Here we are just past mid-November, Summer soon to start, Christmas planning is no doubt well under way – and the year seems to have only just started! It will soon be time to consider some goals for 2016: setting some New Year’s resolutions, perhaps reflecting on the achievements of 2015. In this context, we are going to bring some stories that relate to that process of ‘making plans’.
At this time of year, many Australian families are looking forward to the annual ‘Summer Holiday’: they work hard all year (whether it is the kids at school and sport, or parents juggling home and work duties) – and as much as they need and deserve the break, unless they plan ahead there are risks that can lead to disappointment:

Many of the potential disappointments can be avoided through careful and considered planning – and so it is with the broader ‘life journey’ –

All of us ultimately look to spending a healthy and financially secure retirement: that phase of our lives means a couple of things – making arrangements for our life’s work to continue; and ensuring that our financial position in retirement is clearly understood and sustainable.
Whilst financial independence in retirement is an achievable goal for many of our clients, some of the work the advisers at Continuum Financial Planners do, is to reassure others that careful and considered use of their financial resources supplemented by safety-net benefits available through government agencies, will allow them to enjoy a comfortable lifestyle in retirement.

When going away for that hard-earned holiday, we often make arrangements with neighbours, family or friends to ensure that our home, property generally and/ or pets are cared for in our absence: watering the plants, clearing the mail (mainly junk mail) and ensuring any damage is attended.

Similarly, when it comes time to retire arrangements need to be made regarding your business (or your role in a business): a new owner/ appointee needs to be found and trained in to the role. Before we move to a discussion that involves every one of us, Estate Planning, the following piece is addressed to those either in business – or contemplating going into business.
As a sole proprietor, or as a ‘partner’ in an incorporated (or even an unincorporated) business, retirement can only be achieved by disposing of your interest in the business. The sole proprietors amongst us are only able to use the complete sale of the business as their exit strategy/ succession plan, however those who are in partnership with others can prepare for their retirement with a well-structured business succession plan, including a Shareholders’ Agreement and a Buy-Sell Agreement (and the latter supported by an adequate funding strategy).

There are many questions that arise when we start to think about estate planning: the key ones, after deciding what will form part of the Estate that will be left behind when we die, include –

Whilst the financial value of an estate is a consideration as to the complexity of an estate plan, it is very important to know what assets or chattels form part of your estate – and which things you might otherwise believe to be ‘yours’, but in fact belong to a company that you own shares in, or a trust in which you are an eligible beneficiary.

As we have reported in a couple of special eNews bulletins around August, the volatility we are now experiencing has been anticipated as we draw closer to the US Fed Reserve ‘lifting off’ with a series of long-anticipated rate rises. Unfortunately, just as we know that fixing a tooth in due course is going to happen – and might hurt for a while at the time, the markets are reacting in spite of expecting the event for several months.
Many commentators are anticipating that the actual event will trigger a ‘Santa Clause rally’ with the US – and possibly even the Australian – share market; and an adverse valuation effect on Bonds and Fixed Income markets.
As we have commented consistently over a number of years, investing to a properly-devised strategy and sticking to it for an adequate term, will minimise the effect of these volatility events: and whilst we acknowledge that some strategies need to be revised as circumstances change, market volatility alone, is not such a change in the vast majority of cases.
If you have any concerns about the effect of volatility on your wealth management plans, whether activated through your superannuation account or any other structure, we encourage you to speak with your financial planner (preferably at Continuum Financial Planners of course), to ensure that your wealth is being managed to a plan.

Our offices will be closed on Christmas Eve Thursday 24 December 2015 and through until we reopen on Monday 4 January 2016.
(We will remind you of these dates in a special eNews in December.)