Financial Focus
Spring 2016
Welcome to Financial
Focus. I hope you enjoy
the articles and find
them interesting and
informative. If you have
any feedback, questions,
or would like to review
your financial plan, feel
free to contact me.
Adviser Details
Five cruise destinations you need
to add to your bucket list
If a cruise holiday has never been high on your agenda, you may
be surprised to hear that some destinations are actually best seen
by boat.
Forget the increasingly impressive onboard experience that cruise
ships now offer, these destinations have enough allure of their
own to get you pulling those deck shoes on.
Sam Zervides
1st Floor, 152 Hawthorn Road
Caulfield North VIC 3161
1. Papua New Guinea
PHONE:
A nature lover’s paradise, Papua New Guinea may only be a fraction of the size of Australia
but it has just as many mammal species and even more types of frogs and birds.
(03) 9532 4064
MOBILE:
0408 532 832
EMAIL:
[email protected]
om.au
ADDITIONAL INFO:
Papua New Guinea’s basic tourism infrastructure means the country poses a challenge
to even the most intrepid of travellers. As a result, cruises have become a popular way of
seeing this destination, which is home to a high percentage of the world’s biodiversity,
volcanic terrain, a pristine underwater environment teeming with fish, as well as a
vibrant culture.
2. Antarctica
The southernmost continent in the world has earned its place on many a bucketlist
thanks to its dramatic landscapes and abundant wildlife. Think vast glaciers and icecapped mountains, which are home to adelie and emperor penguins, south polar skuas,
snow petrels, southern fulmars and many more species of birds. You'll also find whales
and seals feeding in the waters around the ice edge this time of the year.
Although locked under ice for most of the year, the brief summer months bring with them
enough warmth to make the area accessible.
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Cruising is really the only way for
travellers to access this region, so
it's simply a case of picking the right
cruise. Operators, such as Lindblad and
Aurora Expeditions, set sail from South
American ports such as Ushuaia in
Argentina. Some depart ports closer to
home such as Hobart and Port of Bluff
near Invercargill.
3. The Kimberley
If Sir David Attenborough describes
somewhere as “one of the greatest natural
wonders of the world”, you know it’s got
to be worth a look. So put Horizontal
Falls in Talbot Bay in the Kimberley’s
Buccaneer Archipelago on your list.
The Kimberley’s other spectacular sights
are an added bonus. At Montgomery
Reef, the tidal ebb-and-flow reveals a
semi-submerged world of waterfalls, reef
birds and marine animals such as turtles,
manta rays and the occasional dugong.
Then there are the tiger-striped rock
formations of the World Heritage Bungle
Bungle mountain range in Purnululu
National Park.
Remote and unspoilt, this breathtaking
region of waterways and rivers is
definitely best explored by cruise ship.
4. The Mekong
This giant river flows through no less
than six countries, starting its 4,350km
journey in South Vietnam and making
its way through Thailand, Cambodia,
Laos, China, Myanmar (Burma) to finish
up in the Mekong Delta.
While rice paddies are plentiful along
the river’s length, it remains one of Asia’s
least developed rivers, which is great
news for wildlife. Monkeys may be the
most common sighting on any Mekong
river cruise, but the river is also home
to a whopping 20,000 species of plants,
430 mammals, 1,200 birds, 800 reptiles
and 850 fish. In fact, the only river in the
world that can boast more biodiversity
than this one is the Amazon.
Beyond the nature, there are dreamy
Buddhist temples, traces of the region’s
bloody history and vibrant cities such as
Phnom Penh and Ho Chi Minh City. But
perhaps most special are the glimpses
of everyday life - with fishermen
trawling the waters for their daily catch,
kids splashing in the shallows, women
wringing their laundry.
With the Mekong one of the hottest
river cruise destinations right now, you’ll
have no trouble finding an itinerary to
suit you.
5. The Ganges
What better way to get to know a country
as diverse and confusing as India than
by leisurely sailing along its most beloved
waterway, the Ganges?
More than just a river, the Ganges
is actually considered to be a Hindu
goddess. It has played a vital role in
the country’s history and continues to
be of utmost importance in the daily
rituals of the people that live along its
length. Beyond being simply the site for
the undertaking of daily chores such
as washing, laundry and watering the
animals, its sacred properties make it a
place of prayer, reflection and farewell.
Most people yearning for an encounter
with the holy waters generally head for
Varanasi – the spiritual capital of India
with more than 2,000 temples and
probably as many cows. But despite the
city’s chaotic charms, there's far more to
the river. Think colonial cities, dolphins
and even tigers.
So what's the perfect way to see it?
Obviously by boat. More and more
operators are cottoning onto this, and
now you can make the journey in a style
not previously available.
Financial advice
boosts confidence
in retirement
Seventy-seven percent of
Australian pre-retirees who
haven’t enlisted the help of
financial professionals1 don’t
feel prepared for retirement.
This concerning statistic was
revealed in MLC’s 'Australia
today' report. Of the remainder,
only 9% feel ‘prepared’ for
retirement and only 14%
consider themselves ‘somewhat
prepared’ for retirement.
Retirement is then, this is now
For many Australians retirement seems
a long way off. We’re so busy worrying
about paying off the mortgage and
maintaining our standard of living that
retirement planning isn’t on the radar.
For some, it’s not even a consideration.
This lack of preparation for retirement is
a symptom of a ‘living for today’ mindset
that’s emerged in Australia today. More
Australians are living pay-cheque to
pay-cheque to support a more luxurious
lifestyle than their parents. They’re
foregoing financial planning for regular
travel and entertainment and other
lifestyle factors, which Australians are
now confusing with standards of living.
There’s little left over after our lifestyle
expenses, so the majority of Australian's
aren't feeling positive or confident about
their retirement plans.
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Ignore retirement and it
will go away
Do we think if we ignore the concept
of retirement planning, in favour of
managing the demands of today’s
lifestyle, the ‘problem’ will simply go
away, or we’ll just sort it out later? Or is
it that we feel retirement is too far away
to plan for?
Ironically, if we pretend retirement isn’t
there, it most certainly won’t be – at least
not how we may imagine in the back of
our minds.
Do you anticipate the day you log-off
from work and become your own
recreational boss? Do you picture yourself
hiking a mountain, surfing, writing that
book, painting that landscape, seeing
that play or developing that smartphone
app – not because you have to, but just
because it’s fun? Maybe you imagine
learning the guitar, catching up with
friends or taking long walks.
Well, if you’re ever going to stop working
or cut back on your hours, you’re going to
need a big nest egg to support you.
How big is your nest egg?
With couples needing $58,922 per annum
for a comfortable retirement and $34,064
per annum for a modest retirement, and
singles needing from $23,000-$43,000
per annum for a modest to comfortable
retirement, those who aren’t prepared
will face a significant shortfall2. In fact
half of us may outlive our retirement
savings by 13 years3.
Women and the young
are least prepared
Australia today reveals women are almost
twice as likely to feel unprepared for
retirement as men. Young people (aged
25-29) and those who live pay-cheque to
pay-cheque are also more likely to feel
unprepared for retirement.
For many women, career breaks to
have children often results in less super,
and a lower annual income when they
return to work. While for those under
30, retirement seems too far off to
worry about.
Financial professionals
offer a silver lining
The good news from MLC’s Australia
today report is that help from financial
professionals has an encouraging impact
on our financial confidence and security.
Australians engaging the help of
financial professionals are more than
twice as likely to feel ‘very or fairly well
prepared’ for retirement than those
without a financial professional. They’re
also 21% less likely to feel slightly or not
at all prepared.
Those surveyed with financial planners
or advisers are also 22% less likely to
expect to rely on government support
to ensure their financial security (52%
with financial advisers compared with
27% without) and are 10% less likely to
be relying on an inheritance to ensure
financial security (77% with financial
advisers compared with 67% without).
What can you do?
If you acknowledge that one day you’d
like to stop working, while still having
control over your lifestyle, think about
how much money you’d like each
year and what that means as a lump
sum. Engaging the help of a financial
professionals may help you put a plan
in place to enjoy the lifestyle you want
in retirement.
There are many great calculators online
including ASIC’s MoneySmart retirement
planner to help you understand what
you'll need in retirement4. You can also
consider more actively managing your
super, investigating and learning more
about your investment options, risk/
return considerations and timeframes,
while topping up your super when you
can (depending on your tax circumstances)
to boost your retirement savings.
Sources:
MLC and IPSOS, Australia today report,
Aug 2016.
1 1 647 of respondents surveyed by IPSOS.
2A
SFA Retirement Standard, March Quarter
2016.
3 Assumes couple, retiring at age 65 who will
live to an average life expectancy of about
85 and desiring a comfortable lifestyle.
ASIC Money Smart, August 2014.
4 https://www.moneysmart.gov.au/toolsand-resources/calculators-and-apps/
retirement-planner
Five things
you need to
consider before
changing jobs
Changing jobs is a time to
make a fresh start and make
some positive improvements
to your working life. Here are
five things you need to know
before you make the move.
1. Don’t ‘jump ship’
It’s easy to want to change jobs because
you’re dissatisfied with your current one,
but don’t just ‘jump ship’. Before making
your move, make sure your new role
offers something better.
Write down the reasons why you’re not
happy with your current role, and then
list what you’re looking for in a new one.
If roles you’re considering don’t offer
improvement, then it’s unlikely you’ll
be happier.
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2. Consider your options before
moving for money
With wages growth at an all-time low in
Australia, you may feel that you need to
move jobs to gain a meaningful salary
increase. However, moving jobs purely
for a larger salary is a short-sighted
move, a higher rate of pay can come with
longer hours, more pressure and less
flexibility. The money may also be higher
to compensate for less desirable tasks,
higher risk work or an inconvenient
location. You can research salaries on
Payscale, Seek and CareerOne websites.
Your professional growth and the career
opportunity itself should be greater than
the salary increase, and it’s important to
know exactly what you’re giving up
to earn more.
3. Go for the learning zone
You’ve probably heard of the three zones of leadership: the comfort zone, the learning
zone and the danger zone. Natural steps forward in your career ensure you stay in your
learning zone. While most people live in their comfort zone, where tasks are familiar
and there is low anxiety, performance, satisfaction and leadership are also lower.
Taking a job that is too many steps ahead, moves you into the danger zone, stretching
you too far, increasing anxiety so you are unable to lead.
Seeking new roles in your learning zone is ideal, gently pushing the boundaries of
your skills and experience and improving your performance due to the stimulation of
learning new things with a level of stress you can manage.
4. Get ready to take your super with you… and be
financially prepared
When you progress through the interview stages, make sure you have all of your
financial information ready such as your tax file number and bank details. Have your
super account details handy so you can take your super account with you to your new
employer and potentially avoid multiple super accounts with multiple admin fees and
insurance fees.
5. Seek inspiration before you move
Consider using the time between jobs, or during your job search, to seek inspiration,
competitors and leaders in your field. Whether you’re an office manager, a shift worker,
a gardener or designer, no role or industry ever stands still. What are the current trends
and future outlooks for your industry or specialty? What new insights, perspectives
and ideas can you bring into a new role? Seeking inspiration will ensure you’re
energised from day one, with new ideas to share, setting you up to thrive in your
new opportunity.
Important information and disclaimer
This Financial Focus newsletter has been prepared by GWM Adviser Services Limited (ABN 96 002 071 749, ASFL 230692) (‘GWMAS’), a member of the National
Australia Bank group of companies (‘NAB Group’), Registered office 105–153 Miller Street, North Sydney 2060, for use and distribution by its authorised representatives
and the representatives or authorised representatives of National Australia Bank Limited, Godfrey Pembroke Limited, Apogee Financial Planning Limited, Meritum
Financial Group Pty Ltd and Australian Financial Services Licensees with whom it has a commercial services agreement.
Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal financial and/or legal advice
prior to acting on this information. Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of
taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or
could arise, under taxation law, and we recommend you consult with a registered tax agent.
Information in this publication reflects our understanding as at the date of issue. In some cases the information has been provided to us by third parties. While it is
believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way. Opinions constitute our judgement at the time of issue
and are subject to change. Neither GWMAS nor any member of the NAB Group, nor their employees or directors give any warranty of accuracy, nor accept any
responsibility for errors or omissions in this document.
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