Insurance and income protection for the self-employed

How to protect yourself if you're self-employed

There are over two million self-employed Australians in the workforce today. There's no doubt that running your own business can be rewarding, but without the safety nets and security offered by larger corporations, it's important to consider financial protection as part of essential business planning.

accident protectionWhen small business owners consider their insurance needs, they immediately think about protecting physical assets such as cars, equipment and buildings. However, they often miss the most important asset in their business – themselves and their key people.

People are the most important asset in any business. If you're a person down due to death, illness or disability, it can have significant impact and may lead to a drop in revenue, loss of clients and possibly even the bank calling in any debts or liabilities.

What are the benefits of income protection?
As a self-employed worker, you are not entitled to workers' compensation. This scheme only provides for illness or injury that may arise out of employment, and by law the self-employed do not meet this definition. Income protection will generally cover up to 75% of your monthly income, in the event that you are temporarily unable to work due to illness or injury. It is paid out as a monthly benefit, which can be used to cover ongoing personal and business financial obligations. Premiums are tax deductible and you can also choose to fund these through your superannuation. Read more…

2019 NRL Footy Tipping comp

Your chance to be part of the fun of this year's FREE Collins Hume NRL Footy Tipping competition

Prizes this year are in the form of donations on your behalf to a worthy cause.

footy tipping competitionFor every person that registers for the Collins Hume tipping comp we will provide underprivileged children access to a sports development program for 3 months.

The program will help these children grow into healthy and physically fit individual, and at the same time stimulate their educational development. Read more…

Consolidate your debts

If December was the time to be Merry, is the New Year the time to be sorry?

How great was Christmas and all the school and summer holidays? The lucky ones among us have had a couple of weeks off to spend with family and friends and had a great time.

debtNow that we're well into 2019 and so the hangover begins as the credit card bills come in.

What can you do?
Pay close to 20% interest and tough it out, hoping to be able to pay the card down as soon as you can, or pay the minimum each month and on it goes on, and on, and on… the important thing now is to not bury your head in the sand or to be embarrassed to find a solution.

The alternative is to try to consolidate your debts – home loan, car loan, personal loan, credit cards, as much as possible all into one loan at the cheapest rate that you can access. Just as important when you are doing this is to set yourself a budget that you will stick to so January 2020 doesn't cause as much pain as the current one.

If you want to spend the average of $3,800 (apparently that is what we all spend on average at Christmas on food, drinks, and gifts) the answer is to start now – pay $300 a month extra off your home loan – you can afford it now that you have consolidated your loans – so by the end of the year you have a kitty of $3,600 ready and waiting for you. Yes, the discipline is hard to start with, but it gets easier as the months pass.

Read more…

2019 Australian Small Business Champions

Collins Hume finalists announced
All manner of small businesses across the country, from professionals to retailers to service providers, are contenders as 2019 Australian Small Business Champions.

Australian Small Business Champions 2019Now in its 20th year, Precedent Productions this week announced the finalists in the 2019 Australian Small Business Champion Awards saying it has become the most prestigious and comprehensive program that recognises small businesses throughout the nation.

"The Australian Small Business Champion Awards is the pinnacle of business success," awards founder Steve Loe said. "We recognise the values associated with successful small businesses. These values include service, commitment, leadership, endurance, courage, innovation, performance, persuasion and generosity."

Offering a unique opportunity to highlight Australia's most outstanding small businesses, the awards seek to recognise the hard work that business owners contribute to the local community in generating employment for millions of Australians, as well as their contribution to the Australian economy.

Small Business Entrepreneur Finalist, Peter Fowler, said this was especially evident in both submissions put forward by Collins Hume, also an Accounting Services category finalist.

Read more…

Financial Life Plans

Financial Life Planning instead of retirement planning
On average, we are living longer and that's creating a set of new financial challenges for individuals and couples who need to accumulate sufficient wealth throughout their lives to generate adequate income to ensure a quality lifestyle in later years.

Research by the Stanford Center in the US focused on Gen Xers born between 1961 and 1981 and concluded that having a financial life plan rather than just a retirement plan is more important than ever.

It may be worth making mid-life adjustments to give this generation the best chance of not just living long, but living well, the report notes, and that may mean looking beyond superannuation for sources of income.

Income for life
Savings outside of super – money in the bank or a term deposit, a share portfolio or property investments – is the term now coined as 'income for life'. However with more of us holding multiple jobs or contracting in the gig economy, super contributions could be overlooked. 

Read more…