Three steps to ditch debt and breathe easier
When you’re feeling smothered by debt, living on plastic and struggling to pay the mortgage, it’s time to take action.
If you think financial advice is just about helping you save more for your retirement, think again. No matter where you are in life, getting good financial advice can help put you in the best possible place to achieve your life dreams, and protect you if things don’t go to plan.
Here’s how your adviser can help you through some of life’s big events.
1. Moving in with your partner
Starting a new relationship can be an exciting time – and it can be easy to get carried away. As you start your life together, a financial adviser can help you plan a new budget, so you can start saving for mutual goals.
Your adviser can also make sure you’re both protected with adequate insurance – something that’s particularly important if children are involved.
2. Setting up house
These days, buying your first home is harder than ever, with property prices at record highs in most Australian cities. An adviser can help you create a realistic plan to save for a deposit, helping you get your start in the property market.
Once you’ve found the right property, your adviser can help you choose a mortgage and manage your repayments – potentially saving you thousands of dollars in interest over the life of your loan.
3. Ending a relationship
Not every relationship lasts, and break ups can be painful – and often financially detrimental.
Your adviser can help you work out how you and your ex-partner can split your shared assets (once you have reached an agreement with your ex-partner), including super and the family home. They can also help you get your finances back on track, with a budget to suit your new situation and lifestyle.
4. Changing direction
It’s unlikely that you’ll stay with the same job for your entire lifetime. So if you’re thinking of changing your workplace or embarking on a new career, it’s time to sit down with your adviser. They can help you understand the financial implications of working less, or help you make the most of a higher income or overseas promotion.
If you’re nearing retirement, you may want to discuss a transition to retirement strategy, so you can spend less time in the office and more time at home. Or if you want to be your own boss, make sure you talk to your adviser about making tax-effective contributions to your super, so you don’t retire without a nest egg.
5. Taking time out
There may be times in your life when commitments like parenting, taking care of elderly parents, studying or travelling will take priority over full time work.
If you’re planning on taking a break from work, your adviser can help you understand your financial options for funding this time off. Remember that while you’re not working you won’t receive any employer contributions to your super. So it’s important to talk to your adviser to help make sure your retirement savings don’t fall behind.