containers in advance to make mornings more relaxed.

Go naked and nude

Treat yourself to some quality Tupperware or splash out on a state of the art Bento box. The beauty of Bento boxes is that you can reduce plastic wrapping waste and go with nude food! The environment will thank you for it. Why not keep your lunch cool with a frozen bottle of water or for extra nutrients, coconut water.

Pick and mix it up

Inject as much variety as you can into your lunchtime treats. If you don’t, you’ll be back in the foodcourt queue quicker than you can butter your bread. Get out of your comfort zone and enjoy the process. Go crazy in the fruit and vegetable aisle, and treat yourself to healthy snacks you wouldn’t usually buy. Try baby cucumbers, snow peas, or baby sweetcorn for quick grab and go snacks. And prep-free fruits, fresh or dried, like lychees, apricots, dates or cranberries. Swap recipes with colleagues and find the perfect sweet treat, such as Taste’s Cacao Coconut Date Balls or Coconut Sesame and Sultana Bar.

Stuck for ideas?

Ditch the daily egg sandwich and be inventive. There’s a wealth of free lunch box ideas online to give you inspiration. Explore making items such as vegetable patties, savoury slices and try quinoa as a base for salads. As well as go-to recipe sites such as Taste and All Recipes, government health and association websites such as the Dieticians Association of Australia are great for recipes and nutrition insight. The Healthy Eating Advisory Service has a great lunch box guide for kids and adults.

Source: ING February 2019

Six things to consider when investing for retirement

By Robert Wright /February 19,2019/

Many people aged between 50 and 65 are uncertain about being able to cover living expenses in retirement. In the past retirees could rely on the age pension to secure their retirement. Many retirees are now less confident about this source of support, as a growing number of baby boomers are retiring and the number of working people to support them is not keeping pace.

Governments are now encouraging Australians to save and invest on their own, so they can build income streams for retirement to supplement social security payments, and the earlier people focus on how to fund their retirement, the greater their capacity to respond.

How to set retirement goals

The first factor in retirement planning is establishing a retiree’s goals. Not everyone will have the financial resources to meet all their goals, so an adviser must help their client set priorities.

Retirement goals can be diverse, but most belong to one of three broad categories:

 

1. Essential needs

A person’s immediate need in retirement is to have an income to deal with the essentials in life, including food, housing, transport and paying regular bills. This represents the most important set of goals and requires the most pressing financial attention.

Confidence about the receipt of a steady cash flow becomes paramount. An adviser may recommend strategies centred on income-focused securities that deliver sustainable cash flow which keeps up with increases in the cost of living.

2. Lifestyle wants

Retirees may also want to set aside some capital to fund discretionary spending on goods and services such as holidays, hobbies, or the purchase of a new car. Attainment of these lifestyle wants enables a more enjoyable retirement, but the retiree doesn’t regard them as essential to their wellbeing. To help fund these lifestyle wants, investment strategies should grow capital steadily over time and have a low probability of producing a major or protracted decline in value.

3. Legacy aspirations

Finally, retirees with additional financial resources may aspire to leave a bequest for future generations.

Six things to look for when considering investment solutions

There are six key factors that advisors and investors should focus on when considering retirement investments.

1. A predictable and reliable stream of income: Consider strategies that aim to deliver a steady income in the form of coupons from quality bonds, dividends from shares or distributions from Real Estate Investment Trusts (REITs) and infrastructure.
2. Resilient returns: Focus on strategies that are designed to exhibit greater resilience in challenging market environments.
3. Inflation protection: It’s important that the overall portfolio seeks to grow with the cost of living to maintain purchasing power over time.
4. Tax effectiveness: Even though most retirees have an income tax rate of zero per cent in retirement, franking credits attached to the sustainable dividends of quality Australian companies represent a good additional source of retirement income. But it is important to watch out for potential regulatory change in this area.
5. Liquidity: It is easier to redeem money from liquid investments when a change in circumstances may require it.
6. Transparency of strategy: Seek strategies that are easy to understand and where the manager offers regular communications and insight into how funds are performing against retirees’ goals.

Set up success

The key is to understand retirement goals: what does success and failure look like? What do retirees want at this point in life and how might that evolve over time? What constitutes a ‘must have’; what is ‘nice to have’ and what is ‘aspirational’?

By answering those important questions, various goals can be matched with investment strategies that meet the unique challenges and risks of retirement.

 

Source: AMP Capital