Understanding cash flow can be the difference between a solid long-term investment and a costly mistake. So do your research – and get good advice before you buy.
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Whenever there is a disaster here or overseas, Australians rush to donate their time, household goods and cash. However, we still lag other countries when it comes to giving money.
With the New Year now here, it’s crucial to shift our focus towards estate planning. Often underestimated, this financial aspect tends to take a backseat in the lives of many Australians. It’s perceived as a task for the distant future or something that can be postponed indefinitely.
It is often said that ‘Time and tide wait for no one.’ Therefore, to achieve success in life, one needs to develop a deep appreciation for time.
Anyone can benefit from time management — whether in school, the office or life in general. You can realise your career goals, boost productivity, reduce stress, and experience better work-life balance by knowing how to manage your time.
In this post, we’ll talk about effective time management. We’ll discuss the importance of time management and the many benefits it provides.
Meaning of time management
Time management refers to the practice of organising and planning how you can split your time between specific tasks and objectives. Effective time management ensures you devote the appropriate amount of time to certain activities to achieve your goals for the day, week, month or year.
Individuals applying time management typically assign specific time slots to activities based on their importance or relevance. And since time is finite, the goal of time management is to make the most of one’s available time.
Importance and benefits of time management
To realise the value or importance of time management, one must be aware of the consequences of failing to use time effectively.
- Low quality work
- Mistakes or errors
- Missed deadlines
- Poor workflow
- Career stagnation
- High levels of stress
When we understand the value of time management and plan to apply it, we become more effective at work and in life. We can even transform our lives and the world around us by working toward developing effective time management skills.
Below are other benefits of time management:
- Increase in productivity
- Stress reduction
- Adequate rest and sleep
- More time and energy for leisure
- Improved focus
- High-quality work
- Good reputation in the workplace
- Finish more projects and fulfil everyday goals
- Better decision-making skills
- Increase in confidence and self-worth
Strategies to manage time effectively
If you want to know how to improve time management and implement it right away, here are some effective techniques so you can start experiencing the benefits of using your 24 hours a day wisely.
- Set objectives that are achievable and measurable.
- Prioritise tasks based on their urgency and importance.
- Learn to delegate tasks whenever possible.
- Set time limits for task completion.
- Take breaks in between task performance.
- Plan and organise your schedule.
- Eliminate non-essential, time-wasting activities.
These strategies do not require special tools or devices to implement.
What you need is the commitment and discipline to make better use of your time so you can stress less, achieve more, and live a full, well-balanced life.
View Jacqui’s website profile here or connect with her on LinkedIn here.
Closing thoughts from Jacqui
To have the impact we intend for our clients, as a team, we must continuously work on ways to manage our time effectively. I frequently engage with our team, discussing strategies to elevate our collaborative efforts while prioritising our client’s time. These principles are not limited to the workplace but can be seamlessly integrated into our daily lives, fostering a deep respect for both our time and that of our clients. I trust that this article has offered valuable insights on how you can optimise your time management each day.
Jacqui Sherlock – CEO
Original article: Feedsy
Investing, a realm filled with potential opportunities and pitfalls, demands careful consideration to navigate successfully. Each misstep along the way can serve as a valuable lesson, contributing to a more refined and robust investment strategy. Here are 20 crucial investment mistakes to be aware of, each of which plays a pivotal role in shaping a sound investment approach.
- Setting Unrealistic Expectations: Investors must maintain realistic return expectations to stay committed to their long-term goals amidst market fluctuations.
- Lack of Clear Investment Goals: Without clear long-term objectives, investors risk being swayed by short-term trends or the allure of the latest investment trends, losing sight of their primary financial ambitions.
- Inadequate Diversification: Diversification is essential for risk management, as over-relying on a single stock can significantly impact a portfolio’s overall value.
- Short-term Focus: A fixation on short-term market movements can lead to doubts about the original strategy, resulting in impulsive decisions.
- Buying High and Selling Low: Emotional reactions to market volatility often harm overall investment performance.
- Excessive Trading: Studies show that highly active traders typically underperform the broader stock market by an average of 6.5% annually.
- High Fees: Ongoing fees can significantly eat into investment returns, especially over extended periods.
- Overemphasis on Taxes: While tax strategies like tax-loss harvesting can enhance returns, making decisions solely based on tax implications may not always be beneficial.
- Infrequent Investment Reviews: Regular portfolio evaluations, preferably quarterly or annually, ensure alignment with investment goals and highlight the need for rebalancing.
- Misunderstanding Risk: Striking the right balance between too much and too little risk is crucial, as excessive risk can lead to discomfort, while insufficient risk may yield inadequate returns.
- Unawareness of Performance: Many investors are not fully aware of their investment performance. Regularly reviewing returns, accounting for fees and inflation, is vital to assess progress towards investment goals.
- Reactivity to Media: Short-term negative news can trigger fear, but it’s essential to maintain focus on the long-term trajectory.
- Ignoring Inflation: Historical inflation averages around 4% annually, which can significantly erode purchasing power over time.
- Attempted Market Timing: Trying to perfectly time the market is exceptionally challenging and often less profitable than remaining consistently invested.
- Insufficient Due Diligence: Verifying an advisor’s credentials using online resources to review their history and any complaints is critical.
- Incompatible Financial Advisor: Finding an advisor whose strategies align with one’s goals is crucial for a successful partnership.
- Emotion-Driven Investing: Maintaining rationality during market fluctuations is essential to avoid emotional decision-making.
- Chasing High Yields: High-yield investments often come with higher risks. It’s important to align investments with one’s risk tolerance.
- Delaying Investment: Starting to invest early can lead to greater potential returns, as exemplified by comparing the outcomes of investing $200 monthly from different starting ages.
- Not Controlling the Controllable: While market trends are unpredictable, investors can manage their contributions, leading to significant outcomes over time.
To avoid these common pitfalls, investors should seek financial advice, prioritise rational decision-making, and focus on long-term objectives. Financial goals, current income, spending habits, market conditions, and expected returns should guide portfolio construction. This approach helps investors steer clear of short-term market volatility and underscores the importance of consistent, long-term investments in wealth accumulation.
Designing and managing your investment portfolio can be complex; with our experience and understanding, we can help tailor an overall investment plan to suit your long-term goals. Reach out to our financial advice team for strategic investment advice here.
This information does not take into account the objectives, financial situation or needs of any person. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.
(Feedsy Exclusive)
Many people assume there is no tax payable on super benefits received after someone passes away, but that’s not always the case.
We all know them. The people who seem to know everyone and effortlessly make connections within their network. Let’s talk about a superpower we all can develop – being a connector.
This article will help to ease some fears about market volatility and outline a behavioural approach to address emotional decision-making. Hopefully, this information will assuage fears that many investors have experienced over the past several months.
Like any other insurance policy, life insurance has many variations to meet different users’ needs. Thus, before choosing one, you must determine what you need in a life insurance policy.
Being named the executor of an estate is both an honour and a burden. Entrusted with this pivotal role, one carries out the last wishes of a loved one, but the path is often strewn with complexities and unforeseen challenges.
Navigating the Executor’s Terrain
At first glance, the executor’s role might seem straightforward. However, in practice, it’s a demanding role that requires interaction with a myriad of entities, such as banks, real estate professionals, utility companies, the deceased’s superannuation fund, and the taxation office.
Furthermore, an executor’s duties are vast and varied. They encompass everything from overseeing funeral procedures, securing the death certificate, and notifying friends and family about the loss. They’re also tasked with locating the will, identifying beneficiaries, gathering a multitude of documents, settling estate debts, documenting estate assets, and initiating insurance and superannuation claims.
Yet, the process isn’t without potential pitfalls:
- Executors face personal financial risks. Any oversight during the estate’s administration might lead to personal financial liabilities.
- They often encounter hitches in procuring superannuation death benefits and in coordinating with fund trustees.
- Executors bear responsibility for any losses stemming from estate asset mismanagement. This can include failure in securing and judiciously investing assets or lapses in notifying creditors, settling the deceased’s obligations, and recouping debts owed to the deceased.
- They can incur financial penalties for unduly delaying estate administration or for hasty distributions.
Guidance for a Smoother Transition
For those in the process of drafting a will and designating an executor, a few proactive steps can immensely assist in the estate’s efficient management:
Collaborate with a knowledgeable probate lawyer or solicitor specialising in wills and estate management. Their insights can be invaluable, especially regarding local family and inheritance laws.
Given life’s unpredictability, regular updates to your will, insurance policies, and superannuation death benefit details are paramount.
It’s crucial to note that superannuation doesn’t fall within your estate and isn’t addressed in your will. Still, you can specify your wishes and arrangements concerning your super death benefit nominations in your will.
Seek guidance from your financial adviser and super fund to establish death nominations, thereby streamlining benefit acquisitions for beneficiaries.
If feasible, contemplate liquidating your entire death benefit from the super fund while still alive. This proactive step allows for immediate distribution based on your directives or deposits into a bank account, providing easy access for the executor upon your passing.
If you’re ever nominated as an executor by a loved one, it’s prudent to discuss these considerations with the person who drafted the will (the Testator). Collaboration with their legal advisor (and financial consultant if available is also advisable to ensure a comprehensive understanding of the responsibilities and challenges ahead.
The role of an executor is multifaceted, rife with both honour and intricate challenges. However, with a well-charted roadmap and diligent preparation, the process can be streamlined, ensuring a smoother transition for all involved.
This can be a complex discussion and should be undertaken with a trusted advice professional. Reach out to the Sherlock Wealth team here to get started.
Source: Matrix Planning Solutions
This information does not take into account the objectives, financial situation or needs of any person. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.
