True Wealth Issue 5

true wealth SEPTEMBER 2015

Beat the SQUEEZE BOOST YOUR SAVINGS: HOW TO SHOP SMART

GET +KIDS GROWING

School gardens teaching healthy eating

+FINANCIAL CONTROL

The domestic abuse you didn’t know existed

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.

Issued by NGS Super Pty Limited ABN 46 003 491 487 AFSL No 233 154 the Trustee of NGS Super ABN 73 549 180 515.

From wellbeing and lifestyle to wealth and retirement, our articles cover a wide range of topics to help you build your wealth of knowledge and get the most out of life.

2438 (0715)

We understand the importance of living a rich life. Rich in knowledge and rich in moments.

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 to 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 www.ngssuper.com.au for fact sheets, calculators and resources. Also visit NGS MoneyCoach at www.ngssuper.com.au/super/financial-education/moneycoach for simple interactive modules on money‑related matters.

NEWS AND NOTES

An assortment of interesting info, from motivational fitness apps to exploring your super options in new ways.

KIDS GET GROWING

With the help of a thriving garden program, Australian kids are getting down to earth at school.

QUIET CONTROL

The insidious financial abuse we don’t hear about.

TURNING THE TIDE

This year’s CUFA challenger shares the lifelong memories created on a volunteering trip to Fiji.

INSURANCE 10 MAKING CLAIMS How would you pay the bills if you got ill and weren’t able to work?

A financial safety net can help you be prepared for whatever the future holds.

DOLLAR 12 EVERY COUNTS

Simple and surprisingly effective steps to help you hold on to more of your hard-earned money.

13 INVESTMENT PERFORMANCE UPDATE

NGS Super’s investment results for the past financial year, the factors that influence your returns and the market outlook.

Anthony Rodwell-Ball, CEO, NGS Super

www.truewealth.com.au

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THE TRUE WEALTH TEAM NGS Super Sophie Horwood Marketing and Communications Manager

Nicole Slarke Communications Officer

General Manager Amy Copley

Managing Editor Sophie Hull

Designer Hayley Richards

Cover image Getty Images

Published by Hardie Grant Media

Publisher Alison Crocker

Art Director Dan Morley

Illustrations Kev Gahan

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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+ EXPLORE YOUR SUPER OPTIONS

Chop food waste Australians throw out four million tonnes of food every year.

That’s $8-10 billion of food that ends up in landfill, according to food rescue organisation OzHarvest. This has ethical, economical and environment implications. To reduce your food footprint, try these tips from global initiative Think.Eat.Save. + When you get home from the supermarket, freeze or chill what you need to straight away. + Cook only what you need. If you have leftovers, eat them before cooking again. If you can’t finish your food at a restaurant, don’t be shy about asking for the rest to take home. + Use shopping lists and plan your meals ahead. Avoid impulse buys of food because of cravings or sales. + Many foods can be safely consumed after best-before dates.

The important date is ‘use by’—eat food by that date or freeze it.

NEWS + MEMBER ONLINE ENHANCEMENTS As part of NGS Super’s commitment to continuous improvement, two new website enhancements are now available to income stream members. Visit www.ngssuper.com.au/login then ‘Member login’ to access your secure account to: + Request a Centrelink schedule in the mail—you can do this by clicking on the ‘Your pension value’ tab at the top. Please note you’ll need to submit a separate request for each account. + Change your income stream payment amount and frequency online—you can do this by clicking on the ‘Your pension value’ tab at the top, then on the ‘Withdrawals’ tab, then on ‘Your withdrawal details’, and at the bottom of that page, click ‘Update your withdrawal details’.

For more information on these new functions, call NGS Super on 1300 133 177.

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NGS Super has developed a self-driven online advice tool, NGS SuperMap, designed to help you make decisions about your super. You can explore what your super can achieve based on different contributions and investment options and receive a Limited Statement of Advice (recommendations) to boot. It only takes about 30 minutes and can be done in the comfort of your own home. To get started, visit www.ngssuper.com.au/super/financial-education/supermap.

Inspirational reads In The Blue Ducks’ Real Food (Pan Macmillan, $39.99), the chefs behind popular Sydney café Three Blue Ducks share their tenets of sustainability and wholefoods without the preachy vibe delivered by some similar cookbooks. Recipes include straightforward salads through to more timeintensive undertakings, such as sauerkraut and yoghurt.

NEWS & NOTES

Favourite apps to boost fitness

Despite exercise being vital to your health and happiness, it can still be hard to make time for it in your day. These apps can help get you into good habits. All three are free and available for both iPhone and Android.

Pact Need to be accountable to keep motivated?

With Pact, commit to an exercise or healthy eating goal and if you achieve your goal, you’ll get a small cash reward.

If don’t, you have to pay up.

You prove your progress with photos or through synced fitness apps, which keeps the community honest.

Zombies, Run! This app is a longlasting favourite for making exercise more interesting. It makes you the hero of a story where you are running on a mission to help a community plagued by zombies. You’ll look forward to taking part in the next chapter, even if running isn’t your favourite activity.

Fit Radio Tired of your usual workout music? Fit Radio has playlists for a wide variety of genres, including pop, hip hop, country and rock.

There are even mixes for certain activities like Zumba, or those with a targeted beats per minute, so you can have a consistently paced workout.

Images: iStock

What does your role involve?

In a nutshell, it’s to make members feel confident about their super and their financial future, and to bring new clients aboard. That can include getting out and meeting members and employers, and even doing seminars for school staff.

What’s the most common question you are asked?

People ask, “How am I tracking towards retirement?”

That leads on to where you want to be. I might point to our online tools or make recommendations. For example, if you can top up your super with $200 a month, that will make a big difference.

30 million The number of super accounts Australians have, as reported by the Australian Government Treasury in 2012.

That’s nearly three for every worker. Why pay fees for multiple accounts? NGS Super has an easy online system to consolidate your accounts at www. ngssuper.com.au/login.

Once logged in, click on ‘Contributions’, and then ‘Rollovers’.

We chat to Laurie Buchanan, NGS Super State and Business Development Manager.

What is the most satisfying aspect of your job?

Like a lot of people here, it’s being able to help members.

We see the light-bulb moment when it’s clear someone has understood what they can achieve. It can make quite a difference in terms of quality of life financially.

NGS Super wins Best Insurance award Recently, NGS Super was awarded Best Fund: Insurance 2015 by independent ratings agency Chant West.

NGS Super was named the winner based on the significant improvements to its insurance product that focuses on the needs of members at a competitive cost. For more information on NGS Super’s insurance and to calculate your ideal level of life, disability and income protection cover, visit www.ngssuper.com.au/super/insurance.

What’s your top money‑saving tip?

When I talk to younger people, I always say, if you have a salary increase, say it’s 3 or 4 per cent, put 1 or 2 per cent in super. They will never even notice they are boosting their retirement savings.

To request an NGS Super visit to your workplace, call 1300 133 177.

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EMPOWERING YOUTH

Kids get GROWING

C

hickens clucking, earthy compost, thriving garden beds… this lively scene isn’t on a farm, but the grounds of St. Macartan’s Parish Primary School on Victoria’s Mornington Peninsula. It’s one of the many schools across Australia seeing the immense value in teaching their students about gardening and cooking.

It’s a grass-roots solution for a common problem: in Australia, one in four children are obese. Along with the need for more frequent exercise, a contributing factor is unhealthy eating habits. For example, less than one quarter of children under the age of 16 meet the dietary guidelines for vegetable intake, and many have a higher than recommended consumption of foods that are high in added fat, sugar and salt.

In 2001, Australian cook Stephanie Alexander launched the national Kitchen Garden Program to help schools grow, harvest, prepare and share their own food.

“I believed this was the best way of convincing students to become more open to new flavours, learn new skills, and to better understand the connection between fresh food, the shared table and wellbeing,” Stephanie says.

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These practical skills are useful throughout a child’s life.

The program not only supports healthy eating, but can tie in with other important school lessons, such as mathematics and science.

An evaluation by a joint research team from Deakin and Melbourne universities revealed that the Kitchen Garden Program had encouraged positive behavioural change in participating children and also the transfer of benefits to the home (such as taking up cooking and gardening with their family) and in the broader community.

St. Macartan’s Parish Primary School is one of the 837 schools with about 100,000 children across Australia that are involved in the Stephanie Alexander Kitchen Garden program. Carmela Theobold, kitchen facilitator and sustainability coordinator, says the Catholic school has had a garden for five years and is in the second year of the program, teaching children in years 3 and 4.

“It’s about teaching children how to grow their own food, lower their carbon footprint and to cook. They are more aware of seasonal produce and they discover food that is not only healthy, but tastes good.”

Photography: Craig Sillitoe

With the help of a national garden program, Australian kids are getting their hands dirty in the name of healthy eating and, of course, fun.

By Sophie Hull

Start sm all

Sources: 2011-12 Australian Health Survey; Australian Dietary Guidelines; healthykids.com.au; Australian National Children’s Nutrition and Physical Activity Survey.

Even when resources are limited, schools can still take part in the Stephanie Alexander Kitchen Garden program.

For a school garden, you’ll need room for children to grow vegetables, fruit and herbs, a shed to keep tools safe and a simple irrigation system.

For a school kitchen, the basics are an oven, a sink, portable appliances, utensils, benches and a dining space.

The program provides resources such as garden and classroom activities, recipes and an online community, and costs $275 for the first year.

Carmela runs the program every Friday, with the kids on rotation to take part in a two-hour class every three weeks, supported by their classroom teachers. They spend half of the time in the garden and the other half in the kitchen.

A range of herbs, fruit and vegetables are grown, such as kiwi fruit, silverbeet and broad beans—some vegetables the kids had never seen before, let alone tasted. The cooking classes include recipes from across the world, such as Indian curries and Italian fettuccine pasta.

“The biggest thing is that they are trying food they wouldn’t normally try. We encourage them all to be risktakers and it’s okay if they don’t like it. Their palates are changing. The students who did the program last year encourage the new kids to try different foods. They said ‘I didn’t think it would taste good but it does.’ They are sharing that knowledge.”

The program has always been popular with the kids, but the school has seen an increase in parent support, with 68 parent volunteers this year, up from 20 last year. Carmela says this is because the lessons extend from school to the home environment.

“It shows that the parents are engaged with the community and what’s happening. We’ve had great feedback from parents—one parent said she was not a good cook so the program was a great support for her too.”

The program fits in well with the school’s admirable environmental philosophy, which has resulted in several environmental sustainability awards. They monitor their energy and water usage and use rainwater toilets, a 5.34KW solar system and recycling systems.

“We already had a healthy approach to eating,” says Carmela. “[But the program] complements what we already had in place. Surveys we’ve participated in highlight that there is starting to be a change in behaviour towards diet.”

The best part is, the lessons are also great fun.

“The kids love it. They are always asking me ‘Is it our turn?’—I’m pretty popular [at the school]. The children are engaged and look forward to coming to school on Friday to participate in the program.”

To learn more about the Kitchen Garden Foundation, visit www.kitchengardenfoundation.org.au TRUE WEALTH

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COMMUNITY

Quiet CONTROL The financial abuse we don’t hear about. By Fran Molloy

“Humiliated and ashamed”

Deborah is an experienced management consultant who held senior executive

roles before losing her confidence and eventually losing her business while in an abusive relationship. “[Most people] don’t speak about it as we are humiliated and ashamed of being in such a demeaning situation,” she says.

Deborah owned property and investments, and was running a successful business when starting a new relationship in her 40s.

But as domestic violence campaigner and 2015 Australian of the Year Rosie Batty points out, family violence can happen to anybody, “no matter how nice your house is or how intelligent you are”.

Deborah says that her former partner was “manipulative and cunning”, and in the face of his constant criticism of her capability, she lost the confidence to bid for new work.

He also made it very uncomfortable for her to ask him to contribute financially. This resulted in her paying for all of the food and household expenses for both him and his son for most of the time they were together.

“By the time we separated, he had all his assets and had saved everything he had earned while we were together, and I had spent half of my assets running

Breaking the silence NGS Super has partnered with White Ribbon to deliver its Breaking the Silence in Schools program, designed to educate the next generation about gender equality and respect.

For more information on this program, visit www.whiteribbon.org.au/schools.

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our household—cooking, cleaning and paying for everything even when I was out of work,” she says.

Part of a range of behaviours

Researcher Dr Michael Flood, a White Ribbon ambassador, says that domestic violence involves a diverse range of coercive or controlling behaviours and strategies that don’t always involve physical violence.

He says these behaviours are often deliberately hidden from public view, and can even be seen as normal or acceptable by the wider community.

He wrote in a 2011 policy research report for White Ribbon, reporting that tactics can include “verbal and psychological intimidation and degradation, social isolation, and control over everything from basic material resources like food, money and sleep to imposed ‘rules’ about everyday living.”

Katherine Newton, Executive of Partnerships and Fundraising at White Ribbon, says White Ribbon works to raise awareness of all forms of violence, including financial abuse.

“Our mission is to make women’s safety a man’s issue too, and our goal is to do this by encouraging and enabling men to take a leadership role in ending men’s violence against women,” says Katherine.

An insidious symptom

It’s important to understand how financial abuse fits into the domestic violence ‘scene’, says Dr Clare Murphy, a domestic violence counsellor who also works with Australia’s National

Image: Getty

F

inancial abuse is a form of domestic violence with serious long-term effects, but it receives little public recognition.

Many women subject to financial abuse don’t recognise what is happening at the time, and are often reluctant to discuss their experiences afterwards.

VicHealth’s 2014 national survey into community attitudes of violence found that nearly one in four Australians believed that trying to control a partner by denying them money is not serious, and 34 per cent of men do not see this as a form of domestic violence.

Financial abuse can involve, for example, an intimate partner withholding or stealing money, restricting the use of finances, putting bills in the victim’s name and assets in the perpetrator’s name, expecting the victim to account for every dollar spent or pressuring them to follow very restrictive spending rules, when similar accountability doesn’t apply to the partner.

RETIREMENT

Research Organisation for Women’s Safety (ANROWS).

She estimates that 20 to 40 per cent of domestic violence is situational couple violence, where both men and women may use violence when arguments escalate. But there is rarely economic abuse in those situations, because the violence isn’t about power and control.

Financial abuse is a far more insidious symptom that often forms part of a range of domestic violence tactics known as coercive, controlling violence, mainly perpetrated by men against female partners, she says.

“Quite often, these men never use physical violence. Rather, they use a combination of coercively controlling tactics, things like manipulation, intimidation, mind games, humiliation, harming the family pet, restricting a woman’s movements, isolating her, not letting her see family or friends, not letting her work, or forcing her to work,” she says.

It’s confronting stuff. Murphy says controlling and restrictive relationships are strongly linked to domestic homicides.

“These are the [situations] that end up with dead women,” she says starkly.

Murphy says the coercive and controlling kind of domestic violence, involving 60 per cent to 80 per cent of cases, is rooted in gender issues.

With demand for places at women’s refuges at an all-time high and the rate and severity of domestic violence increasing, financial violence is likely to continue to be an ongoing issue.

But women like Deborah show that it is possible to get out of such harmful situations safely.

DOMESTIC VIOLENCE INVOLVES A DIVERSE RANGE OF CONTROLLING BEHAVIOURS THAT DON’T ALWAYS INVOLVE PHYSICAL VIOLENCE.

NEED HELP? If you have experienced or are at risk of domestic violence, call 1800 RESPECT (1800 737 732).

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Turning

THE TIDE Adam Alsbury shares lessons learnt and lifelong memories created on a volunteering trip to Fiji. By Kristy Barratt

T

o quote American author Mark Twain: “Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did.” It’s a notion that resonates strongly with Adam Alsbury, an employee at Victoria Teachers Mutual Bank and this year’s CUFA Challenger.

The CUFA Leadership Challenge program runs annually in Fiji and Cambodia and aims to take participants out of their comfort zone. The 2014 winner for the Fiji challenge had to complete a six-day, 70-kilometre kayak around the country’s idyllic islands, visit local credit unions, share financial knowledge with Fijian locals and empower them to lift themselves out of poverty. It was exactly the type of challenge long-time volunteer Adam had been seeking.

FIJIANS ARE SO HAPPY THAT IT MAKES YOU REALISE THE THINGS WE WORRY ABOUT ARE VERY TRIVIAL. 8 + TRUE WEALTH

“For the past 10 years I’ve been involved in establishing our organisation’s support for CUFA and the Village Entrepreneur program, which provides villagers with the skills and resources [they need] to start up a small business,” says Adam.

The Challenge gave Adam the opportunity to experience first-hand the fantastic work CUFA (a financial development agency) does on the ground. During the 10-day trip, Adam, along with two fellow volunteers and two local guides, visited several villages, ranging from 55 people to 400, and shared key financial empowerment tools, such as the importance of saving money.

“We talked to the locals about how saving as little as one dollar a week can benefit their family, why it’s essential to avoid ‘loan sharks’, and the importance of creating a savings pool among people in the community,” says Adam. “If the villagers can start these savings clubs and expand them to lend out money and support small business ventures, I think we’ll see a long-lasting impact,” he says.

Visiting Fiji for the fourth time, Adam certainly wasn’t new to the relaxed, accommodating nature of the Fijian people

COMMUNITY

NGS Super will once again sponsor a member to participate in the CUFA Leadership Challenge in 2016. This is a life-changing opportunity—not only for you, but for others less fortunate, so don’t miss out!

Start volun teering

Adam shares a few top tips on volunteering: Get involved in something that interests you.

Research different groups to find a volunteer organisation that’s right for you, whether it’s a community fundraising group or a not-for-profit.

Volunteering provides you with great experiences and builds

and their simple, uncomplicated ways of life. Despite many living in poverty, Adam says Fijians are among the happiest people in the world. “They don’t stress about the little things,” he says. “When the water isn’t working in a village it’s like ‘There’s no water today’, and that’s that.”

Indeed, many of the highlights from Adam’s trip involved evocative encounters with the locals. Paddling into Naviti Levu District School in the Yasawa Islands, a boarding school only accessible via water, Adam was greeted by smiling young faces. “The kids were very excited to see us,” he says. “They performed a traditional song and dance and we took them gifts like colouring-in books, pens, soccer balls and stickers.”

And in Namauaimada, Adam was inundated with children when he attempted to record his video diary. “All the kids came up and wanted to look at my iPad and see themselves on the screen,” he recalls. “Then at night they sang songs to us under the stars.”

Of course, as Adam anticipated, the experience was not without its challenges. As a father of two young children, being apart from his kids for 10 days was just one factor.

In the bigger picture, seeing reefs laden with rubbish and

life skills. It also helps you meet like-minded people, and contribute to making a difference to the lives of others.

If you can’t physically volunteer, donating a few dollars a month can make a big difference to people living in poverty. That small amount is a lot of money for people who only earn $2 a week.

broken glass showcased a lack of environmental awareness in the region, while daily living conditions revealed significant cultural differences from back home.

“You sit on the floor to eat and sleep on the floor, there is no electricity and limited toilet and shower facilities,” explains Adam. “You might get a dribble of water if you’re lucky.”

While living in these sorts of conditions made Adam miss the creature comforts of home, it also put life into perspective.

“Fijians are so happy that it makes you realise the things we worry about are very trivial.”

As part of the challenge, Adam had a fundraising target of $3300 and was required to find support for three village entrepreneurs. All up he raised just under $8000, half of which goes to the village entrepreneurs to help them build a small business.

Following his trip, Adam has encouraged other employees to have money deducted from their salary to support the Village Entrepreneurs Program through CUFA. It’s just one way of ensuring continued support for the kind-spirited Fijian people he befriended.

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MAKING insurance claim s

Talking about insurance can feel like a sure-fire cure for insomnia, but it pays to have a financial safety net so you are prepared for whatever the future holds. By Rebecca Douglas

N

obody likes to think about it, but accidents can occur. What would your family do if you became ill and weren’t able to work for an extended period, or perhaps ever again? How would they pay the bills?

Do you have enough insurance to make up the shortfall?

Many of us are confused by the different types of insurance on offer and don’t realise that we may already be covered under our super fund.

Choosing your policy

When choosing an insurance policy, it is often a balancing act between 10 + TRUE WEALTH

what you can afford to pay now in premiums versus what you would be paid later if you ever make a claim.

Bernard O’Connor, Manager of Member Services at NGS Super, advises taking your family’s current and future money situation into account.

“It is important to have at least enough death cover to discharge the mortgage so that your partner and/or children can have a place to live. Generally anyone with small children, bills or a mortgage should have adequate insurance cover.”

To save money, shop around to compare premiums and policies.

Remember to always be honest when you take out a new policy or renew your policy, otherwise you might not be covered when the time comes to claim.

Compare product disclosure statements and ask what is and isn’t covered, how much you’ll pay in premiums and whether these remain fixed (called level premiums) or will increase over time (stepped premiums). Also ask what types of payments you’d receive if you successfully claim in the future.

WEALTH

Types of cover Disability

Death

Life Insurance Also known as ‘death cover’, this pays a benefit to your beneficiaries if you die.

Total and Permanent Disability This insurance pays you a lump sum if you become seriously disabled and are never able to work again either in any occupation or in your usual occupation, depending on the terms of your policy.

Always read the fine print and check the definitions of any terms you don’t understand.

Review your insurance when important life changes happen, such as having a child or taking on a mortgage, to ensure you always have the appropriate level of cover for your circumstances.

Insurance in super

Image: iStock

Inability to work

The easiest and cheapest way to get this type of insurance is often through your super fund. Super funds buy insurance at wholesale rates and pass on the savings to their members. Premiums are easy to manage, as they are automatically deducted from your super account, and there may be tax advantages because the money is not coming out of your after-tax income.

As an added benefit, your super fund’s trustee is under a legal obligation to act in members’ best interests. If you make an insurance claim, this means they advocate on your behalf with the insurer.

NGS Super’s insurance partner is CommInsure, part of the Commonwealth Bank, offering

Income Protection Pays an income if you are temporarily unable to work due to illness or disability.

life insurance, total and permanent disability cover and income protection.

How to claim

The first step when making a claim is to call your insurer or, if the policy is through your super, then you need to call your super fund. Most claims are relatively straightforward and are simply a matter of lodging the paperwork together with medical evidence to support your claim.

In recent years, there has been a growing trend of lawyers lodging insurance claims through super funds on behalf of members. There is concern that members are paying

Traum a recovery

Trauma Insurance Sometimes called ‘critical illness’ or ‘recovery’ insurance, this pays a set amount for medical and transport costs, debt repayments and other outgoings if you are diagnosed with a major illness such as cancer or a stroke.

significant sums to lawyers for the lodgement of simple claims they could easily handle themselves. If the claim is successful, the firms take a percentage of the payout on a ‘no win, no fee’ basis.

In reality, claims are processed in the same way regardless of whether they are lodged by a lawyer or the member themselves, and most claims are successful. If at the end of the process, however, the member is not happy with the outcome, they then have the option to have the matter reviewed by their insurer, make a complaint or, in the most serious cases, contemplate legal action.

GETTING ADVICE For general information and advice, the MoneySmart website has a series of articles on insurance and superannuation at www.moneysmart.gov.au.

You can get free, independent advice and help with insurance disputes from the Financial Ombudsman Service. Visit www.fos.org.au for more.

Read The Association of Superannuation Funds of Australia (ASFA) booklet on making an insurance claim. You can download it from www.superguru.com.au.

For more information about cover with NGS Super, visit www.ngssuper.com.au/super/insurance or call 1300 133 177.

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WEALTH

Every

DOLLAR COUNTS Feeling the financial squeeze? Join the club.

Hazel Flynn outlines some simple and surprisingly effective ways to help you hold on to more of your hard-earned money.

Save on shopping bills

and Tasmanian residents are directed to a state-specific site). Make a note of the best deal, including supply and usage rates, contract length and overall discount. In the likely event it’s better than what you’re paying now, that’s your fallback option. Now call the company offering the second-best deal and ask them to beat their competitor’s offer. If they do, terrific. If not, go with your fallback.

Save on power bills

Save on credit cards

If you’ve never shopped around for a better gas or electricity price (and aren’t under an existing fixed-term contract), now’s the time to start— unless you live in the Northern Territory or Western Australia where, unfortunately, you can’t choose your supplier. (In Tasmania you can for gas but not electricity.) But for the majority of Australians, spend some time on this and you’ll reap the benefits.

Dig out your most recent bill or bills.

Now go to www.energymadeeasy. gov.au, where you can compare offers from suppliers in your area (Victorian 12

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Unless you pay off your credit card balance every month, the next thing to tackle is your credit card debt. Make repayments a priority and don’t just pay the minimum. Need convincing?

On a $10,000 debt, minimum-onlyrepayment means you’ll pay more than $40,000 in interest on top of the borrowed $10,000. If you need a little breathing space, explore balancetransfer offers, which include an interest-free or low-interest period.

Visit www.moneysmart.com.au/ borrowing-and-credit to find what to look for and financial traps to avoid.

Save on superannuation fees

As an NGS Super member you’ve already made the savvy choice of an industry super fund. But if you haven’t yet consolidated all of your super, it’s likely you are paying fees you shouldn’t be. It is important that you compare fees and charges against each of your super funds and also the amount of any insurance cover, the associated premiums and the terms and conditions associated with the insured benefits you have.

By consolidating your super, you may stop that drain on your investments and you’ll only have one account to keep track of. Just check that there are no termination fees and decide if you need to adjust your insurance cover, then consolidate online at www.ngssuper. com.au/super/learn/consolidate.

If you have existing insurance cover with another fund, you may be able to transfer this cover to NGS Super— contact the fund to check. For more information about the insurance cover terms with NGS Super, visit www. ngssuper.com.au/super/insurance.

Sources: MoneySmart; Compare the Market; Choice. Image: Getty

Never shop hungry. Seems like obvious advice not to walk supermarket aisles with a growling stomach, right? Well new research on hungry shopping goes way beyond the supermarket: hungry people buy more of everything, not just food. University of Minnesota Assistant Professor Alison Jing Xu, who led the study, says it even applies to shopping online. If you can’t eat before you shop, “think twice before purchasing any items at all”.

If you regularly waste money on uneaten groceries, start planning out the week’s meals ahead of time and build your shopping list around them. Stick to the list, resisting impulse purchases.

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Investm en t

PERFORMANCE UPDATE NGS Super shares its investment results for the 2014-15 financial year, and the influencing factors NGS Super is happy to report that its investment options produced sound positive returns for the financial year to 30 June 2015. The default options, Diversified (MySuper) for super members and Moderate Growth for income stream members, produced net investment returns of 8.89% and 8.98% respectively for the year.

What in fluenced the returns for the year?

As always, there are a number of different factors that influenced the returns shown below.

Firstly, the Reserve Bank of Australia (RBA) continued to reduce the cash rate in the first two quarters of 2015. In February it was reduced by 0.25% to 2.25% per annum and then further reduced to 2.00% in May. Reductions in the cash rate are typically used by the RBA to stimulate the economy.

From a practical point of view, this reduction in interest rates meant that corporate and Australian government bonds performed well.

Secondly, the Australian dollar (AUD) depreciated (reduced) against most major developed market currencies over the financial year. Following drops of 7.3% and 6.5% in the September and December quarters respectively, the AUD fell a further 6.6% against the US dollar in the March quarter.

Additionally, global share markets as a whole rose 5.4% over the quarter, with the Australian share market also showing

strong performance, returning 10.3% (as measured on the S&P/ASX300 Accumulation Index) for the March quarter.

Despite this positive performance, the return on the Australian share market over the financial year remained well behind the rest of the world. Of the developed economies, Australia’s commodity prices have dropped from their previous highs due to a range of factors, including reduced demand from China. And whilst the US is showing signs of recovery, this is happening at a much slower pace than was hoped. The expectation is that low investment returns will be the norm for the foreseeable future. Regardless of whether that turns out to be true, the rewards for taking on additional risk appear to be slim and as a result a cautious approach is advisable.

Looking forward

Greece and the way it tackles debt and default will continue to impact the market. As negotiations progress, the market is responding with sporadic fluctuations. The outcome is difficult to predict, which means that markets will remain wary until there is some certainty, resulting in potentially more volatility.

However, the debt crisis in Greece is expected to be contained and should not lead to a worldwide financial meltdown. In Australia, we should be looking to the economic impacts of our closer neighbours, such as China. The outlook for global economic growth is still considered to be positive.

NET INVESTMENT RETURNS* FOR PERIOD ENDING 30 JUNE, 2015 (ACCUMULATION) SINCE INCEPTION % PA

10 YEAR % PA

Diversified (MySuper)

6.82

6.64

8.56

11.51

8.89

Oct-99

International Shares

7.53

6.39

11.41

19.36

19.90

Mar-03

INVESTMENT OPTIONS

5 YEAR % PA

3 YEAR % PA

1 YEAR % (AND YEAR TO DATE)

INCEPTION DATE

10.08

7.58

9.03

12.73

5.04

Feb-03

Shares Plus

7.18

7.27

10.12

15.70

12.95

Oct-99

High Growth

5.10

N/A

9.44

13.46

9.83

Jul-07

Property

8.43

6.54

10.97

9.70

7.59

Sep-02

Australian Shares

Balanced

5.06

N/A

7.67

9.49

7.28

Jul-07

Defensive

6.22

6.04

6.69

7.62

6.30

Feb-03

Diversified Bonds

5.36

4.78

4.64

4.52

3.46

Oct-99

Cash and Term Deposits

4.35

4.19

3.66

2.96

2.48

Oct-99

Socially Responsible Diversified

9.06

N/A

N/A

N/A

9.82

Nov-13

Indexed Growth

11.65

N/A

N/A

12.20

10.14

Oct-11

* Investment returns are net of tax and investment management fees. Past investment performance is not a reliable indicator of future performance.

FEELING GOOD IS ALL ABOUT BALANCE. NOT JUST THE ONE IN YOUR BANK ACCOUNT. We believe that doing well is also about doing good. So while we are proud of our track record as a high performing, low cost industry super fund, we know that’s not all you care about.

You could say we’ve learnt from our 105,000 members who have dedicated their lives to helping the community.

We’re dedicated to educating our members every step of the way.

We’re invested in being more responsible corporate citizens committed to helping the community and the environment.

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Profits certainly won’t end up in shareholder pockets. We want you to enjoy your wealth. In every sense of the word.

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

Issued by NGS Super Pty Limited ABN 46 003 491 487 AFSL No 233 154 the Trustee of NGS Super ABN 73 549 180 515

2439 (0715)

Past performance is not a reliable indicator of future performance.