Don’t Let Your Future Retirement Concerns Become A Miserable Reality!!

Imagine a 30 year retirement where you couldn’t afford to enjoy yourself? No one would actively plan for this outcome but sadly it is a reality for a very large number of retirees. Don’t let this happen to you.

Relying on your employer’s superannuation contributions and holding your hand out at retirement for an Age Pension in the hope that this will make everything OK is a very poor choice. A far better outcome is to make smart investment decisions, save tax effectively through voluntary superannuation contributions in a low fee environment over many years and as a result make yourself 100% financially self sufficient in retirement. It really is time for everyone to start taking more responsibility for their retirement outcomes.

When it comes to achieving a comfortable retirement, making additional tax effective superannuation contributions over long periods of time is critical. The greater your retirement expectations, the more you need to do to ensure you achieve your goals. If you are planning to have less than $1,000,000 in investments (excluding the family home) at retirement you are probably setting your sights too low.

If you are starting to think about your retirement, or know you should be planning for your retirement, it is time to start taking action with a trusted financial planning advice discussion to “see what’s possible”.

HOT TIP: The need for honest, transparent and practical financial planning advice has never been greater, so contact The Financial Advice Shop without delay. To get things started, we offer a very cost effective Financial Advice Health Check discussion to ensure you can access our experience to understand all of your fees and future superannuation investment strategy options.

#retirementplanningcanberra #financialadvicecanberra #superannuationcanberra #retirementadvicecanberra

Make 2016 The Year You Stop Making Other People Rich And Start Taking An Interest In Your Financial Advice Future!

If you studied your financial advice affairs very closely and knew what to look out for, you might be astounded at how many people and organisations silently benefit from your investments in ways you have not thought possible.

Every dollar that someone discretely takes from your superannuation as a fee, commission or other payment is a dollar less for you to spend in retirement. Additionally, you shouldn’t think you can rely on The Future Of Financial Advice (FOFA) Legislation to protect you because it almost certainly will not.

If this topic strikes a nerve with you then it’s time you stopped thinking about it and started doing something about it. If you suspect your fees are too high then it’s definitely time for you to do something about it.

What should you do next? It’s really simple: if you have a reasonable superannuation balance and wish to cost effectively invest with sound financial advice for a more secure financial future, contact us today to see how we can help you understand things more clearly.

#financialadvicecanberra #financialadvisercanberra #financialplannercanberra

An Experienced Financial Adviser In A Boutique Financial Advice Business Can Be A Very Powerful Combination!

To be able to feel truly confident that you can trust your financial adviser, you have to be sure they are able to influence important business decisions that affect you and act in your best interests.

If your financial adviser is a Director or a key senior manager in the financial advice business then they can possibly influence important business decisions that affect you.  If they are simply an employee then it is possible they are compelled to follow company policy that they do not fully support and may not be able to share their true feelings with you.

The Future Of Financial Advice (FOFA) Legislation was intended to fix many of the perceived problems associated with Financial Planning.  Unfortunately, while large institutions are able to deliver financial planning services and also be involved in the manufacture of in house investment products, FOFA will to a large degree continue to be ineffective.

We have all seen the very effective industry super fund advertisements where the point is clearly suggested that big institutions offering multiple services may not be acting in clients best interests when it comes to superannuation.  Keep this in mind if your adviser starts suggesting you access a broader range of in house services.

When considering multiple services from one business, consider whether the business can provide all of the professional services you require, are the absolute best providers of those services and are also the most cost effective?  A highly unlikely scenario we would suggest, so always consider comparing another specialist professional in your area of need that is not part of a large institution.

It might be convenient for you to access services from a so called “one stop shop” but you are likely to get better results by allowing your trusted adviser to refer you to other externally road tested professionals where there is great service and knowledge, and no incentives or conflicts of interest associated with the referral.  In a large institution, you should expect in house referrals are linked to performance bonuses or other similar incentives which create conflicts of interest.

If you want to play an important role in changing the financial planning landscape for the better, consider distancing yourself from the large financial advice institutions and aligning yourself with a smaller financial advice business but only make the switch if you are confident in the proposal and it makes sound financial sense.

What should you do next?  It’s really simple: make contact with us to see how we can help you understand things more clearly.  Our clients are very confident in our integrity, knowledge, experience and capabilities.

#financialadvicecanberra #financialadvisercanberra #financialplannercanberra #financialadvicedickson #financialadviserdickson #financialplannerdickson

The ASIC Financial Advisers Register Is Finally Up And Running!

It has been a very long time coming, but you can now check and compare financial adviser history, experience and authorisations on a single website.

The ASIC Financial Advisers Register is intended to be unbiased and allows you to compare financial advisers on a purely factual basis.  Importantly the Financial Advisers Register discloses any past disciplinary actions that have been taken against the financial adviser.

Click on the following link to check out the information that is now available on the ASIC Financial Advisers Register.


Women And Superannuation: It’s Time For Some Serious Girl Power!

The Australian Taxation Office recently noted that women retire with significantly less superannuation than men.  It is therefore very important for women to take early and proactive action, as it is too late to be worrying about your superannuation when you are approaching retirement.

It is estimated that approximately 90% of women retire with inadequate super and that men retire with around $90,000 more in superannuation than women.

Approximately 250,000 workers also miss out on employer superannuation contributions on their employment earnings because they fail to earn $450 per month.  Of the 250,000, a large percentage of them are likely to be women.

Part of the solution could be to find ways to make additional contributions to your superannuation.  Either salary sacrifice or personal superannuation contributions could be considered depending on circumstances, along with other options like splitting superannuation with your partner.

A small contribution every month over a very long period of time can make a huge difference to your superannuation balance at retirement.  Also, regularly making a personal contribution where it qualifies for the Government Co-contribution can also help.

Another possible part of the solution could be to make a conscious choice in selecting your superannuation fund.  If you use your employer’s nominated superannuation fund, make sure it is cost effective and that you understand how it is being invested.

HOT TIP:  Don’t make the mistake of not thinking about your retirement because it is still a long way away.  Like any important goal, the sooner you start planning and taking action, the greater your ultimate chance of success!


If You Receive Financial Planning Advice, Mortgage Advice, Or Insurance Advice From A Business That Also Owns Or Has A Financial Interest In The Product, Are You Guaranteed The Best Deal?

We know from experience that it might be very convenient to receive a number of services from one organisation and to also use their products, but the reality is you may do much better by shopping around.

If you are unsure if your adviser or their business has an interest in the product being recommended, carefully read the disclosure section of your written advice.  This exercise may surprise you.

Hot Tip: Always shop around and test the market with a few service and product providers before making a final decision to purchase or invest in anything.


How Long Will It Be Before The Family Home Is Included In The Age Pension Assessment?

The reality is that the Age Pension asset test assessment is quite generous for wealthy Australians.  Some readers may not be aware but the family home is now automatically considered in Aged Care Assessments for post 1 July 2014 entrants where it is not occupied by a protected person.

The current Australian property boom has sparked some discussion about so called asset rich retirees and their Age Pension entitlements.

If a retiree couple has a $1m family home and that is all they have in terms of their assets, it would be unfair to penalise them in their Age Pension entitlements.  On the other hand if a wealthy retiree couple has a $2m family home and $1m in investments/superannuation, some would say they do not deserve to receive a part Age Pension and the additional tax payer funded benefits that come with that.

If we put the politics aside, it would not be hard to fairly resolve this issue for the majority but it would involve penalising some wealthier retirees.  One option could be to conduct an initial assessment (excluding the family home) and if the retiree has investment/superannuation assets above a specified threshold, a portion of the family home could then considered as a second round of the assessment if it is also above a nominated threshold (say $1m).

With the constant reminders of the costs of funding an ageing Australian population, it is a conversation that needs to be had as the current arrangements are not sustainable for future generations.

My guess is that we will see some significant changes to the Age Pension Assessment criteria in the next decade but it will not be a popular decision.