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The 50 Most Influential Advisers in Australia 1024 768 Fox & Hare

The 50 Most Influential Advisers in Australia

We are SO excited to be recognised as one of the 50 most influential advisers in Australia by the Financial Standard!! 👏🏻🏅🎉

It’s been such an exciting year for the Fox & Hare Financial Advice family and we can’t wait to work with our incredible clients to continue to smash goals in 2020 👊🏻

#FSPower50 #notyouraveragefinancialadviser #financialadvisers #leadersinfinance #financialindependence

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Advice for the Next Generation

Jess and Glen sat down with IFA Australia to share the Fox & Hare journey and how they advise their millennial clients in the current climate.

 

JUST BEFORE the royal commission began, two ex- Macquarie financial services workers decided to start their own advice business in Surry Hills, Sydney. Neither Jessica Brady nor Glen Hare had ever operated their own business or given financial advice, but they felt compelled to serve people who they saw were missing out. Their aim was to turn the practice, usually targeted at wealthier and older clients, into something accessible for a younger and more diverse crowd. The business, Fox & Hare, is now on the cusp of turning two years old. Since starting with no clients or experience, it has recently ticked over to 100 clients. Prior to starting Fox & Hare, Mr Hare had been with Macquarie for around a decade. He departed three years into being one of the youngest directors in the company. Ms Brady on the hand has worked in financial services for 13 years, and she had been with CBA and Zurich.

“All the while my clients were financial advisers and really what I could see was, there wasn’t a great amount of choice for people who looked like me,” Ms Brady says.

“I thought most financial advisers were really gearing themselves up
for wealthy pre-retiree traditional style clients and I felt with Glen, there is such a broad subset of society that really need help getting advice.

“It doesn’t make sense just to wait until you’re five years out from retirement, when you need the wealth that you’ve accumulated to go then and you need it faster. We really want to help clients much earlier in the piece.”

Both in their 30s, they target clients between 25 and 45. They have also made a point of catering to clients who have not been typical consumers in the space, welcoming young women and LGBT couples. Ms Brady reasons that the industry broadly has not done well enough in diversity, across both those giving and receiving advice. Currently, women have been reported to make up around 20 per cent of advisers in Australia. Ms Brady describes the gap as a vicious cycle perpetuating itself.

“I think most people want to seek advice from people who look and feel like them, and that may mean that if there aren’t
a lot of women giving advice, then that may put some women off actually receiving advice,” she says.

“I think that the main thing for us is, we want people to know that they are welcome irrespective of their gender, irrespective of their sexual identity, irrespective of their religion or race, and socioeconomic status to an extent. Like we want people from a whole diverse range of backgrounds to know that they won’t be judged if they come and seek advice from us.

“We want them to know that Fox & Hare is a safe space to come and get advice that’s, you know, really in their best interest, that is aligned to their goals, whatever they may be, and that they’re not going to feel intimidated or overwhelmed by the experience.”

The pair have used their network for referrals, social media and events to grow their base.

“One thing that’s been amazing and probably quite surprising to the community at large is we’ve never really wanted for clients,” Ms Brady says.

“That hasn’t been a challenge. And I think that speaks to the fact that we really are speaking a different language and
we really are catering to a younger demographic who didn’t know where to turn to before.”

Ms Brady says she saw a gap between traditional advice and demand from younger people for strategic and non- biased advice.

“It was a very bold move to leave a fantastic corporate role, and it was a fantastic corporate role, but it was just this burning desire to be able to help people at the coalface and really have that engagement one-on- one and know that we’re making a difference,”
she says.

“It’s incredibly rewarding to be able to watch clients kind of move from, you know, that scared and anxiety-filled person at the beginning of the experience to someone who feels really on top of their financial world and knows how their strategies kind of move them towards whatever it is that they want to achieve.”

 

Serving tech-savvy clients

The process of giving advice is filled with friction at different points along the way. Fox & Hare uses a range of technology to combat it, Ms Brady believes more so than other practices.

One of the systems it has implemented is a goal tracking system, with daily monitoring for clients across accounts and investments in one interface. The business also doesn’t use fax lines or handwritten forms, instead asking clients to complete online forms that move directly into its CRM. Ms Brady says old systems can be “challenging”, referring to a client’s provider, where she has been required to post original copies of paper- based information, with a five to 10 business day turn- around time.

“We’ve really just tried to think about the clients that we work with who are young, tech-savvy, digitally native people, you know, they want us to interact with them in a way that they would with any other kind of provider,” Ms Brady comments.

“They expect to be able to do things online, they expect us to be able to sign documents online, they expect information can seamlessly transfer from one kind of system to another and that they could have live information on their accounts and portfolios related to goals.

“We’re just trying to create great client experiences but also remove admin burdens where we can from the back end to kind of minimise cost to serve. If we can create tech solutions that really enhance that journey for the client, just make it easier for them, then we’re definitely keen to do that.”

The technology is a tool, she says, to engage clients, keep them accountable and to motivate them to achieve their goals.

“And when I say a goal, I don’t mean, you know, I saved $10,000 or $100,000 or, you know, the traditional home, pay off your home loan,” she says.

“Whilst they are some of the financial goals, your clients get very disengaged very quickly. But if you’re able to really understand at a deeper level who is your client and what do they really truly want to achieve? And it might be that they want to pay down their mortgage so that the following five years they can spend, you know, travelling Europe or sending their children to a school that’s really important to them.

“You’ve really got to understand deeply what motivates the clients and then those tools become incredibly powerful.”It is a balance, however, between understanding problems and how to solve them, creating and using the best technology solution that you can, and using it when it’s appropriate. Otherwise constantly updating tech can become disruptive to business efficiency, Ms Brady says.

“I’m always looking at new stuff, which is exciting. And I am really excited about where the industry is moving from a tech perspective,” she says.

“I think there’s a number of really interesting techs that’s coming to play and if it does what they say it’s going to do I feel like it’s going to revolutionise how we give advice and the quality of the conversations that we have.”

Giving back in investing

Social responsibility is also key to the business, both in its investing approach and its own partnerships with not- for-profits. Fox & Hare offers ethical advice to its clients, tailored to each person’s values and goals. In addition to offering ethical investing, the business has three charity partners it has programs with: YWCA, a not-for- profit that works to empower women through education, housing, crisis support and other initiatives, and School for Life, an organisation aiming to help Ugandan children get an education. Mr Hare is a national partnerships manager with the third partner, LGBTIQ organisation Out for Australia. The charity helps people stay out of the closet in the workplace, who avoid being open about their sexuality because of fears around how it will affect their career.

Ms Brady has also conducted finance workshops with YWCA. She says it’s important for the business to do work aligned with its value, particularly when their clients are young and socially aware.

“I don’t know many other advice businesses that are small like us who take such a keen interest in community and charities that really align to who we are and what we believe in as well,” Ms Brady says.

On ethical investing, she notes she has to be careful in the advice she gives.

“I think the whole ethical investing space is challenging in that there is no, I believe there’s not enough robust analysis of, you know, what is a green investment? Is it really green? Because I see that there’s quite a bit of green washing in that not a lot of the green investments, I believe, are really true to label.

“The trend very clearly is showing that this space is becoming more and more of interest and I think it’s imperative that investment managers actually start looking at this more seriously rather than something that, you know, almost being seen as a bit cute.

“I’d like to think that if I could sit here in 12 months’ time or 24 months’ time, I will have the ability to talk about many more green and ethical investment strategies, but at the moment I am limited to what the market has.”

 

– Article written by Sarah Simpkins for the IFA 18/09/19.

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3 Steps to re-ignite your financial flame

Glen sits down with Urban Village to identify the impact finances can have on a relationship and uncover the 3 steps to re-igniting your financial flame.

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Is your workplace looking after financial wellbeing?

So your workplace has embraced the importance of mental wellbeing and physical activity in the office, however are they proactive in managing your financial stress and in turn financial wellness? Through an interactive discussion, Fox & Hare share practical advice to build a strong money mindset, in order to gain financial wellness. The demand for these types of workshops has been driven by an increasing number of organisations viewing ‘wellness’ as a broader conversation.

Here’s what Matt Lippiatt, Head of Retail Sales and Rachel Towell, State Manager NSW/ACT from MetLife had to say after we had a chat with their teams.

Matt Lippiat
Head of Retail Sales at MetLife
“Jess is a legend. I’ve known her for many years and she is as passionate as they come in regards to helping people get on top of their finances and realise their goals. We recently hosted her at MetLife as part of our Wellness Week and the workshop she ran for our people was extremely well received. She’s a great communicator and I have no hesitation recommending her.”

Rachel Towell
State Manager NSW/ACT at MetLife
“Jess and Glen recently spoke at the MetLife staff Wellness Week talking about Financial Wellness. The session was relevant to the audience, interactive and engaging but mostly it was presented in a way that made the topics really easy to relate to and understand. Well done Fox and Hare team you are certainly doing things differently.”

Book in a 15min chat 📲 if you’d like to learn more about the impact of financial wellness.

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How do I choose a good adviser?

The Fox sits down with NestEgg to answer the top FAQ’s when choosing a good adviser 👇✅

One of the last taboos in modern society is to discuss the ones and zeros in our bank accounts. As a society, we avoid having that conversation with loved ones, so why should someone discuss their situation with an adviser?

Nest Egg sat with Jessica Brady, co-founder of The Fox and The Hare, to discuss how to choose a financial adviser and the importance of long-term planning.

What is a financial adviser?

According to ASIC, an adviser is a person or authorised representative of an organisation licensed by ASIC to provide advice on some or all of these areas: investing, superannuation, retirement planning, estate planning, risk management, insurance and taxation.

What makes a good financial adviser?

“[Someone who is] able to talk to people in terms that makes sense to them. A good adviser will make sure the plan is really understood,” said Ms Brady.

What are the warning signs of a bad financial adviser?

“Someone who doesn’t feel right… Someone who hasn’t asked the right questions and someone who doesn’t explain things clearly but makes you feel intimidated, overwhelmed or confused perhaps is the worst adviser,” explained Ms Brady.

When should I engage a financial adviser? 

One in three Australians wakes up feeling stressed about their financial situation and almost half of Australians do not have very much in savings, according to Ms Brady. With this, the sooner an individual seeks out financial advisers the better, regardless of their current financial situation.

“What we know is people tend not to get financial advice until really close to retirement, and [they] have lost the beauty which is time,” said Ms Brady.

What questions should I ask?

The most important part of a financial adviser’s role is to openly and honestly communicate the long-term strategy. It is important that both the financial adviser is aware of the goals of the client and that the client completely understands the advice they are being presented.

“If you don’t understand something, you must ask questions. If something doesn’t make sense to you and is put in front of you from an advice perspective, do not sign off on that advice until you ultimately understand what it is and why it makes sense for you… There’s no silly questions when it comes to financial advice,” said Ms Brady.

How long should I keep a financial adviser?

The goal of financial advisers is to match the planning of its consumers, whether that is an investor who wants to purchase a property 12 months down the track or a 25-year-old who wants to plan for retirement. With this, a good adviser will match the time frame and present a range of options to help their client achieve a goal, according to Ms Brady.

“It depends on the goal of the client. If someone wants to buy a property in the short term or if someone has really long-term aspiration or superannuation for a younger Australian, what we do as advisers is profile the goal and work out what’s the time horizon of the goal and how much money is required,” said Ms Brady.

“We shouldn’t just do one risk profile for a person in totality because people have got lots of different goals that require different strategies to achieve them, that they should have simultaneously in my view,” said Ms Brady.

What’s your final advice? 

Ms Brady believes it is vital to make sure the client knows that they are in control and that they sign off on all deals. Clients should trust the adviser and discuss the pros and cons of how the strategy could work, but ultimately need to make the financial decision.

“At the end of the day, if something goes terribly wrong, it’s your money that is going to be impacted,”

What is ethical investing and should you consider it? 1024 723 Fox & Hare

What is ethical investing and should you consider it?

What is ethical investing?

Increasingly I’m helping clients invest in a way that aligns with their core values – ethical investing. The challenge is that nothing is clear cut – core values are inherently personal and therefore how individuals wish to ethically invest differs. What does ethical investing mean to you?

Why is it important?

Simply put, the more people who choose to support companies promoting a positive social, environmental and humanitarian change, the more pressure it puts on organisations to embrace these ethical values.

Does doing the right thing come at a cost?

There is often a preconceived notion if you invest ethically you have to forgo performance. The good news is this isn’t necessarily the case. The 2018 Responsible Investment Benchmark Report found that the responsible Australian share funds outperformed the average fund over 3,5 & 10 years. It’s a similar story for responsible international share funds. The result is predominately being driven by the next generation of the progressive investors – the more we invest in environmentally and socially progressive companies, the more revenue, profit and shareholder return!

What can you do?

Consider what’s important to you and the social and environmental impact you wish to make. Then carefully examine the companies you’re regularly investing in and determine if they coincide with your ethics. This could be anything from where you get your morning coffee, the fashion labels you regularly buy or where your employer is paying your super every month.

Then ask yourself 3 questions:

  • Where is your money actually going?
  • Are the companies you’re supporting staying true to your values?
  • Could your money be working harder for you and the greater good?

Glen hare is one half of Surry Hills based financial advice firm Fox & Hare 🦊🐰

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EOFY Wine + Wisdom

What better way to kick off the new financial year than with our favourite event series, Wine + Wisdom! 🍷🤯

Our 🦊& 🐰together with the amazing Brendan Dixon from Pure Finance, shared their tips on how to get on track with personal finances and property plans whilst Wyno provided the best drops from their beautiful wine selection.

Think you may like attend future events in this series? We’d love to have you! 👋Get in touch via: admin@foxandhare.com.au

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Freedom, Choice & Flexibility – The Trifecta

The Hare sits down with Money and Finance Magazine to discuss the desired life trifecta; Freedom, choice and flexibility.

When reflecting on the many conversations shared with both clients at Fox and Hare or the immeasurable number of friends, family and acquaintances who are always looking for advice; I’ve discovered three little words that make up the lions share of people’s aspirations: freedom, choice and flexibility. I’ve learned that the modern corporate crusader has little interest in climbing the corporate ladder just for the sake of it. And I’m now fairly (99.5%) certain that nobody is out there enduring the desk-bound drudgery of the average 9-5 just for the hell of it.

While partaking in these conversations and reflecting on them afterwards, I’ve arrived at what can only be described as quite a disturbing conclusion. Everyday millions of people are waking to the sounds of alarms, battling the daily commute and heading downtown to sacrifice their freedom, choice and flexibility in order to achieve freedom, choice and flexibility. It’s the true paradox of the modern workplace, a glitch in the matrix if you will. And I regret to inform you that these sacrifices alone will not be sufficient. If you (like my clients and acquaintances) are searching for the unicorn trifecta of freedom, choice and flexibility, you’re going to need a passive income.

I’ve heard of passive income, but what actually is it?

In short: income generated from means other than personal exhaustion! Examples include but are by no means limited to the rents from investment properties, dividends on shares or the interest from high interest savings accounts. You should think of passive income as the sherpa on the journey from wage slave to free time connoisseur. Sadly I can’t squeeze the ‘Passive Income for Dummies’ guide into an article appropriate word count but I can ask and (help answer) the four questions that I consider integral when launching the hunt for this particular prize. Let’s go. 

  1. How much is enough?

So how much passive income do you actually need? Obviously the answer varies significantly from one person to the next and ‘enough to sip Pina Colada’s in the Maldives for the rest of my life’ is not a real answer. The simplest way to approach this question is to first calculate how much you need to cover fixed costs (bills, rent, etc) every year. Set this number aside and determine (again annually) how much cash you’ll need for life’s little pleasures (eating out, clothes, etc). Finally, you’ll need to establish how much you’re looking to splash every twelve months on bigger ticket items (holidays, lifestyle purchases, etc). Looking at these three areas will give you a good picture of the figure you should be working towards. If you want to put some crude numbers around a target to work towards, investing $1,000,000 returning 6% will provide you with $60,000 of passive income a year without eating into the initial investment.

  1. What’s the most common problem when getting started?

Ironically, when we’re working toward long term gratifications, it’s the short term ones that will trip us up. For you to achieve that sense of freedom, enable choice and embrace flexibility, a degree of structure, discipline and consistency is required. In the absence of a structured game plan, it’s very difficult to achieve the goals you set yourself. It’s challenging to envisage the impact of eating out twice a week instead of once, taking food to work vs. buying it every day or purchasing a new pair of shoes every 6 months instead of monthly. But you should consider the consequences of satisfying an insignificant urge. Are all those extra dollars costing you something that is truly important?

  1. When is the perfect time to start?

NOW! but also never. Money is emotional and the relationships with it can vary wildly from person to person. What may seem logical to one may not to another and the sense of being overwhelmed when considering all the options is all too common and more than acceptable. What’s not acceptable, however, is putting off action due to laziness, option paralysis or fear. Create a strategy that aligns to your goals and be confident that implementing all of the various steps will move you forward. Add discipline, structure and adhere to a consistent method for best results. If investment strategies are just not your forte, you really can not be bothered to work it all out or just plain old CBF seek the help of a professional. Babies will be born, storms will hit and life is just not going to slow down with those curveballs. The time will never be perfect, so why not just start now?

  1. Is your super pulling its weight?

It’s a slight deviation from passive income but with longer turn goals front of mind, it’s really important that you get your super sauce bubbling away as soon as possible. Given that you’re unable to touch it until you’re sixty-seven your investments will have a long time to marinate. Every superannuation account has two key ingredients that you should never forget! Compounding interest and tax concessions. But what are they and why should you care? Compounding interest (described by Einstein as the 8th wonder of the world) is the re-investment of generated income, which in turn generates more income, to be re-invested and generate yet more income. Tax concessions are reductions in your annual tax liability. Provided by the government to help the population remain financially independent well into their twilight years they can be highly effect tools in your tax reduction arsenal. Bearing in mind that your superannuation account could be the knight in shining armour when it comes to long term freedom are you sure that you’re paying enough attention?

In order to be truly free, have the flexibility you desire and the choice to live the life you aspire, you’ll ironically need a degree of structure and discipline. Set yourself realistic, specific and measurable goals and formulate a game plan to ensure success. Above all, Take Action! An inch of movement will bring you closer to your goals than a mile of intention (Dr Steve Maraboli).

By Glen Hare

Want to start your journey to achieve the trifecta? 👐 Reach out here ↩️

Got some random letter from your Super fund about insurance cancelling? Here’s your need to know guide! 1024 683 Fox & Hare

Got some random letter from your Super fund about insurance cancelling? Here’s your need to know guide!

If you are like most people, you start a new job and forget to give them your existing Super fund info… so they set you up with their default fund. You are busy getting into your new role only to find years down the line you have a small army of Super funds. All charging you fees.

The Government has recently passed some changes to make sure your future retirement savings doesn’t get eaten away with admin fees and insurance premiums. Aptly named the “Protecting Your Super” legislation, its effective 1 July 2019 so now Australia Post is busy delivering thousands of letters from Super funds they had completely forgotten about telling them their account is inactive or that their existing insurance may expire (let’s hope they have your correct address!). Most people will throw out their letters without any care or concern because Super is future you’s problem and you have other things on your mind. Before you do though, here are the high level deets:

The Government wants to stop every man and his dog taking your Super money by way of fees and insurance. If you haven’t made a contribution for 16months, it will be classed as ‘inactive’.

If it is classed as ‘inactive’, and, you have insurance attached (this is either cover that you are given as part of being a member, or, retail insurance cover that’s paid via your Super fund) you may find it ends up being cancelled unless you notify the Super fund otherwise. You need to opt in before the 1st of July 2019 so don’t wait for a rainy day before you get to it (wouldn’t want global warming preventing you from keeping insurance you determine you need!).

All superannuation accounts will be transferred to the ATO if:

  • Your account balance is less than $6,000,
  • You have no life insurance held in the account,
  • You haven’t met a condition of release, and
  • the account has been inactive for a continuous period of 16 months

What Fox & Hare make of all this:

Look, the premise is sound. Let’s not have your future retirement savings completely decimated by fees and insurance, but, and it is a big one… there are a few reasons why you may want to keep your fund and associated insurance alive. It might be that you have a health issue that means getting new insurance is a no-go, or you have changed jobs to a role that is considered too risky or you’ve become self-employed and haven’t made any super contributions… or you have had a period out of the workforce (to have a baby, study or sit on a foreign beach sipping pina coladas) which means you may not have an income to support getting income protection. All of these may mean its sensible for you to keep a small amount in your old fund and keep that insurance alive and well.

So, what to do?

Read the letters! Understand what Super and insurance you have (get advice if it’s all too hard and you need help), determine what you would need if something happened to you and if that means you are over insured or under insured and act accordingly (remember, if you do want to keep it you need to call and follow their opt in process – noting each fund has a different process). If you find yourself in a situation where you haven’t had any contributions go into your account for over 12months you may wish to consider making a contribution, so your account isn’t classed as inactive. You may want to think about consolidating all of your accounts into one (again, do some research on which is best). And, if it’s all too much and life admin isn’t your forte, we are happy to help, reach out here!

You can find more info here.⬅️

Any information in the above article is general advice only. You should consider your circumstances or reach out 📲 if you would like to discuss your individual needs.

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The Final Taboo: What is Normal When it Comes to Money?

Whether you’re saving for a house, starting a business, or looking ahead to retirement, money is on everyone’s mind.

Hub Australia sits down with Fox and Hare to gather insight into 21st-century financial advice and how the industry has changed.

q. What is the question you get asked most from clients?

Is this normal? I think money is probably the last taboo. People have no idea whether their financial situation is similar to everyone else’s, so I get asked a lot of ‘is it normal that I’ve got this amount of credit card debt or personal loans or this amount in savings’ because people don’t talk about it. It means Fox & Hare act as a kind of secret gateway into what everyone else is doing financially

People who aren’t clients yet and are interested in what we do ask us more about ‘what is a financial adviser?’ and ‘would I need financial advice because I don’t have any money?’ We spend a lot of time demystifying what financial advice is. It can sometimes be daunting or overwhelming, but we want to make it fun and for people to know financial advice is not just for old rich people, it’s for young people so that they engage in planning and get set up for success.

q. Is part of your business model to be accessible to the millennial market?

Absolutely. That’s what’s different about us. Our client base is very different to traditional financial advice firms – our youngest client is 23, our oldest clients are nearing 50. The average age of a financial adviser in Australia is around 55 years old, and they tend to work with people in a similar demographic to themselves. We’re not the same as the financial advisers of older times, who were likely working for an agent or a bank selling insurance. They’re more into retirement planning and superannuation, and even though we help with retirement planning, we’re more interested in helping people reach their goals.

If you want to travel every year, how do we make sure you’ve got a budget to do that? How do you buy your first house? It’s a different conversation opposed to ‘how do we boost your retirement?’, which is unsexy to our demographic. There’s a misconception that financial advisers are going to make you have a budget where you don’t get to do anything fun – that’s not our belief. It’s about balancing achieving your short and medium-term goals and planning for long-term stuff as well.

q. Do you think financial advice is something everyone could utilise?

I think financial advisers have done a rubbish job by promoting financial advice as exclusively for old rich people. I really truly believe that everyone has financial goals like getting out of debt or saving, starting a business, or buying a house. Most people just need a plan, otherwise, it’s very easy to get off-course.

I think financial advice is really relevant for anyone that has goals. A lot of what we do is behavioural coaching because this concept of Ying and Yang within relationships comes out all the time with money – people’s money behaviour is innately within them.

q. What did you learn about money growing up? What did your parents teach you about money? How do you feel about money?

Some people hate money and have a really negative connotation. Some people are enamoured with the idea that ‘I’m going to be rich and it’ll solve all my problems’. We work out how we can get people aligned because otherwise people’s money behaviours really conflict, and it can create tension.

It can be really interesting around how we help people move forward better as a couple, and that’s good when we’re working with millennials because you’re working with newer couples. When you’ve been together for 50 years and you’re undoing half a century of money habits it’s a much bigger journey.

q. Why did you choose to grow your business in a co-working space?

Sydney has a new wave of small businesses, and it’s so important to know that you don’t have to forego all the wonderful things big businesses have just because you don’t have the scale. Co-working means you’re able to band together and access the same quality for less.

Book in for a 15 minute call 🤳 with 🦊 & 🐰.

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The federal election’s potential impact on property investors

Kellie Landrey Principal Buyers Agent at Scoutable, shares with the Fox and Hare crew the potential impact of the pending federal election on aspiring property investors.

With many news outlets and polls expecting Labor to win, their proposed policy changes will have a potential impact on the property market. 🏠

Negative Gearing

According to news.com.au, 1.3 million people or 10% of taxpayers use negative gearing to claim a tax break.

Negative gearing is when the interest on the loan is higher than the net rental income, meaning the investor is making a loss. The loss is claimed as a tax deduction. The net rental income is the rental income minus the expenses associated with owning the property, such as maintenance, management and depreciation.

For example, your loan interest repayments are $30,000 per annum and you have $5,000 per annum of property expenses. If your rental income is $20,000 per annum, this gives a loss of $15,000. This means you can reduce your taxable income by $15,000. For someone who is earning $100,000 per annum, their taxable income will now be $85,000 per annum. You will reduce your tax payable and save just under $6,000.

Labor is proposing to remove the right to claim these losses (negative gearing) to all established properties from 1 January 2020 (new build properties not affected). Any investment property purchased prior to 1 January 2020 will continue to be able to claim negative gearing.

Capital Gains Tax

When you sell your investment property you are required to pay tax on the profit.

Capital gains tax does not apply to your principal place of residence.

Currently, the capital gains tax rule provides a 50% discount (as long as you have owned the property for one year). For example, you purchase an investment property for $1,000,000 and sell it over one year later for $1,200,000, your profit is $200,000. Applying the 50% discount, you must add $100,000 to your taxable income in the financial year that you sold the property. Labor proposes to reduce the discount from 50% to 25%. Following the above example, you will add $150,000 to your taxable income.

Any investment made prior to 1 January 2020 will remain at the 50% discount rule.

With the possibility of a labor win, it may be a good time to consider investing before 1st January 2020.

If you would like to discuss negative gearing or capital gains tax further, book in a coffee with Fox & Hare ☕. To learn about Scoutable’s services and how they can assist with your property search, click here.

 

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Why get insurance when young and healthy?

F&H client shares their experience when lodging an insurance claim ⤵️

1. Any type of insurance is a bit of a begrudging purchase, what were your thoughts when I initially brought up the topic?

To be honest, I was a bit reluctant. At the time it seemed expensive, and I didn’t see the immediate benefit. It felt like something I didn’t need. Like you say, it’s quite a begrudging purchase, and it’s quite a boring one too. Most people would rather spend their money on something fun, like a holiday!

2. Why did you end up taking out the recommended cover?

In the end we took the view that it’s something you’re better off having in case you need it, rather than the other way round. Turned out, we were right!

3. You recently had a claim, do you mind sharing what the claim was for?

Over the Christmas holidays I was cycling with my father in law. We were heading down a hill at a pretty decent speed, and a car pulled out of a T junction on my left. He hadn’t seen me. I went straight into him and ended up with multiple breaks on my left hand side and a punctured lung.

4. Were there any unexpected costs that came up as a result of your injuries?

Mostly it was the cost of not being able to work. I required follow-up treatments and physiotherapy sessions, so there was a fairly big cost there. Then there were other costs which you initially don’t think of – travel to and from appointments, medical stuff like heat packs, ice packs, weights and equipment for rehab work. I’ve also had to take up swimming, so additional gym memberships are another.

5. Did you initially think that getting a claim paid was going to be a difficult process? How did your experience contrast or confirm this thought?

Yes, I was expecting a lot of back and forth, having to prove the extent of my injuries and that I wasn’t at  fault for the accident. It turned out to be pretty simple, the doctors filled out some forms, I submitted some payslips, and Glen did the rest! I received my benefit payment quickly, too.

6. When big things happen to people, often friends and family don’t really know what to do or say. From your experience, what tips would you give to people who want to help out in a time of need but don’t know where to start?

That’s a big question. I think everyone is different in that regard, but for me it was nice to receive messages or small gifts just to show that people cared and were thinking of you. F&H sent me a nice gift pack with chocolate and vitamin drinks! Some people sent flowers and even books to read off Amazon, which was very thoughtful. An accident like I had changes your perspective very quickly and it sparks change in your life. One of the biggest things I will be mindful of in the future is how long lasting the consequences of something like that can be on someone.

Book in a free coffee with us ☕

 

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How to book your dream holiday AND kill all of your financial goals in 2019

The Hare features in the latest edition of Urban Village to share his tips for killing your financial goals AND booking your dream holiday.

Is booking and lavishing yourself with your dream holiday the same as buying property or retiring early? Of course it is! Whether you’re looking to create your likeness in gold bullion, put the kids through private school or buy a seat on the inaugural Virgin Galactic space flight you can be certain that, in theory, the goal setting process is just as familiar as imagining, booking and enjoying your dream holiday.  

Follow these three simple steps to envision, enact and enjoy your wildest dreams! 

  1. Dream up (and write down) the ideal destination for you.   

Nobody books a holiday to a place they don’t want to go. Goal setting should be exactly the same! You wouldn’t choose a holiday destination ‘just because’ and there is no reason why your financial destination should not be the same. Dream up your ideal scenario, somewhere that you’re certain you will be happy and go for that! Whether that be home ownership, early retirement or a Mariah Carey sized closet full of Jimmy Choo’s, envisage it, own it and count down the days until you’re there enjoying it.  

  1. Break It Down Into Baby Steps 

The process of transferring our dreams and aspirations from an idea to reality is never an easy one. We don’t just wake up one day in Tokyo! Before we can even think about that steaming bowl of ramen in Shinjuku, we’re charged with working out how to actually get from our comfortable Surry Hills digs to Japan. There is annual leave to consider, the funding of the project and wrangling the schedules and needs of anybody else who might be joining us. Just like waking up in Tokyo, waking up in your own home (or Mariah sized shoe closet) is unlikely to ever happen without meticulous planning. Once you’ve envisaged the destination, break it down into manageable steps, read how other people have done it and formulate a plan that’s going to work for you.  

  1. Execute the plan with military precision

Admittedly, transit is never as enjoyable as the final destination but that doesn’t mean the journey is any less exciting. There is the monotony of counting down the days, the screaming terror of realising that the traffic on O’Riordan St might actually cause you to miss your flight this time, arduous security lines and the list goes on. For better or worse, life is extraordinarily unpredictable and things can change in a heartbeat. The only constants are you and your attitude toward getting things done. When you’ve got a clear plan to follow and you do in fact follow it, only the most heinous of circumstances can slow you down. Don’t worry about the snarling traffic, overzealous airport security and shameful people standing two abreast on the escalator. You’ve got a plan, just stick to it! You’ll touch down in no time.  

Those that have goals succeed, because they know where they are going  

Want to chat about your goals? 🙌 Book in a free coffee with us today ☕

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Can you achieve financial freedom in your 20’s?

Jess and Glen share their golden rules for creating financial freedom in your 20s with Lucinda Starr:

  1. Pay yourself first
  2. Consider your investment options
  3. Create a plan, and be prepared to adapt
  4. Find someone to hold you accountable

At Fox & Hare, we specialise in helping Millennials create an attainable savings plan, set clear goals and as a result, regain control of their money.

Read more 📝

Grab a 🆓 coffee to start your journey to financial freedom ✨☕

 

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The top 3 financial mistakes lawyers make

The Hare discusses on Lawyers Weekly, the top 3 financial mistakes lawyers make:

  1. Doing nothing – The fear of making the wrong choice is real and most often presents itself as the statement ‘I just don’t know where to start’.
  2. The more you earn, the more you spend –  Even when there are an extra four or five zeros at the end of the pay cheque there still seems to be nothing left at the end of the month.
  3. Not spending money on what’s really important – It’s really important to align an investment or cashflow strategy to a particular goal. These goals range from the mild, like buying a home, paying for private education for the kids and travelling the world to the unadulterated and wild.

Many lawyers don’t know where to start when it comes to managing their money. Some are waiting for a sign, others are looking for the perfect moment and many believe they’re too strapped for time to finesse finance as well as law. Whatever the poison, the outcome is the same.

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Who we work with 👥

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Call to celebrate inclusivity of LGBTI community

Glen speaks to Tahn Sharpe from Professional Planner about how advisers should be taking the opportunity to celebrate their inclusivity and review the way they interact with their LGBTI clients. Glen and Jess believe advice firms don’t need to be explicit in their support for the LGBTI (lesbian, gay, bisexual, transgender and intersex) community, but would be well-served by conveying an inclusive outlook.

“You don’t have to say that you want to work with LGBTI people on the homepage of your website,” Glen says, “but make sure that someone who was part of that community would know that you work with anybody, regardless of their orientation or background.”

“The way we position our business is to ensure that we’re inclusive of everybody in the community regardless of gender, sexual orientation or ethnicity,” he explains. “Financial advice is personal and people want to ensure that they’re coming through a non-judgemental environment.”

The inclusivity issue is one Glen says extends to staff and clients. He works extensively with Out for Australia – a group whose mission is to provide role models and mentors for “aspiring LGBTI professionals” ­– and wants to encourage people to feel confident in bringing their “whole selves” to work.

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Book in for a free coffee chat 👈☕

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The 3 things we want you to know about your finances

There’s so much confusion and complexity around money and finances. At Fox and Hare, we aim to make sure people have a clear game plan so they know how they’re going to achieve their financial goals.

The three things we want you to know about your finances include:

  1. It’s not scary. The worst thing you can do is do nothing.
  2. Start small. Start now. You don’t need to wait until you’ve got a million dollars
  3. It’s your money. I am a financial adviser, but I advise people. At the end of the day, you shouldn’t take what anyone else says as gospel – you need to understand why what you’re doing is going to set you up for success.

Read More.

Have a free coffee chat with us ☕

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“Best Practice Advice” What is it? and How to deliver it?

Glen features on the latest ‘Goals Based Advice’ Podcast where he discusses Fox & Hare’s preparation before opening the doors and the first year in business.

Listen here

Find out more about the Fox & Hare here 🦊🐰

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Make your money go to work

Over the last 12 months we’ve seen house prices across Sydney soften and a roller coaster ride on the share market sparked whispers of GFC round 2. What does this mean for the budding investor? Should we panic? Should we be ripping our cash from the ATMS and stuffing it into our mattresses or plugging it into time shares on the Gold Coast?

The truth is there is no steadfast answer and when considering which investment strategy is right for you (we at Fox and Hare don’t personally advocate for either of the strategies listed above) but there are 4 questions that can help point you in the right direction.

  1. What are you investing for?

It’s really important to align your investment strategy to a particular goal. These goals range from the mild like buying a home, paying for private education for the kids and travelling the world to the unadulterated and wild. This variety is truly the spice of life and I don’t think the people of Sydney will ever stop surprising me with the things they spend their money on. What they all have in common though is a goal. Something that they’re working towards and once achieved/purchased/paid for will signal their success.

“Those that have goals succeed because they know where they are going”

  1. How do you feel about risk?

Let’s begin by establishing that ALL investment strategies come with a degree of risk. Investment properties can be damaged or destroyed (recently the roof collapsed on my home in Redfern!), the stock market can crash and interest rates can fluctuate. It’s not all doom and gloom though! There are a number of ways to minimise risk and depending on whether you’re into white knuckle investment rides or something a little less taxing there are options out there for you.

My personal risk management favourite is diversification. In English ‘don’t put all your eggs in one basket!’ If you spend every last dollar on property and the market collapses, it’s high seas ahead. If you purchase a cheaper property and use the remaining cash to break into the stock market you’ve spread your risk a little thinner. Time is also of the essence and the length of time you’re exposed to an investment strategy can have implications on its output.

Nobody likes a one trick pony!

  1. What are the costs associated with investing?

There are usually unexpected and almost always unwelcome costs (who knew that a roof could be so expensive?!) when investing, and while Murphy’s law is unpredictable the ATO most certainly is not. It’s absolutely necessary that you accept you’re not only coughing for the initial investment but will be facing off with tenants, unruly stock markets, changing laws and the taxman as well. It’s imperative that we know and accept the TRUE cost of our investments over their entire lifespan.

  1. Are we in it for the long run?

Let’s face it, your money is not the only thing you’re investing. You’ve worked hard for that cash and parting with it is going to be hard. Investing can be incredibly emotional so it’s important to remain disciplined. Property is a standout example here, people are much more likely to fall in love with a property they want to live in themselves. Of course, you should love where you live but the flip side of the coin says your investments should be working relationships. Investment is all about the numbers!

Book in a free coffee chat ☕

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Overcoming Career Anxiety in the LGBTIQ community

LGBTIQ (Lesbian, Gay, Bisexual, Transgender, Intersex and Queer) students and young professionals often fear how their sexual orientation, gender identity or intersex status will impact their careers causing anxiety and uncertainty. Glen Hare the Out for Australia National Partnerships Manager, discusses the work they do in supporting those experiencing such feelings on Weekend Breakfast.

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Who we work with 🤔✔️

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Five things to consider before seeking professional property advice

Before seeing any property professional—from a buyer’s agent to a property manager— or forming your investment team, Jess and Glen encourage investors to ask themselves five questions. This will assist in getting the greatest value and ultimately maximise investors wealth-creation potential.

1. What is important to me?

2. What are my life goals?

3. Where does my money go?

4. What is my risk appetite?

5. What’s my potential adviser/agent/property manager like?

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How we can help 👍

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The best time to start investing is now

Despite the downward trend in some property markets across Australia, Glen and Jess believe that the best time to start investing is now.

“Everything is okay. We’re bombarded with stories of properties softening and the share market volatility and things like that, but I still think that the best time to start investing is now. If you’re looking at a good asset, over the longer term, it should perform well, based on history.”

“The biggest challenge that a lot of people reach out to us for is their uncertainty. They’re not sure what the best thing to do is. Sometimes, they end up doing nothing.”

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How we can help you start ↗️

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Choosing the right adviser for you

A financial adviser is an important part of the team that any successful property investor should have, but with many having ties to lending organisations, how do you choose the one that has your best interests at heart?

The Fox and the Hare feature on the latest Smart Property Investment Podcast to share their views on the current financial advice sector within Australia, unpack how the royal commission will impact the space going forward and reveal how you can choose the right financial adviser.

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Who we work with 🤝

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Challenges for the Smashed Avo Generation when pondering investing

Glen discusses a range of difficulties young professionals experience when pondering investing.

Young professionals are doing without smashed avocados and toast and saving tens of thousands of dollars in cash, but they don’t know how to invest the money.”There are so many options with what they can do with their money that they end up with choice fatigue and as a result they do nothing,” Hare says. In some cases, people are saving for a home deposit but they are more cautious about buying a house due to the recent softening of the property market.  Others are putting aside surplus income in their savings account but are not sure which investment route to take.

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