ARE you a small business owner who wants some tips to manage business or personal debts?
Or maybe you want to know when you can access money in your superannuation account?
If you want to hear the answers to these questions the Financial Counselling Network: Superannuation and Small Business Finance Tips session at the second Lunch and Learn at the Yhub on Tuesday, October 12 will interest you.
At the session small business financial counsellor and former senior business banking manager Steve McLaren will discuss the services he can offer to small business clients including
- Tips for managing business debts as well as personal debts
- Tips for negotiating repayment arrangements:
- on a tax debt (company or individual)
- on a lease or utility bill
- with suppliers
- on any other business debt.
Following that financial counsellor and former financial adviser Paul Jordan will help you to understand:
- How your superannuation is designed to assist you and how it works
- When and how you can access all that money in your super account
- How you can obtain free money from the government to top up your super.
Mr Jordan said topics such as budgeting and superannuation should be taught at schools.
“Our schools teach our children about commerce and economics, which is wonderful but the fundamentals of how to establish a simple budget and monitor spending against an income is taken for granted and overlooked,’’ he said.
“In the past, this was taught by parents however as the world, and all of the financial options that are available to the public continues to expand, many parents are left wanting, at no fault of their own.”
But he said he was not sure if saving for retirement should be taught at schools.
“I think it’s a big ask for a 17-year-old to consider how they want to be spending their money in 50 years’ time.
“They don’t know how they’re going to be spending their money in a year’s time!
“However, they should be taught some basics about their super, simply because for most of them, they have no option. They will have super.”
He said they should be taught that:
- Super is not an investment, it’s a tax structure which is for the benefit of most people.
- Investments are held within super, and they have a choice of how that money will be invested.
- Different investments come with different risk and rewards. They need to understand those risks and rewards so that they can choose investments that are most appropriate for them.
- They pay fees for their super to be managed, and that those fees can vary from one super’ provider to another. Importantly, most people have a choice about who will manage their super for them. Fees may have a big impact on their choice.
- They are entitled to have their super paid by their employer (in most cases), and if their employer is not paying them super, who can help them to get it paid.
- They have a choice of insurances within their super and this comes at a cost. At different stages of their life, those different insurances may be worthwhile, or a waste of money. It depends on their situation. If they know what those insurances are designed to do, they can make a conscious decision whether to continue it or cancel it.
Mr Jordan said he would like people to be able to access their super for the purpose of placing a deposit on the purchase/build of a new home.
But he said it should come with conditions:
- There should be an expectation that it will be repaid within a reasonable time frame, and lenders should consider those repayments as part of their regular expenses.
- There should be tax penalties for people who do not repay their super. Those penalties should be paid back into their super, rather than lining government coffers.
- If a home is repossessed or surrendered, the superannuation component of any equity should be paid back to the super fund before the lender, council rates or utilities are paid.
The Canadian government have a system similar to what is described above, and it has worked well for many decades with their equivalent super system, (Registered Retirement Saving Plans or RRSPs).
The Lunch and Learn series will be held at Yhub Coworking, 128 Yanchep Beach Rd from 1pm to 2pm.
It is being brought to Yanchep with the support of Beyond Bank and Spacecubed.
Get your ticket for the Lunch and Learn session here.
- Please note – financial counsellors are licensed to provide factual financial advice only and people should consult their superannuation provider and/or financial adviser if they require personal financial advice.