Money and Life
(Financial Planning Association of Australia)

No one likes unpleasant surprises. Talking about your Will with your family can be stressful, but it can also help to avoid a worse situation when you are gone.

Contemplating one's own death can be hard and in many families, talking about money or inheritances is taboo. Some parents worry that letting their children know how much they stand to inherit may cause a sense of entitlement or encourage them to become less productive. Others fear the chat could stir up jealousies, insecurities and feuds among family members.

But no matter how stressful that conversation is, not talking about what's in your Will could cause confusion, bitterness, far bigger family feuds and even legal battles after you're gone.

Having a transparent and open talk about its contents could help your family understand the reasons behind your decisions and ensure their expectations are realistic. It can also reduce their anxiety. After all, it's often the unknown that stresses us the most.

The talk may also allow you to express any special wishes you have that are not specifically included in your Will. And, you may gain better insight into what different family members value and want. A conversation about your finances and wishes will help to clarify who to contact, and how to pay for basic expenses, as well as your funeral, when you pass.

One of the most contentious aspects of settling an estate can be the distribution of personal property like family jewellery, art or special collections, whether worth a lot or just of sentimental value.

Here are five ways to reduce the stress of these conversations:

#1: Identify potential hotspots

Think very carefully about what you plan to do with your assets and why. Do your research and speak to your lawyer about what's possible and what's not. Identify areas that could be touchy subjects.

For example, do you have a child you plan to leave more to than others? This could be because that child has a disability requires additional financial assistance or because that child is a single mother on a low income, whereas her sister is a lawyer married into a wealthy family.

Are you planning to make certain arrangements to protect your heirs? Perhaps one has a drug problem or can't manage his or her financial affairs very well. Or, another is in a rocky marriage and you don't want your hard-earned money being split with that child's spouse.

It's important to plan how you will broach these topics in your discussion with your family, if at all.

Giving good reasons for these decisions and getting buy-in now from everyone could avert problems later on, if they only hear about your plans when you are gone.

#2: Have a game plan

Decide whether you want to talk to each child separately, rather than addressing everyone as a group. If you choose the group route, will it be one discussion or a series of discussions?

Consider who should be involved in these meetings. In addition to your adult children, should you include adult or teenage grandchildren? Should spouses also be invited?

Proper planning can go a long way to keeping peace. Before the talk, determine the goals and objectives you want to achieve from the discussion. Draw up a meeting agenda and some talking points.

Chose a neutral venue for the chat, one that will make everyone feel comfortable and secure.

Consider having your solicitor, accountant or a trusted family elder or friend at the meeting someone who could step in if things get heated and steer the discussion back on track.

#3: Communicate

Carefully explain why you have made the choices you have, especially if you are leaving more to one child than another or if you want sentimental items to go to specific people. Simple explanations can go a long way towards avoiding bad feelings.

Explain the principles, history and values behind your decisions. Let family members ask questions and provide feedback on your plans.

Listen and be open. Give everyone a chance to express their views. This will encourage a healthy dialogue and a common understanding of what different family members want.

#4: Keep the peace

Speak in a calming tone. Don't shut down or lash out if things aren't going the way you want.

Remember that talking about your passing can be a very emotional conversation for your children.

Try to stay focused on the topic at hand and not let other family issues get in the way. Remind everyone that relationships matter more than money and things.

No matter what is said, you have the power to choose how you would like your assets distributed. If a family member doesn't agree with you, let them know they have been heard, but don't feel pressured to change your plan.

#5: Follow up

After the discussion, draft a simple summary of your estate plans and distribute it to your heirs for final input. This draft could also include information such as where your important financial documents are located and what you'd like for your funeral.

It's important to ensure that everyone has understood what was discussed and is one the same page.

Still think that a conversation with your loved ones about your Will is too uncomfortable and troublesome? Start by writing a letter to share your thoughts, reasons and wishes. Maybe you could even film yourself reading out. And remember while the conversation might be based around money, it's really about values.

Money and Life
(Financial Planning Association of Australia)

Wearable technology can monitor our heart rate and tell us how much sleep we've had, but what about our financial wellbeing? If you could benefit from a Fitbit for your finances, read on.

Just like your physical health, the more you can monitor what's happening with your finances, the easier it will be to improve your financial fitness.

We all know that financial stress can have a negative impact on our physical and mental wellbeing, leading to stress, anxiety and depression. Research has even shown that employees suffering high financial stress are "more than four times as likely to complain of headaches, depression and other ailments."

So, if you could get a Fitbit for your finances, what would it track? Keep an eye on these key metrics and you could be feeling financially fit in no time.

1. Spending

Expenses are a fact of life, but this is one area where things can easily get out of hand. Much like overeating, it's all too easy to buy too much and spend on things you don't really need, especially if you're not keeping track of where your money is going. And technology sometimes makes it even easier to overspend. Buy Now Pay Later and tap and go payments make it harder than ever to keep track of what's leaving your account.

What to do: 

• Make a list of your essential costs, such as rent or mortgage, utilities, food, fees and regular bills.
• Try using a spreadsheet or budgeting app to make tracking your spending as easy as possible. Many banks now offer breakdowns of your spending by category in their apps, so take advantage of these free tools.

By monitoring where you're actually spending money each day, you'll quickly get a true picture of your financial health.

If your spending habits are putting you on the wrong path, learn how to plan and stick to a budget.

2. Debt

Like carrying a few extra kilos, debt can creep up on you and weigh you down more than you realise.

Reserve Bank data shows consumers have nearly twice as much household debt as income. Meanwhile, the average Aussie tips the scales at $3271 in credit card debt, adding huge pressure to their daily lives.

What to do:

• Detox your debt. The first step to financial health includes keeping levels of personal debt to a minimum.
• Look at consolidating your debts onto one card or personal loan, so that you're only dealing with one repayment each month.
• Take advantage of interest free periods to pay down your debt.
• Put a repayment plan in place and stick to it!

Get more tips on reducing your debt.

3. Savings

Once your debt reduction strategy is underway, you can focus on another key aspect of your financial health: Savings. How much you have stashed for a rainy day is a strong indicator of your overall financial health.

What to do:

• Open a dedicated high-interest savings account that's separate from all of your other accounts.
• Make regular, consistent deposits weekly, fortnightly or monthly.
• Add any extra cash windfalls to your savings account, such as tax returns or bonuses.
• Sit back and watch the power of compound interest at work.

4. Superannuation

If you want to stay financially fit and healthy into your old age, you need to lay the groundwork now. That means knowing how much you need to maintain the lifestyle you want, and working towards that figure.

The Association of Superannuation Funds of Australia (ASFA) estimates that for a couple to have a 'comfortable' lifestyle they need at least $640,000, while a single person needs $545,000.

You can use the Moneysmart retirement planner to estimate how much super you'll have when you retire. And if you decide that you need to work on building your super, there are a number of strategies that can help you get ahead.

5. Emergency fund

Like health insurance for your finances, having an emergency fund gives you a buffer against unexpected hard times. You should aim to have enough in your emergency account to cover six months of living expenses, including housing, to protect you in the event of losing your job, falling ill or any other major disruption.

6. Insurance

If you should lose your income for longer, or permanently, there are several types of personal insurance that can help protect you and your family from financial hardship.

Life insurance, total and permanent disability (TPD) and income protection all have a role to play in your financial wellbeing.

Depending on your stage of life, financial situation and responsibilities, it's worth ensuring that you have a mix of all three types of insurance. A financial planner can help you understand what you need and get the right level of cover to protect your lifestyle.

7. Credit rating

A good third-party check-up of your financial health is your credit rating. Compiled from your personal financial information by a credit reporting agency, it's one important indicator of your overall financial fitness.

Several things can affect your credit score, including your borrowings, number of credit applications and whether you make repayments on time.

You can check your credit score for free with one of the online providers listed on the MoneySmart website.

Keep on top of your financial health by monitoring these key metrics and you'll be feeling financially fit well into your retirement.

Colin Brinsden
(Australian Associated Press)

Federal Agriculture Minister David Littleproud has defended supporting exporters through a freight subsidy so that farmers can get their produce abroad, rather than keeping it at home during the coronavirus pandemic.

The minister said Australia has a population of 25 million but produces enough food for 75 million people.

He said the crisis has produced an opportunity for Australian agriculture to showcase itself on the international stage through reliable supplies of good quality food and fibre

However, the reduction in international flights because of the COVID-19 crisis has meant freight costs have "skyrocketed".

"That is why we took the extraordinary steps to put up $110 million into a freight subsidy," Mr Littleproud told Sky News on Sunday.

"Not to pay for all the freight but to try and minimise the increase in costs for our producers to be able to send their produce around the world and continue to be able to take advantage of the free trade agreements we have put in place."

He said the agriculture and resource sectors are helping to underpin the national economy through the crisis.

"This is about profitability to our regional sectors," Mr Littleproud said.

"It will help our economy rebound quicker on the back of agriculture and resources."

The government announced temporary changes to backpacker visas on Saturday, which will enable them to stay longer to work on farms at a critical crop picking time during the crisis.

Scammers are now trying to exploit Australians financially impacted by the COVID-19 crisis with new superannuation scams being reported to Scamwatch in recent weeks.

Scammers are already trying to take advantage of the Government's recent announcement that people suffering financial hardship can have partial access to their superannuation from mid-April.

"Scammers are cold-calling people claiming to be from organisations that can help you get early access to your super," ACCC Deputy Chair Delia Rickard said.

"For most people, outside of their home, superannuation is their greatest asset and you can't be too careful about protecting it."

"The Australian Taxation Office is coordinating the early release of super through myGov and there is no need to involve a third party or pay a fee to get access under this scheme."

"Never follow a hyperlink to reach the myGov website. Instead, you should always type the full name of the website into your browser yourself," Ms Rickard said.

Since the Government's announcement in March, there have been 87 reports of these scams, but no reported losses.

In most cases the scammers are seeking to obtain personal information, including information that will help them fraudulently access the victim's superannuation funds.

"While older people are more commonly affected by superannuation scams, the new early-access scheme means a range of age groups are now experiencing these scams," Ms Rickard said.

"We also have reports of scammers offering to check if a person's super account is eligible for various benefits or claiming the new scheme will lock people out of their accounts."

In 2019, Australians lost over $6 million to superannuation scams with people aged 4554 losing the most amount of money.

"Never give any information about your superannuation to someone who has contacted you. Don't let them try to pressure you to make a decision immediately, take your time and consider who you might be dealing with."

"Be wary of callers who claim to be from a government authority asking about your super.  Hang up and call the organisation directly by doing an independent search for their contact details," Ms Rickard said.

If you have provided information about your superannuation to a scammer, immediately contact your superannuation institution. If you have provided personal or banking details, you should also contact your financial institution.

You can also contact IDCARE, a free Government-supported service which will work with you to develop a specific response plan to your situation and support you through the process.

More information on coronavirus scams is available on the Scamwatch website, including how to make a report and where to get help.

You can also follow @scamwatch_gov on Twitter and subscribe to Scamwatch radar alerts.

Background

Any suspicious behaviour relating to superannuation can be reported to ASIC through its online complaint form.

For more information on superannuation scams visit the ASIC's MoneySmart website.

(Australian Associated Press)

The federal government has tightened foreign investment rules after global fears about the economic impact of the coronavirus caused the value of Australian businesses to fall.

There are concerns cashed-up foreign predators could take advantage of the fall in asset values fuelled by a massive slump on the Australian Securities Exchange.

The temporary change, which came into effect late on Sunday night, would protect Australia's national interest, Treasurer Josh Frydenberg announced.

From now all proposed foreign investments, subject to the Foreign Acquisitions and Takeovers Act, will require federal approval, regardless of value or the nature of the foreign investor.

"This is not an investment freeze. Australia is open for business and recognises investment at this time can be beneficial if in the national interest," Mr Frydenberg said in a statement on Monday.

The temporary change involves reducing to zero dollars the monetary screening thresholds for all foreign investments under the act.

"By temporarily reducing the foreign investment thresholds, the Australian government will ensure appropriate oversight over all proposed foreign investment during this time," Mr Frydenberg said.

The treasurer played down suggestions the measure was partially aimed at potential investment activity by Chinese state-sponsored firms.

"These measures are not directed at one particular country," Mr Frydenberg told Sky News.

The Treasurer noted China was Australia's fifth largest investor last year with investments of around $13 billion while the US was the number one investor with investments of around $58 billion.

"Those thresholds that have previously been in place are not necessarily appropriate for right now because these are extraordinary times that we are living in," he added.

The government stressed the importance of foreign investment in helping many businesses to secure jobs and support Australia's economic recovery beyond the coronavirus emergency.

The measure will remain in place for the duration of the current crisis.