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CWealth Blog

Follow what Clifton Wealth have to say beyond financials, and we'll share useful, engaging and informative articles, insights and interviews about topical news, industry trends and relevant aspects of day to day living.

Saving for School Fees

Saving for School Fees

Thankfully there are ways to take the pain out of school fees.
Structured savings and an investment plan is of course ideal.  But if you didn’t manage that keep reading, because below are some options you might not be aware of.

The earlier you start the better, seriously!

Planning a baby? This is the perfect time to start thinking about their education. If you’re hoping to send them to a private school (and possibly help out with university as well) now is the time to start saving. The earlier you start, the less you’ll need to put aside each month.

There’s another major advantage of starting early though.

With online savings accounts and term  deposits paying 2% to 4% at best (before tax) and school fees rising an average of around 7% per annum, standard savings accounts will actually have you going backwards. If you start early though, with an investment time horizon of 10 or more years (to reduce the risk), shares offer a very different return with franked dividends well in excess of 4% with little or no tax plus the strong likelihood of capital gains. These returns could be accessed by direct investment in shares or Exchange Traded Funds or by investing though a managed fund (although these will of course incur fees).

EDUCATION SAVINGS PLANS

Specially designed education savings plans can be a good way to help parents meet saving targets, and offer tax concessions (which may be lost of the funds are not used for education purposes).

Two such are the not-for- profit Australian Scholarships Group and the Lifeplan Education Investment Fund, (managed by Australian Unity Investments).

INVESTMENT BONDS

Investment bonds are particularly attractive to parents in higher income-tax brackets because of the capping of the tax that is paid on the earnings in the investment bond at 30%. If the bonds are held for 10 years or more the money can be withdrawn without any further tax paid.

MORTGAGE OFFSET ACCOUNTS

For parents with a shorter time to save or who are uncomfortable with share market risk, a mortgage offset account may be the next best thing. The money held in an offset account does not actually earn interest but the account balance is deducted from the mortgage balance for interest calculations. Effectively, that’s the same as earning interest at the rate paid on the mortgage – tax free.

Kids already at school?

If you didn’t manage to save enough and you’re scrambling to cover the fees, the Australian Scholarships Group offers a ‘School Plan’, a loan where parents who cannot afford to make up-front fee payments make regular, monthly or fortnightly payments to the plan and the plan pays the fees directly to the school.

Interest rates vary with fee levels, ranging from 3.95% to 5.95% – pretty competitive compared with alternative sources of credit such as credit cards and personal loans.

Need help to get started?

Give Treysta a call and we’ll establish a plan for you to set up education funding for your child or your grandchild.  It will be the greatest gift you could give to them.

 

Need help to get started?
Contact Us and we'll establish a plan for you to set up education funding for your child or grandchild.  It will be the greatest gift you could give them.
Call Clifton Wealth 1300 TO WEALTH (1300 869 325).

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Conspicuous Consumption

Conspicuous Consumption

Do you count other people's money?

Social media is flooded with posts of friends’ exotic holidays, fabulous parties, new cars and new homes.

But don’t be fooled, it’s just a filter!

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The Secret to Happiness in Retirement ...

The Secret to Happiness in Retirement ...

The secret to happiness is well within your reach. It is a state of mind and completely within your control regardless of your financial situation. You can have happiness right now, no matter what’s going on in your life.

How financial freedom forces you to learn the truth about money and happiness

There is a seldom said, little secret about financial freedom. It is counter-intuitive and illustrates an essential principle about money and happiness.

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Super Changes from July 1

Super Changes from July 1

In late January the changes to superannuation outlined in the May 2016 Federal Budget became law.

So it’s important to understand what these changes are and how they may affect you.

While there are a number of changes that will be made effective on 1 July 2017, below we have identified some particular areas of interest to take note of:

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Asking Questions of the Future You

Asking Questions of the Future You

Every week or so, our adviser discuss what books they've been reading that helps us do what we do. We discuss and share insights – it’s a time and process that we all value and get a lot out of.

Today we talked about The Happiness Trap by Russ Harris. It was first published 10 years ago but the content remains current and resonated with all of us. It’s a global best-seller for a reason.

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A Blended Family and Your Estate

A Blended Family and Your Estate

A few generations ago, marriage was generally ‘permanent’ and something that you stuck with regardless of whether or not it was working and you were happy. A failed marriage was something to be ashamed of, and blended families were unheard of.

But these days, one in five Australian families are living as a ‘blended’ family, and one in three first marriages now end in divorce. And, these figures are rising.

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Staying Active in Business in Retirement

Staying Active in Business in Retirement

Leaving a full time working role can be a challenge for many people when they reach retirement age.

While the thought of a relaxing lifestyle and being able to do whatever you want, whenever you want, is appealing initially, many retirees quickly become bored and are left wondering, “What can I do now?”

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Ray Jaramis wins "Newcomer of the Year" Award

Ray Jaramis wins "Newcomer of the Year" Award

On Friday 12th August, we were proud to announce that our youngest adviser Ray Jaramis won Newcomer of the Year Award at the 2016 IFA Awards.

This award recognises Australia’s top new advisers, considering not only the delivery of best practice advice but also the aptitude and acumen to build a solid advice business and client proposition. As well as these key skills, the award recognises their potential as a future industry leader.

This award is evidence that our unique advice proposition attracts, develops and produces the most exciting young talent in Australia. Ray has been an integral part of the Clifton Wealth team since inception, and with our partner Treysta Wealth Management since 2013; his thirst for knowledge, willingness to innovate and enthusiasm for the industry is a natural fit.

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Should You Help Your ADULT Children Financially?

Should You Help Your ADULT Children Financially?

In a perfect world, your children will learn sensible financial practices and how to manage their money throughout their childhood and teenage years. As adults, they’ll be capable of making an adequate income and will be responsible with this money.

But let’s face it, life’s not perfect, and many children don’t learn these lessons for one reason or another. Or, they may have great money management skills, but life has thrown some tricky situations at them and they’re stuck in a money-less rut they can’t get out of.

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Remarrying? 5 Considerations Before saying "I Do"

Remarrying? 5 Considerations Before saying "I Do"

The unfortunate statistic is that second marriages tend to have a higher failure rate than first marriages. And the reasons are fairly obvious.  Both spouses generally have an ex-spouse, are more advanced in their careers, have significant assets and perhaps have children.  When this is the case it’s much easier for life to become rather complicated.

And like at any other point in life, money can be a major source of stress.  This seems to be especially so in second marriages.

If you’re planning on tying the knot again, there are some important financial considerations you need to be aware of first.

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