The Best Investment Strategy For Retirement

best investment strategy for retirement

The Best Investment Strategy For Retirement

Our future begins today. The decisions we make in our younger years will dictate just how well we will be living during our retirement. Make sure that you do the right things while avoiding common mistakes. Read about the best investment strategy for retirement and use options that suit you.

5 Retirement Planning Mistakes

1. Starting Late

One of the worst things that you can do is to procrastinate about securing your retirement. It would be ideal if you can begin investing in your early 20s. The second best time is now, whatever age you may be.

2. Failing to Diversify

If you put all your eggs in one basket, then you may be left with nothing in case it disappears. Seek out multiple unrelated opportunities to invest. This way, you can minimize risk and have something to draw from no matter what happens.

3. Investing Blindly

Make sure that you know what you are getting into. It’s okay to be fascinated with the latest trends. It’s fine to listen to advice from friends and family. However, you must do your own research. Act wisely.

4. Uncontrolled Spending

It would be a mistake to spend your money just because you have it. Create a reasonable budget and stick to it. Allot enough for your savings. Grow your investment fund. Avoid debts.

5. Moving without a Plan

Don’t just save and invest without a plan. Think about your goals for your retirement and the resources at your disposal. Enumerate the steps to go from where you are now to where you want to be.

Tips For Property Investors

5 Best Investments To Make In 2019

1. Career

You are your own best tool for securing your finances. Invest in yourself so that you can flourish in your chosen career. Take courses, attend workshops, or learn a new language. Do whatever you can to make yourself valuable for employers.

2. Real Estate

Populations may rise but the total land area will stay the same. As such, property values will only increase with the growth in demand. Investing in real estate is a great option if you have the funds and the smarts for it.

3. Stock Market

Although it has its ups and downs, the stock market remains a viable investment route that can provide excellent returns. See to it that you study heavily or talk to a reputable advisor before taking the plunge.

4. Business

Your investment can take the form of a business or a side job. If you have free time, then use it to increase your earnings by taking on other projects.

5. Health

All the money in the world will be useless if your health fails. You will not be able to work or enjoy your fortune. Exercise, eat healthily and cultivate a positive outlook to reach your retirement years in great shape.

No matter who you are, never think that it is too late to reach your financial goals. Contact Precept Financial Services’ team today and schedule a free consultation and learn more about how we can help you achieve more power, freedom, and confidence.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

Top Ten Tax Minimisation Strategies

tips for living within your means

Top Ten Tax Minimisation Strategies

There are top 10 tax minimisation strategies that you should not ignore in order to pay the least tax to your government. Let us go through each one with a fine tooth comb so that you know what to do when tax filing season comes. Tax minimisation strategies are easy to follow when you give yourself enough time to prepare.

1. Top of the Heap of Tax Minimisation Strategies: Thou Shalt Not Ignore the Income Tax Booklet

Most governments issue out a new tax guide for the year. And unfortunately, most people who has income to declare tend to ignore it with impunity. Unfortunately, the basic secrets of tax minimisation strategies are all there in the booklet in plain sight.

2. What Is Left Unsaid in the Annual Tax Bible Carries More Weight

And more importantly, there are unmentioned tax minimisation strategies. If you read between the lines, you will sooner than later realise some tax minimisation strategies that you never knew before. But this kind of epiphany only occurs after you have religiously dug deep into the tax guide or booklet many times.

3. No Substitute for an Excellent Tax Planner

No doubt, your self-study will take you to the path of no return. Knowledge is power. However, your journey to the side of tax minimisation strategies will never be complete without paying a visit to the tax consultant near you. There is no need to tell the advisor all you know about the wonderful world of tax collection. On the contrary, you must absorb every bit of knowledge that you can before the tax deadline looms. Contact Precept Financial Services today and find out how they can help.

4. Keep Receipts, Will Travel

Most people take transportation expenses for granted. Unfortunately, many governments do provide tax credits for buying bus passes and the like. Also, you will know from persistent tax research just what other aspects of your living expenses can be the subject of a tax break. So you know what to do!

5. Learn from Your Mistakes

To gradually improve your IQ in regards to tax minimisation strategies, do not be afraid to make mistakes. It is the best way to learn as all human beings do. With practice year after year, all the secrets will soon speak to you.
6. Donations, Donations

This is why they are so important. Donations always carry with them a hefty tax break. So you want to support a local member of parliament or city council? By all means, go ahead. And do not forget charitable organisations, too.

7. Do Ask Your Neighbour or Phone a Friend

When you are open to suggestions on tax minimisation strategies, you just never know what can come your way. Keep those eyes and ears open. You have absolutely no idea what can come next!

8. Never, Never Cram

Like cramming for an exam, you must never do this if you want to make the most of tax minimisation strategies. For you will find yourself missing important strategies when you put off preparing your income tax return till the last minute of the annual deadline.

9. How Things Change with Tax Minimisation Strategies

Be warned, things can change with tax minimisation strategies so be sure to always stay updated by not only reading the tax return bible. You must not forget to pay a visit to your tax planner regularly in order to make sure you never miss a thing.

10. And Last But Not the Least…

Your own knowledge or self-study plus the guidance of your financial planner are invaluable weapons to slay tax minimisation strategies in record time. Use them well! To find the best tax consultant, there is no need to break the bank. Stay within your budget and you will find yourself smiling when the tax man or woman cometh.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

Costs of Residential Aged Care

Residential Aged Care

Basic Understanding of Residential Aged Care Fees

Residential Aged Care refers to the facilities where older Australians can live in the later stages of life where they are often unable to stay at home for health reasons.

The financial decisions on Residential Aged Care can be quite daunting and this article aims to provide you with a basic understanding of Aged Care Fees.

The easiest way to think of Residential Aged Care is to consider two types of costs. One type of Aged Care costs cover the cost of accommodation and the other covers the cost of care.

Aged Care – Accommodation costs

The cost of accommodation can be paid as a Refundable Accommodation Deposit (RAD) which is a lump sum that is generally refundable to the resident or their estate when the resident leaves the facility. The RAD is limited to a maximum of $550,000 unless the facility has government approval to charge a higher rate. Every facility is required to make these figures publicly available.

A resident can choose to pay the full upfront RAD or part of the RAD. Any unpaid amount can be paid in instalments (known as a Daily Accommodation Payment or DAP) based on government provided interest rates and the amount of RAD unpaid.

For people with assets and income below certain levels, these payments may not be required at all or only part payment required.

Aged Care – Care Costs

The second type of cost associated with Residential Aged Care covers the cost of care. This can come in three forms.

* The Basic Daily fee which is 85% of the basic single person Age Pension rate and is payable by everyone.
* The means-tested care fee which is an additional fee for those people whose financial assets and income indicate they can afford to contribute more towards their cost of care. This fee has a maximum of $27,232 per year or $65,357 over the residents lifetime.
* Fee for additional services which is a fee that is charged when a resident or their family chooses to have additional services (such as Pay TV, a glass of wine with dinner and or newspaper each day)

The major Aged Care decisions

There are significant decisions to be made when considering Aged care of which the choice of a specific facility being top of the list. Understanding the services they provide and support they offer is crucial in the decision making. How you pay for your Aged Care can have quite a dramatic impact on your Centrelink entitlement, cash flow and the eventual value of assets that will be passed on to your beneficiaries.

The major financial decisions and questions when considering Residential Aged Care are;

* What facilities and services can I afford?
* What do I do with my former home? Do I sell it or keep and possibly rent it?
* How much of the lump sum deposit (RAD) do I pay and how much do I pay in instalments?
* How will my Centrelink entitlements be affected?

The decisions are complex and the outcomes for your cash flow and wealth can be significant. Getting professional Aged Care advice can provide great peace of mind that you are making informed decisions that leave you and/or your beneficiaries in the best possible position.

Any advice on in this text is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

Precept Financial Services Pty Ltd (ACN 140 538 147) as trustee for SF Unit Trust trading as Precept Financial Services is an authorised representative of Charter Financial Planning, Australian Financial Services Licensee and Australian Credit Licensee No. 234665

Does Your Life Coverage Cover Funeral Costs?

Life Insurance To Cover Funeral Expenses

Check out your life policy to see if the funeral expenses are covered and if it is the best plan for you. In Australia, you will have to check a number of options to cover the expenses of the funeral. A funeral cost, however, is not the same for all funerals and differ with the type of funeral and the culture and requirement of the funeral.

Will My Life Coverage Cover Funeral Costs?

If you are looking for your life insurance to cover funeral expenses you should know that some policies cover basic funeral expenses. Your life insurance may or may not cover all your expenses so you should make sure you have looked into all the options.

How Will my Life Coverage Pay for my Funeral Expenses?

When you file an application for life insurance, you are given many options to select from according to your own situation. You will have to consider all the obligations that you need coverage for in case of your death. These include:

Any Mortgages
Outstanding Rents
Food Expense
Bills to Pay
Outstanding Loans
Any Taxes
Medical Bills
Education Cover for dependents
And your funeral costs

When calculating this amount, the policyholder could also look for funeral expenses and look for the coverage option. This way you may set aside some funds to cover your own funeral with the policy and do not burden your family to bear the expenses of your funeral.

Can Life Insurance Provide More Benefits to Cover Funeral Costs?

A Funeral Expenses Benefit plan allows the insurance company to offer you an early benefit payment to cover the funeral expense. This amount will be taken from the total sum coverage.

The Terms and Conditions of the Funeral Expense Benefit

The terms will differ from one policy to another. An example of this case is;
If a policyholder dies during the tenure of the policy, he will be entitled to a payment of up to 10% of the policyholder sum-coverage and $25,000 will be released to his family to cover the funeral expenses. A death certificate is required by the insurance firm, and the payment will be deducted from the policyholder life coverage policy.

Terminal condition benefits

Many insurance companies offer terminal illness coverage by offering advance payment to the policyholder. This coverage is applicable in instances where the policyholder is diagnosed with the terminal condition and has 12 or fewer months to live.

To get these benefits you will have to hold the diagnosis in the period of the policy and provide all medical proofs and documents to the insurance service.

So why Apply for a Simple Funeral Coverage?

For people who are looking only to cover the funeral expenses, this is a good policy to have. For those people who are classified as high risk, the policy is a secure option to hold.

Check all the terms of the policy and understand how the premiums will be deducted. A good plan is one where the premium has a cap after reaching a certain amount.

You should be aware of the blueprint of your policy and how much the insurance company will pay for your funeral. Meanwhile, it is a good idea to do some preparation for the funeral costs and make some saving as at times the funeral expense may go beyond your coverage.

For more than 30 years, we have helped West Australians comprehend protection so they are more arranged for what’s to come. Stress less and live more by being better prepared for tomorrow. Take your first step by requesting a free consultation from Precept Financial Services.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

Property Investment Tips

Tips For Property Investors

Property investment is a popular type of investment strategy for people in Perth who are looking to create a more secure financial future. Particularly in the current climate, property investments do not always guarantee positive returns.

Here are some things to consider when it comes to property investment in Perth.

Real estate investment is primarily about capital growth; thus, investors ought to buy a property in the right place so that it has the best chance to increase in value. It can be challenging to determine the true value of a property in the real estate sector, unlike the share market where the company’s value can be more transparent. You should aim to acquire a property at a price that is lower than the real market value, to do this you need to research the property thoroughly to assess the real value or worth of the property.

Find a good property manager to manage

Property managers are licensed to offer professional advice on property investments and ensure everything runs smoothly for tenants and property owners alike. Property managers can assist you in managing tenants and getting the best value for your property. Also, a good property manager will advise you on the right time to review rents and when you shouldn’t.

Understand market dynamics before you buy

You should think about the properties in your neighbourhood and talk to real estate agents and locals in the area to understand the market dynamics. Maybe one side of the street is superior to the other, or it attracts more tenants than the other. You need to do your research and consult with a real estate agent you can trust who can give you insights and secrets about properties in the locality.

Negative gearing

Negative gearing is essential in providing property investors with specific tax benefits when the investment costs are more than the income it brings to the table. The law in Australia allows investors to deduct their maintenance and borrowing costs from their total income. However, the law only allows you to enjoy tax benefits if you earn other taxable income. The advantage is that even if your property is running at a loss, you can get a reduction of the tax amounts on your other earnings. However, you should not buy a property just because you want to get tax reductions.

Choose the right mortgage

There is an array of options to choose from regarding financing your investment. You need to make informed decisions when it comes to financing options because it can make a significant difference to your finances. You should consult a trusted financial advisor to help you structure your loan correctly. Contact Precept Financial Services today for a free consultation and see how we can help you.

Check the condition and age of the property

Unless your intent is to renovate a property, you don’t want to buy a property in ill repair because the excessive repair and maintenance cost will affect your profits and damage cash flow. Therefore, property investors should work with building inspectors before they buy a property to inspect the building for any potential problems.

Tips For Property Investors

Make the property attractive

You should try to keep all the rooms in excellent condition and maintain neutral tones throughout. This will help attract and maintain tenants which is essential to the success of your investment. If you want to attract tenants, try to invest in a property that you could see yourself living in.

Keep in mind this article is providing only some generic information on property investment. If you’d like to get some individual advice according to your specific situation, contact us today for a free consultation and see how we can help you.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

Tips For Living Within Your Means

tips for living within your means

Tips For Living Within Your Means

It’s easier said than done to live within your means; in other words only spend as much as you have coming in each month. Many of us spend more than we should with credit cards, and dipping into emergency funds and savings accounts. If that sounds like you, these tips for living within your means can help.

Your first step is to determine how much money you have coming in, how much you spend each week or each month and where that money goes – this is called a budget. Your challenge is then to find areas in which you can save so you aren’t spending more than you have coming in and these steps can help.

1) Determine Your Needs and Wants

Look at your overall financial situation and lifestyle, and try to determine whether you are spending money on needs or wants. Once you have a list of items, you should ask yourself whether your life would be different if you had this item, whether the item matches your values, and how things would be different if you didn’t have the item.

2) Establish Guidelines

Your revised budget should be set based on how much you spend on different things, how much you have to spend on necessities such as rent and utilities, and whether these things are really needs or wants.

3) Track, Trim and Target

It’s easy to see where you may be able to trim expenses once you start tracking where your money is going each month. You may find that you are spending more than you realize on eating out, for example. Once you have a better idea of where your money goes, it is easier to start cutting back rather than eliminate things completely.

tips for living within your means

It can help you to use the SMART goal:

  • Your goal of saving should be SPECIFIC; not just save money, but save it for that trip to Paris next summer.
  • Your savings plan should be something you can MEASURE so you know how close to your goal you are.
  • Be realistic when it comes to devising a savings plan. Only save what you can actually afford to save; in other words your goal should be ATTAINABLE.
  • RELEVANT. Have a savings plan and goal that actually make sense.
  • TIME RELATED. Set yourself a realistic time by which you will have the money saved up.

If you are like most people, money is probably tight. However, with some perseverance, it really is possible to establish a budget, come up with a realistic savings plan and save for that dream vacation, new furniture or new car.

Many people in West Australia have benefited from the advice and expertise of Precept Financial Services, and we can help you too. You too can have the confidence, freedom and power that comes from understanding your own financial situation, creating a budget that works for you and saving money towards a specific goal.

To see how we can help you, contact us today. It’s never too late to start working towards a more secure future.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

What Does Trauma Insurance Cover

Trauma Insurance

What is Trauma Insurance?

Trauma Insurance provides a lump sum payment to help you financially while you are recovering if you are diagnosed with a specific injury or illness.

What does trauma insurance cover?

It typically covers ailments like stroke, coronary bypass, heart attack and cancer, although it can cover other health conditions too.

Trauma Insurance is packaged and priced differently by insurance companies and banks. The quality of the policy determines the coverage you get for surgical procedures and medical conditions. Trauma insurance covers conditions such as:

  • Cancer of all types
  • Stroke
  • Heart attack
  • Severe osteoporosis
  • Kidney and other organ failures
  • Rheumatoid arthritis
  • Severe burns
  • Vision or hearing loss
  • Head traumas

Why do I need Trauma Insurance?

backbone blur check
Image Credit: Pexels

Here are some facts:

  • 1 in 2 men and 1 in 3 women will be diagnosed with cancer before the age of 85
  • Almost 3,300 men die each year of prostate cancer and around 20,000 new cases are diagnosed every year
  • On average, 7 women die from breast cancer every day in Australia
  • At least 2 in 3 Australians will be diagnosed with skin cancer by the age of 70
  • Cardiovascular disease kills 1 Australian every 12 minutes

Trauma insurance provides you with a lump sum payment to help you and your family financially while you recover. It covers medical conditions, events, and surgical procedures relating to stroke, heart attack, and many types of cancer. The trauma benefit is paid upon confirmation of a diagnosis and not when you die due to the condition.

Trauma Insurance was initially introduced in Australia in 1986 when it was recognized that critical illnesses could financially damage an individual or a family. Individuals with heavy debts or limited savings face financial hardship when paying medical bills for a long lasting illness. Not having trauma insurance potentially limits your treatment options which could reduce the chance of an early recovery and going back to work.

The payment of a lump sum trauma benefit provides a monetary cushion to cover out of pocket costs for medical treatment and medicines that health cover does not address. It can also assist in supplementing income while you are unable to work or be used to pay down your debts.

Is Trauma insurance only for old people?

happy couple

Age is no factor for trauma insurance. Those over 40 have a greater risk of suffering from heart attack and cancer. Younger people receive coverage for accident related trauma conditions like loss of sight and limbs, coma, severe burns, and head injuries due to car accidents. Trauma insurance also covers individuals suffering from neurological conditions.

What is the difference between trauma insurance and TPD insurance/income protection?

Trauma insurance only covers conditions specified in the policy. It does not cover all illnesses that may prevent you from working, like back pain, repetitive strain injury and stress. Income protection and TPD insurance typically cover injuries or sickness that hampers your ability to work.

However, as income protection insurance does not cover 100% of income and TPD insurance requires permanent disability, it is essential that trauma insurance be included in any income package. Life and trauma insurance are the only insurance options available for those performing home duties, involved in high risk occupations, or those who are not working.

Want to know more, contact us today.

Precept Financial Services has helped West Australians gain financial security and freedom.


Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

Steps for Successful Budgeting


To be comfortable with managing a budget, the first step is to learn to live within your means. By doing so, you put the odds in your favour from the outset to succeed in taming the management of your finances. In addition, it is recommended that you put some money in a savings account every month. The amount you save will depend on your individual circumstances. A common range of saving is 10%-30% of your monthly income.

Budgeting Isn’t Easy

It is common to feel discouraged when it comes to budgeting. It’s tough to stay on top of your finances and spending. If you stick with it over time you will develop good habits and enjoy many benefits such as:

  • A sense of achievement when you reach your targets
  • A feeling of empowerment as you take control of your finances
  • Less stress when it comes to finances
  • You are more prepared for unexpected events

Repay your loans

In most cases, a focus of your budget is to pay off your loans. Banks often spread the loan repayment over several years by establishing small monthly payments. If you know that you are able to give more, do not hesitate to do it. This will save you from wasting your money by paying interest.

Organise Your Expenses

It is easy to underestimate the amount allocated to personal activities and shopping. A simple organisation of your expenses and considered planning allows for better control of these expenses. Over spending can lead to unnecessary stress on you and your family.

Here are some tips for avoiding over spending:

  1. Anticipate and allocate funds for unexpected events that may come up such as a car breaking down.
  2. Be aware of easy access to credit.
  3. Allow for some enjoyable activities within your budget. This will keep you in control and help you avoid splurging.

The basics of a good budget

Finally here are some quick tips for budget making:

  1. Set realistic financial goals. It is hard to be motivated if the goals you set are unattainable
  2. Calculate your expenses using your bills so you do not forget anything.
  3. Check and review your budget periodically to see where it is working and possible gaps between planned expenditure and actual expenditure.

Financial Tips for Your Teenager


It is not easy to learn how to manage your finances, especially since the topic is not often taught at school. You learn the basics of financial management on the job, as they say. A better approach is to prepare your teenager for some of the common financial pitfalls that can occur with young people.

To support you in your approach, here are some financial tips for teenagers.

Learn to control your money

With easy access to credit, you can buy what you want and when you want it. Always consider your means. Obviously, it is always better to wait until you have the exact amount before making large purchases to avoid interest charges. Credit or borrowing money should remain your last resort.

Create a realistic budget

Knowing where your money is going and how you spend it is, without a doubt, the responsible way to keep track of your finances. Take the time to establish your budget before wasting your money after receiving your paycheck. Plan your savings and big expenses and make sure your expenses do not exceed your income.

Have a relief fund

Keep a certain amount aside for unexpected events, accidents or unexpected bills. Before you open a savings account, make sure you have money left over for emergencies.

Contribute to a retirement as soon as possible

Although you are young, know that it is never too early to start contributing for your retirement. The sooner you start investing, the greater the nest egg will be when the time of retirement comes. A good option is to start young. Initially, invest a small amount, which will not affect your lifestyle. Go from this principle and you will quickly see that interest will boost your investment. It will be your reward to continue on this path.

Learn to protect yourself

Always be one step ahead when it comes to your expenses. This means that you have to plan for the unexpected and have the necessary funds in your bank account to deal with them. It is well known now, bad surprises do not happen to others. You must protect yourself by foreseeing the blow of the bad luck. For example, if you rent an apartment, insure your home against theft and fire. The idea is to protect what you have and always have a “plan B” to get you out of unforeseen situations.

Save for important events

Once you have established your emergency plan, and contribute to your pension plan, you can consider starting to save for other major events. For example, to buy your first new car, to pay for a vacation, to organise your wedding and maybe also to buy a house to raise your family. These events of your life will require large sums. It is therefore important to plan for them now and save accordingly.