What Ought One Do When One Thinks They Need Financial Advice?

Finding a financial adviser who you think you will be able to feel comfortable with is probably one of the hardest parts of the process and it is impossible to guarantee you will make the right choice so what can you do to improve your chances?

ASIC has published some information to assist people with their search for a financial adviser and as you can see there are a lot of things to consider in selecting a financial adviser.  While the ASIC information doesn’t have all of the answers it certainly gives you plenty of things to think about and gives you some insights into the financial advice profession.

https://www.moneysmart.gov.au/investing/financial-advice/choosing-a-financial-adviser

In our experience, it is important to understand in detail the story behind the financial adviser and their business.  A recommendation from someone you know and trust is a good place to start when you are commencing your search for a financial adviser.

HOT TIP:  Before you sign up and commit to financial advice, make sure you understand how much the initial advice will cost, how much it will cost to implement any recommendations, how much the total ongoing portfolio costs will be on a per annum basis and finally how much it will cost for an ongoing advice service if one is required.  Complete transparency is very important.

www.financialadviceshop.com.au

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Financial Advice: What Consumers Really Think?

ASIC’s recently released report into what consumers really think about financial advice has been causing some discussion in financial planning circles but the report findings do not really reveal anything new or remarkable.

If you would like to read the ASIC report or review the key findings, the report is available from the ASIC website via the following link:

Click to access rep627-published-26-august-2019.pdf

Unfortunately, with rapidly increasing regulation, compliance costs and the desire by a number of financial advisers to distance themselves from large institutions so as to achieve greater autonomy, consumers may find it more expensive to see a financial adviser in the future and they may also find it harder to find a financial adviser who is seeing new clients. This is a very disappointing outcome as it is likely that a greater percentage of consumers in the future will not be able to receive the financial advice that they really need.

At The Financial Advice Shop, we have always found that the very best way for a consumer to find a financial adviser they can trust and for us to find a new client who will fully appreciate our capabilities, is via a referral from someone they know and trust and someone who also trusts us.

http://www.financialadviceshop.com.au

#findafinancialadviser #trustedfinancialadviser #financialadvicecanberra

With Interest Rates Heading To Hysterical Lows, Do You Know Someone Who Is Starting To Wonder If They Will Survive Retirement?

People often ask “how much money will I need in superannuation for my retirement”.  The answer, as you would expect, needs to be considered very carefully as there are many personal factors and variables to take into account.

A hypothetical place to start the planning process is to aim to own your home, be debt free and have superannuation investments that exceed the current maximum amounts for a part Age Pension: $863,500 for a couple or $574,500 if you are single.

If you have the good fortune to have an entitlement to a Defined Benefit Superannuation pension, it is an extraordinary advantage but it is not always enough in its own right.

If you would like to model your situation to see what income might be possible in retirement, visit ASIC’s Money Smart website and put your assumptions into one of their calculators:

https://www.moneysmart.gov.au/superannuation-and-retirement/income-sources-in-retirement

We know from experience that to have the best chance of enjoying retirement you cannot afford to make mistakes along the way.  In a world of falling interest rates, if you are intending to rely on cash returns to sustain you through a long and enjoyable retirement, you may well need to think very carefully about your strategy.

HOT TIP:  In a constantly changing world, the need for sound financial advice has never been greater so perhaps it’s time to seize the moment and seek an independent review of your current situation with a trust professional to “See What’s Possible!”

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 and it must not be acted on. 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. Past performance is not a reliable indicator of future returns.

http://www.financialadviceshop.com.au

#retirementplanning #retirementincome #financialadvicecanberra

Boosting Women’s Superannuation Is Extremely Easy But It Might 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, working less and making a greater contribution to family commitments.

Any future initiatives by Government to boost women’s superannuation will be applauded but there are already a number of simple things that couples can do every year to boost the superannuation balance of their spouse.  With the ever evolving superannuation caps, it might even be a smart idea for couples to try and keep their superannuation balances relatively equal in case superannuation Legislation changes for the worse in the future?

Salary sacrifice to superannuation is a very powerful tool that can be used to boost superannuation and couple’s 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 also consider a deductible super contribution but there are limits. 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 some conditions and the maximum’s that can be split based on the previous year’s concessional superannuation contributions and caps.

Concessional superannuation contributions include 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 concessional contributions to potentially qualify for rebates and the Government co-contribution to boost your superannuation balance further.

In summary, if you are looking at your superannuation contribution options, think holistically about your situation with your spouse and/or partner.  Make sure you consider if there are ways for you to tax effectively increase your superannuation contributions and don’t forget to review your asset allocation to ensure it reflects your risk profile.  While you are at it, make sure you investigate opportunities to reduce your superannuation fees.

Unfortunately, superannuation is far more complicated that it needs to be so you will need to do some research and consider if you need advice.  This is a really big decision so give it plenty of thought before you choose a financial adviser and it might be a smart decision to get a second opinion before you implement anything.

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

www.financialadviceshop.com.au

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

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.

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