The future reapers

The love of money is sometimes described as the source of all evil. I disagree, but the lack of it can definitely be the source of many a sleepless night – especially if you’re expecting a child, leaving a job, getting divorced, planning your retirement or going through one of life’s major stages. Sadly, some women fall victim to the Cinderella syndrome and hope someone will save them from their money misery. Someone may, though most likely it won’t be your partner but a qualified financial planner or advisor, who will help you find your own path to financial security. Notebook: readers went to see what advice such experts could give them.

Lisa Gilbert, 36, is a newly single mother thinking about a future for herself and her daughter, Bella, aged nine.

Lisa bought a home with her share of the divided marital assets and now has a mortgage. As she hadn’t been employed for many years, she had to apply for a ‘Lo Doc’ loan (see box opposite), which has a higher interest rate than a standard loan. She has no other investments and no superannuation, health insurance or personal insurances, although she does have a house and contents policy.

Lisa’s income comes from a single parent benefit ($10,000 a year), regular child support ($12,000 a year) and her earnings from contract concreting – a traditionally male-dominated job but one she enjoys and can fit into school hours. Her annual income is less than $27,000.

Lisa wants to earn more money and have more control over how she earns it. She’d like to be able to contribute to her super, to save, and to spoil Bella on occasion. She plans to travel with Bella in a couple of years and will need to renovate her kitchen within five. In the long term, she’d like to retire financially independent.

“My main concern is what to do with my life while still having time with my daughter – that’s my number-one priority.

“I’m a good saver. I hate personal debt. I use cash and I can wait for something. Mortgage repayments are a stress: they’re a stabilising thing in my life but I’ve probably stretched myself a bit.”

Megan Aikman, financial planner at National Australia Bank, on Lisa’s case:

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