Dobbrick Financial Services Blog

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Covered at every age

by DFS Ipswich on November 13, 2018 No comments

Life insurance is something that too many people set and forget. Or worse, don’t look at until they’re older. Some people think that the life insurance within their superannuation will be enough, when in fact it’s usually a bare minimum of cover that needs topping up. The truth is that, from the time you have your first proper job to the end of your life, you’ve got life insurance needs – and they change just as often as your lifestyle and personal proclivities.

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DFS IpswichCovered at every age

Travel destinations to get the most bang for buck

by DFS Ipswich on November 5, 2018 No comments

Aussies love travelling overseas – it’s a simple fact. According to ABS stats, more of us head abroad for our holidays than ever before (ABS, 3401.0). This is despite the fact that the Aussie dollar hasn’t fared too well of late, making it more expensive for us to get our hands on other currencies to make purchases at our destinations.

So how does one afford an overseas holiday with an underperforming Aussie dollar? It’s not necessarily about resorting to hitchhiking and staying in backpacker hostels. Rather, it’s about being smart with your choice of destination. There are a number of countries around the world where luxury hotels, shopping and local activities are still affordable for Australians.

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DFS IpswichTravel destinations to get the most bang for buck

Keeping your financial partnership on track

by DFS Ipswich on October 23, 2018 No comments

“While money can’t buy happiness, it certainly lets you choose your own form of misery.”

Groucho Marx might have been joking when he said this, but there’s no getting around it: money is a prime source of tension in marriages and domestic partnerships right around Australia. A survey by Relationships Australia found that 70% of couples are affected by disagreements about money. 84% of respondents said money troubles would be more likely to push people apart than bring them together. Cooperating on financial matters is well worth it for most couples. It’s not just your bank balance which will benefit from working together. Working through money issues with your partner can help develop communication skills, improve bonding through a sense of teamwork, and set up shared values to pass on to children.

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DFS IpswichKeeping your financial partnership on track

Early retirement: living the dream

by DFS Ipswich on October 23, 2018 No comments

When you visualise your retirement, what do you see? If you’re like thousands of other Aussies, chances are you think about getting stuck into a hobby, spending more time with your family, seeing the world, or exploring the great outdoors right here in our own backyard. Whatever your image of the ideal retirement, it gives you something to work towards; a goal to keep you on track.

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DFS IpswichEarly retirement: living the dream

Seven ways to invest in your future

by DFS Ipswich on October 9, 2018 No comments

One fact of life is certain, we don’t stay young forever. As we grow older, everyday tasks can become tiresome; we suffer inevitable aches and pains and often have difficulty remembering things. But the ageing process should be seen as a privilege. We have retirement to look forward to, access to good health care and the opportunity to spend more time with the people we love. To ensure we’re able to enjoy a long and happy retirement, it’s important to plan for this future.

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DFS IpswichSeven ways to invest in your future

Time to review household debt

by DFS Ipswich on September 24, 2018 No comments

Fuelled by rising house prices and low-interest rates, the level of personal debt in Australia is relatively high compared to many other countries.i

The largest proportion of this debt is often used to purchase a valuable asset – the family home. With careful planning, you might be able to control your household debt and use it to grow wealth and secure your future.

Multiple factors drive debt levels

The debt to income ratio of Australian households recently reached 200%ii – the highest in history – and is expected to peak at around 205%iii.

The level of debt has been driven by several factors, largely the record housing prices reached in the property market, a period of low-interest rates and relaxed lending standards for home loans. As this chart from the Australian Bureau of Statistics demonstrates, the vast majority of household debt is in property loans.

Mean household debt by type of liability, 2009-10 to 2015-16

*In 2015-16 dollars, adjusted by the Consumer Price Index
Source: ABS Survey of Income and Housing

The level of debt is also becoming more challenging due to household income failing to increase at the same rate.

Keep stress to a minimum

Low-interest rates have been a boon for the housing market and a blessing for those who aspire to own their own home. This has seen the average household mortgage debt-to-income ratio rise from 120% to 140% between 2012 and 2017.iv

While housing prices are starting to slow down, interest rates are expected to increase which means that some may start to feel the pinch of mortgage stress. By getting ahead of the trend, you may take control of your household debt and minimise financial stress in the future. The key to achieving this is understanding which debts are good and which are bad.

Not all debt is bad

There is a common misconception that all debt is bad, but this isn’t true. Good debt allows you to invest in assets that could increase your wealth. Loans to purchase shares, student loans for education that increases your income-earning potential, and home loans all fall within the category of good debt.

Bad debt is incurred to purchase items that decline in value or do not contribute to your wealth. This may include credit cards and personal loans, particularly if you’ve used them to purchase, holidays or a motor vehicle that declines in value the minute it’s driven off the lot.

Regardless of the type of debt you have, it’s possible to have too much of a good thing. Debt in any form carries a level of risk. Losing your job, borrowing beyond your means and interest rate hikes can all place your household in financial stress and make it difficult to meet repayments.

Keep your debt in check

There are some things that you could do now that may help you get your household debt under control. These include:

    • Create a budget: Understanding what money you have coming in and going out each week is the first step in understanding debt.
    • Identify and categorise debts: You may have some debts that have gone under the radar – like that credit card you make the minimum monthly repayment on. Identify all the debts that you have and then classify them as either good or bad debts based on their potential to increase or decrease your wealth.
    • Prioritise debts: Trying to manage multiple debts at a time can be overwhelming; prioritising your debts will provide direction and keep you on track. Initially, you could try and reduce the level of bad debt, taking into account the nature of your loans including applicable interest rates and relevant fees.
  • Consolidate debts: Sometimes it may make sense to roll all your debts into one facility. This could make them more manageable because you only have one debt to pay down and can potentially reduce the number of fees or the amount of interest you’re paying.

Controlling your household debt is not always easy but it could generate great rewards. Talk to us if you’d like a hand managing your household debt.




First published: 1 September 2018

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DFS IpswichTime to review household debt

Healthy eating on a budget

by DFS Ipswich on September 24, 2018 No comments

Healthy eating doesn’t have to be expensive. With a few simple tweaks to what you buy and how you prep for the week, you could be saving hundreds of dollars every year. What many of us don’t realise is that by eating healthier, it will actually save you money. You’ll feel better, sleep better and end up spending less time with your doctor and spend more time living a healthy life.

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DFS IpswichHealthy eating on a budget

Paul Dobbrick wins National Award

by Paul Dobbrick on September 20, 2018 No comments

At the recent Fortnum Private Wealth National Conference in Melbourne, one of our Financial Planners from Gympie, Paul Dobbrick walked away with the Fortnum Private Wealth NextGen Award for 2018.

Paul Dobbrick winning the NextGen Award

The NextGen Award is awarded to an individual or practice who have had significant involvement in the ongoing success of the NextGen program. They have regular input on agenda items, participate in the program, recommend speakers, are involved in various committees and strive to achieve the best outcomes for all practices involved. They are also highly collaborative, an advocate for the business and always willing to share their ideas with others to help them grow and develop.

If you’d like to join us in congratulating Paul for his fantastic achievement, please head over to Facebook post and leave a comment.

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Paul DobbrickPaul Dobbrick wins National Award

What determines the cost of an insurance policy?

by DFS Ipswich on September 18, 2018 No comments

There are a number of factors that determine the cost of an insurance policy. A cheap life insurance or income protection insurance policy doesn’t necessarily mean it’s an inferior one, and by the same token, the most expensive policy may not be the best to suit your needs.

The price of an insurance policy is generally a reflection of how the underwriter views the risk of you claiming on that policy. As each insurer will attribute their own measure of risk to each element of your lifestyle, personal habits and work situation, your overall risk profile can fluctuate between one insurer and another.

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DFS IpswichWhat determines the cost of an insurance policy?