Putting it off can be worse than sucking it up…

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You may remember last July I held an event for the ladies about having a back up plan. My guest speaker was Dylan Shiel (player #5 for Greater Western Sydney GIANTS – AFL), and a client of mine. The theme of the night was around the idea that you need to have some sort of back up plan. For example, Dylan’s back up plan is that he is studying Business and ultimately wants to get in to the property game. He understands that the average number of seasons an AFL player plays, is 3.5.  My client’s back up plan was having a Financial Planner and working on having enough Superannuation and insurance in place.

I had a guest who was really interested afterwards to meet with  me and sort out her insurance and Superannuation, as well as her boyfriends cover (let’s call them Mary and John). John worked interstate so it was difficult to arrange time to meet with them both, so I met with Mary and we agreed on levels of cover, salary sacrifice and superannuation investment opportunities. We had planned to apply for all the cover for both, John and Mary, in November when John was back in town…. unfortunately this meeting was delayed until December, and again delayed until the new year.

The new year arrived, and after several follow ups, I hadn’t heard back. I understand life can get busy and we are all time poor but what I am about to share with you is simply devastating.

I had breakfast with a mutual friend of ours this morning, and she told me that John was diagnosed in April of a brain tumour. John turned 30 in February.

My initial reaction was sheer devastation for the young couple. He has had to go home to New Zealand to get treatment. He worked on the Mines so is no longer receiving an income. The emotional and financial stress is just awful.

My second thought was sheer frustration…. if only they took my meeting and signed up in November… or December.. or even January, then his bank account would have received a $220,000 Trauma pay out, and his monthly benefit from Income Protection would be $9375. He would have comfort that his 6 year old daughter would be well provided for if the tumour causes his premature death.

So many people I see procrastinate over getting themselves protected because everything else comes first. The holiday, the job, buying a car or home… everything comes first, but everything becomes insignificant when something goes wrong.

So my piece of advice is, suck it up and get yourself covered! People say they can’t afford the cover, but lets work around what you can afford so at least you have something in place when things go wrong.

If you’ve been procrastinating about doing something, please call me. I don’t want to hear about any more John stories…

 

 

IMPORTANT INFORMATION

This information was prepared by Monarch Advisory Group Pty Ltd, ABN 75155549705. Licensed under Securitor Financial Group Ltd, ABN 48 009 189 495 AFSL & Australian Credit Licence (ACL) 240687 (Securitor) and is current as at January 2013.

This publication provides an overview or summary only and it shouldn’t be considered a comprehensive statement on any matter or relied upon as such. The information in this publication does not take into account your objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it and obtain financial advice. Any taxation position described in this publication is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and our interpretation.

Your individual situation may differ and you should seek independent professional tax advice. The rules associated with the super and tax regimes are complex and subject to change and the opportunities and effects will differ depending on your personal circumstances.

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About the Author:

Tatiana has over 15 years experience within Financial Services with the last 7 years focussed on Life Risk. Tatiana has held Senior roles with a number of organisations such as Macquarie, AMP and OnePath prior to starting Monarch Advisory Group. Tatiana holds an Advanced Diploma of Financial Services and is completing the CFP (Certified Financial Planner) through the FPA (Financial Planning Association). Tatiana is also a member of the FPA, which is the highest professional body for the Financial Planning industry. Tatiana is very approachable and passionate about ensuring her friends, family and clients are properly protected in the unfortunate event that something goes wrong.

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