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Family Solutions - Big Sky Financial Solutions

Family Solutions



People who are juggling the financial demands of raising a family and building wealth for the future often wonder what a Financial Planner can do for you.

Probably nothing you think. After all, don’t you have to have money to make money? And aren’t Financial Planners only for the people who already have it?

Not at all. In fact, you could argue there’s more potential benefit in financial planning for people trying to escape the debt spiral and get ahead. Let’s start with a mindset shift. Forget ‘financial planner’, think ‘money management coach’.

Most of us know what we should be doing to get our finances sorted. We understand we should be keeping tight control on debt. We appreciate the benefits of putting money aside for a rainy day. We’d love to be able to set up arrangements to give our kids the best education they can possibly get.

The problem is, many of us don’t actually do it. Here’s where your Money Management Coach comes in.

Let’s say you don’t have any spare money left over at the end of the month after paying rent or mortgage, household expenses, fuelling the car, paying the credit cards, house and car insurance. The list goes on.

But what if you were able to re-shuffle all these cards and have someone help you deal them out again – a better deal, so you end up with a better hand. This is the job of your Money Management Coach.

A Money Management Coach can help you make sense of your financial arrangements.

You might think investing for the future is out of the question at this stage of your life. Again, your Money Management Coach can work with you to help you start taking little steps, but positive ones, towards a financially more comfortable and secure life. Helping you get your financial affairs right on track, now and for the future.

So when you call to make an appointment with, let’s say, a Big Sky Financial Solutions Adviser on 1300 700 189 tell them a bit about yourself so you can be put in touch with the right Money Management Coach for you.

The sooner you call, the sooner your new Money Management Coach can help you take action to sort out your financial bits and pieces.

Take control of your finances with Big Sky Financial Solutions.

1. Understanding lifestyle priorities
This will be a key factor in your financial plans. Considerations such as Education for your children, purchasing a new home, travel plans, or your health can all significantly impact your financial strategy.

2. Managing day to day expenses
Understanding your income and expenses is the basis of all long term planning. It is important to be aware and in control of your money.

3. Setting goals
Rank your goals in order of time span and priority. A basic guide to time span is:
Short term – less than three years
Examples include paying off a credit card debt, saving for a holiday, buying a car.
Medium term – three to five years
Examples include saving for children’s education or a deposit on a home.
Long term – more than five years
Examples include building wealth, improving your lifestyle or planning for retirement.

Getting started
There are lots of simple ways to achieve your goals without a lump sum to invest.

Put a little aside
Even if you don’t have a lump sum, small but regular investing can bring you very attractive results. When planning for the future, time is money. The earlier you start, the better the results.

Reducing your debt
If you are paying high credit card interest, there is no point in putting money into an interest-earning account. Pay your credit cards first. Keep the balances under control so you can pay the full amount before the end of the interest free period and then you’ll reap the benefits of having a rainy day savings or investment account.

Consolidation
If you have more than one credit card payment or personal loan you could also consider consolidating them to reduce fees. In some cases, you can bring personal debts under your mortgage, giving you the advantage of a lower interest rate.

Super is your money, take control

Understanding investment styles and their impact
The way your super is invested can make a big difference to your total wealth. The example below highlights the difference a change in investment style can make.

Client age 35, current super balance $40,000

If invested in “defensive assets” Total balance at age 65 = $129,736
Based on earnings rate of 4% per annum and no contributions being made

If invested in “growth assets” Total balance at age 65 = $697,976
Based on earnings rate of 10% per annum and no contributions being made

Therefore the difference in balance at 65 is $568,240

Topping up super
The long term nature of super investing means that a small additional contribution can make a substantial difference to your total wealth in retirement. Assume the same client adds $50 extra per month via salary sacrifice.

• No additional contribution Total balance at age 65 = $304,490
Based on earnings rate of 7% per annum and no other contributions being made, balanced risk profile


• $50 monthly contribution Total balance at age 65 = $370,599
Based on earnings rate of 7% per annum and salary sacrifice contribution of $50 per month ($600 per annum) indexed to inflation (CPI 3%), balanced risk profile

Therefore the difference in balance at 65 is $66,109. After taking into account the salary sacrifice contributions of $28,545 made over the 30 year period, the net earnings are $37,564.

Protecting your lifestyle
Protect your most important asset – “You”. Studies show that most people do not usually recognise the effect that even a short term accident, illness or loss of employment can have on their lifestyle. Mortgage payments, children’s education, living expenses and other commitments can all become difficult to manage if you lose your regular income.

Big Sky Financial Solutions can help you evaluate insurance options that will protect your family in the event that an accident or illness causes a serious medical condition, a temporary or permanent disability, or even death. These insurance options are often available through your super fund. Insurance through superannuation can be more tax effective, however you should consult your Big Sky Financail Solutions financial planner to ensure the level of cover offered is appropriate for your needs.

Planning for the unknown
Without a suitable Will, any efforts you have made to secure your family’s future may be jeopardized. If you die without a Will you are deemed to have died intestate, and your assets will be distributed according to a standard government prescribed formula, which may not be according to your wishes.

Call 1300 700 189 or email us today for an obligation-free assessment of your situation and analysis of the available options.