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

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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

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

Not All Industry Super Funds Are Super!

Don’t be fooled by sales and marketing into believing 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, the most expensive industry fund account we found for either super or pension was $1,115 p.a. (2.23% p.a.) which seems very expensive to us!

HOT TIP: Don’t be fooled by industry fund sales and marketing. The need for honest and practical financial advice has never been greater, so 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.

www.financialadviceshop.com.au

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

#industrysuper #industrysuperfundfees

Are You Being Ripped Off With High Superannuation And Investment Fees?

There has never been a better time to review your superannuation investments and consider options to reduce costs. If you do not take action, you can be 100% sure that no one else will and you should not feel secure simply because you are using an industry super fund.  You should also not underestimate the negative effect high fees could have on your financial security.

In recent years, superannuation and investment costs have been steadily falling but unfortunately those costs are often not passed on to investors and often increase when members retire. There are a variety of reasons why so many investors are not benefiting from lower superannuation and investment costs, some of which relate to conflicted financial adviser remuneration and commissions that are paid from inflated fees.  If you have been invested in a financial superannuation or investment product for a number of years, it is time for a review!

None of the superannuation or investment recommendations from The Financial Advice Shop have hidden fees or commissions so you can be confident they are extremely cost effective and represent excellent value for money. Our superannuation and investment offering is very unique and it is a fact that we regularly save many new clients thousands, and in some cases tens of thousands, of dollars in ongoing fees every year.

While you are thinking about fees, make sure you also think about your strategy and the risk in your investments! We know from experience that it is extremely rare that improvements and refinements to existing strategies will not yield improved results.

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

www.financialadviceshop.com.au

#superannuationfees #superannuation #financialadvicecanberra #superannuationcosts #financialplannercanberra #financialplanningcanberra #retirementplanningcanberra

To Reduce Fees On Your Superannuation And Improve Your Financial Situation It Is Never Too Late To Seek A Second Opinion!

It is a fact that over the last 5 years investment costs in superannuation have reduced considerably but for many investors those fee savings have not been passed on.  In some instances, the larger financial planning businesses have been moving clients into in-house superannuation products to protect their commissions and profits, and as a result fee savings are not passed on to investors.

In what has been an impulsive rush to Industry Funds, it should not be forgotten that all Industry Funds are not created equally and many very competitive retail options are now available.  If you investigate this issue thoroughly you will find that Industry Fund fees vary very significantly and it is surprising to many that the cost of pension accounts can be significantly higher than superannuation accounts.

It is also a fact that superannuation legislation has changed significantly over the last 5 years and many of the strategies of the past are not the right strategies for the future.

The best way to tackle these issues is to seek a second opinion from someone who has the knowledge and experience to understand all of the issues and guide you through them.  As part of that discussion you may well be provided with an insight into some financial planning strategies that could make a real difference and improve your financial situation.

With all of this complexity, isn’t it great to know that The Financial Advice Shop has expertise available to help you make sense of all this and can provide assistance where required.  If you, or someone you know, might benefit from a Financial Advice Health Check or a second opinion on your current superannuation and financial planning strategy, contact us without delay.

www.financialadviceshop.com.au

#financialadvice #retirementplanning #superannuation #financialadvicecanberra #retirementplanningcanberra #financialplanningcanberra #financialplannercanberra #superannuationadvicecanberra #financialadvisercanberra

If You Or Someone You Know Has Recently Lost An Entitlement To The Age Pension: Continue Reading!!

The rules for Age Pension entitlements change on 1 January 2017. For a large number of retirees being assessed under the Assets Test, this has meant they have lost their entitlement to a Part Age Pension.  It is estimated that approximately 326,000 people will be adversely affected by these changes.

A summary of the old Age Pension Assets Test rules versus the new Age Pension Assets Test rules are as follows:

Disqualifying limits for the Full Age Pension*

  2016 Rules 2017 Rules
Single homeowners full pension assets must be less than $209,000 $250,000
Single non homeowners full pension assets must be less than $360,500 $450,000
Couple homeowners full pension assets must be less than $296,500 $375,000
Couple non homeowners full pension assets must be less than $448,000 $575,000

 

Disqualifying limits for the Part Age Pension*

  2016 Rules 2017 Rules
Single homeowners part pension assets must be less than $793,750 $542,500
Single non homeowners part pension assets must be less than $945,250 $742,500
Couple homeowners part pension assets must be less than $1,178,500 $816,000
Couple non homeowners part pension assets must be less than $1,330,000 $1,016,000

*as at September 2016 and some figures may be subject to indexation in the future.

Source https://www.humanservices.gov.au/customer/enablers/assets#assetstestlimits

If you have most of your retirement savings in a superannuation pension account and have lost your entitlement to a Part Age Pension due to changes in the Assets Test, you should consider contacting us.

We regularly find retirees are paying excessive superannuation fees that can usually be dramatically reduced. If we can reduce your fees and investment performance is not compromised, is it likely you will then have more money to spend in retirement?

HOT TIP: The need for honest, transparent and practical financial planning advice has never been greater, so contact The Financial Advice Shop without delay. New client places are strictly limited but to get things started, we can 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.

We have never had anyone say that our Financial Advice Health Check wasn’t value for money! If you are referred by someone we know, you will even get a discount!

www.financialadviceshop.com.au

#agepension #partagepension #agepensionchanges #agepensionchanges2017 #retirementplanningcanberra