Professional Services

THE YOUNG AND RESTLESS

One of the most common comments I hear from parents and grandparents is that it's so much harder for their children and grandchildren today. But is it more difficult for this generation than it was in "our day"?

"Their degrees are so much harder these days. They have so much more competition for jobs. Property prices are so much higher." Really? If you go back 40 years ago there were fewer jobs, there was no internet and more violence in the world. We had to hand write letters and post them, and it would take a week or two to arrive at their destination. We sent memos internally, letters externally and the big innovation was fax. Cars were unsafe and would regularly break down. More people drove when drunk and we didn't use seatbelts. We scavenged secondhand furniture from our parents. It's no more difficult these days. Students are more educated, but have more access to information. Knowing things is easy. Jobs are plentiful and varied. New industries are being created daily. We communicate extensively. It’s not good or bad, just different. Young people these days desire more than we did – that's not necessarily a bad thing. It just is. They are also the first generation to teach the previous generations. Older people often feel slow and ignorant next to the young. Suddenly, “wisdom” is less valued. As a result, young adults are more confident, outspoken and verbalise their views. They are not prepared to put up with second-best, or wait. They are less likely to delay gratification — they can’t see why it is necessary. I don’t know whether this is good or bad. In some respects, I admire their impatience and lack of concern for the future.

At the same time, our generation is a lot wealthier than our parents were at the same age. And we feel like we want to be better parents. The combination of these factors could potentially lead to the opposite of what is intended. When either adult children ask for help or parents/grandparents offer it, it is driven by a desire for “happiness”. But, by financially enabling the younger generation, we may remove their ability to survive and even thrive, and therefore their confidence. We may be encouraging impatience and feeding the desire for instant gratification. In a study conducted by Tom Stanley and Bill Danko, two groups of young people were analysed. One group received a large capital sum as young adults and the other didn't. You would have thought that this would have made them a lot wealthier later in life – but that wasn’t the case. And most people will know exactly why. Giving young adults large sums of capital can actually impair their ability to survive and thrive financially, and impact their levels of confidence and self-esteem. Parents want their children to be happy, and it’s natural to want to help. The challenge is finding the most appropriate way to provide short-term help which has long-term benefits.

Words by Justin Hooper MANAGING DIRECTOR, Financial Strategist, Sentinel Wealth www.sentinelwealth.com.au

Scott

Chartered Accountants

DO YOU KNOW THE CHANGES?

With the current uncertainty surrounding tax legislation in significant areas for superannuation funds, individuals and businesses alike, do you know what’s changed?

PLAN TO PLAN

Whether it be your business, individual position or superannuation fund, you cannot overlook the significance of effective tax planning. Make the most of the opportunities available to you now and in future financial years.

n Income tax – personal, business and investment n Superannuation – taxation, audit and planning n Estate Planning and Family Trusts n Business Advisory and Management Consulting n Registered Company and SMSF Auditor

LOCATED UPSTAIRS: Village Shopping Centre, Suite 8, 43-45 Burns Bay Road. P: 9418 6669 EMAIL office@scottca.com.au

MORTGAGE CHOICES

Give your finances a spring clean

As the weather warms up, many people take the opportunity to give their home a spring clean. Stephanie Cook of Mortgage Choice Lane Cove says while you are tidying up your house and garden, it’s also worth giving your finances a much needed review. “By giving your finances a thorough spring clean, you may find there are areas where you can easily cut back on unnecessary expenses or negotiate a better interest rate on your home loan.” These tips can help de-clutter your finances this spring: • Review last year’s budget – by reviewing what aspects of your financial management process worked and what didn’t, you can help to create a leaner and more successful budget for the year ahead. • Consider debt consolidation – rolling other debts into your mortgage may help you to pay less each repayment; just remember these debts will be stretched over a longer period, if not well managed. • Get a free Home Loan Health Check – this will help you to work out whether you have the most appropriate and cost effective loan for your current financial needs. So why not give us a call to arrange an appointment to review your current and future property needs today? Please feel free to contact us on 9420 3052, visit 15/43-45 Burns Bay Road, Lane Cove or email stephanie.cook@mortgagechoice.com.au