What are the opening hours?

Monday 9am - 5pm Tuesday 9am - 5pm Wednesday 9am - 5pm Thursday 9am - 5pm Friday 7am - 3am

http://www.sheffieldfinancial.com.au/

Sheffield Financial Group, Sydney (2026)

31/05/2023

Make the most of End of Financial Year opportunities 2022/23

With the end of the financial year drawing near there may be some valuable opportunities that may be worth discussing. Depending on your circumstances, there may be some beneficial planning strategies you can implement before 30 June.

Superannuation contributions
Non-concessional contributions:
The FY 2022/23 is the first year when individuals below age 75 can make non-concessional contributions to superannuation and even utilise the bring forward arrangement without having to meet the work test.
To be able to make non-concessional contributions before 30 June 2023, your Total Superannuation Balance (TSB) on 30 June 2022 must have been below $1.7m. The figures below explain potential amounts that may be brought forward based on the TSB on 30 June 2022 assuming you’re below age 75 on 1 July 2022 and below age 75 at the time of making the contribution:

$0 to less than $1.48 million - Maximum contribution $330,000

$1.48 million to less than $1.59 million - Maximum contribution $220,000

$1.59 million to less than $1.7 million - Maximum contribution
$110,000

$1.7 million and over - Maximum contribution Nil

Concessional contributions:
Consider maximising concessional contributions to take advantage of the full concessional contribution cap.

The standard concessional contributions cap is $27,500 per person for the financial year in 2022/23.

If eligible and you’re below age 67 you are able to make these contributions without having to meet the work test.

If eligible and you’re aged between 67 & 75, you must meet the work test or meet the one-off work test exemption rules to be able to make personal deductible contributions.

If you’re eligible to claim a tax deduction for personal contributions, you need to ensure the contributions are received by the fund before 1 July, or even earlier as certain funds will have their own cut off times. If using a clearing house or a bank transfer, time needs to be allowed for the transaction to be processed and received by the super fund.

Before claiming the deduction, you should also ensure you have also lodged notification of the intention with the super fund trustee.

Co-Contribution:
If your adjusted taxable income is below $57,017, consider making a non-concessional contribution to receive a co-contribution.

Spouse Contribution:
If one member of a couple has adjusted taxable income of less than $40,000, the other spouse may be eligible to contribute up to $3,000 into their spouse’s super and receive a tax offset of up to $540.

Super Splitting:
If you’re eligible and want to split the concessional contributions made during the previous financial year, you must submit a request to your super fund by 30 June of the current financial year

23/05/2023

Financial Planning for parenthood

Becoming a parent is an exciting time of adjustment and upheaval; how could such a little person create so many changes – and sleepless nights?

But lack of sleep shouldn’t be caused by financial worries and reduced household income.

When Jessica a florist, and Daniel an IT manager, decided to start a family, like everyone, they worried about the impact on their finances. They tried to save as much money as they could while they still had Jessica’s income, but there was so much to buy and prepare. Further, they were concerned over the negative long-term impact on Jessica’s superannuation while on maternity leave, particularly as the couple planned more children.

Jessica and Daniel decided to seek professional advice to help them maximise their savings potential.

They met a financial planner who expressed how beneficial it was that they came to see him while Jessica was still working.

The adviser reviewed their situation, income and expenses, plans to expand their family, and their long-term goals. He helped them create a budget that focussed on reducing debt and unnecessary spending, then structured a savings plan to provide a cash buffer for emergencies.

Additionally, they recommended the couple consider:

· updating their health and life insurances.

· their entitlement to government support, e.g., Family Tax Benefit, Childcare subsidies etc.

· the government’s Co-contribution scheme, where the government makes a one-off contribution to Jessica’s complying fund if she meets certain criteria.

· consolidate any small super funds so they each maintain only one fund, after confirming there are no negative insurance concerns. This can help reduce fees and help manage their retirement savings.

· undertaking regular portfolio reviews, with assistance from their adviser, to ensure their investment strategy continues to meet their needs.

After months of preparation, Jessica started her planned 12-month maternity leave so she and baby Amelia could spend Amelia’s first year together.

After a couple of months, Jessica spoke to Melissa, her boss, about part-time work Jessica could do from home.

Melissa thought it was a terrific idea. In today’s online environment, it wasn’t difficult to set up.

This helped Melissa with staff rostering while paving the way for Jessica’s eventual return to full-time work.

Through tailored advice, Jessica and Daniel were better prepared for the changes in their lifestyle, while taking steps to protect future wealth.

The fact is, the earlier a savings strategy is implemented the better.

So, regardless of your financial position, your family plans, and your future goals, a professional savings strategy can support you through each stage of your life.

10/05/2023

Fixed rate mortgage expiring... Now what?

They say all good things must come to an end… and that includes your home loan fixed interest rate period.
If your fixed interest period is due to expire, then it’s time for a review of your finances.

Revisit your budget

A fixed rate expiry will mean a change to what is often one of our biggest expenses - the home loan repayment. In a rising interest rate environment, this likely means a bigger expense you will need to allow for.
By revisiting your budget, you can make sure you can afford the new home loan repayment amount, or adjust your spending where needed.

Know your financial situation

Your financial situation is going to impact what options are available to you and what options might be best for you.
If there have been recent changes to your income position such as job loss, income reduction or maternity leave, for example, this may impact your ability to refinance your loan. As a result, you may have to stick with your current lender on terms you may not be happy with.
If you have surplus cash flow that you want to use to reduce debt, a variable rate loan might be more appropriate so that you’re not as limited with the ability to make repayments.
Alternatively, if cash flow is tight, you might appreciate the stability of a fixed rate loan and knowing your repayment amounts won’t increase during the fixed rate period.

Look at what the market is doing

One of the main factors to consider when deciding between a fixed and variable interest rate is the current market.
It’s important to consider what is happening with the economy, housing markets and interest rates.

Get clear on your options

When your fixed interest term expires, you will need to choose between either re-fixing your loan for a period or switching to a variable interest rate loan.
With your market research in hand, it’s time to call your existing lender to request a rate review.

03/05/2023

More than money - Planning for your retirement ‘holiday’

Budgeting for retirement is like preparing for an epic journey! Packing the right items and planning ahead is essential to ensure you don't run into any surprises along the way.

Why plan for your golden years?

Just like a trip, when you're ready to retire, it's essential to have enough money saved to buy the things you need and do the things you want to do.
According to the Retirement Confidence Report, 38% of the 1,500 Australians surveyed over age 50 felt some anxiety about not having enough retirement savings. Issues like maintaining your lifestyle, qualifying for the Age Pension, maximising social security benefits, living arrangements, and capital expenses, to name a few, may be cause for sleepless nights. To help ease your concerns, be sure to plan ahead for your golden years. Here are four key points to get you started.

1. Your retirement income needs
When you retire, you'll need to survive on the income you can derive from the capital you accumulate during your working life, with the Age Pension as a safety net if you're eligible.
To determine how much income you will require in retirement, do a budget now and take out all your work expenses. Consider two types of income needs: First is your basic necessity income to meet your day-to-day expenses. Second is discretionary income to cover irregular expenses.

2. Your assets
Work out what assets you wish to keep and whether there are assets that should be sold, upgraded, or downsized.

3. Your living arrangements
Owning a home may help you to be eligible for a higher level of social security income support as the home is an exempt asset. If the home is the main asset and you want to stay, and if income sources are inadequate, you may look at a reverse mortgage or other equity release scheme to fund retirement income needs or capital expenditures.

4. Your health issues
Allow for a greater lifespan due to increasing life expectancy, as each person has a 50% chance of living beyond our life expectancy. Consider how long you think you'll live given the longevity of your parents and your personal health and lifestyle choices, your medical history, the potential need to access aged care services in your home or aged care facility, and the costs of these services.

Get advice

Planning ahead will ensure you have everything ready when it's time to retire. So consult with Sheffield Financial Adviser and begin preparing for a secure and purposeful ‘holiday’ now.

26/04/2023

Debt Repayment Plan – how to get yours in order

Debt can be overwhelming and stressful, but creating a plan to pay it off can help ease that burden. In Australia, household debt is on the rise, with the average household owing over $260,000 in 2021, according to the Australian Bureau of Statistics. If you're struggling with debt, here are some tips and strategies for creating a debt repayment plan.

Create a Budget

The first step in creating a debt repayment plan is to create a budget. This will help you understand where your money is going and where you can cut back on expenses. List all of your income and expenses, including bills, rent or mortgage payments, groceries, and any other expenses. Once you have a clear picture of your finances, you can start to identify areas where you can save money.

Prioritise High-Interest Debt

If you have multiple debts, it's important to prioritise the ones with the highest interest rates. These debts are costing you the most money in interest charges, so paying them off first will save you money in the long run. Make minimum payments on all of your debts, and put any extra money towards the one/s with the highest interest rate.

Automate Payments

Automating your debt payments can help ensure that you don't miss any payments and incur late fees. Set up automatic payments for the minimum payments on all of your debts, and then add extra payments as you can afford them. This will also help you stay on track with your debt repayment plan.

Creating a debt repayment plan can make a big difference in your day-to-day and long-term financial situation. By creating a budget, prioritising high-interest debt, and automating payments, you can take control of your debt and work towards becoming debt-free.

19/04/2023

Millennials… is your retirement on track?

While millennials have for decades been treated like ‘the children of Neverland, who never grew up’, the reality is fast catching up with this generation, who are now young adults between the ages of 24 and 40.

For all too many, planning for their retirement is just something they don’t even think about. But the reality is that the sooner you start ‘mapping’ or preparing for your retirement, the better off you will be.

How much is ‘enough’, is different for every individual. Based on Association of Superannuation Funds Austrlalia (ASFA’s) figures for a ‘comfortable retirement’, the table below suggests that on average, there’s a potential shortfall in today’s super balances to be on track for a ‘comfortable retirement’ and shows where your super balance should be based on the ASFA recommended figures for a ‘comfortable retirement’ at your age today. These recommended super balances have been calculated (April 2022) using the ASFA Super Guru Super Balance Detective Calculator[1], averaged across different age groups.

The Association of Superannuation Funds of Australia's (ASFA) estimates how much money you may need for your retirement for either a ‘comfortable’ or ‘modest’ retirement. The estimated figures are based on your lifestyle, including multiple activities and other expenses like insurance, and spend on things like cars, holidays and household items. Another way you could estimate what you may need in retirement is based on the Retirement Income Review – Final Report, which was released by The Australian Government’s Treasury Department on 20 November 2020. This report refers to a general retirement income target of around two-thirds (65 – 75%) of your pre-retirement income for each year of your retirement instead of using the ASFA Retirement Standard. You should consider which retirement target may be more appropriate for your circumstances.

What you can do?
The sooner you take control of your superannuation, the better. By making the right changes now, will have a huge impact on your retirement. Reach out to see how a Financial Planner can set up your financial future.

Book in a chat today:
https://lnkd.in/gdnRtpwp

12/04/2023

Protect your bank account from scammers:

According to the ACCC’s Scamwatch statistics, Australians reported a total of $568.6 Million lost to scams in 2022, with 39% of the losses for people aged 55 and over, which makes for big business for scammers, and a cause for concern for all Australians.

According to research by the Commonwealth Bank (CBA) (September 2022), 60% of Australians reported having personally been a victim of a scam or knew someone who had. CBA’s research shows that Australians receive roughly five scam calls, emails, or messages a week, equating to over 250 attempts a year.

It’s important to always be on the lookout for anything suspicious and to make sure you’re taking steps to keep your money safe.

Here is how to protect yourself today:

1. Take a moment to pause…
Before you click that link to “confirm” your personal details or open that attachment, STOP.

How legitimate does the message look and feel? If there are spelling errors in the email or the email/web address looks strange, it’s best to ignore it.

You can always contact the business directly to ask if the contact is legitimate.

2. Password123
If any of your passwords are likely to make the top 10 most common passwords list, it’s time for a change.

Passwords for all online accounts should be strong and unique. It’s also best to avoid using the same password for multiple accounts.

Keeping safe online
When accessing your accounts online, there are several steps that can be taken to keep your information safe:

· Ensure you have up to date anti-virus software on devices used to access banking.

· Do not store banking information on your computer.

· Use a secure browser when logging into online banking.

· Avoid using public Wi-Fi to log into online banking.

3. Multi-Factor Authentication
Multi-Factor Authentication requires a second verification process to be able to access an account. This is often an SMS or email code or through the use of an authenticator app.

Enabling this provides an extra hurdle for anyone trying to access your accounts.

4. Regular monitoring
It’s important to make sure you’re regularly checking your accounts and bank statements for any scam activity. If you see something suspicious, contact your bank straight away!

If you’ve been scammed, or believe you might be at risk of being scammed, it’s important to take immediate action:
· Contact your bank and financial institutions immediately to report the suspected scam and seek their advice on what to do next.
· If you think your online password has been compromised, take steps to secure your accounts by changing your password.

22/03/2023

Millennial minds - property or investment portfolio?

Research by Comm Bank has shown that 43% of millennials are investing to create wealth so they will be financially independent, with 45% favoring property investment, followed closely by the stock market at 38%.

It’s Tangible?

For most people, residential property is an easy first step when looking to get started with investing. This is because of its tangibility. We have a better understanding of the process and the investment due to prior experience e.g., your parents having a mortgage and owning a house etc.
Intangible assets, such as shares, aren’t as familiar, and investors might be more hesitant to invest if they don’t understand the mechanics of how the share market works.
When getting started with any investment, it’s essential to start with your goals first and then put together an investment strategy that best achieves these.

It’s Trendy!

A positive of property as an investment type is that it does provide investors with a level of control over the performance and outcome of their investment. Investors can add capital value through various strategies such as renovation or development.
While it can be financially rewarding when done correctly, property flipping isn’t a foolproof strategy, and, as with any investment, proper due diligence must still be done
There’s always the added caveat that property investment should be seen as a longer-term investment, due to the high transaction costs when buying or selling. Plus, it’s impossible to sell off a bedroom if you need cash flow in a hurry! It always goes up in value (and other misconceptions)

However, investing in property can be quite high risk:
- It typically consists of purchasing one single asset with a significant value. This doesn’t provide diversification within your portfolio.
- Borrowing money to invest, which is often the case for property investing, is known as gearing. A common rule is that while gearing magnifies gains, it also magnifies losses.
- Property is a growth asset, which generally means it’s considered to be a higher risk for higher return, potentially over the long term.

Whether you consider portfolio or property investment to be the most appealing investment option, reach out today to discuss whether they are the right investment to help you reach your goals!

07/03/2023

Happy International Women's Day!

Lets keep closing this gap!

#2023

11/01/2023

Are investment bonds worth considering?

Popular in the days before compulsory superannuation, investment bonds fell out of favor as super became the preferred tax-advantaged environment. Investment bonds can be a cost-effective, tax-effective, and convenient way to pass on your wealth, and with tighter restrictions on super contributions and increased market uncertainty, bonds might be worth a fresh look.

Investment bonds are a combination of an investment portfolio and a life insurance policy. Investors can choose from a suite of underlying investments in much the same way as regular managed funds. They are a unique type of asset offering a range of advantages.

Tax advantages

The primary attraction of investment bonds is that earnings are taxed in the hands of the issuing company at a rate of 30%. Unlike traditional investments, bonds are a ‘tax paid’ investment. Provided the bond is held for more than 10 years no further tax is payable when the bond is cashed in.

While 30% is more than the 15% tax rate that applies to superannuation, it is less than the marginal rates of 34.5 to 47%) that apply to people with an annual taxable income above $45,000. The higher your marginal tax rate the more attractive investment bonds become.

What’s more, investment bonds don’t lock up your money for the long term as super does. You can access your money.

Bonds can be purchased with a single lump sum or with regular additions. However, to keep the original start date, an annual contribution cannot exceed 125% of the previous year’s contribution. If it does, the clock starts again for the 10-year rule.

Additional benefits

Insurance bonds can be useful estate planning tools, or they can help with long-term saving for big-ticket items such as education. Investment bonds let you invest on behalf of a child (or grandchild). As a form of life insurance, if the owner dies the proceeds will be paid directly to nominated beneficiaries. In addition, the proceeds are not taxable in the hands of the beneficiaries, even if the bond is less than 10 years old.

Allowing for relevant tax rates, they may also be a good vehicle for saving for a child’s education or another long-term goal.

Timing

Due to their long-term nature, it isn’t just your current marginal tax rate that is important; it’s what your rate will be in the future. As many retirees pay little or no tax, particular consideration needs to be given to purchasing a bond that will be held until after retirement.

Suitability

Investment bonds aren’t for everyone, but they may suit investors who:
- have reached their concessional cap for super contributions;
- do not wish to lock away their money in super;
- are saving for a long-term goal and have a marginal tax rate above 30%;
- have specific estate planning needs.

28/12/2022

What are your 2023 goals?

16/12/2022

How are your holiday plans rating?

It might have taken several months but interest rate rises are impacting many Australians' holiday season plans. Many are feeling the pinch of higher repayments, combined with an increasing cost of living. With discretionary spending squeezed, holidays and Christmas gifts are often first to go.

The Reserve Bank of Australia (RBA) started increasing the cash rate in May, as an attempt to slow down rising inflation. This had seen seven consecutive cash rate rises by mid-November, with the cash rate then at 2.85%. According to an October survey by the Lendi Group, more than half (56%) of all mortgage borrowers had not anticipated the cash rate to rise beyond 2.5%.

YouGov research conducted in late October also noted rate rise stress is seeing “half of Aussies change their holiday plans”, with 28% or nearly three in 10 households already admitting they have cancelled their upcoming festivities and holidays. Overall, the data revealed 7 in every 10 households have been forced to reduce spending on holidays and gift buying this season.

Interestingly, Millennials (84%) were most concerned about the impact on their seasonal plans, followed by Gen X (73%) and Baby Boomers (50%).

This comes as data has revealed half a billion in ‘lazy loans’ are left untouched by their owners over the past five years. This accounts for a quarter of the $2 trillion outstanding in the mortgage market across Australia. Around $130 billion worth of fixed-rate loans are due to expire from mid-2023. This will leave many households facing significantly higher repayments as soon as their current fixed rate term ends.

Sheffield Financial Group

31/05/2023

23/05/2023

10/05/2023

03/05/2023

26/04/2023

19/04/2023

12/04/2023

22/03/2023

07/03/2023

11/01/2023

28/12/2022

16/12/2022

Address

Opening Hours

Website

Alerts

Contact The Business

Shortcuts

Share

Category

Monday	9am - 5pm
Tuesday	9am - 5pm
Wednesday	9am - 5pm
Thursday	9am - 5pm
Friday	7am - 3am