New Wave Financial Advice

Recently there has been a constant stream of negative publicity about the financial planning profession with numerous inquiries and major reforms taking place.  Estimates also suggest that only 10 to 20% of the adult population have received professional financial advice.

Despite this background and poor take up amongst the general population, there is a growing need for financial advice for several different reasons.

WHY YOU NEED FINANCIAL ADVICE

Funding your own retirement

  • The age pension is getting harder to access and the governments’ ability as documented in the 2015 Intergenerational Report to maintain payment is under pressure from an ageing population;
  • With increases in longevity, retirement years may be as long as working years;
  • With advancements in technology you may not have full time work leading up to retirement and may need to work longer than planned in a reduced capacity;
  • The burden in Australia is on the individual to make good decisions about their own retirement and be exposed to the vagaries of market forces.

Living Standards

  • The retirement savings gap  in Australia is one of the highest in the world;
  • Despite our prosperity and increase in living standards, debt levels have been steadily increasing;

Complexity & Cost

  • An increase in regulation to protect you from poor advice has resulted in an increase in the complexity of advice which can be difficult to understand and out of reach for those that need it the most;
  • The internet has increased the availability of information to ‘overload’ levels increasing general awareness but not a willingness or drive to take action.

Products and Product Providers

  • The growth in the superannuation industry has resulted in a rapid growth in the number of financial products available and product providers promoting the use of their own financial products. An example is the growth in the self-managed superannuation fund (SMSF) industry which now accounts for 55% of all superannuation savings;

Products such as SMSFs are not a solution in themselves but part of the solution.

NEW WAVE FINANCIAL ADVICE

Right Advice

Financial advice has traditionally been targeted at those with the largest sums of money to invest, because they are considered to be better able to pay for the advice. Whilst this makes commercial sense, there is a large percentage of adults who do not have vast sums of money to invest, but where advice can have a large impact on their financial life:

  • Business people who have invested all their time and energy in their business and have little or no retirement savings;
  • Retirees who need advice on the best way to access the age pension or aged care;
  • Young families who need to balance lifestyle with saving for a house and educating their children;
  • Pre-retirees who are concerned about the ability to fund their own retirement; and
  • Single widows who are concerned about who will look after them as they get older.

Right Time

In the past financial advice has been provided in a holistic way covering your entire financial life. This process does not suit everyone. You may require financial advice at different stages of your life including:

  • Setting up a plan to protect your family from life’s unexpected events ;
  • Planning the best way to invest a redundancy payment;
  • Establishment of clear measurable goals based on the life you want for you and your family;
  • Preparation of an investment strategy suitable for your life stage that you feel comfortable with and understand;
  • Having a plan to reduce your non-deductible debt over time and use debt effectively to create wealth;
  • Review and updating your estate plan to pass your wealth to your beneficiaries at the right time in a tax and asset protective way;
  • Developing a legacy plan so that you can pass on your values as well;
  • What to do with an inheritance?;
  • Reviewing your tax structures so that your income is accumulated in a tax and asset protective way; and
  • Establishing a transition plan from full time work to retirement.

Right Environment

Financial advice must be provided to you in a way that is suitable for your circumstances. Key factors that encourage this include:

  • Understanding your behavioural characteristics and what makes you happy;
  • Matching an appropriate adviser that you can trust;
  • Providing the advice in a setting that you suits your circumstances; including via social media or video conferencing; and
  • Provided in a location that is suitable for you.

Being able to receive the right financial advice, at the right time and in the right environment at different stages of your life will provide you with peace of mind that your affairs are in order and help you live the life you dream of.

 


General Advice Warning: Any advice on this site is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.


General Advice Warning: Any advice on this site is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.