The Financial Services Royal Commission Interim Report

The Financial Services Royal Commission Interim Report will likely trigger many financial services business to consider making massive changes to their business models and partnering arrangements in order to ensure they seen to be acting in the client’s best interests.

For others it will be business as usual…..

http://www.financialadviceshop.com.au

https://financialservices.royalcommission.gov.au/Pages/interim-report.aspx

#financialservicesroyalcommissioninterimreport # financialservicesroyalcommission

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Boosting Women’s Superannuation Is Extremely Easy But It May Require Some Pillow Talk!!

It is a well known fact that women often accumulate less superannuation than men over their working life due to many reasons including lower salaries and working less hours due to family commitments.

Any future initiatives by Government to boost women’s superannuation will be applauded but there are a few simple things that couples can already do every year to boost the superannuation balance of their spouse.

Salary sacrifice to superannuation is a very powerful tool that can be used to boost superannuation and a couple can determine who is best placed to initially implement this strategy.  A change in Legislation last year introduced an opportunity for anyone who is eligible to contribute to superannuation to consider a deductible super contribution.  This might initially benefit the higher income earner in the relationship but wait: there’s more!

After making salary sacrifice or deductible superannuation contributions, Superannuation Legislation allows members to consider splitting concessional superannuation contributions with their spouse in the following financial year.  There are a few conditions and the maximum that can be split is 85% of the previous year’s concessional superannuation contributions up to the cap.

Concessional superannuation contributions are superannuation guarantee, salary sacrifice and deductible contributions.

If you or your spouse are concerned about your superannuation balance, have a think about whether it makes sense to contribute and split concessional superannuation contributions each year to boost and equalise superannuation balances.  Additionally, for low income earners, look into and consider other contribution options such as spouse contributions, and personal non contributions to potentially qualify for the Government co-contribution to boost your superannuation balance further.

In summary, if you are looking at your superannuation contribution options, think holistically and make sure you consider if there are ways for you to tax effectively increase your current contributions and don’t forget to see if you can reduce your superannuation fees.

Unfortunately, superannuation is far more complicated that it needs to be so you will need to consider if you need advice.  This is a really big decision so give it plenty of thought before you choose a financial adviser.

What should you do next?  As its your super for your retirement, a good place to start is for you to get involved and take an interest.

www.financialadviceshop.com.au

#womenssuper #womenssuperannuation #financialadvicecanberra #financialadvisercanberra #financialplannercanberra #financialadvicedickson #financialadviserdickson #financialplannerdickson

Disclaimer: Do not trust what you read on the web.  Always seek professional advice before making investment decisions.

 

When It Comes To Long Term Investing, Is A Low Cost Index Option Too Good To Ignore?

https://static.vgcontent.info/crp/intl/auw/docs/resources/2018-index-chart-brochure.pdf

 

www.financialadviceshop.com.au

 

Disclaimer: Past performance is not a reliable indicator of future performance.  Always seek advice from your professional adviser before comparing investment options and making investment decisions.

#financialadvicecanberra #financialplannercanberra #financialplanningcanberra #finncialadvisercanberra #indexinvesting #indexinvestments

In Good Times And In Bad, A Little Wisdom From The Experts Might Make All The Difference!

When it comes to investing, there are a number of basic principles that can potentially assist in making the experience a more successful one.

At The Financial Advice Shop we believe that “wisdom” is potentially a very important factor in successful long term investing and so do the experts.  To learn more, take the time to read the following article:

http://davisadvisors.com/davissma/downloads/WGI.pdf

ABOUT THE FINANCIAL ADVICE SHOP:  We are a leading, independent and experienced provider of strategic financial planning solutions for the over 50’s with a specific focus on strategy and cost effective long term investment solutions.

www.financialadviceshop.com.au

#independentfinancialadvice #financialadvicecanberra #financialplannercanberra #financialadvisercanberra #independentfinancialadvicecanberra

Disclaimer: The information in this post is of a general nature only and has been provided without taking account of your objectives, financial situation or needs.  No representation is given, warranty made or responsibility taken about the accuracy, timeliness or completeness of the information. Because of this, we recommend you consider, with the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances.

Will The Banking Royal Commission Mean The End Of Aligned Financial Advice From The Bank’s And Other Large Institutions?

It is probably a big mistake to assume that because a financial adviser is not licenced by one of the major banks that there is not a major conflict of interest with the products they recommend.

Consumers who receive financial advice have never had a better time to consider their options as the Royal Commission puts a very clear focus on bank and institutional financial advice licencing, and the potentially major conflicts of interests with their products.

There are many large financial advice institutions who have their own Australian Financial Services Licence and also have a major conflict of interest with the products they continue to recommend and profit from.

There are potentially only three questions that consumers need to initially ask their financial adviser:

  1. Are you licenced by one of the major banks, AMP or another major institution?
  2. Do you or your Licencee profit in any way through profit sharing from any of the products you may recommend?
  3. Are you permitted to call yourself an Independent Financial Adviser?

The problem for most financial advice consumers is that they don’t have a point of reference.  It is almost impossible for consumers to read through 100’s of pages of disclosure documents in order to find a few sentences that explain how the financial advice they are receiving is potentially materially conflicted.

People instinctively want to trust others but sadly this is not a sound strategy as it turns your financial future into a lottery: you might get lucky and find a great financial adviser or you might not.

A far sounder strategy is to seek a second or third opinion and from that process work out the questions you really need to ask and have answered.

If the Royal Commission hasn’t motivated you to take action and get a second opinion or third opinion then I’m not sure what will.  If you don’t take an interest in your own affairs, rest assured no one else will either.

They say that the definition of insanity is doing the same thing over and over and expecting different results.  If this sounds like you then it’s probably time for you to stop doing what you have always done with your financial advice affairs and instead explore ways to do things proactively and very differently for better results.

At The Financial Advice Shop there is something very important that differentiates us from our so called competitors: not only are we an Independent provider of Financial Advice, we don’t want to be known for being big, we want to be known for being awesome so our clients are never just a number.

HOT TIP:  The need for honest, practical and Independent financial advice has never been greater, so if you are over 50 and have significant wealth, contact The Financial Advice Shop without delay to see if we can assist with a cost effective Financial Advice Health Check to ensure you better understand all of your future superannuation investment options.

ABOUT THE FINANCIAL ADVICE SHOP:  We are a leading, independent and experienced provider of strategic financial planning solutions for the over 50’s with a specific focus on cost effective investment options, and uncovering and explaining your current financial advice conflicts of interest.

www.financialadviceshop.com.au

#independentfinancialadvice #royalcommission #conflictedfinancialadvice #financialadvicecanberra #financialplannercanberra #financialadvisercanberra #independentfinancialadvicecanberra

With The Banking Royal Commission In Full Swing, Isn’t It Time For You To Get A Second Opinion From Someone You Can Trust?

The issues being current raised in the Royal Commission come as no surprise to many who are in the know but are kept silent in perpetuity through legal documents containing things like confidentiality clauses.  In the end I felt obligated to start my own Financial Advice business and ultimately decided to make the necessary business changes to be able to call myself an independent financial adviser.

 

The problem for most people is that they don’t have a point of reference.  People instinctively want to trust others but sadly this is not a sound strategy as it turns your financial future into a lottery: you might get lucky and find a great financial adviser or you might not.

 

A far sounder strategy is to seek a second or third opinion and from that process work out the questions you really need to ask and have answered.

 

If the Royal Commission hasn’t motivated you to take action and get a second opinion or third opinion then I’m not sure what will.  If you don’t take an interest in your own affairs, rest assured no one else will either.

 

They say that the definition of insanity is doing the same thing over and over and expecting different results.  If this sounds like you then its probably time for you to stop doing what you have always done with your financial affairs and instead explore ways to do things proactively and very differently.

 

At The Financial Advice Shop there is something very important that differentiates us from our so called competitors: we don’t want to be known for being big, we want to be known for being awesome so our clients are never just a number.

 

HOT TIP:  The need for honest and practical financial advice has never been greater, so if you are over 50 and have significant wealth, contact The Financial Advice Shop without delay to see if we can assist with a cost effective Financial Advice Health Check to ensure you better understand all of your future superannuation contribution and investment options.

 

ABOUT THE FINANCIAL ADVICE SHOP:  We are a leading, independent and experienced provider of strategic financial planning solutions for the over 50’s with a specific focus on cost effective investment options.

 

www.financialadviceshop.com.au

 

#independentfinancialadvice #royalcommission #financialadvicecanberra #financialplannercanberra #financialadvisercanberra #independentfinancialadvicecanberra

Not All Industry Super Funds Are Super!

Don’t be fooled by the Industry Fund sales and marketing machine into believing that all Industry Super funds are created equally.  They most certainly are not!

 

It is a very big job to analyse them all and we have not done that but we have looked at a number of them for the most expensive ones we could find in both super and pension.

 

We have decided not to name the most expensive industry super and industry pension accounts we found, but you can be assured they are very expensive by our standards.

 

For a “Balanced” fund with $50,000 invested as per their published PDS’s, from a total cost perspective the most expensive industry account we found for either super or pension was $1,115 p.a. (2.23% p.a.) which seems very expensive to us!!  The Industry Super funds might boast about admin fees of around $1.50 per week but their admin fees for pension accounts can be much higher and when combined with the underlying investment fees for some Industry Funds, the total costs can be very high indeed.

 

HOT TIP:  As the heading suggests, don’t be fooled by industry fund sales and marketing into thinking that all Industry Funds are created equally.  The need for honest and practical financial advice has never been greater, so if you are over 50, contact The Financial Advice Shop without delay to see if we can assist with a cost effective Financial Advice Health Check to ensure you better understand all of your future superannuation contribution and investment options.

 

ABOUT THE FINANCIAL ADVICE SHOP:  We are a leading, independent and experienced provider of strategic financial planning solutions for the over 50’s with a specific focus on cost effective investment options.

 

www.financialadviceshop.com.au

 

Disclaimer:  information current at time of publication but is subject to change without notice so accuracy is not guaranteed.

#industrysuper #industrysuperfund #industrysuperfundfees #superannuationfees