Time to consider a Financial Health Check
Time is now on our hands with the lockdown measures allowing us to get our house in order so to speak, not only for those DIY jobs and projects around the home, but also more importantly conducting a personal financial health check, considering the following:
- Review your expected cash flow and expenditure. It is essential to know the reality of your financial situation. Check exactly what you’re expecting to receive in the way of income over the next few months and make a list of all your outgoings, via creation of a budget or a Lifestyle Priority Plan, a template of which we can supply to you.
- If you’re on top of your cash flow and expenditure, it’s worth refreshing your budget to take into account these new circumstances, including any reduction in superannuation pension drawings, and how they will affect your income and what you spend.
- For retirees, consider a reduction in Account Based Pension and Term Allocated Pension payments by 50% for the remainder of this financial year and the 2020/2021 financial year to minimise the need to sell down assets in suppressed markets.
- Review your current loan repayments. If you are worried about meeting these obligations, we recommend speaking to your bank. They will be able to provide solutions that fit your personal circumstances – which could include deferring mortgage or loan payments or a possible review of your existing position, which we can assist with.
- Review your Estate Planning position. Is your Will up to date? Do you have an Enduring Power of Attorney and Medical Power of Attorney in place? Are your Estate Planning instructions in line with any new relationship? We can assist with implementing these various updates.
- Review your Centrelink position. You may be entitled to a higher rate of pension due to a reduction of your income and assets and a reduction in the Centrelink deeming rate to reflect the low interest rate environment. We can conduct are view of your eligibility accordingly.
- Review available surplus cash. New money can be invested without the need to sell something first and look for a better opportunity. Consider a drip feed into the market to balance out the peaks and troughs.
Remember to take care of yourselves and your loved ones as the number one priority during these unprecedented times.