Welcome
Review Service
newsletter
April 2015 edition
Welcome to the Autumn QInvest Review
Service newsletter.
We have made some changes to our brand and the look and
feel of the Review Service Newsletter, we hope you like it.
In this edition we look at happiness in retirement. Australia
has one of the longest life expectancies of any country in
the world and the years after retirement are rated by many
Australians as the happiest of their lives. But it’s not always
plain sailing. Read more on page 2. On page 3 we look at what
goes into delivering professional advice from the QInvest
Head of Advice, and you’ll also find our financial fitness quiz. We
encourage you to take a few minutes to check you’re on track to
get the best outcomes from your financial plan.
Finally, Kylie Costigan from Estate First Lawyers explains Advance
Health Directives and getting the final say over your healthcare
decisions later in life.
Start the conversation with us today by calling us on
1800 762 033 or email us at [email protected]
Latest News, Economic update – January to March 2015
Overview
Global economic growth
Domestic market news
Since the start of the year, we’ve seen
weaker-than-expected economic activity
across many economies. This, combined
with a steep decline in commodity prices
since mid-last year, has prompted over 20
central banks to loosen their monetary
policy. This has come as a surprise to
many, particularly given that higher
global economic growth is expected
in 2015, led by US economic growth.
Outside of the US, Europe and Japan are
finally recovering, however China’s rate of
expansion continues to soften.
The European Central Bank announced
it would begin buying the bonds of Euro
Zone nations to stimulate the economy
and protect against deflation. However the
prospect of Greece leaving the Eurozone
and tensions in Ukraine are likely to cause
ongoing volatility.
Throughout 2014, the Reserve Bank of
Australia (RBA) emphasised ‘a period
of stability in interest rates’. However,
the fall in iron ore prices, non-mining
business investment, labour markets and
consumer sentiment, all contributed to
the RBA’s decision to cut the cash rate to
2.25 per cent, with more expected.
The result of this is a global economy
that is expanding at a rate of around
3.5 per cent per annum (around its
historical average), and a solid increase
from almost flat growth in 2009.
In Asia, Chinese authorities are targeting
a more modest 7 per cent expansion this
year (from 10 per cent previously), reflecting
the transition to a more sustainable
consumption based economy. And in
Japan, another round of quantitative easing
looks likely sometime this year.
The US is resuming its spot as the primary
engine of global economic growth with
business investment picking up. As a
consequence the US Federal Reserve has
opened the door to the prospect of rate
increases this year.
Get a new perspective on super investing
‘Investment Views’ is QSuper’s upcoming blog series looking deeper into the
industry, markets and factors that affect super.
Coming soon to qsuper.qld.gov.au
The Outlook
Global economic growth is likely to
increase from last year’s 3.3 per cent pace,
toward an average 3.75 per cent in 2015
and 2016. However (as always), some
uncertainty surrounds this. In Australia,
the decline in mining investment will
remain a primary headwind against
growth and employment over the
coming years.
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Review Service Newsletter April 2015
The recipe
for a healthy
retirement.
There are lots of reasons to be excited about
retirement. Not only do you have more time to do
the things you’ve always wanted to do, you can
finally start putting your hard-earned savings to
good use.
But the journey in to retirement isn’t always an easy one –
particularly if it comes earlier than expected due to ill-health,
redundancy or needing to look after a family member.
Whether your retirement was planned or arrived ahead of
schedule, there are some simple steps you can take to ensure
your freedom years are your happiest.
Have something to retire to
For most of us, work is about more than earning a living. It is a
source of social contact and provides purpose and meaning to
our lives.
Studies show that those who ease into retirement by working
part-time find the adjustment easier.
However regardless of whether this option is open to you or
not, you’ll probably find yourself wondering what to do next
after the initial honeymoon phase passes.
It’s important not to simply retire from something, but to have
a plan for how you’ll make the most of your time.
Get physical
Regular exercise, a healthy diet and maintaining a healthy
weight range are important for keeping the body ticking along.
Keeping active is also important. In fact, a very fit person aged
70 can be just as healthy as a less fit person at 40.
Gone are the days when the only activities enjoyed by retirees
were bowls and bingo. These days many Australians are
engaging in activities that were once the domain of younger
generations. You only need to visit your nearest coffee shop to
see senior cyclists out in force.
The key is to find an exercise you enjoy and do it regularly.
Daily physical activity not only improves energy levels and your
general health, it is also closely linked to memory retention and
overall mental health.
Eating less might also prove significant. The locals in Okinawa
Japan, an island which has the highest percentage of
centenarians in the world, claim to stop eating once they feel
80 per cent full. By eating less your metabolism doesn’t have to
work as hard, which puts less long-term stress on your body.
Keep your mind in top shape
It’s not just your body that needs a regular work out. Mental
activities like crosswords, Sudoku, bridge, computer games,
learning another language and studying for a degree have all
been found to be excellent ways to keep your brain sharp.
You might also like to consider stress-reducing activities like
yoga, pilates and tai chi, well-known to help in maintaining a
long and healthy life.
Keep time for yourself
It doesn’t usually take long for people to start offering to help
you out of your spare time. ‘Let’s ask Jim. He’s retired recently
and is probably looking for ways to keep busy.’ You’ve probably
been guilty of similar thoughts yourself.
Becoming involved with an organisation as a volunteer, or
helping out with the grandkids, can be just as meaningful and
rewarding. However it’s important to set some boundaries
about how much help you can give, so others know your limits.
Overdoing it can put a strain on your finances and health,
which doesn’t help you, or them, in the long run.
Of course, if you’re planning on a long, happy and healthy
retirement, it’s a good idea to ensure you have enough money
to support the lifestyle you want to maintain. Reviewing your
plan with your adviser both before and during retirement will
help ensure you have enough to last the distance.
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Review Service Newsletter April 2015
On the
couch
with Glenn Browne,
Head of Advice for QInvest
There’s a lot that goes into delivering professional
financial advice.
In addition to the advisers themselves, the team at QInvest
consists of the research and technical analysts that support
our advisers, para-planners and a whole host of client support
services.
And the man responsible for keeping it all running like a
well‑oiled machine is Head of Advice Glenn Browne.
How long have you been with QInvest?
I joined the QSuper Group in July 2013 following eight years in
financial planning leadership roles with other institutions.
As Head of Advice what do you hope to achieve?
I believe passionately in the value of personal advice, and
would like to see every QSuper member armed with a financial
plan that sets them up for success later in life.
As you can imagine, after 25 years in the finance industry I have
seen people who planned well for the future, and some who
didn’t.
What about when you’re not at work?
I spend time with my partner and children; going to the
beach, listening to music, reading and enjoying our fabulous
Queensland lifestyle.
Who would you most like to invite to dinner?
Lance Armstrong, the Dalai Lama and Ed Kowalczyk.
What’s the greatest lesson you have learned in life?
I’m still learning, but here’s one from a favourite quote:
You’ll be the same person in five years as you are today,
except for the people you meet and the books you read.
Charlie ‘Tremendous’ Jones.
How fit is
your financial
plan?
As a part of the QInvest Review Service program,
you know how important it is to regularly update
your financial plan.
But change doesn’t always follow a schedule, and when life
gets busy calling your adviser isn’t always top of mind.
By taking our 60 second financial health check, you can quickly
identify how healthy your plan is and what you should bring to
the attention of your adviser in your next meeting.
Reviewing your financial goals
Setting goals are an important part of your financial plan. But if
you find you haven’t made much progress since your last review,
or your priorities have changed, you may need to make some
adjustments.
Talk to your adviser
At your next appointment, be sure to ask your adviser about
whether any changes are required for you to get the best
outcomes from your plan.
Take the health check
Do you regularly monitor your spending to
ensure your expenses are in check? 4
Have you Identified any new upcoming
expenses or income that might impact
your plan?
4
Do you have a plan for what you want to do
with your retirement or has it changed? 4
Have you discussed any recent changes to
your family or financial situation (such as an
inheritance or sale of a property) with
your adviser? 4
Do you understand any Government
entitlements you could be eligible for
such as the Seniors Card, Newstart, the
Age Pension and Commonwealth Seniors
Health Card etc? 4
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Review Service Newsletter April 2015
Advance Health Directives
the long and short of it
Bob’s dilemma
Bob has always been in control but now
he is lying in a hospital bed following
another stroke. He’s somewhat aware
of what is going on around him but is
unable to communicate with anyone.
It is up to his two children, Mark and
Sharon (as his attorneys under his
Enduring Power of Attorney – also
known as an EPA) to talk to the doctors
about his care. But he just wishes they
would stop arguing and guessing what
he wanted.
Mark and Sharon’s dilemma
It’s no easier for Bob’s children, Mark
and Sharon. They’ve both had a good
relationship with their Dad, and until
now, with each other. Sharon spent
quite a bit of time looking after Bob and
his late wife Pam in their later years and
Mark helped out when he could. Now it
is hard to let go. The doctors are pressing
them for a decision about ongoing
treatment. Sharon is keen to proceed, in
the hope that this time Bob will defy the
odds and regain full consciousness. Mark
knows when the gig is up and wants
Bob to have a dignified ending.
If only Bob could tell them what he
wanted – ‘Just let me go’!
What could Bob have done?
In Queensland, you have the
opportunity to prepare an enforceable
legal document – an Advance Health
Directive (AHD) – which enables you
to provide directions now, in ‘advance’,
regarding your health care in the final
stages of your life, in the event that you
don’t have the capacity at that time to
decide.
Inside Estate
Planning with
Estate First
Lawyers
Written by Kylie Costigan
Kylie Costigan is senior associate and Qld Law
Society accredited specialist (succession law)
with Estate First Lawyers. Estate First is a law firm
practicing exclusively in estates and has been
working with QInvest for a number of years to
provide quality estate planning to QSuper members.
The directions in an AHD take precedence
over the power you have given your
attorneys in your EPA, for those health
matters covered in the AHD. This means
you can control various end-of-life health
decisions even if your family members
(as attorneys) are making decisions about
everything else for you.
In the above scenario, Bob’s dilemma
may have been solved if he had an
AHD setting out his wishes.
Who needs an AHD?
Here’s the long and short of it – every
adult with legal capacity should consider
preparing an AHD.
An AHD can be an essential part of your
estate planning, particularly if you fall
into one of the following categories.
4Your attorneys do not know your
wishes or you do not want to discuss
this with them in advance.
4You think your attorneys will disagree
about your end-of-life health care.
4Family members may disagree with
your attorney’s decisions.
4You wish to record decisions about
special health matters, such as organ
donation.
4You feel strongly about recording
your end-of-life health care wishes.
PO Box 15318
City East Q 4002
What if I don’t have or want an AHD?
If you do not have a valid AHD in place,
then your attorneys for personal/health
matters, appointed under your EPA,
will make all health decisions (other
than decisions regarding special health
matters) on your behalf.
Regardless of whether you decide to
prepare an AHD or not, your EPA needs to
be drafted and executed properly so that
the right people have the right powers to
make the right decisions for you. Because
there are even more decisions that may
need to be made for you that your AHD
can never possibly cover.
How do I go about preparing
an AHD?
Unfortunately for Bob it is too late
because he has lost capacity. In estate
planning it is all about prevention rather
than cure. Your AHD it is essentially
a legal document and should be
professionally drafted and certified by
a qualified estate planning lawyer. If it
is not completed properly it will not be
valid and binding.
Are your estate planning documents
up to scratch?
If you don’t already have a relationship
with an estate planning professional,
your adviser can help put you in touch
with one.
T 07 3008 8100
Toll free 1800 762 033
W qinvest.com.au
E [email protected]
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only so keep in mind that it doesn’t take into account your personal objectives, financial situation or needs, it shouldn’t be relied on as legal or taxation advice and doesn’t take the place of this
type of advice. What we say about law or proposals is based on our interpretation of the law or proposals at the time we printed this document. You should consider whether the product is
appropriate for you by reading a copy of the product disclosure statement before making a decision – you can do this by downloading a copy from our website at qsuper.qld.gov.au or call us on
1300 360 750. 8487 04/15