Thinking about expanding your child’s investment knowledge?

Saving money is great and teaches teens important traits such as self-control, responsibility and independence. However, in this day and age where there is so much opportunity to make good and bad investment decisions online and offline the key to a successful financial future depends on one’s ability to ‘grow their money’.

Forbes magazine found that children are more than capable of understanding investing concepts.

One tip in particular which is quite a simple one is to speak their language! Investing can be tricky in itself so there’s no need to over complicate it, start basic and build their knowledge from there. This can be done by using simple and current topics, for example, explain how the same house valued 15 years ago is worth much more now, these basic steps can be a building block for a wealth of knowledge anyone can acquire.

A good way to motivate children is to explain the difference between saving and investing, we all know that the interest you earn in your bank account is not much compared to your potential earnings through investments. However, it is also very important to address the risks and costs associated with any investment and that thorough research and planning is vital before investing.

Although the above information mentioned does sound a bit technical it is necessary, but it’s also important to make investing sound fun! This can be done by through games that are concerned with the stock market, these games can be downloaded on your phone and computer.

Even though these are just a few ideas, there really is no harm in introducing this topic to your children. There’s a world full of knowledge, get kids to embrace it!

Thanks for reading!

Benefits of a Self Managed Super Fund

Do you know where your money is?

A Superfund is your money, a forced saving, but do you really know what’s happening to it? Week after week we receive our pay packets, notice the superannuation section and just shrug it off. But what if I was to tell you that you can do MORE with it! What if you could take charge of it and not only watch it grow, but see it skyrocket!

Well the answer for you then is a Self-Managed Superfund. This means YOU get control of your super, and YOU get to decide where it’s held and how it’s invested.

As with any investment opportunity risks are associated, this includes the fees of running a self-managed super fund to making a secure investment.

Let’s have a look at the benefits of a SMSF:

  • Control

Control over your investments and your money and to take upon an opportunity that arises.

  • Flexibility

The ability to respond to market changes with your investments.

  • Growth

Growth of your super and of your investments! With the ability to garner a loan of up to 70% of the value of a property (for property investment) it now allows you to have the ability to make a larger purchase and investment for a higher return!

  • Tax Reductions

Personal investments come along with a 15% tax on all profits earned, however investments where the income is asset based and supporting a pension income stream may have significantly reduced tax dependant on your situation.

  • Combine Super Assets

A self-managed super fund trustee may combine their super assets with up to 3 other members to purchase assets and investments that you may not have been able to purchase solely.

  • Planning

Self-managed super fund members have a greater say regarding the execution of death benefits and how they are to be paid, and are not binding similar to traditional superannuation funds.

There’s a lot that goes into managing a self-managed super fund, but you’re not alone, we’re only a phone call away!

How strong is your super?

Where could your super take you?

Thanks for reading!

Which accountant is your glass slipper?

Alike many industries accountants can often be specialised.

For example, when we look at the trade industry, you don’t exactly want to hire a plumber to put in a new light socket for you… may not end well.

Or you don’t want to go see a podiatrist for your nose job.

They’re all deemed tradies and they’re all deemed doctors, but it’s all about finding which one best fits you.

And accountants are the same, whilst a lot are multi-skilled, or work within a company that offers the variance, it’s important to discuss your needs to find your perfect fit! After all we don’t want to be walking around in uncomfortable shoes forever do we?

Types of accounting include:

  • Financial Accounting

This is your more traditional accountant, the one that follows your financial transactions as closely as your prep grade buddy followed you when you were in year 6.  This includes your incomings, outgoings and liabilities to then having the ability to determine the financial position of the company. After school, they then grew up to be the people in university that would go through 3 pens in one lecture noting down everything the lecturer said, detailed and meticulous.

  • Management Accounting

We like to think of this type of accounting as those teachers, specifically maths teachers who just LOVE report writing time and the feeling of completing beautifully colour coordinated graphs and charts. They specialise in tracking a company’s financial position, using past indicators to also predict into the future. They use these graphs, charts and reports to make predictions to put your company on a path for financial security in line with your business objectives.

  • Tax Accounting

Now I like to think of the tax accountant as the one to play by the rules. The taxation laws are their best friends and they know them like the back of their hand. Now their job is to minimize your tax liability, but to make sure you’re doing it by the book. These are the ones that could have been lawyers in another life.

  • Forensic Accounting

Now this accountant was the one that loved playing Cluedo as a kid and always wanted to grow up to be a crime fighting superhero or detective, until they realised their laser vision just wasn’t coming through. So, they went to the next best thing to being a super hero, a forensic accountant! They can sniff out anything dodgy a mile away! Using their super power of analysing financial evidence they detect for fraud and embezzlement. They often analyse information for use in legal proceedings.

  • Social Accounting

The one at school that always had a bag full of Tupperware containing their lunch, without an ounce of glad wrap to be seen. One of the newer branches of accounting. This is the discipline measuring a business’ social and environmental performance by incorporating their impact of these factors in conjunction with traditional accounting methods. This has become key for many businesses as it is often a selling point as these factors become ever so increasingly important in today’s society. It’s the old with a new twist!

And so, the list goes on!

Hopefully you don’t have to kiss too many frogs before finding your Prince Charming who has the perfect glass slipper just for you!nature-3056347_1920

ATO WARNS: SCAMMERS ARE GETTING INCREASINGLY CUNNING

This week’s blog will be focused on providing you tips to improve your financial security. With technologically becoming a part of our everyday life it is imperative that we become aware of the crimes that can be committed while using it.

A range of tricks are used to make scams appear authentic. For example:

  • including a legitimate-sounding message at the start of a call, such as the call is being recorded ‘for training purposes’,
  • sending emails that appear to have come from the ATO, which when opened or downloaded infect your computer with malicious software.

These scams are then investigated by the ATO and other government agencies as appropriate, including the Australian Federal Police.” The ATO states that if you are in doubt about an interaction you have had with someone claiming to be from the ATO, or you think you have fallen victim to an ATO Impersonation scam, then it is imperative that you call the ATO on 1800 008 540 between 8:00am–6:00pm Monday to Friday to verify.

The ATO won’t email, text or ask you the following on social media:

  • update or provide personal information, supply your TFN, credit card or bank details
  • send you downloadable files or tell you to install software.

However, the ATO will email and text you if they need to contact you by asking you to contact them by phone in order to:

  • provide additional information for a BAS or GST enquiry, tax return or an application you have lodged
  • verify changes to an account.

What you need to look out for to avoid being scammed!

  • The ATO states that scammers can use Voice Over Internet Protocol (VOIP) phone numbers to make and receive calls from anywhere in the world
  • spoofing phone numbers to make phone calls and text messages appear to come from Australia
  • sending pre-recorded voice messages (robocalls) to large numbers of people asking for an immediate call back
  • sending copycat emails with attachments or links that
    • take you to fake login screens or web pages to trick you to downloading malicious software or giving them your personal information
    • contain programs that record your computer key strokes to get your personal information or login credentials
  • sending ransomware (malicious software) that stops your computer working until you pay a fee – often by Bitcoin
  • spoofing websites or login pages to get your personal information
  • accessing your public profile on social media to learn about you so they can meet proof of record ownership or break your passwords.

For more information visit the ATO website.

Thanks for reading!