Staying in touchWelcome to the Spring edition of Money Matters.

Financial planning is about making the most of what you have, to fund your passions in life. It’s about enjoying the lifestyle you want. As your financial adviser, we have a passion for helping you get there. In our front page article we have included some of the ways we can often improve your outcomes, letting you reach those goals and enjoy life. Read ‘Making the most of it’ to make sure you are doing just that!

Have you or a family member recently been married, divorced or had a child? It’s easy to get caught up in the emotion of the event and forget about the implications of this change to your assets and financial wellbeing. We have created a ‘Life Change Checklist’ to help you and your family understand the importance of updating your records after these life changing events.

MoneySmart: ‘Your future is not about what you are retiring from, but what you are retiring to’. How will it feel that first morning you are retired with no alarm clock, no boss, no deadlines, and no traffic? What are the choices available for the 25-plus years many of us will spend in retirement? In this edition, we publish an article off the Government’s MoneySmart website. This article highlights key points to consider when planning for your retirement years.

All our clients offer us inspiration in one way or another. One such person we’re privileged to know and share her story, is Lyn Thorpe. Lyn’s dedication to volunteering and charity work spans over almost 20 years and we are proud to share her story and her next fund raising challenge in our Clients Corner article.

Please contact us if you have any questions or would like to discuss your financial position.

Regards,

Money MattersSpring Issue # 31

Making the most of itFinancial planning is about making

the most of what you have, to fund your passions in life. It’s about enjoying the lifestyle you want. As your financial advisers, we have a passion for helping you get there.

Here are some of the ways we can often improve your outcomes, letting you reach those goals and enjoy life.

CAN WE STRUCTURE YOUR INCOME MORE EFFICIENTLY?

Will your employer let you salary package a car or other items? Should you contribute more to super? Are you better off being an employee or contractor? Would you benefit by setting up a trust? Is it possible for you to pay less tax?

If you can pay for things with ‘pre tax income’ you will reduce your tax bill and possibly take home a similar amount. Some people also benefit by structuring a company or trust.

CAN WE STRUCTURE YOUR BANKING AND LOANS BETTER?

Does your home loan fit with your financial plan? Is it competitive in terms of features, benefits and price? Does it support your lifestyle? Can you make additional payments? Redraw? Manage credit limits?

By addressing your banking and loans, we can often assist to create efficiencies to support your financial plan and save interest over the life of the loan. These efficiencies are not always driven by the interest rate, but by having a structure that lets you make additional payments without penalty.

SHOULD YOU REDUCE YOUR HOME LOAN OR CONTRIBUTE TO SUPER?

Which strategy gives you the better overall result? Would a combination of the two be best suited to your age and income?

Reducing your home loan interest bill saves $$ and creates an asset outside of super.

Increasing your contributions to super builds an asset in a tax favoured environment. Sometimes a strategy

of paying down debt first followed by increasing contributions to super produces the best result for your net position.

SHOULD YOU CONSOLIDATE YOUR SUPER? DO YOU HAVE MULTIPLE ACCOUNTS WITH FLAT FEES ATTACHED?

Is one account performing better than the others? Which funds have insurance attached? Are there better terms in one than the others?

All things being equal, you can have as many super funds as you like. However, if each or any of the funds carry flat fees you may be better off with fewer funds as only one flat fee may apply. The insurance offerings between funds can also be quite different. It pays to consider consolidation and insurance.

Remember, small changes made early can make a real difference. Let us look at your goals and help you make the most of what you have.

Note: We are not tax advisers. You should speak with your accountant regarding the taxation implications of any advice before taking investment action. This will ensure that your accountant is aware of your situation moving forward.

Authorised Representative

Contact Details:242 Pacific Highway | PO Box 42Charlestown NSW 2290Ph: 02 4904 8566 | F: 02 4920 8980E: fp@psigroup.com.au | W: psigroup.com.au

PSI Investments Pty Limited is a Corporate Authorised Representative of Matrix Planning Solutions Limited

Rosanna Rossi

Life changing checkpoints

Marriage After the excitement of being married many brides take on their husband’s last name. This requires a lot of paperwork to change your licence, passport and medical accounts etc. but once this has all been updated, don’t stop there! Couples also need to consider their wills, financial accounts, insurance policies and other important records.

Financial Accounts should be updated to reflect joint ownership, if both the parties wish. This includes not only bank accounts, but also investments. To have both names on an account is very important in the case of an unexpected accident or death as these accounts can be frozen if not in joint names.

Will - A marriage changes your family structure, so update your Will accordingly. Add your new spouse as a beneficiary, and add or remove any property that was gained, lost, or consolidated in the marriage. You can make your spouse the executor of this new Will, or name someone else as executor.

Living Will - Let your spouse know your wishes for end of term health care, so that they'll be able to decide on your behalf when you are unable. As hard as this topic is, you should discuss your decision on organ donation and how you would like your death to be treated if ever a tragedy occurred.

Insurance Policies - Re-evaluate your life insurance, car insurance, and homeowner's insurance and/or renter's insurance. You'll probably need to take inventory of your combined assets. You might be able to get better rates now that you're married, and you should consider adding your spouse to these policies.

Power of Attorney - You may want to give your spouse Power of Attorney regarding your business, financial, legal and health care decisions in case you cannot decide for yourself. You may also want to make them the beneficiary of your superannuation fund.

New ChildThe birth of a child is a delightful, exciting and sometimes scary experience. Bringing a new baby home requires many changes. Along with the sound of a crying infant, you must also adjust to changing nappies and changes in your sleep schedule. Other changes may not be so obvious, but are a good idea just the same.

Register your baby's birth - The hospital will give you a form to register your baby's birth. Lodge your complete form with Births, Deaths and Marriages or a local Magistrates Court. The birth must be registered within 60 days or you may be fined.

Add your child to Medicare & other health funds - A baby is covered under their parents' Medicare (if eligible) should any treatment be required within the first few days. But it's advisable to register your child at the earliest opportunity.

Apply for any Government financial benefits - Family Tax Benefit A & B and the Baby Bonus/Paid Parental Leave forms will usually be provided in hospital.

Will - If you have a child after writing your Will, they will not automatically become a beneficiary even if you have named your other children as beneficiaries (if applicable). Therefore, in order to ensure that your wishes are carried out, you should update your Will as soon as possible after the birth of a child. You will also need to consider who would look after your children if something were to happen to you.

Insurance - Perhaps the most vital insurance change that you will make for your infant is Life Insurance. It's important to increase your coverage so that in the event that something happens to you, your baby will be protected. If one parent will be staying home to care

for the child, be sure to obtain coverage for the homemaker. Also, this is a perfect opportunity to change your life insurance contingent beneficiary to "all surviving children" so that your child will be taken care of.

If you have avoided purchasing income protection insurance, this may be a good time to reconsider buying a disability policy. Loss of a paycheque can be especially difficult with the addition of a new baby and a non working partner.

Divorce During a divorce, property, assets and debts will be divided, and custody and support of any children will be determined. Because of these major changes in your life, you’ll need to update your Will and estate plan after the divorce is finalised.

Financial Accounts – assets will need to be divided and new accounts opened in your name

Will - A divorce changes your family structure, so change your Will accordingly. Add or remove beneficiaries, and property gained or lost in the divorce. If your spouse was your executor in your Will, you’ll probably want to name a new executor.

Power of Attorney & Life Insurance Policy - If your spouse has Power of Attorney regarding your business, financial, legal and health care decisions, you may wish to transfer this power to someone else. You may also wish to change the beneficiaries of your life insurance policy and your superannuation account.

Legal Name Change - If you wish to change your name after a divorce, you must file for a Legal Name Change either during the divorce proceedings or afterwards. Once you’ve changed your name, you’ll need to update all your important documents to reflect your new name. This is very important.

Have you or a family member recently been married, divorced or had a child? After such a life-changing event it’s easy to get caught up in emotion and forget about the implications

of this change to your assets and financial wellbeing. We have created a Life Change Checklist to help you and your family understand the importance of updating your records after these life-changing events.

‘Your future is not about what you are retiring from, but what you are retiring to’

Set aside a quiet time with a cuppa and think about the future.

Where is your working life leading you? What do you want to do in retirement? How does it feel that first morning with no alarm clock, no boss, no deadlines, and no traffic?

What are the choices available for the 25-plus years many of us will spend in retirement?

Once you’ve started thinking, talk to us about how we can help you achieve what you are ‘retiring to’.

The article below comes from the Australian Government’s ‘MoneySmart’ website.

Retirement Income PlanningStay secure in retirement - Most people can expect to live to age 80 or 90 so you want your income to last the distance. Whether you're years away from retirement or already retired, here are some things you can do to secure your financial future.

• Take control of your finances• Make a long-term financial plan• Find ways to grow your retirement income

Take Control Of Your Finances The earlier you start preparing for retirement, the more options you have to set a course that suits you.

The first thing to do is to sort out your finances. Work out how much money you have now, how much you might have in the future and where it is coming from.

Get on top of your finances by finding out:

• What assets (house, savings, investments) you have and how much they are worth• How much super you have and when you can access it• When you can apply for the age pension and whether you are likely to be eligible

Make A Long-Term Financial Plan The next step is to look at how your needs might change over time. For instance, in the first few years of

retirement, you might want to travel or take up a new hobby. Later, you may want to replace your car or renovate your kitchen. Further down the track, you may want to move into a retirement village.

Think about how you can use your different income sources to fund the different stages of your life. The important thing is to plan for the long term, not just the next 5 years. Seek our advice if you are unsure what to do.

CASE STUDY: Marcus and Mei-Ling make a financial plan

Marcus and Mei-Ling are both 57 and plan to retire in 2 years. They have come up with a plan to use their different sources of income to pay for things at different stages of their retirement.

For example, they have $20,000 in a savings account for a big holiday in the year they retire. Their super money will be used to pay for living expenses until they are old enough to get the age pension. After that, they will live off a mix of super money and the age pension.

If Marcus and Mei-Ling live past 90, they will probably have used up their super. They know they could then use the equity in their home to supplement the age pension.

FIND WAYS TO GROW YOUR RETIREMENT INCOMEAsk any retiree what they fear the most and chances are most will say 'running out of money'. But there are ways to stretch your retirement income and things you can do to make your money last as long as possible.

• Get advice as early as you can - Managing your finances can be hard work even if you have some financial knowledge. Ask for financial advice if you need help with investment strategies and to navigate our complex tax system. Ask your adviser to explain different investment strategies, the level of risk involved and the potential returns you can expect.

• Diversify your investments - With many retirees living up to 90 and

beyond, it's a good idea to invest at least some of your money in assets that will grow over time, like shares and property. This will help ensure your capital will grow in value to keep pace with inflation and your income needs. Spread your investments to avoid financial heartache in the future.

• Manage your spending - A simple way to make your money last longer is to watch your spending. Use a budget planner to help you save for special items and keep your expenses in check. Do you want to splurge straight after retirement then spend 20 years living on bread and water?

• Take advantage of your entitlements - Even if you don't get the age pension, you may be eligible for other benefits, such as travel concessions, cheaper medicines and reduced council and water rates. The Seniors Card will also give you discounts on travel and some retail services.

• Keep on working - By continuing to work, you can leave your savings untouched for longer while adding to your super. The government has incentives to encourage people to work past the pension age. Find out how part-time employment can extend your retirement funds. You can also transition to retirement.

Article source: Australian Government MoneySmart Website.

It is recommended you seek our advice when it comes to managing your money in retirement. By planning ahead and staying in control of your finances, you can enjoy a comfortable retirement. Contact us today if you wish to talk about ‘what you will retire to’.

MoneySmart:

Disclaimer: Money Matters is a private communication to clients and contains general information and advice only. It is provided by Matrix Planning Solutions Limited (ABN 45 087 470 200. AFSL No. 238256). As the particular circumstances and needs of individual investors may vary greatly, the information herein should not be used as a substitute for personalised advice. You should read the product disclosure statement before investing in any product Whilst every effort has been made to ensure the information is correct, its accuracy and completeness cannot be guaranteed, thus Matrix Planning Solutions Limited cannot be held responsible for any loss suffered by any party due to their reliance on the information or arising from any error or omission. Privacy Statement: This newsletter is provided as an information service for you and your family. If you do not wish to receive information of this kind in the future, please contact us by mail, email or phone and we will remove you from our mailing list.

International shares: A strong Aust$ v US$ provides opportunities for international shares and an overweight position is appropriate for the sector. Asia and emerging markets remain long term growth regions. Stock and country selection is going to be much more important over the coming year as volatility remains high. Europe is likely to remain subdued, while the US offers opportunities.

Australian shares: Valuations are becoming more compelling. The focus should be on quality large cap companies with strong income streams in this environment. Consider a benchmark weighting appropriate on a three-year outlook.

Listed Property Trusts:Property securities are likely to under perform equities on a three year outlook and we suggest under weighting the sector. Quality direct property valuations are starting to show signs of recovery

although likely to be slow as access to funding remains difficult. The listed property sector provides limited opportunities.

Fixed Interest:

With interest rates at low levels globally and in Australia, opportunities for fixed interest are likely to be limited over the coming year. The market has already factored in lower rates in Australia. An underweight for the sector is appropriate. A cautious approach to sovereign debt is required with opportunities for corporate bonds preferred. Cash:

The risk return profile of Cash and Term Deposits is becoming less attractive. Use for defensive purposes in this volatile environment.

Please contact our office to discuss any queries you may have about your investment portfolio.

Client’s Corner - Lyn Thorpe

Market update

All our clients offer us inspiration in one

way or another. One such person we’re privileged to know and share her story, is Lyn Thorpe.

While Lyn is only 65 years young the thought of retirement is still far removed from her mind. Not only is she still in part time employment but she’s an active Rotarian with the Newcastle Sunrise Club.

It’s with this association that while the average worker puts their allotted holidays to conventional pursuits, not so Lyn. For almost 20 years, Lyn has volunteered her services and spends her annual leave travelling with Rotary organised missions of medical delegations to third world countries, using her specialised operating theatre nursing skills within the team of likeminded people. Leaving behind her husband David, Lyn’s travels to date have seen her volunteering in Bangladesh, Cambodia, Cameroon, East & West Timor, Egypt, Ethiopia, Fiji, Ghana, India, Mozambique, the Philippines, Papua New Guinea, Peru, Samoa, Tanzania and Uganda.

Lyn’s efforts have not gone unnoticed, even though by nature she shies away from the publicity, she has been honoured by being awarded the Lake Macquarie Citizen of the Year in 2009, the New South Wales Senior Australian of the Year 2010 and the Order of Australia Medal in 2010.

Next on her agenda, is organising a fund raising Memory Walk for the Alzheimer’s Association on Sunday 9 September 2012 at Speers Point. We invite anyone who is interested to come along and join our own Rosanna Rossi on the walk (with her two cute pooches), to help raise money for this worthy cause.

For more information on how you can help participate in the memory walk or help raise funds towards their $200,000 goal, please visit www.memorywalk.com.au

We would also like to congratulate Lyn for her enormous achievements over the years and her contribution to helping the lives of many individuals.