E to J of money speak
We follow on from our A-D of money speak blog with a few more terms and phrases;
The value of an asset - your house, shares and so on - less any money owed against it.
Estate planning might not top the list of fun things to do, but creating a will si a crucial part of securing your family's future. Nominating beneficiaries on your superannuation account is equally important. Developing an estate plan ensures your assets are given to the right beneficiaries and are also protected if a beneficiary has legal issues.
A strategy usually created with help from us (your financial advisers), that defines your current financial position and goals, and sets out investment strategies to reach those goals.
Keeping track of your net worth is the first step in increasing your wealth. Even on a budget, you can gradually increase your net worth by adding assets and decreasing debt. Spend weekly discretionary income wisely - avoid splurging too often on things that don't appreciate in value, such as clothes, dining and nights out. They might be fun, but won't make you rich.
HOME BUYING/HOME LOANS
Do it right. Research properties and neighbourhoods, then set your budget; aim for a 20 per cent deposit and factor in costs such as stamp duty. Ask mortgage providers for fact sheets so you can compare like with like. Many websites and apps can help. Work out repayments you are sure you can handle. if possible, build a reserve in case interest rates rise, as most home loans apply variable rather than fixed rates.
HONEYMOON OR INTRODUCTORY INTEREST RATE
An interest rate offered for a short period; reduced, for a new loan or credit card account; or raised, for a new savings account or term deposit. it will eventually revert to the standard rate
Depending on where you are in life and your risk level, you will probably have many types of insurance. Whether choosing life, health care, home or consumer credit insurance, research the details, know what they do and don't cover, and what they cost. If in doubt, talk to us!
Have you heard the terms "good debt" or borrowing "solutions"? The financial industry is loaded with cringeworthy phrases and jargon. Don't let marketing copy or think pieces on the state of the economy cloud your judgement - if something doesn't make sense, ask questions
Source of article: As published by moneytalk in their Magazine Edition 3 pg. 74 titled "The really simple guide to money"
Source of image: money.usnews.com
For a confidential discussion with a financial adviser about your financial circumstances, please contact us on 03 9935 5233 to set an appointment at our offices in Normanby Chambers, 430 Little Collins Street in Melbourne CBD.
This information may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant project disclosure statement before making any decision to purchase that financial product.