Managing the uncertainty of job loss.

Managing the uncertainty of job loss. You re not generally planning for redundancy so when you get the news you are often unprepared. 4 Redundancy digesting the big news

Perhaps it s due to the name, but many people are unsure of what the term wealth Don t management underestimate really means the effect that and who this has can on benefit your whole from it. being. On The one fact hand, is, financial there s advice a lot to is do relevant which to might include almost everyone finding another at many job, significant telling family stages and friends of life. And and that emotionally includes moving redundancy. on. On the other Wealth hand, management this is a tumultuous isn t necessarily event about and you how need much to money look after you yourself. have today. It s about protecting your family and ensuring your So try not to stress more than necessary, future prosperity. and just work through a checklist to make sure Beyond you Bank are doing are here all the for right our members things. in all times. With a team of experienced financial For planners, many, we it is can a great help opportunity. you make the most of what can be a difficult period. This booklet People gives you often some find information they are re-employed about the things in the to consider industry if that faced retrenched with redundancy. them and in many cases, their job is equal or even better to To what talk this they through were doing further, before. we offer a complimentary initial appointment. Please contact your local Beyond Bank branch or the Beyond Bank Wealth Management team on 08 8132 9288 or email wealth@beyondbank.com.au Redundancy digesting the big news 5

2 Redundancy digesting the big news

Contents 1 Try to keep positive 2 Check your payments 3 Make a new budget 4 Stop unnecessary outgoings 5 Review your loans 6 It s not all about the mortgage 7 Government benefits 8 Insurance 9 Super 10 Think about investing 11 Register for work 12 Review your financial plans 13 Enjoy a break Redundancy digesting the big news 3

You re not generally planning for redundancy so when you get the news you are often unprepared. 4 Redundancy digesting the big news

Don t underestimate the effect that this has on your whole being. On one hand, there s a lot to do which might include finding another job, telling family and friends and emotionally moving on. On the other hand, this is a tumultuous event and you need to look after yourself. So try not to stress more than necessary, and just work through a checklist to make sure you are doing all the right things. For many, it is a great opportunity. People often find they are re-employed in the industry that retrenched them and in many cases, their job is equal or even better to what they were doing before. Redundancy digesting the big news 5

Try to keep positive 6 Redundancy digesting the big news1

Redundancy can hit hard and affect you in many ways. Your health, your ability to move into a new role and those around you will all be better off if you can keep positive. Talk to others about the experience. You will likely find that more people than you think have been affected by redundancy it hits most industries. Many people look at redundancy as an opportunity to re-evaluate what they are doing and perhaps choose to do something quite different for work. Seek out people that can help you. A counsellor or a career guide may be a good place to start. Redundancy digesting the big news 7

8 Redundancy digesting the big news2check your payments

You are leaving, you may have warning or you may have to leave the building immediately. At this time your payout should be your major focus. Make sure you have all your entitlements, check carefully that your payout is correct. For example, if you are aged over 45 you may be entitled to more redundancy pay as someone aged under 45. You should also check your contract. If you don t have a copy ask the Human Resources Manager. Check if you have any tax liability on this money and ensure you put it aside for tax time. Redundancy digesting the big news 9

Make a new budget3 10 Redundancy digesting the big news

How long can you make your redundancy payment stretch? Work out a weekly budget and divide your lump sum by this amount. Don t forget your bills quarterly, six-monthly and annually and make sure you can cover these. Can you earn supplementary income? Can you cut any expenses? If you can, you will feel more at ease in your new circumstances. Redundancy digesting the big news 11

Stop unnecessary outgoings 12 Redundancy digesting the big news4

If your income has stopped you will need to re-evaluate all your expenses. Your fixed costs will be hard to cut but you should try to stop unnecessary outgoings. Not only will this help your financial bottom line, but it also means that you will be less stressed worrying about your money running out. Redundancy digesting the big news 13

5Review your loans 14 Redundancy digesting the big news

You may have a mortgage, home, personal personal or car loan. loan or a margin loan. Whatever the case may be, you will need to assess your ability to meet the repayments. repayments, if you are going to find it hard, talk to your If you have your loans with Beyond Bank, lender and try to work out a payment plan talk to us as soon as you are made aware, that is more suitable. and we will work with you to find the You best may solution. also be able to suspend payments for a short time. Many financial institutions offer assistance at times like this. Don t find yourself in arrears with the bank unaware of your situation. Redundancy digesting the big news 15

It s not all about the mortgage 16 Redundancy digesting the big news6

Your redundancy will arrive in a lump sum and it may be tempting to put it into your mortgage but before you do anything, consider your needs. Your redundancy money is your income for the foreseeable future, and you will need cashflow to meet your weekly expenses. While putting it into your mortgage might seem like a good idea, losing cashflow may provide stress to your finances later on as you may not be eligible for Government benefits straight away. By all means put the money in an offset account against your mortgage to reduce the interest you are paying if you have the ability. Just make sure you are able to redraw this money if necessary. Redundancy digesting the big news 17

benefits 18 Redundancy digesting the big news7government

It is always worthwhile to check what financial assistance you qualify for. You may be eligible for Centrelink benefits if you remain unemployed but this is dependent on the amount of redundancy benefit you receive. Check with your financial adviser or with Centrelink for the latest rules and how they may affect you. Redundancy digesting the big news 19

8Insurance 20 Redundancy digesting the big news

If your insurance was paid through your work, you will need to see if you can retain it personally. While you remain unemployed your income While you remain unemployed your income protection may not be valid you need to protection may not be valid you need to check what you have and what you are paying check what for and you that have you and have what the you best are cover for paying your for situation. and that You you have have insurance the best cover so it s there for your when situation. you need You it have most, insurance if you ve so made it s there decision when you to be need insured it most, don t if you ve let it expire made at the this decision time. to be insured don t let it expire at this time. If you have insurance cover built in to your work super, you may lose this cover or get an offer to transfer the insurance. If you are offered a transfer, you usually have to act quickly or you may lose the cover if you don t respond within a certain time frame. Redundancy digesting the big news 21

Super 22 Redundancy digesting the big news9

Your redundancy payment will likely not include any payments to super. Do you want to contribute anything additional to your super? Your redundancy payment will likely Depending not on include your age any and payments your current to super super. balance, you may choose to put some of this money towards your retirement. Do you want to contribute anything additional However, you to your need super? to be careful with the amount you choose to contribute. Don t Depending exceed your on contribution your age and limits your and current make super sure you re balance not you putting may away choose too to much put some as of you this may money need towards it last your for some retirement. time. However, you need to be careful with the amount If you have you corporate choose to super contribute it will most - don t likely exceed be transferred your contribution to the personal limits super and make division sure within you re the same not putting company. away The too personal much as you division may may need have it to different last for some fees, investment time. options, and insurance cover. As everyone s circumstances differ, it is important As everyone s to speak circumstances to your financial differ, it s adviser important to speak to your financial planner about the most suitable option for you and about the most suitable option for you and your circumstances. your circumstances. Redundancy digesting the big news 23

Think about investing 24 Redundancy digesting the big news0

From your redundancy, you will have a lump sum to last you until you establish another income stream. Look at where you can put it so that it s giving you the best return. Can you do anything better than a term deposit or bank account? You might find that having your money easily accessible is of primary importance so ensure you shop around for the best interest rate. Redundancy digesting the big news 25

Try not to leave registering for work too long. Even if you don t formally register anywhere, let your friends and colleagues know of your availability and interests. The more people you have on your side the easier it should be to find your next role. Take advantage of outplacement services if they are offered. They will help you with preparing your resume, your interviewing technique and making the most of networking. Consider retraining if you think you might be better suited to another role or a different industry. You may also decide to start your own business. Look at courses that will help with the basics of business including accounting, marketing and technology. Redundancy digesting the big news 27

Review your financial plans 28 Redundancy digesting the big news2

Maybe you should think about putting aggressive investments on hold while still trying to maintain your current plans until you have a good idea of your new future. You should probably steer clear of making rash decisions at this time but make sure that your plans remain in line with your financial goals. If you have a financial adviser it is important to inform them of the change in your situation and let them review your financial circumstances and strategy. Redundancy digesting the big news 29

30 Redundancy digesting the big news3enjoy a break

As redundancy is becoming more and more common in these economic times, it is often just a seamless transition between jobs. You were probably working hard before the redundancy and will likely work hard in your new role. So if you can, take some time to have a break between jobs and do something you ve wanted to do for a while, or spend some time with friends and family. Redundancy digesting the big news 31

Contact Beyond Bank Australia Wealth Management for further information on 08 8132 9288 or visit www.beyondbank.com.au Financial Planning services are provided by Eastwoods Wealth Management Pty Ltd ABN 17 008 167 002 AFSL 237853 trading as Beyond Bank Australia Wealth Management. Eastwoods Wealth Management Pty This Ltd is information a subsidiary was of prepared Community by Beyond CPS Australia Bank Australia Ltd ABN Wealth 15 087 Management, 651 143 AFSL/Australian ACN 237853 Credit and Licence is current 237 856 as trading at August as Beyond 2013.This Bank publication Australia. provides The information an overview in or this summary presentation only and is current it shouldn t as at be July 2015. considered This material a comprehensive provides an overview statement or on summary any matter only or relied and upon shouldn t as such. be The considered information a in comprehensive this publication statement on does any not matter take into or relied account upon your as such. objectives, The information financial situation in this or material needs and does so not you take should into account consider your objectives, its appropriateness financial situation having or regard needs to and these so factors you should before consider acting on its and appropriateness obtain financial having advice. regard Any taxation to these position factors described before acting this on publication it and obtain is a general financial statement advice. and Any should taxation only position be used described as a guide. in It this does presentation not constitute is a general tax advice statement and is and based should on current only be tax used laws as and a guide. our interpretation. It does not constitute Your individual tax advice situation and may is based differ on and current you should tax laws seek and independent our interpretation. professional Your tax individual advice. situation The rules may associated differ and with you the should super and seek tax independent regimes are professional complex and tax subject advice. to The change rules and associated the opportunities with the super and effects and tax will regimes differ depending are complex on your and personal subject to circumstances. change and the LSWL13723D-0813lc opportunities and effects will differ depending on your personal circumstances.