True Wealth September 2017

true wealth SEPTEMBER 2017

Through THE AGES RETIREMENT PLANNING IN YOUR 30s, 40s, 50s & BEYOND

THE +LAYING GROUNDWORK A member’s charitable approach to education

+PERFECT YOUR PITCH Five ways to better engage

Your fund.

Your wealth.

Your future.

CONTRIBUTE A LITTLE MORE SUPER NOW, + ENJOY A LOT MORE LIVING LATER.

Topping up your super by just $50 a week from the age of 35 could give you more than $170,000 extra when you retire1.

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Assuming investment earnings of 6% after tax and fees for 32 years Comparison is based on saving through non-superannuation savings products

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

Visit ngssuper.com.au/topup or call the NGS Super advice line on 1300 133 177 and see if contributing a little more to super now could help secure the retirement lifestyle you really want.

Your fund.

Your wealth.

Your future.

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If you earn over $37,000 you could get a tax saving on extra super contributions made by salary sacriďŹ ce, plus ongoing compound growth on all your super savings, a lower tax rate on your investment earnings, and low or no tax on your balance when you retire2.

WELCOME Wit the new financial year well and truly With underway, it’s a good time to reflect on the past un ye year while keeping a firm eye on the future.

NG NGS Super’s Accumulation account and Inc Income account default options delivered dou double digit returns for the year to 30 June 2017 (10 (10.92% for Diversified (MySuper) and 11.48% for Moderate Growth*), exceeding our investment objectives.

NGS Super is looking to continue this momentum with investment opportunities that present potential for solid and stable returns, with an increased focus on “real” assets (such as property and infrastructure) that provide solid yield and diversification away from the volatility of shares. We also continue our commitment to supporting the community with an investment in Australia’s first mental health-related social benefit bond – find out more on page 10.

To help our members understand and navigate the complex world of investing, NGS Super recently teamed up with Alan Kohler’s The Constant Investor – an online financial and investment-focused publication, offering our members access to a selection of exclusive and premium content via our Knowledge Centre. I encourage all members to give it a go. Please visit ngssuper.com.au/knowledge.

As always, we would love to hear from you in person; please call us on 1300 133 177 for a personal chat with an adviser. *Past performance is not a reliable indicator of future performance.

NEWS AND NOTES The latest from NGS Super, including an investment update and exciting partnership.

QUIT YOUR NEGATIVE THINKING How can you get the most out of the decision to add property to your investment portfolio?

LIFE LESSONS NGS Super Scholarship Awards recipient Dale Kelly takes 17 high school students to South Africa on the trip of a lifetime.

ADVICE AT ANY AGE Whether you’re planning for retirement in your 30s, 40s, 50s or beyond, there’s great value in seeking financial advice now.

INVESTING 10 IMPACT At NGS Super we’re funding a brighter future for the community and our members.

PERFECT 12 PITCH Discover simple strategies to help you convince others to get on board with your ideas or finally secure that well-earned promotion.

THE POWER OF TWO 13 Spouse contributions make it easier to work together to build a satisfying retirement.

Anthony Rodwell-Ball, CEO, NGS Super

www.ngssuper.com.au

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THE TRUE WEALTH TEAM NGS Super Leni Vu Marketing and Communications Manager

Published by Hardie Grant Media

Publisher Alison Palfrey

Art Director Dan Morley

Cover image iStock

Deputy Managing Director Clare Brundle

Managing Editor Tiffany Eastland

Designer Luke Atkinson

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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COMMON KNOWLEDGE

THE GREAT DEBATE The National Virtual Debating Competition, an initiative by the Association of Independent Schools of NSW (AISNSW) and Independent Schools Queensland (ISQ), kicked off in April with mapped out events for 96 teams and approximately 140 debates planned over the course of the year. The competition, for both secondary and primary school students, provides an opportunity for independent Australian schools to engage in live virtual debates, allowing students to develop important critical thinking skills that can support potential careers in politics, law and diplomacy, among others. For the second year, NGS Super is a Platinum Sponsor of the event, bringing 1,100 schools together, through a unique and cost-effective method of participation.

To find out more visit www.isdcn.edu.au.

NEWS and notes

In a recent global study of the financial literacy of 15-year-olds in 15 countries, Australia ranked equal fifth behind China, Belgium, Canada and Russia. The Australian Securities and Investments Commission (ASIC) announced the outcome following the release of a report compiled by the Organisation for Economic Co-operation and Development (OECD), which analysed the results of the 2015 Programme for International Student Assessment (PISA) financial literacy test.

Australian students achieved an aggregate score of 504, above OECD’s reported average of 489. And although 15 per cent of our students were high performers, 20 per cent were considered low performers – the mean financial literacy score for Indigenous students was 411 points, significantly below the average.

The report also indicated that Australian female students performed at a significantly higher level than their male peers, with a mean score of 510 points – male students achieved a mean of 498 points.

View the full report at www.oecd. org/pisa/.

After our members cited Alan Kohler’s financial updates as the type of content they were after, we decided to go straight to the veteran financial journalist. The outcome? A partnership with the man himself.

NGS Super members can now access selected premium content from The Constant Investor, Kohler’s new online publication, otherwise only accessible via subscription to the site. Members receive ideas and education as well as weekly analysis of investment markets and domestic and global economies through articles and podcasts delivered by Kohler.

The content is now available via the Knowledge Centre, a personalised member-only access information portal housed on the NGS Super website. Visit ngssuper.com.au/knowledge.

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Image: iStock

A Wealth of Wisdom

NEWS & NOTES

Gettingg to kn ow you...

INVESTMENT UPDATE The 2016/17 financial year was a good environment for growth assets. Global share markets rallied strongly following the US election, returning 14.7% in Australian dollar terms. The steady recovery in Europe has continued, with a measured and cohesive political response to Brexit. In Australia the S&P/ ASX 300 rose by 13.8% as the earnings of mining stocks rose

significantly off the back of higher commodity prices and concerns about the housing bubble failed to materialise.

Overall the NGS return of 10.92% for the Diversified (MySuper) Option is reflective of a prudent balance between having exposure to strong share markets, putting a focus on capital preservation and continuing to manage risk.

Q.What does your role involve?

A. I spend most of my time visiting workplaces to help members make the most of their super. This may involve seminars covering topics from understanding the basics of super to preparing for life after paid employment. I also get to speak with a lot of members one-on-one and help them with a range of queries from choosing an appropriate investment option to accessing their super.

Q.What is the most satisfying part of your job?

A. Almost every conversation I have with a member has a “lightbulb” moment where I can see that they’ve got something valuable and they can approach their super with more confidence. Knowing that I’m helping people to feel more in control of their super – and in some ways their financial destiny – is incredibly rewarding.

Inspirational reads Following the sudden death of her husband, Facebook Chief Operating Officer, Sheryl Sandberg felt certain that she and her children would never feel pure joy again. That was until her friend Adam Grant, a psychologist at Wharton, shared the concrete steps one can take to recover and rebound from life-shattering experiences. Grant introduced Sandberg to the notion that we are not born with a fixed amount of resilience; it’s rather a muscle that everyone can build.

In the #1 New York Times Best Seller, Option B: Facing Adversity, Building Resilience, and Finding Joy (Knopf, $39.99), Sandberg

We chat to James Perry, NGS Super Customer Relationship Manager

offers personal insights alongside Grant’s eye-opening research on finding strength in the face of adversity. This inspiring read also illuminates i t how we can help others in crisis, develop compassion for ourselves, raise strong children, and create resilient families, communities and workplaces.

Q.What’s your best investment advice?

A. Start with understanding how your money is invested. For many people superannuation is their second largest asset after their home, so understand how we invest this for you – what sort of investment returns can you expect, what risks are involved and what options you have.

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Quit your

NEGATIVE THINKING

Image: iStock

You’ve already made a great financial choice with your super, now how can you get the most out of the decision to add property to your investment portfolio? By Hazel Flynn

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INVESTING

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hen was the last time you heard mention of property as an investment option without also hearing the phrase “negative gearing”? The two are so closely associated that even the most financially savvy among us could be forgiven for thinking you can’t have one without the other. Yet that’s simply not true. In fact one of Australia’s leading propertyinvestment experts, Ben Kingsley, goes so far as to say that while there are very good returns to be made from so-called bricks-and-mortar holdings, it’s simply “crazy” to base your propertyinvestment strategy around negative gearing.

That doesn’t mean that investing in property is a bad idea… just that you need to go into it with a clear head.

YOU ONLY REDUCE YOUR TAX IF YOU REDUCE YOUR INCOME. “Initially when we go into the business of investing in property, we are effectively running our business from the ground up, so we might make a loss in the first few years. But ultimately over time we want that property to be able to deliver us a passive income,” he says. “It is crazy to think that people would want to invest in something that still has a risk of losing money to be able to offset some tax. It doesn’t make sense to me.” Positive gearing, on the other hand, is a smart investment choice that can continue working for you even after retirement.

Positive profits and negative losses To understand the point being made by Kingsley, chair of the peak body Property Investment Professionals of Australia, it’s helpful to have a quick reminder of exactly how negative gearing works. “Gearing” is just a term for borrowing money to buy an income-producing asset. Taking out a loan for a holiday is not gearing; taking out a loan to buy shares or an apartment you intend to lease out is. Your new asset can be positively or negatively geared, depending on how much income it brings you and how much money you must continue to spend on it. If, for example, the property you bought using a loan is earning a monthly income of $4,000 while your interest-only loan repayments, council rates and maintenance costs add up to $3,500 a month, you’re making a profit and it’s positively geared. However if the property is only delivering $3,000 a month, leaving a shortfall for you to cover, it’s negatively geared.

The reason negative gearing gets so much attention is that you can claim part of the loss against your taxable income, reducing the amount of tax you’re liable for. People may be drawn to this idea, but as the wise heads at the Australian Securities and Investments Commission note, “you only reduce your tax if you reduce your income”.

Ben Kingsley says negative gearing can be a useful tool for investors but only short term, not used year after year on the assumption the property value will increase so much that the investor will come out ahead when they eventually sell it. He says, “If people are thinking of investing in property purely based on the grounds of negative gearing, I think they have got it all around the wrong way.” He compares it to spending $500,000 on a corner milk bar, which you run at a loss for a decade then hope someone will buy it for $1 million.

Choose carefully, think long term As ever with property, careful choice and longterm thinking are key. A well-chosen property can move from negatively to positively geared in three to five years. “I come back to the fundamentals,” says Kingsley. “That is, you should buy property based on supply and demand and owner-occupier appeal, because if you get a property that is limited in supply and high in demand then ultimately you are going to get an asset that is going to perform better. As that asset grows in value, guess what, you can raise your rents, because not only do owneroccupiers want to live in certain locations, so do renters.” As for timeframe, “You have got to be investing for 10, 15, 20 years to get the true benefit of property investment.”

Ultimately, your existing income and time left in the workforce should determine the best approach.

While high-income earners may be safe taking on negatively geared property as little as 10 years out from retirement, Kingsley recommends others with less available surplus reduce the risk with balanced options or, even better, properties that are “cashflow positive from day one”. And even though there is debt attached, because these assets more than pay their own way they’re ones you can hold onto post-retirement. After all, says Kingsley, “If they are still continuing to grow in value, why would you sell the goose that is laying the golden egg?”

Wan t to learn m ore?

To hear Ben Kingsley in an interview with Alan Kohler, and benefit from other valuable investment insights, visit ngssuper.com.au/knowledge.

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Photography: Frances Andrijich

English teacher and NGS Super Scholarship Awards recipient Dale Kelly took a group of Year 10 students on a service trip to South Africa.

EDUCATION

Life LESSONS A building project at a South African orphanage teaches teenagers life skills. By Rebecca Barker

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nglish teacher Dale Kelly grew up in South Africa and was deeply affected by the poverty he witnessed daily through his classroom windows. The experience led him to become a teacher in Australia so he could instil independence, social justice and a generous global outlook in his students.

Last year, Kelly, who teaches at St Stephen’s School in Duncraig, Western Australia, clinched a grant worth more than $4,000 in the NGS Super Scholarship Awards program (formerly known as the Dedicated to the Dedicated Awards).

A world of difference The funding enabled him to take 17 Year 10 students, on the “trip of a lifetime” in April this year to continue revamping an orphanage in South Africa. The orphanage, day care centre and foster home, called Jehovah Jireh Haven, houses more than 100 underprivileged children. Many have been orphaned by the HIV virus.

“We wanted to launch an international service program that built on the school’s motto – ‘Serve God, serve one another’,” explains Kelly, who has now taken three school trips to the orphanage.

Over that time, the St Stephen’s School students have retiled two dilapidated bathrooms, paved an entire sports court, built and painted an adventure playground – complete with zip line – and created a laundry out of a shipping container.

The facilities have changed the children’s lives and allowed staff to dedicate more time to them. “With more than 100 children there, washing all the clothes by hand was killing human resources. The people helping were spending all their time doing laundry, so now they are free to give more attention to the kids,” says Kelly.

St Stephen’s School already has a thriving program of overseas service with Year 12 students going to Cambodia and Year 11s experiencing Malaysia. But the Year 10 initiative was made possible this year by the NGS Super grant, which acknowledged Kelly’s enterprising approach to charitable projects.

The travellers were self-funded but each student also had to raise $750.

“One boy worked in a butcher’s shop, another picked up extra shifts as a referee at his soccer club and others did sausage sizzles,” says Kelly.

The two-week itinerary included a day in Cape Town, visits to a township primary school and homeless shelter, where the children donated soccer and netball equipment, outings with South African children to a restaurant, visiting a game reserve and ice-skating plus six days working at the orphanage.

Building the foundation Health and safety concerns meant the trip needed careful planning with Kelly and a colleague driving the full length of the journey a few months before to ensure everything would run smoothly.

The children also attended

workshops at hardware chain Bunnings prior to the journey to learn building skills for very physical 12-hour days.

“When the kids arrived there I was really comfortable they knew how to use a drill, a saw, impact drivers – we just let them get on with it,” says Kelly.

“It encouraged independence and responsibility. They were able to step back and say, ‘I did that!’” he says.

Scholarship propels studen ts’ efforts Apart from opening their eyes to the privileges they have in Australia, one unexpected outcome was an improvement in their English grades.

“The kids came back better writers because they were more mature and they had more scope to draw from,” explains Kelly. “Now when they get upset about first-world problems, they have got a bit of perspective,” he explains.

Due to the tour’s success, 26 children have applied for 18 places next year.

Kelly admits the NGS Super grant pushed the project along further than expected. “Four thousand dollars is about 40,000 South African Rand – so the money really did help – it went a long way,” he says.

Money cannot buy the life-changing experience and impact the trip had on the Australian students though, adds Kelly. “My upbringing probably affected my outlook now – they will probably look back in 10 years’ time and say that trip really did change my life and my mindset,” he says.

NGS Super Scholarship Awards 2017 NGS Super offers six awards of $5,000 annually to outstanding educators who go the extra mile to better themselves and their independent schools.

The scholarships allow successful applicants to complete a study tour, professional development course or project in Australia or overseas. NGS Super members working in management, teaching or in a support staff role in a non-

government school can apply.

Applications are rated for their relevance, innovation, ability to further careers and potential to improve education. This year’s scholarships are now closed and will be awarded on 5 October.

For more information and inspirational awards stories visit www.ngssuper.com.au/about/ scholarships-and-awards/ngssuper-scholarship-awards.

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Advice

AT ANY AGE Whether you’re planning for retirement in your 30s, 40s, 50s or beyond, there’s great value in seeking financial advice now. By Angela Tufvesson

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etirement planning is a lifelong pursuit. Ideally this should span your years from university right through your professional career and beyond. Of course life often gets in the way and it’s easy to worry that you won’t – or don’t – have enough superannuation available throughout your retirement.

NGS Super CEO Anthony RodwellBall says the best advice for saving for retirement is twofold, whatever your age: start as soon as you can and make saving a habit. “Even if you salary sacrifice just the cost of a few cups of coffee every week into your super, compound investment earnings will have a powerful impact,” he says. “But it’s not just the investment returns, it’s the combination with a lifetime savings regime that really builds super balances.”

He says this approach is especially important because recent changes to superannuation resulted in a decrease in the amount of contributions you can put into your super. From the 2017–18 financial year, concessional (before-tax) contributions are now limited to $25,000 per annum and nonconcessional (after-tax) contributions are limited to $100,000 per annum.

Thankfully, NGS Super is on hand to help members navigate the often confusing world of superannuation, providing advice about contributions, salary sacrifice and investment options at every stage of life.

“Our research suggests that 80 per cent of members’ needs are met by conversations over the telephone with people who are qualified to give single-issue superannuation-related 8 + TRUE WEALTH

personal advice,” says Rodwell-Ball.

“If the situation is more complex, the telephone advisers will set up a face-toface appointment with an NGS Super financial planner.”

Whether you’re in your 30s, 40s, 50s or beyond, here’s a little advice to get you started.

Thirties For many people, the 30s are a frantic juggle of mortgage, kids and career, so it’s no surprise retirement planning can fall to the bottom of a long to-do list. According to NGS Super financial planner Darryn Studdert, this is a vital decade for your super balance. If you’ve never taken a close look at your earning potential and long-term needs, or considered the savings and credit options available, now is an ideal time.

“You want to make sure you’re in the right investment option and have started thinking about wealth creation,” says Studdert. “Plus, it’s important to put in place or review your insurance needs. What are the conditions of the insurance policy? Does it reflect the sort of cover you need?

“In your 30s, it’s about putting the foundations in place so that if anything was to happen, your long-term plans don’t go up in smoke,” says Studdert.

“The little things are important, too, like making extra contributions here and there. Try to make the most of everything you have now because in the longer term it’s going to mean a better outcome in retirement.”

Forties When you hit the big 4-0 it’s time to shift into high gear. You’ve still got time

to put together a nest egg, but don’t forget that any new money you start investing may soon have less than 20 years to grow.

“Make sure that you’re focusing on paying off the mortgage as well as putting away savings now, because the earlier you start contributing more into super, the better the benefits of compound investment earnings – you’ll really see that highlighted,” says Studdert.

Plus, the regulatory changes that limit annual contributions make it harder to play catch-up when you’re getting closer to retirement, which means it’s even more important to save in your 40s.

RETIREMENT

“In the past, people often thought they could start later and put as much money in as they could just before retirement,” he says. “It really highlights the need to start focusing on putting that little bit more in now as opposed to waiting until just before retirement, because of the lower limits that are now in place.”

Image: iStock

Fifties and beyond Your retirement years may be fast approaching, but chances are your 50s and beyond are some of your highest earning years. If you’re on track to achieve your superannuation goal, you may like to aim even higher, and if you’re behind the retirement savings

THE REGULATORY CHANGES THAT LIMIT ANNUAL CONTRIBUTIONS MAKE IT HARDER TO PLAY CATCH-UP WHEN YOU’RE T. GETTING CLOSER TO RETIREMENT. curve your financial adviser can help you to refocus.

“A comfortable lifestyle in retirement for a homeowner couple is about $60,000 a year,” says Studdert. “If you’re on track for that, perhaps you’d like to try to save a little bit extra so you can start taking those holidays when you retire, do the renovations or purchase a new car.

“If you haven’t had a plan in place

during your 30s and 40s this is when you really need to start looking at developing one. How much money do you need to live on? What sort of retirement lifestyle are you after?”

From here, Studdert suggests assessing your super balance against your target and focusing on saving as much as possible. “The key thing is to put a plan in place so you’ve got a roadmap to follow,” he says.

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Im pact At NGS Super we’re funding a brighter future for the community and our members.

By Jo Davy

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W

hen it comes to giving back to the community, one of the easiest ways to make an impact is to “buy social”, supporting social enterprises using your individual purchasing power.

Up until recently, buying social meant stocking up on Christmas cards from the local charity shop, but the introduction of social benefit bonds to the market has given everyday Australians the opportunity to make a difference, while also making gains.

Social benefit bonds are a form of

impact investing whereby investors fund programmes that strive to improve social outcomes, and then receive returns based on results achieved by the project.

It is a contract with the government designed to help reform public services, while delivering a return on investment if predetermined social outcomes like school attendance levels or employment rates are met.

In June, two of Australia’s first social benefit bonds achieved their multimillion dollar capital-raising

Image: iStock

INVESTING

INVESTING

THESE BONDS HAVE THE POTENTIAL TO PROVIDE A STRONG FINANCIAL RETURN AND A SOCIAL BENEFIT, WHICH MAKES THEM IDEAL CANDIDATES FOR OUR NGS SOCIALLY RESPONSIBLE DIVERSIFIED FUND. targets within weeks of their launch.

One is seeking to improve outcomes for children in out-of-home care, the other is a recovery program for people suffering recurring and complex mental health issues. Both projects aim to address some of Australia’s most challenging social problems, and both were part-funded by NGS Super.

Lucas Hartmann, manager of liquid assets at NGS Super says the initial success of the bond issues indicates strong demand in the sector from Australian investors.

“These bonds have the potential to provide a strong financial return and a social benefit, which makes them ideal candidates for our NGS Socially Responsible Diversified fund,” he says.

“There appears to be a strong appetite for these types of investments in Australia, with both of these bond issues quickly reaching their capitalraising targets.”

The world’s first social benefit bond was launched in 2010 in the UK to fund a prison rehabilitation program for offenders serving short-term sentences with the aim of reducing reoffending.

Australia’s public sector and private investors took note, and in 2013 the New South Wales government had launched the Newpin Social Benefit Bond; a program to help keep children at home and out of foster care.

Since then the bond has served as the blueprint for the recent rollout of Social Ventures Australia’s (SVA) Newpin Queensland Social Benefit Bond, which closed in June after achieving its $6 million target one month after launch.

NGS Super is among a variety of investors in the project, which aims to

reunite children in out-of-home care with their families via therapeutic centre-based support.

The investment means that NGS members will be instrumental in helping UnitingCare Queensland reunite an estimated 200 families with their children, three quarters of them Aboriginal and Torres Strait Islander.

The social benefit bond model broadened its scope earlier this year, making its first foray into addressing the challenges of mental health in Australia with the launch of SVA’s Resolve Social Benefit Bond; a mental health program aiming to reduce the amount of time participants spend in hospital.

The bond raised $7 million within weeks of its issue, with NGS Super as one of its chief institutional investors.

Delivered by leading mental health service provider Flourish, Resolve is a two-year support program for people with a history of frequent hospitalisations because of complex mental health issues.

Over the next seven years, the bond is expected to help around 530 people with residential services for periodic crisis care and outreach support, delivered in part by peer workers who have lived through mental health issues themselves.

Hartmann says that although it will be a number of years before we are in a position to judge the success of Resolve or Newpin QLD, the targeted return for investors is 7.5% per annum, far higher than the seven-year Australian government bond, which pays around 2.4% per annum.

“For these social benefit bonds, a positive social outcome comes hand in hand with a positive financial outcome

FURTHER INSIGHT Visit the NGS Super Knowledge Centre to hear Alan Kohler discuss impact investing with Ben Gales from the NSW Treasury and Sally McCutchan from Impact Investing Australia – ngssuper.com.au/knowledge.

as the savings to the state generated by these specialist providers passes to the investors in the bonds,” he says.

While the targeted return is higher to compensate should the programs materially fall below their targeted outcomes, investors are also protected against risks such as changes in government policy through agreements between the government, SVA and program providers. Hartmann says NGS Super also mitigates risk by maintaining a diverse portfolio of social benefit bonds, with a variety of programs and demographics.

“The government is heavily involved along the way as these bonds are set up and wants these programs to succeed as much as the program providers and investors do.”

The two bonds are still in their infancy, but Hartmann believes we are only scratching the surface of ways in which the government can partner with private companies to improve social outcomes.

“We can already see the NSW government looking at programs to assist with youth unemployment, improving outcomes in childhood education and reducing the rate of reoffending and re-incarceration,” he says.

“As the government and investors see benefits from social impact bonds, I expect to see issuance of bonds across a wider range of social programs.”

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CAREER

Pitch PERFECT

Discover simple strategies to help you convince others to get on board with your ideas or finally secure that well-earned promotion. By Libby Hakim

1. Start with the people in the room Before pitching your idea, gather relevant statistics and talk to people who understand the problems and issues facing your audience. “Be empathetic to the people in the room and really connect with them. Demonstrate that you do understand before you launch into your solution.”

2. Tell a story (and don’t forget the ending) Don’t just talk about the issue or problem and your idea, “also talk about 12

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how you developed it and the history of it”, says Dr Metcalf.

Stories are memorable, especially those with a good ending: “Always arrive back at the issue you’re solving.

You need to pull it all together and reinforce that your idea is useful and is going to do something to make your audience’s lives better.”

3. Kn ow your strengths (and weaknesses) Can you write a great proposal in an afternoon but struggle to squeeze it into a five-minute pitch? Are you a great speaker but hit blocks when trying to put your ideas on the page?

Knowing what you’re good at and where you might need some help is critical in creating a first-class pitch, says Dr Metcalf. For example, creating a visually engaging PowerPoint presentation may not be your cup of tea but aesthetics is important. Dr Metcalf recommends checking out sites such as Upwork, Freelancer and Fiverr, which offer fast and affordable design services.

4. Practise, practise, practise Do you feel nervous when it comes time to present your pitch? “My best advice here,” says Dr Metcalf, “is to practise.”

Toastmasters is one supportive group that offers an opportunity to build your presentation skills.

You can also try testing your pitch in front of a few people.

5. Be strategic When applying for a promotion, “by all means tick off the selection criteria”, says Dr Metcalf, “but what you particularly want to show is that you are the answer to a particular problem that the school is facing”.

When applying for funding or a grant, focus your efforts instead of spreading your efforts too thin. “It’s exhausting and you won’t make as much headway as you could if you were to make a thoughtful decision on what grants, for example, are appropriate to your interests.”

If you’re still struggling, a leadership or career coach is a great investment, says Dr Metcalf.

Image: iStock

Leadership development expert Doctor Louise Metcalf says it’s not unusual for teachers to have difficulty pitching ideas when outside “the context of the classroom”. However, a strong pitch couldn’t be more crucial in arriving at a desired outcome – whether that’s a promotion, securing funding or obtaining a grant. Here, Dr Metcalf takes us through strategies to help you pitch more confidently and persuasively.

RETIREMENT SAVINGS

The power

OF TWO Different priorities, spending habits and general attitudes towards money can cause conflict between couples. Spouse contributions have made it easier to work together to build a satisfying retirement – here’s how. By Christine Long

Image: iStock

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very couple knows talking about money can be a challenging conversation. Couples will be better off if they can harness the power of two when it comes to their retirement savings.

As Hooria Goodarzi, Financial Planner, NGS Super explains, couples can develop an imbalance between their superannuation savings because one person has taken a career break; salaries are not the same; or you receive different rates of super from your employers.

“The good news is couples can help each other build their joint retirement savings.”

A recent change to super rules will make this easier for some couples.

If your spouse or partner is a lowincome earner or not working, you can contribute to their super and be eligible for a tax rebate.

In the past the income of the receiving spouse had to be $10,800 or less for the contributing spouse to qualify for the

full tax offset and less than $13,800 to receive a partial tax offset. To be eligible for the maximum tax rebate of $540, the contributing spouse had to contribute at least $3,000.

From 1 July 2017 the provisions around spouse contributions have been enhanced, so that the receiving spouse can now earn $37,000 or less and the contributing spouse can still qualify for the full tax offset. If the receiving spouse earns between $37,001 and $40,000 the contributing spouse will qualify for a partial tax offset.

It is possible to make contributions on your partner’s behalf when their income is more than $40,000, however, the contributing spouse is no longer eligible for the rebate.

Contributions paid by the contributing spouse will count towards the receiving partner’s annual nonconcessional (after-tax) contributions limit, which is the maximum amount of after-tax contributions that can be paid

into super each year. For the 2017–18 financial year, this limit is $100,000.

According to the Association of Superannuation Funds of Australia (ASFA), about 10,000 people annually could benefit from this change. For more details on how the tax rebate is calculated, you can read our fact sheet “Make spouse contributions work for you” available at ngssuper.com.au/ spouse-contributions.

There are also other ways couples can band together to improve their retirement savings outlook.

“Couples don’t always have the same attitude towards their investment risks,” says Goodarzi. “If they have some joint investments, their joint risk profile can be very different from their individual risk profile, depending on the purpose of the investment, their investment timeframe and the amount invested.”

Where there is an age difference between partners, attitudes to risk may be impacted by how soon you need to access your retirement savings. In these situations it can be important to discuss individually with a financial planner the expectations of your investments.

“A financial planner can help you understand how your investment risk appetite can impact the potential growth of your investment over the years,” says Goodarzi.

A financial planner can also provide couples with guidance on other topics that may need to be discussed. For instance: “It is very important to discuss estate planning considerations such as the beneficiaries of your superannuation account as well as reviewing your personal insurances held within superannuation to ensure you have the right cover for you and your family.”

Wan t to learn m ore?

To explore spouse contributions with one of our financial planners, book a consultation online at the NGS Super Knowledge Centre – ngssuper.com.au/knowledge.

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