james-ugarte

Personal insurances are designed to provide protection from the financial consequences of death or disability. They therefore form an important part of most financial plans. Here, in brief, is how they work. What are the different types of personal insurance? Life insurance. This pays a lump sum benefit if you die.  Total and permanent disability insurance (TPD): This pays a lump sum benefit if you meet the definition of being totally and permanently disabled. It is often bundled with life…

As New Year resolution time rolls around spare a thought for your business, because every business can benefit from a few resolutions of its own. Here are a few ideas that any business can build some New Year resolutions around. Make sure you have an up to date business plan. Many business plans sit gathering dust on a shelf, or haven’t even been committed to paper. But a well thought out, written and effectively implemented business plan is an invaluable…

The dawn of a new year sees many people setting new year’s resolutions such as losing some weight or giving up smoking.  Similarly, the beginning of a new year is the ideal time for setting financial goals, and here are four practical ways you can kick your year off to a great start. Decide what you want to achieve. January is perfect for taking stock of where you’re at financially, particularly as those post-December bills start rolling in. So perhaps…

As we approach Christmas, the season most celebrated with food and beverages, it’s a good time to take stock of just how much we spend, and subsequently waste, on food throughout the year. Budgeting for Christmas party catering is the perfect place to start creating better shopping habits allowing us to enjoy culinary treats without skimping on portions or breaking the bank. Astonishingly, Australians waste around 20% of all food they purchase. In other words, for every five bags of…

One of the keys to financial success is to adopt the right strategy at the right time. As you move through the stages of life here are some tried and tested ‘secrets’ that will help you build and protect your wealth. Teens and young adults Time is on your side so get saving. Through the magic of compound interest, a little bit invested now can grow into a big amount over time. Most young people don’t want to think about…

When Jack and Sarah met through mutual friends, they hit it off immediately. Both had previously been married and, besides having a child each, found they had quite a lot in common.  Dinner dates quickly morphed into family-style outings with their children, to the zoo or adventure theme parks, and soon the couple was talking about taking their relationship to the next level. According to the Australian Bureau of Statistics, in 2018, over 118,000 marriages took place in Australia. Of…

Imagine that, without any effort on your part, enough money regularly pours into your bank account to meet (or exceed) all your living expenses. Suddenly, work becomes optional and a world of opportunities opens up. That’s the ultimate in passive income – all your financial needs met without lifting a finger.  The fast way to a life supported by passive income is to win the lottery or receive a large inheritance. Invested wisely, large lump sums can generate rental income,…

Buying a home is likely one of the biggest financial decisions you’ll make in your life. While the process can be exciting, it can also be daunting, especially when it comes to financing your dream home.  What is the role of a mortgage broker? A mortgage broker is a professional who will liaise with banks and other lenders or financial institutions to organise your home loan. They will have access to a range of loans and financial products and will…

It’s hard to imagine taking out a home loan with an interest rate of 17% per annum or higher, yet that was the reality for homebuyers in the late 1980s and early 1990s. And back then it would have been just as hard to imagine home loan interest rates of less than 3% p.a. The point is, ultra-low interest rates are not the norm, and while it might be tempting to load up on debt when interest rates are very…

Not so long ago one of the most effective, low risk wealth creation strategies was to use spare savings to pay down a mortgage, either directly or via the well disciplined use of an offset account. If your mortgage interest rate was 8% per annum, that’s the effective, after tax investment return this strategy delivered, substantially reducing the term of the loan and delivering big savings on interest.  But what about now? With home loans being offered at interest rates…