True Wealth Issue 4

true wealth JUNE 2015

Your best

RETIREMENT ESSENTIAL PLANS AND EXCITING OPPORTUNITIES

MONEY, +YOUR YOUR WILL

Ensure your loved ones are provided for after you’re gone

+HEART-HEALTHY EATING It’s easier (and tastier) than you think

WE’RE HERE TO SUPPORT YOU IN RETIREMENT. REST ASSURED.

NGS Super members dedicate their working lives to supporting our communities and looking after the wellbeing of others.

So when it comes to your retirement, it’s only fair you have someone look after your wellbeing.

When you retire and become an NGS Income Stream member, you’ll have the support you need on every level.

Our financial planners provide personal guidance and face-to-face contact to help you make informed decisions.

Our Customer Service Team is available over the phone for extended hours so you’ll receive personal help and advice over the phone when you need it.

Support is also available online with easy-to-use education tools and services, so you can build your knowledge in your own time - and on your own terms.

You can securely access your income stream information online 24 hours a day, 7 days a week.

Of course as a consistently highperforming low cost industry superfund, we’ll ensure your money keeps working hard for you once you put your feet up.

For more information visit ngssuper.com.au or call 1300 133 177.

WELCOME We understand that super is not something most people think about all the time, but like going to the dentist or optometrist, having a more organised approach to your finances is well worth it in the long run.

So what does this mean? Well, it is sometimes good to be reminded about how small sacrifices can go a long way, especially when you visualise yourself in your next phase in life when work is done and dusted. The small everyday savings, such as bringing lunch into work or one less coffee from the café on the corner, can really add up over a year – and turning those savings into voluntary contributions can mean thousands more in your super account for when you need it most.

This may sound like an onerous task, but you don’t have to do it alone. We have a range of services to support you along the way to ensure your energy in growing your super is rewarded. Your first port of call should be our website www. ngssuper.com.au where you can access NGS MoneyCoach – an area where you can learn about money and matters from the bottom up. Hop onto www.ngssuper.com.au/super/ financial-education/moneycoach to get started.

NEWS AND NOTES

A mix of tidbits, from the retirement savings gender gap to professional development opportunities.

8 WAYS TO RETIRE WELL

Here are some of the best ways to enjoy the next stage of your life.

HEART-HEALTHY EATING

A healthy lifestyle can help to reduce the risk factors of chronic disease, and, according to chef and author Teresa Cutter, a simple approach can make a big difference.

YOUR MONEY, YOUR WILL

Having your affairs in order can bring you peace of mind. Do you know the legal requirements?

LIFE’S 10 ENJOYING SIMPLE PLEASURES

With the help of some careful planning, retiree Tony Higgins has had an enjoyable transition to retirement.

12 EVERYDAY SUSTAINABILITY

These small changes around the house can lessen your impact on our precious earth.

INVESTMENT 13 SMART STRATEGIES

The difference between active and passive investing, and how NGS Super uses these strategies to benefit you.

Anthony Rodwell-Ball, CEO, NGS Super

www.truewealth.com.au

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THE TRUE WEALTH TEAM NGS Super

Sophie Horwood Marketing Manager

Published by Hardie Grant Media

Publisher Alison Crocker

Art Director Dan Morley

Illustrations Kev Gahan

Lisa Samuels Manager, Marketing and Strategy

Nicole Slarke Marketing Coordinator

General Manager Clare Brundle

Managing Editor Sophie Hull

Designer Hayley Clark

Cover image Getty Images

Print Offset Alpine Printing

The information in True Wealth is general information only—it does not take into account your objectives, financial situation or needs. Please assess your own financial situation, read the Member Guide (PDS) for any product you may be thinking of acquiring and consider seeking professional advice before acting on this information. Past performance is not a reliable indicator of future performance.

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+ INSPIRATIONAL READS Humans are social beings and are made for relationships, but as we get older, connecting with others can become more challenging and many of us find ourselves dealing with loneliness. Four Ways to Click (Allen & Unwin, $29.99) is a fascinating look at the science behind human connection. Dr. Amy Banks and Leigh Ann Hirschman discuss the four neural pathways to healthy relationships: calmness, acceptance, emotional resonance and energy.

The education super gap For women in the education and community sectors, the gender super gap is now at 22 per cent, with women retiring with a fifth less in savings than their male colleagues.

For advice on how to increase your super contributions, read the True Wealth article ‘Women and Super’ at www.truewealth.com.au/wealth/women-and-super or call an NGS Super financial planner on 1300 133 177.

NEWS

NGS Super has a range of free and informative seminars around the country. Topics include transitioning to retirement, Centrelink and retirement, and retirement planning.

At these seminars you can gain an insight into how you are progressing towards your retirement, what your next steps are and how you can make your retirement savings work a bit harder for you.

Family and friends are welcome. To view the seminar schedule visit www.ngssuper.com.au/ super-members/ free-seminars.

+ THE LEADERSHIP CHALLENGE

A big congratulations to Adam Alsbury, who has been chosen as the 2015 CUFA Challenger. The CUFA Challenge is proudly supported by NGS Super and provides one lucky member working in the mutual sector with the chance to challenge themselves while helping a less-advantaged community.

In 2015, Adam will be travelling to Fiji to undertake physical challenges, emotional and cultural hurdles as well as developing an entrepreneur program. The Challenge will be open for entries again in early 2016.

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What are your education dreams?

The Dedicated to the Dedicated Awards (previously known as the Scholarship Awards) aim to give back to the education sector by nurturing talent and providing opportunities for NGS Super members. If you work in education, you can apply to win one of six $5,000 scholarships allowing you to complete a study tour, professional development course or a project of your choice that has the capacity to benefit and contribute to the education sector at large.

Applications close on July 19, 2015, so don’t miss out! Visit www.ngssuper.com. au/super-members/connectwith-us for more information.

NEWS & NOTES

+ A NEW INVESTMENT OPTION

40,000

number of The predicted will be aged Australians that , according over 100 in 2055 ent’s 2015 to the governm l Report.

Intergenerationa an 300 times This is more th Australian the number of 1975. centenarians in

Ditch the diet drinks Diet soft drinks can railroad your attempts to lose weight, according to recent research. The University of Texas Health Science Centre at San Antonio found that the waists of diet soft drink consumers grew about three times as much as those of non-consumers in the study. The study included 749 people aged over 65, and waist circumference increases were about 2cm for non‑consumers, 4.6cm for occasional consumers and 8cm for daily consumers over the total 9.4-year follow-up period.

Australia has joined a select number of countries (including Switzerland and Japan) where women and men have a life expectancy of over 80 years, according to the World Health Organisation.

While living longer is great news, it also means the risk of running out of money in retirement is a real danger.

“Longevity is the second greatest threat to retirement adequacy after inflation,” says NGS Super CEO Anthony Rodwell-Ball.

“We need greater certainty of capital and income in retirement as well as low volatility, defined as unexpected market movements.”

NGS Super has responded to this

by designing the Income Generator product. This retirement income stream product offers a regular cash yield while investing in selected growth assets that provide the best chance of preserving capital and growing it incrementally over time. Investments are in high dividend‑yielding shares where growth characteristics are secondary but still important, underpinned by high-yielding property assets. It also has share market volatility management to ease risk in negative markets. The option has recently exhibited low volatility. For more information, visit www.ngssuper.com.au.

Financial planning m ade easy

Images: iStock; Thinkstock

Financial planning can be hard to fit into a busy schedule, even though we know it can make a big difference to our savings. That’s why NGS Super has introduced online financial planning appointments, allowing you to talk to a planner in the comfort of your own home. To learn more about NGS financial planning or to make an appointment, visit www.ngssuper.com.au/advice/financial-planning.

Train your brain online We all worry about the negative effects ageing can have on our cognitive abilities, memory, visual processing and mobility. However, the Advanced Cognitive Training for Independent and Vital

Elderly study, published in the Journal of the American Geriatrics Society, found that certain types of brain training can drive cognitive benefits that last 10 years. One of the exercises from the study that

showed these long-lasting benefits was from BrainHQ, an online brain fitness system.

Some BrainHQ tools are free, while the full access to the program costs $14 per month. www.brainhq.com TRUE WEALTH

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RETIREMENT

8 ways to

RETIRE WELL For some people, the idea of retirement is more daunting than exciting. What will you do with all of that free time? Here are some of the best ways to enjoy the next stage of your life. By Angela Tufvesson

1. Keep your body active

Age-related changes to your body like wrinkles and grey hair are inevitable, but new research suggests that many physical changes associated with ageing are due to inactivity. Keeping active can help to delay the rate of bone loss, can help to strengthen muscles and can reduce the risk of falls.

And it doesn’t need to be a rigorous regime either. Retiree Nev Hamlin took up bowls when he moved into Wheller on the Park, a Queensland retirement village, four years ago.

“I’ve been here for four years and I’m enjoying the game immensely,” he says. “I play four times a week now.”

2. Keep your m ind active

Just because the brain gets smaller and lighter with age doesn’t necessarily mean that it functions less effectively. Stanford University researchers found that memory loss can be improved by 30 to 50 per cent, simply by doing mental exercises. Learning something new, like a language or instrument, reading newspapers and books or doing puzzles and crosswords, are all great ways to exercise your mind.

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3. Stay involved on a sm aller scale

If you’re worried about all that spare time that used to be taken up with full-time work, retiree Nev suggests finding a way to still be involved and active in your field.

“I still have an interest in a little sheet-metal business and I go in once or twice a week for a couple of hours and do a bit of truck driving just to keep myself involved,” he says. “I don’t like the idea of just stopping and not doing any work.”

You could also mentor workers in your field, either through a former employer or an organisation like the National Mentoring Association of Australia. If you are interested in teaching others what you know best or learning new skills, the University of the Third Age facilitates lifelong learning and provides a variety of courses.

4. Don’t spend all your savings at once

It might sound obvious, but it’s important to manage your superannuation and assets to ensure you’ll have enough money to fund your entire retirement—not just the first 10 years. “Many people have never had access to that sort of money and it’s like winning the lottery—so [be careful that you] don’t spend your super all at once,” says Ian Day, CEO of The Council on the Ageing (COTA) NSW.

SOCIAL RESPONSIBILITY

5. Try before you buy a sea or tree change

If you’re thinking about a sea or tree change to your favourite holiday spot, Ian Day suggests renting for 12 months before buying a property in the new area.

“The difficulty is you’ve probably been going to that place for two weeks every year, not 52 weeks,” he says. “Rent your house out for 12 months and rent in the place you’re thinking of moving to, then make the decision. You can lose hundreds of thousands of dollars in stamp duty and by missing the [home price] growth in the city if you make a wrong decision.”

Images: Corbis; iStock

6. Becom e a volun teer

Have you considered joining the six million Australians who volunteer? Volunteering helps others, and donating your time to a worthy cause will also benefit you. It can improve mental health, increase life satisfaction, boost your ability to cope with illness and help you create new social connections. “People tend to volunteer when they’re between 65 and 75, and you still get some people after that age,” says Ian. “It’s a great period of time to set up new social networks with other retirees. Establishing these networks early in retirement is important as there may be less opportunity to create networks later on.”

7. P lan your retirem en t lifestyle

People who plan how they are going to spend their time during retirement tend to be happier than those with no plans. If you’re in a relationship, discussing the type of lifestyle you want to lead with your partner is important. Keep in mind that they may have different plans to you, so be ready to compromise. It might take some time to adjust to the extra time you’re spending together and you may find that you each enjoy different activities and hobbies. Just be sure that you accommodate each other’s needs and expectations.

8. Apply for a Seniors Card

One of the best things about turning 60 is that you can apply for a Seniors Card. Each state has a Seniors Card scheme that enables you to receive wide range of discounts on many of goods and services, like haircuts, museum visits and movie tickets as well as public transport concessions.

You may also be eligible for the federal government Seniors Health Card, which provides access to cheaper prescription medicines and medical services.

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LIFESTYLE

Heart-healthy EATING

A healthy lifestyle can help to reduce the risk factors of chronic disease, and, according to Teresa Cutter, a simple approach can make a big difference. By Sophie Hull

T

disease—Australian facts (2014) paints environment, but her aunt and uncle a disturbing picture of the risk provided a great example of factors involved in hearthealthy eating and being related conditions and active. Inspired, she WHAT’S other chronic diseases. turned her wellbeing YOUR RISK? It shows that 95 per around by focusing on cent of adults did a healthy lifestyle.

Ask your doctor for a not consume the Being mindful heart-health check, also known as an absolute recommended amounts of fitness and food, cardiovascular disease risk of fruit and vegetables like Teresa, is not assessment, especially if in their diets, 56 per cent only beneficial for you are over 45. were insufficiently active, our general health, 20 per cent exceeded but can also help to lifetime alcohol guidelines and reduce cardiovascular 16 per cent smoked daily. disease. According to The Heart The good news is, simple lifestyle Foundation, almost 18,000 Australians changes can be a massive help in die of a heart attack or a stroke every avoiding heart attacks and strokes. You year. And the report Cardiovascular have control over the lifestyle decisions disease, diabetes and chronic kidney you make, which can affect your heart health. Aside from not smoking, limiting alcohol and exercising regularly, healthy eating is one of the major ways you can help to prevent heart disease.

Teresa Cutter is constantly in touch with people who find transitioning to healthy eating overwhelming, but she says it doesn’t have to be.

“Nutrition isn’t as complicated as it is often made out to be. There are two things people all around the world can do to improve their overall health: eat more fresh fruit and vegetables and start ce ri d ie fr cooking meals at home. Food is the most uliflowe r Te resa’s ca e ric, gin ge r an d powerful preventative medicine we have with tu rma s te d alm on d s. to treat chronic disease, and what we eat ta m ari-ro Te resa’s s t forms the foundations to our health.” with gin g e a m e d wh ite f ish e r an d t Teresa advises the first step to u rm e ric.

GET COOKING achieving greater health and wellbeing For these delicious recipes, is to ditch the processed stuff and stick visit www.truewealth.com.au/lifestyle/hearthealthyrecipes. to whole foods.

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Images: courtesy of The Healthy Chef

eresa Cutter took control of her health aged nine years old, and she has never looked back.

The chef, author and founder of The Healthy Chef (pictured right) credits her healthy choices to comparisons she made as a child between her parents’ lifestyle and that of her aunt and uncle.

“At home, we always had second helpings as well as lots of takeaway and fried food. My Polish aunt and uncle, on the other hand, were very proactive [about healthy eating]. They had their own veggie garden and used to cook everything from scratch,” she says.

She noticed that her immune system and fitness suffered from her home

RETIREMENT

Kn ow your fat facts “My aunty and uncle had it right— they used to eat simply, but the quality and nutrition was there. They ate stuff like freshly made scrambled eggs served with vegetable sides or a milkshake made with strawberries for breakfast.

Dinner was as simple as fresh garden vegetables drizzled with olive oil and served with grilled fish. Don’t complicate it—keep it simple and make it yourself.”

As Teresa constantly proves with her delicious recipes, healthy does not mean tasteless.

“I normally cook without adding too much salt to my food and the flavour comes from fresh vegetables, fruits, spices, vinegars or herbs as well as the cooking process I use. For instance, a dressing made from olive oil and tart raspberries is all you need to enhance the flavour of a simple garden salad or to drizzle over grilled chicken and roasted walnuts.”

Not all fats are equal and it’s important to know the good from the bad. The Heart Foundation National CEO Mary Barry says, “despite worldwide debate, there is international scientific consensus that replacing foods high in saturated fat with foods high in ‘good’ unsaturated fats, in particular polyunsaturated fat, reduces your risk of heart disease.”

Saturated fats and trans fats are the ones to avoid.

Saturated fats are found in full-fat dairy products, pastry, processed meats, coconut oil and palm oil. Trans fats are found in deep-fried food and packaged cakes and biscuits.

For a heart-healthy diet, and to lower blood pressure and cholesterol, The Heart Foundation recommends that you: Use spreads and margarines made from canola, sunflower or olive oil instead of butter.

Use canola, sunflower, soybean, olive, sesame and peanut oils for cooking.

Try to limit processed meats like sausages, deli meats like salami and fatty organs such as liver, kidneys and pâté.

Eat 2-3 serves of oily fish each week, such as tuna, salmon, sardines and blue mackerel for omega-3 fats. Fish oil capsules can supplement your omega-3 intake.

Eat healthy monounsaturated fats, found in foods such as avocados, almonds, cashews, walnuts, tahini and linseeds.

Choose lean meat, poultry and fish.

Include fresh fruit and vegetables in your daily diet.

For more information, visit www.heartfoundation.org.au.

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Your m oney, YOUR WILL E

state planning has two main goals: to ensure your loved ones will be cared for and to reduce the risk of a dispute over the assets you leave behind. Preferably, you would like to minimise the tax paid by everyone involved as well.

NGS Super financial planner Vince Zappia recommends discussing your estate plans with friends and family to help ensure the process runs smoothly. “Estate plans do not always result in people being treated equally—it’s very important that family members know and understand what plans are in place [to avoid conflict later],” he says.

Documents involved in this planning include a will, testamentary trust, power of attorney and power of guardianship, as well as your superannuation policy.

Wills

A will contains your directions regarding how your goods or assets will be divided when you pass. While you can 8 + TRUE WEALTH

technically draw up your own will, it’s worth consulting legal and financial professionals for advice. If your will is deemed to be unclear and ambiguous or invalid because certain legal requirements have not been met, it could result in a costly legal battle to determine who is entitled to what.

Australians who do not have a will when they pass away risk having their assets distributed to relatives using a government formula. If you have no immediate relatives, your property could be handed over to the government. In this case, your money and property may not be distributed in the way that you want.

Before drawing up your will, think about who depends on you for financial support and ensure you make provision for them. You may want to include your partner, children, pets and other dependants, your other nearest and dearest, and you may wish to include charities as well. Remember to update your will when major life changes occur, such as marriage, divorce or the birth of a child.

Image: Getty

It’s not really something we like to think about, but having your affairs in order can bring you peace of mind and leave you free to enjoy life. By Rebecca Douglas

WEALTH

IT’S VERY IMPORTANT THAT FAMILY MEMBERS KNOW AND UNDERSTAND WHAT PLANS ARE IN PLACE [TO AVOID CONFLICT LATER]. assets once a certain date or milestone (such as marriage or graduation) is reached.

Power of attorney

A power of attorney is a document arranging for someone to manage your financial affairs. An enduring power of attorney is activated if you lose the mental capacity to make decisions for yourself. Your chosen person or people could be a solicitor, trustee organisation, family member or friend.

They cannot make decisions about your medical treatment, accommodation or other needs, and their powers cease when you die.

DID YOU KNOW? According to ASIC, about half of all Australians don’t have a valid will. Are you one of them?

Also consider who you trust to administer your estate in accordance with your wishes and appoint them as your executor. This might be a family member or friend, or it could be someone independent, such as a solicitor or a public trustee.

Trusts

For people who have a considerable collection of assets, it’s worth looking into setting up a trust. A testamentary trust comes into effect upon your death, based on instructions in your will. Beneficiaries have money in the trust held for their benefit, but the trustee holds the purse strings and has control over their access to it. This might be because the beneficiary is a minor or someone with a disability, or you simply aren’t confident they will use the money wisely.

The trustee is usually specified in your will and could be an individual you can rely on or a trustee organisation.

The beneficiary becomes entitled to full access to the

Guardianship

As with an enduring power of attorney, an enduring guardianship comes into effect if you lose mental capacity.

They can make decisions for you relating to your health and lifestyle, including accommodation. They can’t, however, consent to medical treatment on your behalf if you are refusing it. The person or people you choose should be someone you trust to act in accordance with your values and best interests.

Superannuation

Your superannuation fund can pay your death benefit as either a lump sum or in installments as a pension. You can choose to have it paid to your estate or directly to someone you’ve nominated (a beneficiary).

You can nominate a beneficiary for the lump sum payment of your death benefit by filling out a form with your superannuation fund. Alternatively, a reversionary pension can be paid to one of your dependants where you have nominated a recipient at the start of your pension. Keep in mind there can be tax consequences to choosing these different options. An NGS Super financial planner can help you to determine what’s best in your situation.

Your death benefit might also include an anti-detriment payment, where it is paid as a lump sum. This is essentially a refund on the tax contributions you’ve paid on your super over the years. Super funds are not required by law to pay anti-detriment payments, but some, including NGS Super, do so voluntarily as a service to their members.

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ENJOYING LIFE’S After years of losing yourself amongst the daily grind, retirement can restore your sense of self. We get the lowdown from retiree Tony Higgins.

By Kristy Barratt

RETIREMENT

Photography: Christopher Ireland

H

ave you ever woken up on a holiday and had no idea what day it was? Losing time is a blissful experience and something that many of us wish we could experience more frequently. For recent retiree 66-year‑old Tony Higgins, it’s an ongoing pleasure he gets to experience daily.

“I wake up every morning and often don’t know what day it is,” he laughs.

“And the best part is, not knowing doesn’t matter!”

Tony worked as a careers adviser and business studies teacher at Knox Grammar School in Sydney for 28 years, and is all too familiar with the pressures of a fast-paced life. It’s one of the reasons he and wife Donna decided to retire in Pearl Beach on the NSW Central Coast.

“It’s a tiny, National Trust village with a quiet beach and nothing too commercial,” says Tony. “It’s like living on the other side of the world— it’s beautiful.”

Tony and Donna made the sea change from bustling Sydney, where they lived in St Ives, to laidback Pearl Beach in April 2014. The couple have three children: Tim, Erin and Scott.

Donna, a former preschool director, retired in 2013 and spent much of her first year in retirement looking for their dream home: an old beach house the couple are currently restoring to bring it back to its former glory. Tony retired three months after they made the move.

“Donna and I have had our superannuation with NGS for 15 years,” says Tony. They planned their retirement as a couple, and it wasn’t a quick decision, either. “We started to plan for retirement six years ago with a lot of help from Darryn Studdert, a financial planner at NGS.” Tony and Donna met with Darryn twice a year for five years in the leadup to their retirement. He advised the couple on setting realistic goals, shared ideas on how to top up their super, and helped them maximise the funds they had available upon retirement.

“Darryn was very proactive and showed us how we could do things better,” says Tony. “Whenever I had a

query, no matter how ridiculous it was, he always got back to me very quickly.

He helped us work out what income we could live on in retirement. Donna and I then spent the last 12 months before I retired living on that income.”

When it comes to planning for retirement, Tony and Donna are the textbook example of how to do things right. Tony worked part-time for the last 12 months of his career in order to transition smoothly into retirement, and the couple follow a detailed monthly budget to track their expenditure.

“If something’s creeping up, we can cut back,” says Tony. “We’re spending lots of money renovating our house, so we have to keep track of it.”

Besides renovating their home, these days the couple spend their time fishing, swimming and keeping active at the gym. Eager to make new friends in Pearl Beach, Donna joined local craft and yoga groups, while Tony joined the local progress association to get involved in community activities, such as bush regeneration and fundraising events.

“It’s wonderful having lots of time to do what we like,” says Tony. “I’ve always wanted to buy a boat, so when I retired I got my powerboat licence. We plan on buying one in winter.”

In Tony’s eyes, the opportunities in retirement are endless. Whether it’s taking a walk along the beach or a short course on gardening, it’s those simple, precious moments in life you can rediscover and treasure.

Retirem en t plan essen tials Consider a transition to retirement (TTR) pension, where you earn less salary so you can access a regular income stream from your NGS Super account. You’re eligible if you’re aged between 55 and 64.

Use the 60 second projection calculator at www.ngssuper. com.au/projection or use the retirement money planner at www.moneysmart.gov.au/toolsand-resources to find out how much money you will need to retire with to meet your living costs. According to research by the Association of Superannuation Funds of Australia (ASFA), a single retiree needs $450.09 per week ($23,469 per year) to live a modest lifestyle. A couple needs $647.57 per week ($33,766 per year).

The ASFA Retirement Standard (December 2014) defines a ‘modest lifestyle’ as better than the age pension but still only able to afford fairly basic activities.

Develop or decide on fulfilling activities to replace your former work routine in your post retirement years. You could start a new hobby such as painting, learn something new through community college, or find fun ways to keep physically active and social, like joining a walking group.

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SOCIAL RESPONSIBILITY

Everyday SUSTAINABILITY

The state of our environment is a widespread concern, with increasing evidence showing that climate change is, and will continue to be, something that affects us all.

With such a complex issue, it’s hard to believe we can make a difference. But Australia’s greenhouse emissions are higher than any other developed country per capita, so it’s time we each do what we can to turn that around.

You’ve got the power

The Australian Government’s Your Energy Savings website reports: “Most households could reduce the amount of energy they use for lighting by 50 per cent or more by making smarter lighting choices.”

Lighting accounts for a good chunk of your household energy usage, so this reduction could also mean great savings on your bill. Start by replacing any older light bulbs (such as halogen and incandescent) with those called CFLs, LEDs and fluorescent lights, and make the most of natural light. You might have to fork out for new light bulbs, but in areas where lights are used a lot, savings from reduced electricity bills will cover the initial purchase within a few months.

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You can also save energy by unplugging any appliances or other electrical items (like phone chargers) when you aren’t using them.

Ram p up recycling

Most Australians are already on the recycling bandwagon, since we have the systems in place to make it easy for us.

However, we can do more than dividing up our household waste.

Electronic waste is just as important to recycle, including computers, mobile phones, TVs and other appliances.

Electronic waste is responsible for 70 per cent of the toxic chemicals found in landfill, even though most types of e-waste contain many valuable resources that can be reused.

Find your closest e-waste recycling point at www.cleanup.org.au or contact your local council.

One drop at a tim e

In our beautiful but drought-prone country, we need to be very aware of our water usage. The easiest way to save water in the home is to have shorter showers. Every minute less in the shower counts. Consider installing a water-saving showerhead with the highest rating of three stars by

the Water Efficiency Labelling and Standards (WELS) scheme.

Michael Smit, Executive Director at the Rainwater Harvesting Association of Australia, says leaks are a major cause of water wastage. “About one in 50 houses have a leak that results in more than 70,000 litres of water [wasted] per year. Check your water meter for leaks.”

You can find out how to do this at www.savewater.com.au/videos/tutorials.

Rethin k transport

Do you need to use your car as much as you do? Consider if there are any trips where you can hop on a bike, walk or use public transport instead. The active options are not only good for the environment, but also for your health. If you have to drive, try carpooling or a car-share scheme.

Shop sm art

We all love a bargain, but are the cheap clothes and two-dollar shop household items worth it? When you are not sure if you need something, ask the following: + Where is the product from (and how high is its carbon footprint)? + How much packaging does it use? + Is it good quality and likely to last? + If it’s an appliance, what is the energy rating?

Sources: Sustainable Australia Report 2013; Energy Australia; yourenergysavings.gov.au; Energy Rating; Clean Up Australia. Words: Sophie Hull. Image: iStock

If we all make small changes to our everyday lives, we can lessen our impact on the environment, and together make a difference.

WEALTH

SMART

investm en t strategies What’s the difference between active and passive investing?

And how does NGS Super use these strategies to benefit you?

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PASSIVE INVESTING

ACTIVE INVESTING

Passive investing relies on market movements for returns with the aim to achieve an investment return that matches the performance of a particular index. An example is the S&P/ASX 300 accumulation index (which is made up of the Australian share market’s 300 largest companies by market capitalisation).

Passive investing can also be applied to bonds. These types of investments are managed within their specified index on the basis of their weighting within that index. This means a passive manager is not making the same sorts of decisions about timing or selection of companies as an active manager. Instead, they use an index as a guide to which companies should be held and at what weight. Passive managers tend to charge lower fees than active managers, as the level and complexity of decision-making is lower and trading is kept to a minimum.

Active investing requires a high level of investment expertise.

Unlike passive investors, who invest in a portfolio of companies represented in an index, active investors invest in and make judgements about individual companies. They act on those judgements by buying or selling shares in those companies, and also by buying and selling other securities across a range of asset classes (such as bonds). Active investing relies on the belief that it is possible to manage a portfolio in a way that the returns outperform the market (as measured by an index) over time. This means active managers consistently seek investment opportunities that will provide superior returns over the long term. Active management is more expensive than passive investing because of the additional degree of expertise involved in selecting stocks and the increased costs of trading securities.

WHICH STRATEGY WORKS BEST?

NGS Super’s investment team is always looking to make your super work hard for you to maximise long-term investment returns on a risk-adjusted basis. They use both passive and active investment strategies. NGS Super’s investment team believes that a blend of these two strategies delivers the best risk-adjusted returns for members: a substantial part of the portfolio invested in passive investment strategies, complemented by active managers with demonstrated stock-picking skills. This blend of strategies reduces the market risk of the total portfolio and also keeps investment management fees in check.

Wan t m ore in form ation?

For more information about NGS Super’s investment options, including investment performance, unit prices and asset allocations, visit www.ngssuper.com.au/investments.

IT’S ABOUT BEING WEALTHY AND + WISE That’s why we’re dedicated to educating and empowering our members.

To help you enjoy true wealth — in every sense of the word, we have developed a website at www.truewealth.com.au which is packed with great articles just for you.

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