The Best Way of Buying Expensive Things

What is the essence of ‘salary sacrifice Australia’?

‘Salary sacrifice Australia’ is an innovative financial scheme that is prevalent in Australia, which gives good benefits to both the employers, as well as the employees. All monthly salaried employees can make use of this specific financial plan, for making valuable purchases. 

 This scheme is also officially approved by the ‘Australian Taxation Office’, and so, it is a legally valid method. This financial agreement, which is also termed as ‘salary packaging’ or ‘total remuneration packaging’, is a contract between the employers and the employees. 

As per this contract, the employee gives his or her consent for giving up a part of their monthly salary, as a replacement for some other equivalent benefit, which will be actually in par with the surrendered salary. This is indeed a great method, which enables the salaried class to buy expensive goods, without pumping the needed capital for the same from their existing savings, and just because of the constructive feasibility, this specific scheme is very much appreciated by all employees. 

As far as the employers are concerned, for sure they will be able to enhance the quality of their ‘Human Resource Management’ efforts, by offering this scheme; another positive side-effect of this salary scheme is that it will augment the productivity of the workforce, considerably, and thus the overall profits of the company can be amplified. The scheme will also increase the loyalty level of the workforce, thus helping the management in their ‘employee retention’ endeavors.

What are the fundamental requirements for ‘salary sacrifice Australia’?

There are some mandatory requirements that should be followed by the concerned parties, and only when these conditions are met in accordance with the set rules, the contract will become legally valid. Some of the main requirements are as follows:

• The contract should be made into effect, before the implementation.
• It should be noted that the agreement can be done by oral methods also, even though it is always advisable to get it done in black and white, as it will go on records.
• Yet another significant matter that should be remembered by all employees who are preparing to salary sacrifice is that, they will not have any claims for the relinquished salary, until the contract with the company comes to an end.
• The benefits that have got accumulated in the account of the employee before the enforcement of the contract will not be a part of the contract. 
• In case the concerned individual is awarded a new financial benefit, outside the salary sacrifice scheme, then obviously that will come under the taxable income account. 

What are the general things that can be bought by the scheme of ‘salary sacrifice Australia’?

On the whole, many kinds of valuable goods, which in normal cases will need bulk money for buying, can be acquired by using this financial scheme, in an easy manner. Some of such items are ‘brand new motor vehicles’, ‘laptops’, ‘tabs’, ‘iPads’, ‘GPRS Units’ and ‘Income Protection Insurances’. Many more items can be added to the list, and so, whenever you decide to go for ‘salary sacrifice’, try to get hold of a reliable and professional finance firm, for making arrangements for the same.

Are Baby boomers Happy with Their Financial Life?

According to a new study, 80% of over-fifty reporters are citing high levels of financial well-being, but younger generations are not so optimistic.

A global study of financial satisfaction has found older Britons to be happier than their French, German, and American counterparts. This research, collaboration between scholars at Bristol University and The International Longevity Center, must be read in the correct context: the current political agenda is focused on the financial struggles of the middle- and lower-classes, who must grapple with rising energy bills and other problems.

The controversy surrounding the baby boom generation and whether or not they are benefiting from a range of financial factors that younger generations will not have access to is one that has been hotly debated for some time. Earlier this year, Richard Chartres, the acting Bishop of London, said that baby boomers are a fortunate generation. But whether it is just a matter of luck has yet to be determined.

In any case, the numbers speak for themselves. In Britain, eighty percent of people over fifty reported that they are satisfied with their financial situation, putting the United Kingdom in seventh place among fifty-six countries. Beating out Britain were Norway, Sweden, Finland, and Switzerland, which was at the top of the list; it reported that almost ninety percent of its over-fifty population are satisfied with their financial situation. Sixty-five percent of same age group reported being satisfied in France; for Germany, it was sixty-one percent, and for the United States, sixty-four percent. Only two-thirds of Britons under the age of fifty report feeling as satisfied as their over-fifty counterparts.

Professor David Hayes, who is in charge of the project, reported that the United Kingdom showed a substantial different between financial satisfaction of different age groups. For example, the international average of financial satisfaction among individuals aged from sixteen to forty-nine is fifty-two percent, which is slightly lower than the percentage reported by those above fifty. In the United Kingdom, however, these numbers are different enough to merit a second look: only two-thirds of those under fifty feel the same.

Part of an on-going project between the Personal Finance Research Centre at Bristol University and think tank ILC, this dataset includes twenty-five thousand reports from participants from across fifty-six countries. That being said, the information will be mined further for a more clear understanding of what these satisfaction levels mean and imply. And its implications are nothing to underestimate: people over sixty-five spend more than one hundred billion pounds per year, which accounts for almost fifteen percent of international home expenditures. 

Nevertheless, the increase of financial pressures as people age, for things like health care, can have significant effects on their quality of living with many struggling to get out of debt before retirement age. Representatives of the study want to emphasize the importance of keeping policy-makers informed of the risks and threats facing people over fifty and over sixty-five the world over.

About Jonathan Matthews

Jonathan Matthews has over 15 years experience working as a senior debt advisor for some of the most prestigious debt management companies in the UK. Jonathan has been helping people get out of debt, is well respected within the finance industry and enjoys blogging and sharing news regarding debt and finance.

Getting a Mortgage - Are You Ever Too Old?

As retirement slowly creeps up on you, you might think that it’s far too late for you to buy your first home. While this can be true in some cases as it wouldn’t suit certain individual’s situations, there are still occasions where it’s a good idea to buy. In this article, we answer the question that many people have been scared to ask - are you ever too old for a mortgage?

For the older homebuyer, there may be some extra things to think about that younger borrowers needn’t even consider. You’ll still want to get an idea of the crime rate, schools, and compare prices of similar houses in the area; but older home owners will also need to accept the fact that maintenance will become harder for them as they get even older. In a rented house, appliances, leaks, and other problems can be replaced and fixed no problem for free, but in your own home you’ll need to arrange a professional to fix them. Not only that, but simple things like cleaning the house will be a lot harder too. The closer you get to retirement age, the more you should think about your health, your finances, and how the house will impact your family in the future.

Some people say that buying a house when you’re older is better, as you have more savings and investments tucked away. However, if your retirement plans involve lots of exotic destinations and cruise ships or something similar, then it makes no sense to burden yourself with a mortgage to pay off (and the other fees that come with being a home owner). However, if you plan on settling down in one place for your retirement (having done all your travelling previously), then it might not be such a bad idea to get a mortgage now.

You might want to consider a time when you aren’t so mobile though - will you be able to afford care in your home? If not, you might one day need to move to a caring home which could result in you selling the house (even more hassle, and upsetting).

A home should be considered as a long term investment, and you need to think about what will happen to the investment when you can’t look after it yourself anymore. You don’t want to be left panicking, “how can I sell my house fast?”, do you? To help plan for the future, you may want to invest in a maintenance service and make sure you have cash tucked away for a rainy day just in case.

Sitting down with your loved ones and talking about long term plans for the house is also a good idea, as you’ll be able to fill them in on all of your ideas. How long do you plan on staying there? Do you plan to sell it eventually? Or are you planning on leaving the home to your kids or grandkids? Whatever your plans, make sure you have a good chat with them so you’re all on the same page.

Buying a house could be a great investment for you, regardless of age, providing you’ve thought it through properly and planned as best you can. In conclusion; you’re never too old for a mortgage if the time feels right for you!

What Does a Wealth Management Company Do?

Wealth comes in many different forms, and wealth does not necessarily mean having a large amount of money sitting in your bank account, and people with wealth and disposable income usually have complex financial arrangements. Generally, wealthy people have ‘assets’ that diversify their wealth and this is where wealth management companies come in. 

What Is Their Job?

The job of a wealth management company is to make these assets work efficiently and productively. People employ wealth management companies because of the complexity of the markets; as an in depth knowledge of both financial markets and investment opportunities required.

A wealth management company manages the wealth of its clients. People with a high net worth or HNW as it is known by people in the financial sector, are generally people who have financial assets that are valued at around $1 million.

There’s no set type of client eligible for wealth management, however. Although many people who employ wealth management companies come from the financial sector, business owners, celebrities, entrepreneurs and people who have acquired their wealth through inheritance also use them widely. 

What’s On Offer?

What a wealth management company offer is completely dependent on the individual’s assets. It is incredibly common for a client to have a diverse portfolio of assets rather than a cash lump sum in a bank account and, as a result, wealth management companies provide comprehensive financial support.

Advice offered is wide ranging, covering a number of different strategies such as taxes and asset protection, investments and property advice. Due to the fact that a wealth management company cannot be experts in all of these fields, they will act as a front for other parts of the bank or for other institutions that have a more in depth knowledge of how to invest. These other sectors or companies, however, will always be trusted partners.

Employing a wealth management company is a long-term strategy and, as such, you should not expect to make a quick buck. As a result, wealth management companies such as Sanlam Private Investors will touch upon many aspects of their clients’ lives in order to build a solid client-business relationship. This is vital to create trust between the two parties; especially with the size of the money that could be gained or lost.

Discretionary vs. Non-Discretionary

Wealth management is available at a discretionary and non-discretionary basis. If a client opts for a discretionary service, they effectively hand their assets over to the bank and the bank will invest on their behalf; assuming responsibility for protecting and growing the wealth of the client. On the other hand, non-discretionary means that, although the client receives advice from the bank, ultimate decision-making still lies with the client.

So, if you’ve got a wide range of assets and want to expand your wealth, try giving a wealth management company a try.

4 Advantages to Homeowner Loans You Need to Know

Are you looking to take out a loan? Homeowner loans might seem daunting and risky because you’re borrowing generally a large sum of money against the asset (your home). What this means is that if you can’t afford to pay the monthly amount, your home will be reclaimed to make the payments. 

This concept is challenging to deal with and intimidates a lot of people, but it needn’t. Homeowner loans are much more than a way to lose your home, and they can be a very sensible investment, when taken out for the right reasons, so to help you decide, here are 4 benefits to homeowner loans that you really ought to know.

4 – Borrow Huge Sums

When you take out a homeowner loan, the stakes are higher because your house is on the line. As a result of this, however, you are able to borrow a larger amount of money than you’d be able to with an unsecure loan, so whether you’re looking to extend your home or go on that once in a lifetime holiday, money doesn’t have to limit you with a homeowner loan. 

3 – Attractive Interest Rates

Because there’s more at stake, the interest rates on homeowner loans are likely to be significantly lower than with unsecured loans. From a lender’s perspective, this is a less risky investment because they know you have a lot on the line. So if you know that you’re not going to have a problem paying your monthly repayments, a homeowner might be a good idea because you’re not going to have to bother with high interest rates.

2 – Consolidating Debt

Are you struggling to pay your debts off? If you think you might benefit from consolidating your debts into one easy monthly repayment, one of the best options available to you is a homeowner loan. Using a secure loan, you could pay off a large number of debts – all with their own individual interest rates, and transfer the debt into a single payment with a low interest rate. This makes debt-management less stressful, and could be well worth the effort of setting up the loan and transferring your existing debt.

1 – Afford Something Special

You have worked hard to get into a position where you own your own home, so by taking out a homeowner loan, you don’t have to limit yourself to investing the money into consolidating debt. Spend the money on something you’ve been trying to save up for. Do you want to help your children through university? What about renewing your wedding vows? Maybe you just want to take time out in your timeshare? Whatever it is you want to do, you can use a secure loan for it.

All you need to do to find out more about secure homeowner loans is speak to the experts at a place like 1st Stop Home loans, with a little bit of guidance, you could find the perfect loan for you.

How Much Can I Give to Charity?

Giving to charity is not limited to just your funds. While charities do rely on your money to help them succeed and help them do what they've set out to do, they need more than just your money to work effectively. Charities also need your time.

When deciding how much you should contribute to your favorite charitable cause, there are some considerations you have to examine. There is no standard amount of money or time you should spend on your favorite charity; each case is unique.

How much is appropriate?

If you're an avid churchgoer, you know you're supposed to give 10 percent to charity. However, most Americans don't give anywhere near 10 percent of their income to charity. Most Americans give far less, in fact.

The average amount of charitable donations over the course of one year in the average household is 3.2 percent. While it might not seem like much, many families give what they can afford to and they do it happily. It's not always a greed issue.

Consider what you can afford

Before you pledge 10 percent of your income to charity, consider what you make versus your expenses. The sad reality is that most average households cannot afford to donate 10 percent of their income to any charitable foundation, after all's said and done.

However, that doesn't mean you can't afford to give to charity at all. Even if you can afford only a few dollars here and there, every little bit helps -- even when you're on the strictest of budgets.

Give charities your time

Another way in which you can donate to charity is with your time. Charities need volunteers to help run their programs. They need people who are willing to serve, to help, to teach, and to work hard to make sure those in greatest need are getting what they should.

While financial giving is nice, if all you have is time, it's just as valuable to most charitable organizations.

Giving to charity is a highly personal financial decision. If you can afford 10 percent, by all means do it. If you can afford more than that, good for you. However, if all you can afford is a few hours of time every week, it's just as much appreciated by a charity as your money.

Giving comes in many forms. Financial giving is the most talked about, but it's not the only way you can provide a charity with your help.