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Men have financial advantage

By Madeleine Stephens, author at Western Independent. Original article published November 6th, 2017 on Western Independent online. The following article has been edited by the author to acknowledge  Kane Jiang’s contribution to some of the intellectual database of the article.   The reason why females continue to have lower financial literacy scores than their male counterparts is a “persistent puzzle”, according to a Perth academic. The University of Western Australia finance lecturer Paul Gerrans has surveyed students undertaking a personal finance elective unit at UWA and Macquarie University for the past five years to learn about the levels of financial knowledge in young people. A total of 1200 students, from both the classes and a control group, were tested before and after the semester to measure their financial literacy and the results were published earlier this year. The survey included questions on the ability of students to make financial decisions, investment and superannuation knowledge, maths ability and the student’s intention to budget, set financial goals, track spending and save emergency funds. The study found on average females answered 1.5 more questions incorrectly on a 13 item scale than their male peers. Professor Gerrans said the gender disparities were seen in both subjective and objective measures. “To some extent the size of the gap reduces if you can control for things like numeracy and if you can control for other circumstances like how people grew up but it doesn’t get rid of it totally,” he said. Researchers from Western Sydney University and Deakin University conducted a similar pilot study at the beginning of the year. They found women aged 19-35 were confident...

Rise Thrive & Survive Seminar 7 December 2017

11 December 2017 Brought to you by AA Tax and Finance – your local and honest tax, finance and financial advisers in Canning Vale and Canning Area.   We ran a small seminar event at Fresh Ideas, Market City Canning Vale, on Thursday, 7 December 2017, to share our experiences as business owners to an aspiring group of entrepreneurs. We are pleased to say that the seminar has been well received by our audience, with positive feedback all across the board for our three speakers: ‘Rise’ by Kane Jiang, AA Financial Planning ‘Thrive’ by Leonard Nagawidjaja  (Leo), AA Finance Solutions ‘Survive’ by Alison Augustin, AA Tax Management Special thanks to CY Lim, director of Persona Homes, our guest speaker, who shared his experience on how to survive as a custom builder in the weak Perth property market. We thank Steven Adnan who moderated the event. We also thank the AA Tax and Finance team, who helped make the event to be as awesome as it can be. We also thank our audience for their participation, and in their continued support. We are committed to bringing more inspiring sessions in the...

The 8th Wonder of the World

28 October 2017 Brought to you by AA Financial Planning – your local and honest financial advisers in Canning Vale and Canning Area. By Kane Jiang.      The Eighth Wonder Does anyone know what the ‘Eighth Wonder of the World’ is? It is a term coined by Albert Einstein, for this thing that is called “Compound Interest”. As a financial planner though, I think Albert didn’t give enough credit to Compound Interest, as I personally think it is the 8th Wonder of the Universe! Seriously.. I think Compound Interest is bigger than the pyramids and the Stonehenge! I will illustrate to you some points. It was Compound Interest who gave birth to the term the ‘7-10’ rule. Anyone heard about it? The real estate agents love to talk about it. It is the mathematical miracle whereby if you earn 7% p.a. on your money, compounded, you will double your money in 10 years. Similarly, if you are lucky enough to be able to earn 10% p.a. compounding returns, you will double your money in 7 years! But how does this work for you? What does this mean to the average Australian?? In my article last week I spoke about the importance of saving 10% of your money. And also, being a conservative financial adviser that I am, let’s not take a lot of risk here. Let’s assume a return of 7%/year in that 7-10 rule, rather than 10% return. The sharemarket in general has returned 8-9% per year in the last 100 years. So let’s say you are an average Australian. You would be earning the average Australian wage...

Plus 10 Percent

19 October 2017 Brought to you by AA Financial Planning – your local and honest financial advisers in Canning Vale and Canning Area. By Kane Jiang.      Plus 10 Percent – what is it? No, I am not talking about Australia’s extra GST on Ebay or online purchases today (although it would make a pretty good topic too). And no, I am not talking about the accepted social norm of a certain Southeast Asian government in getting things done, either. I am talking about saving money. And by the end of reading this article, I want you to save 10% of your money religiously. The world of instant gratification Most people ‘feel’ that when they save money, that they ‘lose’ that money. That is, if you save 10% of your income, then you don’t get to enjoy that 10%. You would probably say “you only live once, so may as well enjoy it”. I think this is the most insane concept ever! If this is your life motto, you are living in the world of instant gratification. I don’t blame you. With so much credit products offering you “0% interest”, and “same day credit approval”, our society has been inundated with such spirit for some time. Why you need to save 10% now Well, firstly you need to save because the bible says so (maybe that is one of the many reasons the church is one of the wealthiest institutions in the world?).. But on a serious note, you must realise, everyone has an expiry date. During the world war, our life expectancy was around the mid 60s...

Get Wealthy 101: The Money SAGA

12 October 2017 Brought to you by AA Financial Planning – your local and honest financial advisers in Canning Vale and Canning Area. By Kane Jiang.    Who wants to get wealthy, and have a never ending supply of money? Everybody does! Who are actually wealthy, and have a never ending supply of money? Almost no one is! It is actually not hard to achieve your desired level of wealth. Although it is not that easy either. All you have to do to get wealthy, is to consistently implement “The Money SAGA”. “SA” is for “Set Aside, or Save.” “G” is for “Grow”. And “A” is for “Armor”. The first step on getting wealthy is to save your money. Most people pay themselves last. To them, saving is a privilege, which can only be realised if they have any leftover, after spending much of their income. Who else to learn about savings from, but from the greatest living investor in the world, Warren Buffett. He said “Do not save what is left after spending, rather, spend what is left after saving..” If you can consistently Set Aside at least 10% of your income, however small, and pay yourself first, you are just as a baby starting to crawl towards building your wealth. Just as a baby taking its first step, to walk towards great wealth is the “G” in SAGA. That is to “Grow” your money. You have to make your money work for you. You need to find good homes for your gold and your money, so they can breed more baby golds and moneys. And these children...

How to manage finances as a couple when you don’t share the same financial values.

1 September 2017 Brought to you by AA Financial Planning – your local and honest financial advisers in Canning Vale and Canning Area. By Kane Jiang.    Today was a liberating day for me. I was invited to share my views on how to help couples manage their finances, especially if they have different values on money. As a financial planner facing these issues daily, I think I can share a thing or two. I was a live-radio virgin (either local radios, or let alone national!), and was unsure of my place in the studio, buried amongst the studio equipment, sound mixer, mic, headset, trying to juggle my materials, which I was told at last minute that the conversation will be a ‘free-flowing’ one (“what does that mean? I don’t get to talk about my materials??”) etc. To cut it short, nerves got to me and it was a pretty (or not pretty) rough start. I was a chronic stutterer. Luckily, I felt that things did get better as the segment delves into the issue further. Please laugh at me and with me. For those who know me rather well, I’m always more than happy to share all my “Fail” journeys (with capital Fs!). They are normally catalysts to do better next time. You can hear the podcast here on ABC Radio’s website, or below: http://www.aataxandfinance.com.au/wp-content/uploads/2017/09/Life-matters.mp3   Coming out of the studio however, I felt that there was still something missing. Yes the chat was great, but I think I can do more in terms of delivering the message, something more practicable. For example, what can you actually do as...

11 Ideas to Protect Yourself in The Age of Robotics and Globalization

Brought to you by AA Financial Planning – your local and honest financial advisers in Canning Vale and Canning Area. Warning This conversation can be disturbing. We all have an incredible capacity to ignore the obvious and stay in our comfort zones. And for most people, the proverbial elephants in the corner, the razor rocks set to dash their financial ship to pieces, are looming leaps in artificial intelligence and its close cousin globalization. What do you do for a living? No occupation is safe. Are you a warehouse manager? A logistics and transport officer? China, not known for its high labor costs, already has mega-warehouses 100% run by robots. There is not a human in the place. It’s a cement and steel, product shifting algorithm run monster, and it will be here soon. Think Amazon in Dandenong. For every new job created at least two will be lost elsewhere. Are you a builder? A tradie? Off-site pre-fab techniques are game changers. Entire medical centres are being built in China, shipped to Australia and assembled in days by low-skilled-gig-economy teams of transient travelling piece paid workers. 3D printers are working on creating whole houses without significant human input. The new building construction processes don’t need militant striking unionists. Are you a barrister? Junior lawyers once cut their teeth on low level repetitious tasks. Not anymore. These are done overnight by silicon chips and para-legal teams based in Bangalore. The 38 Australian law schools means supply will increasingly exceed demand and the price of legal labor will fall as legal services become fungible commoditised products. Don’t believe AI can beat...

There’s no need to salary sacrifice any more…

Brought to you by AA Financial Planning – your local and honest financial advisers in Canning Vale and Canning Area. Superannuation really is super. Super lets you pay less tax and boost your retirement savings, all in one go. We really like it and we think you should too. If you are an employee, then you are almost certainly entitled to receive compulsory super contributions from your employer. Generally, these contributions equal 9.5% of your standard wages or salary. These contributions are only taxed at 15% in the super fund – which is probably less than the tax rate you would pay if you received the same money as wages or salary. So, after-tax there is more left in your super fund than there would be if your employer just gave you the money directly. The 15% tax rate is capped – it can only be applied to concessional contributions of $25,000 per person per year. $25,000 is 9.5% of $263,000. Most people earn much less than this, which means their super contributions are well below their personal limit of $25,000 per year. Potential tax benefits are going begging for most people in most years. It is possible to make concessional super contributions above the compulsory 9.5%. Until now, the main way to do this has been through ‘salary sacrifice.’ Salary sacrifice requires an employee to agree with their employer to direct (‘sacrifice’) some of their pay into their super fund, rather than receive it directly as salary or wages. From the employer’s point of view, it does not matter whether remuneration goes to the employee directly or into...